Axis Securities' top stock picks include ICICI Bank, Maruti Suzuki India, State Bank of India, Lupin Ltd, Federal Bank, Varun Beverages, TVS Motors, Bharti Airtel, PNC Infra, ITC, Relaxo Footwears, CIE Automotive India, Bank of Baroda, Westlife Foodworld, CreditAccess Grameen, and JTL Industries.
Axis Securities has raised its December'24 Nifty Base case target to 23000. In their base case, they assume continued political stability and, as a result, visibility on policy continuity following the 2024 general elections.
Axis Securities continues to trust in India's long-term growth story, which is supported by the evolving favorable structure as banks increase Capex and boost loan growth. According to Axis, these factors would ensure that Indian equities easily produce double-digit returns in the next 2-3 years with the help of double-digit profits growth. They forecast a 14% CAGR increase in Nifty earnings between FY23 and FY26.
Axis Securities stays bullish on ICICI Bank Ltd, State Bank of India, Bank of Baroda, mid-size Federal Bank, and small cap CreditAccess Grameen Ltd among the Financials. Axis Securities' target prices of 1250 for ICICI Bank, 715 for SBI, 255 for Bank Of Baroda, 180 for Federal Bank, and 1935 for CreditAccess Grameen represent a 32%, 25%, 26%, 21%, and 14% upside for all of these stocks, respectively.
In the Auto space, Maruti Suzuki India Ltd with a target price of 11,800 and TVS Motor Company with a target price of 2100 show a 10-11% upside.
Axis Securities' picks are Varun Beverages Ltd and ITC Ltd, with target prices of 1200 and 540, implying 10% and 20% upside, respectively. Axis Securities' top pick in the Communication Services sector is Bharti Airtel, with a target price of 1155 implying a 14% upside.
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Consumer discretionary companies such as Relaxo Footwears, CIE Automotive India Ltd, and Westlife Foodworld Ltd have target prices of 915, 485, and 894, respectively, indicating an upside of 11-21% from the current market price.
Lupin Ltd, a pharmaceutical business, is one of Axis Securities' top recommendations, with a target price of 470 implying a 13% upside. Axis Securities' top picks in the Materials category are JTL Industries Ltd in the Materials space and PNC Infratech Ltd in the Industrials space, with target prices of RS 285 and 415, respectively.
