ICICI Securities has identified 10 mid- and small-cap stocks with expected upside ranging from 16% to 41% based on target prices. According to the brokerage's latest 'Top Fundamental Picks of the Month', these companies span sectors including capital goods, healthcare, hotels, banking, auto ancillaries, building materials, real estate and retail. The recommendations come as investors seek fundamentally strong stocks offering meaningful upside after recent market rallies.
Shriram Properties tops the list with a target price of ₹125 against the current market price of ₹89, implying a potential upside of 41%. As reported by ICICI Securities, the residential developer has a strong unsold project portfolio worth around ₹13,429 crore across nearly 20 million sq ft, along with an additional 26 million sq ft pipeline. The proposed resolution of its Kolkata land parcel could unlock value equivalent to around 72% of the company's current market capitalisation.
Narayana Hrudayalaya has a target price of ₹2,310, indicating an 18% upside from the CMP of ₹1,962, driven by a ₹3,000 crore capital expenditure and revenue growth from UK operations. According to ICICI Securities, the healthcare chain's planned capital expenditure over the next two to three years, expansion in India, ramp-up of its Cayman Islands integrated model and higher contribution from UK operations are expected to drive revenue CAGR of around 24% over FY26-FY28E.
Action Construction Equipment has a target price of ₹1,360 versus a CMP of ₹1,005, indicating an upside potential of 35%. The brokerage highlighted that the company is India's leading material handling and construction equipment manufacturer with leadership in mobile and tower cranes. Engineers India has a target price of ₹315 against a CMP of ₹240, suggesting an upside of 31%, with expected revenue and profit after tax CAGR of 16% and 18% respectively over FY26-FY28E.
South Indian Bank features with a target price of ₹52 compared with the CMP of ₹45, indicating a potential upside of 16%. ICICI Securities expects the lender's calibrated shift towards higher-yielding retail and MSME loans, along with benign credit costs and controlled operating expenses, to improve profitability. Apollo Tyres rounds off the list with a target price of ₹500, implying an upside of 16% from the CMP of ₹432, with the brokerage upgrading the stock to Buy citing a healthy balance sheet and ongoing capacity expansion plans.
