ICICI Bank, Dalmia Bharat And More - Top Stock Picks For Diwali And Samvat 2078: Yes Securities

Yes Securities Report

Top stock picks for Diwali - Samvat 2078

ICICI Bank Ltd.

Non-lending businesses contribute 19-21% to the overall of State Bank of India, ICICI Bank and Kotak Mahindra Bank Ltd., specifically, 20% for ICICI Bank, whereas, for other banks in our 11-bank coverage universe, at 0-5%, such businesses do not move the needle in terms of augmenting overall shareholder . We factor in -

• contingent Covid-19 provisions,

• other excess provisions,

• provisions on restructured book and

• specific provisions and note that these provide the highest coverage for non-performing asset plus restructuring estimate for ICICI Bank at 89% of said combined stressed book.

Dalmia Bharat Ltd.

Dalmia Bharat (pan India fourth largest player) holds ~6% of the pan India capacity share with the total cement capacity of 33 million tonnes per annum.

While its ~63% (as of September 2021) of cement capacity is mounted in the east that makes him the largest player of the east market holding ~16% capacity share of the east.

Supported by the strong profitability, we expect Dalmia Bharat to generate a robust free cash flow of Rs 30 billion post-Capex of Rs 23 billion over FY22/23E and aid to fund its future Capex without pressurising its balance sheet.

Click on the attachment for full list of Yes Securities' Diwali stock picks:

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