India's equity valuations getting 'uncomfortable', ICICI Securities says

Astra Microwave Products

11/03/2024 09:33

** ICICI Securities says India's equity valuations are
getting more uncomfortable as market price rise higher than
earnings expansions, especially in small-, mid-caps
    ** Says this could lead to upward earnings revisions,
reducing margin of safety in such stocks
    ** Sees March 2025 target for Nifty 50 at 24,800, 10% upside
from current levels 
    ** Lists Larsen and Toubro  LART.NS , Bharat Heavy
Electricals  BHEL.NS , Jindal Steel And Power  JNSP.NS , Astra
Microwave  ASTM.NS , Oil and Natural Gas Corp  ONGC.NS  as its
top picks
    ** Nifty 50 index up 3% YTD after rising over 20% last year
    ** Nifty small-cap  .NIFSMCP100  down 1.5%, mid-caps
 .NIFMDCP100  down 0.1%
    ** LART, ONGC down 1%, BHEL declines 0.5%, JNSP dips 0.9%,
ASTM falls 1.8%

 (Reporting by Sethuraman NR in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))