Despite the recent correction in Indian equities, ICICI Securities remains constructive on the market, arguing that the selloff reflects external pressures rather than any meaningful deterioration in corporate earnings. With Q2 FY27 earnings showing strong growth, valuations slipping below their long-term averages, and the domestic earnings cycle gaining momentum, the brokerage believes the risk-reward equation is turning more favourable for investors.
It expects the Nifty 50 to deliver healthy double-digit returns over the next 12 months, with quality mid- and small-cap stocks offering opportunities as markets increasingly shift their focus from liquidity and valuations to earnings delivery. The brokerage's Muhurat Trading picks include Venus Pipes and Tubes, Kotak Mahindra Bank, Zydus Lifesciences, Info Edge, Adani Ports and SEZ, Apollo Micro Systems, Neogen Chemicals, Indian Hotels, Saregama India and Ethos.
Muhurat Trading picksKotak Mahindra BankICICI Securities expects Kotak Mahindra Bank to deliver 20–22% advances growth, supported by a gradual recovery in net interest margins and sustained moderation in credit costs. These factors are likely to drive earnings growth and improve return on assets (RoA) over FY27–FY28, the brokerage said.The brokerage values the standalone bank at 2.4 times its FY28 book value and its subsidiaries at ₹127 per share.
It has maintained a Buy rating on the stock with a target price of ₹540.Key risks: ICICI Securities flagged two key risks: an adverse change in the business mix that could dilute margins, and slower-than-expected business growth.Venus Pipes and TubesICICI Securities noted that Venus Pipes and Tubes has recently completed a fresh equity raise through a preferential allotment, with the proceeds primarily intended to pare debt.
This is expected to significantly strengthen the company's balance sheet and could make it net debt-free in FY27E. The resulting reduction in interest expenses is likely to support profitability and prove accretive to earnings per share (EPS), the brokerage said.The brokerage expects Venus Pipes to sustain strong growth across its established businesses as well as emerging segments, driven by strategic diversification and an expanding portfolio of niche products.
It also highlighted the company's improving balance sheet, expected to turn net cash-positive, and its healthy double-digit return ratios as key positives.On the back of these growth prospects, ICICI Securities has reiterated its BUY recommendation on the stock with a target price of ₹2,340, based on a valuation of 30 times its estimated FY28 earnings.Key risks: A slowdown in the capital expenditure cycle across end-user industries and global geopolitical tensions that could trigger intermittent business volatility.ZydusICICI Securities expects the company's upcoming product launches to offset the waning momentum of its earlier launches and support the next phase of growth.
The brokerage highlighted the rare and orphan disease segment as a key emerging opportunity, which could strengthen the company's growth prospects over the coming years.With its key business segments expected to remain resilient and a pipeline of new launches providing additional growth drivers, ICICI Securities believes the company is well-positioned for sustained growth. It has assigned a BUY rating with a target price of ₹1,480, valuing the stock at 28 times its estimated FY28 earnings per share (EPS) of ₹52.9.Key risks: The brokerage flagged potential delays in the launch of niche products, particularly in the US market, and the possibility that higher research and development spending on innovative products may generate lower-than-expected returns.Neogen ChemicalsICICI Securities believes Neogen Chemicals has the capabilities across both electrolytes and salts to cater to the requirements of Indian battery manufacturers seeking to indigenise battery material production.
With the necessary ecosystem in place to tap opportunities in the electric vehicle (EV) space, the brokerage sees Neogen as an attractive investment proposition.The brokerage has assigned a BUY rating on the stock with a target price of ₹2,765, valuing the company at 20 times its estimated FY28 EBITDA.Key risks: ICICI Securities highlighted delays in the ramp-up or offtake of the battery chemicals business and volatility in the prices of key raw materials, particularly bromine and lithium, as potential risks.Info EdgeICICI Securities expects Info Edge to deliver a revenue CAGR of around 14.8% over FY26–FY28, with margins projected to improve to 44% by FY28 from 40.9% in FY26.
The brokerage believes the company is well-positioned to benefit from a sustained recovery in recruitment demand, better monetisation of AI-led offerings and a gradual improvement in profitability at 99acres and its matchmaking business.It also sees potential value unlocking from the company's investment portfolio, which could provide an additional upside trigger. Based on these growth prospects, ICICI Securities has assigned a BUY rating to the stock, with a target price of ₹1,530, derived from a sum-of-the-parts (SoTP) valuation.Key risks: The brokerage flagged a slower-than-expected recovery in recruitment and hiring activity, along with continued weakness in Shiksha due to AI-driven disruption in search traffic.Saregama IndiaICICI Securities expects Saregama India's EBITDA margin to improve gradually, driven by operating leverage, to 34.7% in FY27 and 35.5% in FY28, compared with 34.2% in FY26.
The brokerage expects healthy revenue growth, coupled with stable margins, to translate into an earnings CAGR of around 25% over FY26–FY28, alongside an improvement in return ratios.The brokerage has assigned a BUY rating on the stock with a target price of ₹650, valuing it at 38 times its estimated FY28 earnings per share (EPS). It believes accelerated monetisation through paid subscriptions could emerge as a key growth driver for Saregama over the medium term, particularly as early signs of subscription-led monetisation become visible across digital platforms.Key risks: ICICI Securities highlighted slower-than-expected growth in music licensing and higher losses from the company's foray into films as key risks.Adani Ports & SEZICICI Securities said Adani Ports and Special Economic Zone (APSEZ) has increased its FY27 capital expenditure (capex) guidance by ₹3,000 crore to ₹15,000–17,000 crore.
The higher spending is primarily directed towards expanding its domestic ports, particularly Mundra, Dhamra, Vizhinjam and Hazira, as the company looks to capitalise on stronger growth opportunities in India. APSEZ had incurred capex of ₹10,521 crore in H1 FY27.The brokerage highlighted the company's Ambition 2031 vision, under which it aims to double its cargo-handling capacity to 1 billion metric tonnes (MMT) from 500 MMT in FY26.
The plan also involves scaling up its logistics and marine infrastructure. APSEZ aims to increase its fleet of vessels from 136 to more than 200, expand its train capacity from 132 to 200 rakes, and grow its network of multi-modal logistics parks from 12 to 16.Additionally, the company plans to expand its warehouse capacity from 3.1 million square feet to 12 million square feet and increase its owned truck fleet from 937 to 2,000 vehicles.Over FY26–FY31, APSEZ is targeting compound annual growth rates (CAGRs) of 19% in revenue, 18% in EBITDA and 18% in net cash flow from operations (CFO).Taking these expansion plans and growth targets into account, ICICI Securities has maintained a BUY rating on the stock with a target price of ₹2,210.Key risks: The brokerage flagged an escalation in geopolitical tensions and delays in regulatory approvals that could stall the company's expansion plans as key risks.Apollo Micro SystemsICICI Securities said it has not yet incorporated the consolidation of Premier Explosives into its FY27E and FY28E estimates, as it awaits the completion of the mandatory open offer for an additional 26% stake in the company.The brokerage has assigned a BUY rating on the stock with a target price of ₹485.
The valuation is based on 60 times the consolidated FY28E price-to-earnings (P/E) multiple, along with an estimated value of ₹67 per share for Premier Explosives.Key risks: ICICI Securities highlighted the company's dependence on government contracts, high working capital requirements and the availability of key raw materials as potential risks.EthosICICI Securities said the company's strong balance sheet is expected to support a healthy return profile, with return on capital employed (RoCE) and return on invested capital (RoIC) projected at 16.2% and 18.2%, respectively, in FY29E.Taking into account its financial strength and return prospects, the brokerage has assigned a BUY rating on the stock with a target price of ₹3,180.Key risks: The brokerage flagged a depreciation of the Indian rupee against the Swiss franc (CHF) and rising competitive intensity from global players as key risks to earnings.
Indian HotelsICICI Securities expects sustained asset upgrades, healthy growth in revenue per available room (RevPAR) and improving international business performance to drive a margin expansion of around 200 basis points to nearly 35% by FY29E.Given the favourable industry outlook and the company's growth prospects, the brokerage has maintained a BUY rating on the stock with a revised target price of ₹990.Key risks: The brokerage cautioned that unforeseen domestic or global events could affect room demand, while delays in planned launches could weigh on the company's overall growth.Disclaimer: This story is for educational purposes only.
The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
