Finance News : ICICI Securities is keen on returns of up to 27% on these 2 midcap stocks

Buy TCNS clothing with 27% potential side upward

TCNS Clothing, founded in 1997, is a mid-cap company in the apparel sector with a market capitalization of Rs 3,484.02 crore.

According to ICICI Securities, through its three popular domestic brands, TCNS has emerged as a market leader in women’s ethnic areas, thanks to its multi-distribution channel approach and strong supply chain infrastructure.

ICICI Securities TCNS apparel stock rose 27% sideways to Rs 700, from its current market price of Rs 553.


Key triggers for future price-performance:

In FY22, there will be a healthy store addition pipeline by opening basis0 + additional stores (+0+ stores have already been inked).
It continues to expand its omni distribution channel by introducing new business models by developing third party marketplaces and ‘online-first’ product lines.
Create a new integrated warehouse to improve supply chain efficiency and increase B2C delivery (to be set up by December 2021)
15 existing stores were upgraded and expanded into prominent malls and optimal long-term leases on high streets.
Focus on network expansion in third/fourth cities, mostly through franchise-led strategies.

ICICI Securities says buy KNR construction

KNR Constructions Limited is a business in the infrastructure sector with a market capitalization of Rs 8,361.10 crore.

According to Broking Farry, ICICI Securities, irrigation and urban water infrastructure management are two areas where the organization has a strong presence. Over the past three years, the company has reported a CAGR of 24.5 percent of revenue and regularly provided an industry-leading operating margin of 20%. Prudent management, no net debt, and strong return ratio (RoCE:> 23%)

ICICI Securities sees a 20% uptrend in KNR Construction’s stock at Rs 340, with a current market price of Rs 284.

KNR’s share price rises 33% CAGR in five years, says ICICI Securities. We maintain our purchase rating on the company. We give KNR 340 / share price,” ICICI Securities said in its report.

Key triggers for future price-performance:

KNR is expected to be the biggest beneficiary of the growing road and irrigation sector (Water Life Mission)
The position of strong order book, receipt of due date in most of its projects and execution pick-up will result in 18.8% topline CAGR in FY 21-23.
Operating margins are expected to remain high due to the trend of price increase in road contracts and higher profits in irrigation projects.
An asset-light strategy using monetization to create additional cash flow

ICICI Securities is keen on these 2 mid cap stocks with potential returns of up to 27%.
Stock name recommendation targets current market price potential gains
Buy KNR Construction 340 284 20%
Buy TCNS Clothing 700 553 27%


Investors should not make any trading or investment decisions based on the information presented in this article. We are not licensed financial advisors, and the information provided here does not constitute investment advice. This is part of the information gathered from the ICICI Securities Brokerage Report. Please consult an expert. Greenwich Information Technologies Pvt. Ltd., its affiliates, collaborators, authors and brokers assume no liability for any loss or damage resulting from the information in this article.

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