Check Axis Securities' top stock picks amid festival season
The third quarter (Q3), being the festive season in India is expected to lead to robust demand, leveraging which the Indian Equity market should continue to outperform other emerging markets.
Based on Q2FY22 earnings, volatility rise, deliver in value and quality; opportunities in the small and mid-caps, and earnings momentum Axis Securities has recommended the following stocks - ICICI Bank, SBI, Federal Bank, Equitas Small Finance Bank, Varun Beverages, Camlin Fine Sciences, Mold-Tek Packaging, Amber Enterprises India, Minda Corporation, Krishna Institute of Medical Sciences, Tech Mahindra, Bharti Airtel, HCL Technologies, Orient Cement, Ashok Leyland, Bajaj Auto.
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
ICICI Bank
Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help ICICI's ROAE/ROAA expansion over FY22-23. Target Price is Rs 810
State Bank of India
Axis Securities believes SBI’s unsecured lending profile is robust with >90% comprising salaried government employees. Target Price is Rs 555
Federal Bank
Key positives are increasing retail focus, strong fee income, adequate capitalization, and prudent provisioning. Given strong underwriting standards, changing loan mix, and strong retail deposit franchise, Axis Securities expects the bank’s valuation to improve from current levels if asset quality trends are maintained and ROA improvement keeps on track. Target Price is Rs 100
Equitas Small Finance Bank
Equitas Small Finance Bank has been proactively reducing the share of MFI loans to build a strong, diversified, and secured product-dominated book. Target Price is Rs 76
Varun Beverages
With the opening up of the economy and rise in out-of-home consumption, Axis Securities expects VBL to gain further in-roads in the acquired territories of South & West. Target Price is Rs 1020
Mold-Tek Packaging
During Q1FY22, MTEP has seen improving traction to its innovative product - ‘QR Code Printed IML’ which offers traceability and anti-counterfeit solutions in the supply chain. Target Price is Rs 680
Camlin Fine Sciences
Global demand for CFS’s products remains robust despite the ongoing pandemic situation. Target Price is Rs 215
Amber Enterprises India
While COVID 2.0 poses uncertainties on the company’s near-term outlook, Axis Securities believes its long-term growth prospects remain intact. Target Price is Rs 3,654
Minda Corporation
The company’s 3x3x3 EV strategy will provide complete drive-train solutions to 3 segments - 2Ws/3Ws/Entry cars. Target Price is Rs 148
Krishna Institute of Medical Sciences
KIMS has planned to add an incremental bed capacity of 1,500 (50%) from the current bed capacity of 3,065 over the next 36-40 months. Target Price is Rs 1,570
Tech Mahindra
Tech Mahindra has a resilient business structure and better revenue growth visibility from a long-term perspective but is trading at discount as compared to its Indian peers. Target Price is Rs 1600
Bharti Airtel
Airtel is gaining momentum with strong customer addition and market share gain. Target Price is Rs 770
HCL Technologies
HCLT has a resilient business structure from a long-term perspective. Target Price is Rs 1,410
Orient Cement
The company reported stellar Q1FY22 results as Volume, Revenue, EBITDA, PAT grew by 66%, 28%, 89%, 247% on a YoY basis respectively. Target Price is Rs 205.
Ashok Leyland
Ashok Leyland continues to focus on reducing its dependence on the cyclical truck business by increasing the revenue share of Exports, Defence, Power Solutions, LCV, and after-sales spare parts business. Target Price is Rs 155
Bajaj Auto
Bajaj Auto is well-placed to capitalize on demand normalization and premiumization trends in the 2W industry which should support profitability and operational performance going forward. Target Price is Rs 4,500.