10 largecap stock ideas with upside potential of up to 22% from Axis Securities
Domestic brokerage firm Axis Securities states 27,000 as their bull case March 2025 target for Nifty, presuming an overall reduction in volatility and the success of a soft landing in the US market.
Meanwhile, the base case target for Nifty stands at 24,600 as the brokerage firm has confidence in the current macroeconomic cycle and earnings growth.
On the premise of the above analysis, Axis Securities has listed the following largecap stocks with an upside potential of up to 22% as their top picks:
Target price: 1,325 | Upside potential: 10.8%
Target price: Rs 473 | Upside potential: 5%
The company’s FY24 production exceeded the target of 770MT and stood at 774MT (coal offtake stood at 754 MT, up 8.4% YoY). Coal India has ambitious coal production and offtake targets for FY25/FY26 of 838/1,000MT.
Target price: Rs 2,880 | Upside potential: 12.7%
Axis bets on the ‘RURBAN’ for Nestle as the rural accounts for 20% of sales and the management highlighted that its various initiatives such as HAAT activations, improving shop visibility through RURBAN smart stores, and implementation of Project Swabhimaan to empower rural women (similar to HUL’s Shakiamma’s) is bearing fruits in overall rural growth.
Target price: Rs 1,010 | Upside potential: 22%
Loan growth and margin sustenance are unlikely to remain a challenge. This coupled with improving fee income profile, reducing operating expenses and declining credit cost, it is expected that SBI would continue delivering a healthy RoA/RoE of 1.1-1.2%/16-18% over the medium term. Among PSU banks, SBI, with a healthy PCR, adequate capitalization, a strong liability franchise, and an improved asset quality outlook, remains the best play for the resilient Indian economy.
Target price: Rs 1,830 | Upside potential: 15%
Varun Beverages is expected to continue its strong growth momentum on account of 1) successful strategic acquisition of the Beverage Company, thereby consolidating its presence in South Africa and DRC, 2) continued focus on expansion in its distribution reach, mainly in rural areas and 3) commissioning of multiple green field and brownfield facilities across geographies, strengthening manufacturing capabilities and extending market reach, thus saving significant transportation costs.
Target price: Rs 2,000 | Upside potential: 15.3%
Key considerations: (a) Improving profitability metrics- RoA and EPS, (b) Ensuring sustainable deposit growth alongside delivering strong growth in the retail deposit franchise, (c) Investing in distribution, workforce, and technology/digital infrastructure and (d) Unabated focus on quality with a balance between margins and risk.
Target price: Rs 1,650 | Upside potential: 15.3%
Axis retains Bharti Airtel due to the company's superior margins, impressive subscriber growth, and increased 4G conversions.
Target price: Rs 2,700 | Upside potential: 15.8%
Being well-placed among listed players, the company’s Revenue/EBITDA/PAT is expected to grow at 17%/21%/25% CAGR over FY24E-26E. TVS is preferred because of its engineering and R&D capabilities, strong domestic retail network, export recovery, and increasing sales volumes from premium offerings in developed countries.
Target price: Rs 1,575 | Upside potential: 12.7%
The company has guided growth momentum to sustain with AUM growing at 25% over FY25, sustaining the current NIM as improving product mix offset the rising cost of funds. This will be primarily driven by non-VF businesses. With margins expected to remain stable around the current levels and strong AUM growth, NII is expected to report healthy growth.
Target price: Rs 1,650 | Upside potential: 11%
HCL Tech is well-placed to encourage long-term growth, given its multiple long-term contracts with the world’s leading brands. Enhanced revenue visibility instills confidence in its future business growth. However, rising concerns over business uncertainties in large economies and ongoing supply-side constraints present challenges for the company’s growth prospects moving forward.
