Zomato, ICICI Bank, Titan, SBI and more: MOSL lists top large-cap stock picks for April
L&T: MOSL predicts that Larsen & Toubro's (L&T) growth trajectory will be steered by an 18% surge in order inflows, propelled by a robust pipeline of prospects. Additionally, a gradual rebound in core Engineering, Procurement, and Construction (EPC) EBITDA margin is projected to reach 9.1% and 9.7% by FY25 and FY26 respectively. MOSL highlights the emergence of green shoots and expects ordering to gain momentum post elections, leading to a sector-wide valuation re-rating.
L&T is strategically focusing on expanding its market share by targeting large-scale projects requiring high technical expertise. MOSL anticipates a consolidated revenue growth of 11% year-on-year, driven primarily by a 12% year-on-year growth in Core Engineering and Construction (E&C) revenue. Moreover, an improvement in Core E&C EBITDA margin to 9%, up by 50 basis points year-on-year and 130 basis points quarter-on-quarter, is expected, mainly due to the nearing completion of legacy orders.
SBI: MOSL underscores State Bank of India (SBI) as one of its favored choices within the sector. The brokerage estimates that credit costs will remain manageable at 35-40 basis points, paving the way for a robust 22% earnings compound annual growth rate (CAGR) over FY24-26E. This trajectory is expected to translate into return on assets (RoA) and return on equity (RoE) figures of 1.1% and 19-20% respectively over FY25-26.
SBI has proactively fortified its balance sheet and boasts a robust provisioning coverage of 92% on its corporate book. Positioned well, the bank is poised to achieve a loan growth of 13-14% over FY23-26E, supported by an enhanced disbursement rate for sanctioned loans and a resurgence in corporate demand. Moreover, SBI's asset quality remains
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