Zomato, ITC, ICICI Bank, SBI and more: MOSL lists 10 large-cap stocks to buy ahead of general election outcome
L&T: MOSL noted that the green shoots are visible and the ordering momentum is expected to gather steam in the post-election period and is resulting in valuation re-rating for the entire sector. L&T is focusing on increasing market share by targeting large-sized projects that require high technical qualifications. The brokerage expects consolidated revenue growth of 11% YoY, led by 12% YoY Core E&C revenue growth.
A Core E&C EBITDA margin of 9%, up 50bp YoY/130bp QoQ is expected as legacy orders are near completion. L&T’s growth is expected to be driven by 18% growth in order inflows, led by a strong prospect pipeline; and a gradual recovery in core EBITDA margin, it predicted. SBI: SBI has made a swift recovery in earnings, from a loss of ₹6,500 crore in FY18 to profits of ₹61,100 crore in FY24, highlighted MOSL.
It noted that the lender's business growth remained robust, with a healthy recovery in the corporate segment. SBI's asset quality also remained healthy as GNPA improved & slippages moderated. GNPA/NNPA ratios moderated to 2.24% (lowest in >10 years)/0.57% as on 4QFY24, it added.
The lender reported a steady quarter with steady growth in revenues, while robust asset quality helped the bank maintain strong control over provisioning expenses. It is well positioned to deliver steady earnings, with FY26E RoA/RoE of 1.1%/18.5%, predicted MOSL. ICICI Bank: ICICI Bank reported a healthy performance in 4QFY24, with 17% YoY growth in net earnings.
Credit growth was healthy at 16% YoY/3% QoQ, led by healthy traction in the Retail, SME, and BB segments. Deposit growth surprised positively at 20% YoY. The stable mix of a high-yielding portfolio (Retail/Business Banking) and continued traction in BB, SME, and secured retail
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