Top stock recommendations for the week starting February 3, 2025

Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting February 3, 2025) are ICICI Bank and JK Cement. Let’s take a look:

ICICI
Target Price: 1550
ICICIB delivered steady growth in a challenging environment, with credit costs at 37bp, lower-than-expected slippages & RoA of 2.36%. 9MFY25 advances growth at 11% YoY, continues to outpace peers. PAT for 3QFY25 grew 15% YoY, driven by lower-than-expected provisions & controlled opex. NII grew 9.1% YoY, led by fee income growth of 16.3% YoY while treasury gains stood at ₹3.71b. The bank’s strong cost control and asset quality stability offer continued growth potential. With expected RoA/RoE of 2.2%/16.8% in FY27, the bank remains well-positioned to sustain healthy performance and profitability.
JK Cement
Target Price: 5630
JK Cement delivered above estimated results led by higher other operating income & high volume growth, especially white cement (up 6% YoY). EBITDA/t was INR1,010 vs. our estimate of INR943/t. With its consistent capacity additions and cost-saving strategies, and increasing market share in new regions, JK Cement remains one of the top picks in the cement space. We expect its revenue/EBITDA to post 9%/12% CAGR by FY27E, driven by 10-15% growth in Govt Capex in FY26E & rising market share of its premium products over next two years. Management expects volume growth of 7-8% in 4QFY25 and ~10% in FY26.
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