ICICI Securities’ Latest Market Insights: A Mixed Bag of Recommendations

In a recent flurry of activity, ICICI Securities Ltd, a prominent player in the capital markets, has issued a series of recommendations that reflect a nuanced view of the current market landscape. As of May 21, 2025, the company’s research team has provided insights into several key stocks, offering a mix of buy, sell, and hold signals that investors should consider carefully.

Sell Recommendations: Petronet LNG and Whirlpool of India

ICICI Securities has advised investors to sell Petronet LNG (PLNG), setting a target price of Rs 250. Despite a reported 16% year-over-year and 13% quarter-over-quarter increase in adjusted EBITDA to INR 12.8 billion, and a 21% year-over-year and 19% quarter-over-quarter rise in adjusted PAT to INR 8.9 billion, the firm’s outlook remains cautious. The reported PAT stood at INR 10.7 billion, buoyed by an INR 2.3 billion reversal of a provision, which may not be sustainable in the long term.

Similarly, Whirlpool of India has been marked for a sell, with a target price of Rs 980. Although the company’s Q4FY25 performance was strong, with likely market share gains in refrigerators and washing machines, ICICI Securities believes that the revenue growth was primarily volume-driven, with negligible price hikes. This could limit future growth potential in a competitive market.

Buy Recommendations: Hindalco Industries, Bharat Electronics, and ACME Solar Holdings

On the flip side, ICICI Securities has identified several stocks with strong buy potential. Hindalco Industries is a standout, with a target price of Rs 770. The company’s Q4FY25 performance exceeded both ICICI’s and consensus estimates, with consolidated EBITDA rising 44% year-over-year to INR 96 billion, driven by its upstream aluminium division.

Bharat Electronics (BEL) also received a buy recommendation, with a target price of Rs 420. The company’s Q4FY25 and FY25 performance surpassed expectations, with both revenue growth and EBITDA margin guidance exceeded. FY25 order inflow stood at INR 193 billion, indicating robust demand for its products.

ACME Solar Holdings is another stock to watch, with a target price of Rs 350. The company reported a strong set of numbers, with revenue growing 65% year-over-year to approximately INR 5 billion and EBITDA surging 117% year-over-year to INR 4.4 billion. The healthy EBITDA margin of around 90% and an adjusted PAT of INR 1.4 billion (compared to a loss of INR 0.5 billion in Q4FY24) underscore its strong performance.

Market Overview: Sensex and Nifty Trends

The broader market context on May 21, 2025, saw the Sensex off by 550 points from its day’s high, with the Nifty trading below 24,850. Financial and metal stocks weighed down the indices, while the India VIX, often referred to as the fear gauge, climbed 3%, reflecting increased market volatility.

IPO Highlights: Leela Hotels and Belrise Industries

In the IPO space, Schloss Bangalore (Leela Hotels) is set to launch its initial public offering (IPO) on May 26, 2025. The ₹3,500-crore issue comprises a fresh issue of 57.5 million shares worth ₹2,500 crore, with the company valued at Rs 14,527 crore at the upper price band.

Belrise Industries, an automotive component manufacturing company, has also opened its IPO for public subscription. The company seeks to raise ₹2,150 crore from the public, with the GMP up by 17%, making it an attractive proposition for investors looking to diversify their portfolios.

Solar Sector Spotlight

A leading solar cell manufacturing stock has garnered attention after ICICI Securities projected a potential upside of 26%, driven by the company’s strong quarterly performance. This bullish outlook reflects growing investor confidence amid rising demand for renewable energy solutions.

In summary, ICICI Securities’ latest recommendations provide a comprehensive view of the market, highlighting both opportunities and risks. Investors should consider these insights in the context of their broader investment strategies and market conditions.