After a tough year for Indian equities, Axis Securities believes the worst is over and keeps a bullish outlook for the market.
Why Axis Securities is confident on the Nifty
The brokerage maintains its base‑case Nifty target of 28,100 for December 2026, valuing the index at about 20 times its estimated earnings for 2027. It expects earnings to improve from the third quarter of FY 2026 onward, which could push the index higher.
Key reasons for this optimism include a stable macro environment, rising capital spending, and consumption growth boosted by the recent Union Budget and GST 2.0 reforms. These factors should help banks grow credit, leading to double‑digit earnings growth and strong returns for Indian stocks over the next two to three years.
Top stock picks from Axis Securities
Axis highlights 15 companies it expects to deliver solid returns, ranging from 10% to 54% upside. Below is a quick snapshot of each recommendation.
- Bajaj Finance – Target ₹1,200 (22% upside). Expected to keep growing assets at ~24% a year, with earnings and interest income rising in FY 27‑28.
- State Bank of India (SBI) – Target ₹1,135 (16% upside). Strong net interest margins, disciplined pricing and technology‑driven cost control should keep profits steady.
- HDFC Bank – Target ₹1,170 (18% upside). Improving loan‑to‑deposit ratio and higher deposit growth are set to lift margins and profitability.
- Bharti Airtel – Target ₹2,530 (20% upside). Good profit margins, growing subscriber base and 4G conversions support the outlook.
- Avenue Supermarts (D‑Mart) – Target ₹4,960 (31% upside). New stores, better product mix and festive demand are expected to boost high‑margin sales.
- Max Healthcare – Target ₹1,400 (34% upside). Higher average revenue per bed and new “super‑specialty” hospital contracts should lift earnings from FY 27.
- Prestige Estates – Target ₹2,000 (25% upside). Strong residential demand and a growing rental portfolio give confidence in earnings.
- APL Apollo Tubes – Target ₹2,100 (10% upside). Infrastructure growth in India should drive a 29% EBITDA CAGR through FY 27.
- Mahanagar Gas – Target ₹1,540 (36% upside). Valued using a discounted‑cash‑flow model that assumes steady cash flow growth.
- Ujjivan Small Finance Bank – Target ₹65 (23% upside). Improved asset quality and lower credit costs are set to raise returns.
- Chalet Hotels – Target ₹1,120 (29% upside). Rising tourism demand and events like the World Cup should keep hotel occupancy high.
- Inox Wind – Target ₹190 (54% upside). Strong order pipeline and cost‑efficient execution position it well in the renewable‑energy push.
- Kirloskar Brothers – Target ₹2,330 (45% upside). Robust order book and cost optimisation are expected to drive double‑digit revenue growth.
- Sansera Engineering – Target ₹1,950 (16% upside). Diversified product mix, higher margins and capacity expansion support steady earnings growth.
Bottom line
Axis Securities sees India’s economy as a stable haven amid global volatility. With a 28,100 Nifty target for 2026 and a list of carefully chosen stocks, the firm believes investors can capture double‑digit returns in the coming years.
Remember, this is just an opinion, not a prediction. Do your own research and consider your risk tolerance before investing.