Axis Securities' six largecap picks that may rally up to 30% in coming months

 Largecap Picks

Domestic brokerage firm Axis Securities has released its December reports, where it is positive on half a dozen largecap counters that can rally up to 30% in the coming months. It believes that the current market is a 'buy on dips’ play.

It has recommended investors to maintain good liquidity to use such dips in a phased manner and build a position in quality companies with an investment horizon of 12-18 months. Here are top largecap picks of the brokerage firm:

CICI Bank | Buy | Target Price: Rs 1,150 | Upside Potential: 24%

The bank has been outperforming its peers and has been firing on all cylinders. ICICI Bank has ticked most boxes on growth, margins, and asset quality. Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help the bank achieve ROAE/ROAA expansion over FY23-25E.

Tech Mahindra | Buy | Target Price: Rs 1,300 | Upside Potential: 18%

Tech Mahindra has a superior services mix and multiple long-term contracts that are well-spread across the verticals, reducing its dependency on any one vertical. It foresees healthy tractions in Communications and Enterprise verticals, which will greatly accelerate the company’s revenue growth moving forward.

Maruti Suzuki India | Buy | Target Price: Rs 10,600 | Upside Potential: 21%

It expects a rise in demand from new launches along with up gradation of the existing product portfolio, softening commodity inflation, and improving ECU shortages to support recovery in the margins. The company would gain further market share, driven by an expected shift towards petrol, CNG, and Hybrid vehicles.

State Bank of India | Buy | Target Price: Rs 740 | Upside Potential: 22%

Among PSU banks, SBI with a healthy PCR, robust capitalization, a strong liability franchise, and an improved asset quality outlook, remains the best play amid the gradual recovery of the Indian economy. It believes normalization in credit costs and improved growth outlook should lead to double-digit ROEs of 16.5% over FY23-25E.

Infosys | Buy | Target Price: Rs 1,900 | Upside Potential: 16%

The management has guided double-digit growth in FY23 against the backdrop of robust deal wins. Higher offshoring, better utilization, and lower attrition are likely to expand the company’s operating margin moving forward.

Bajaj Finance | Buy | Target Price: Rs 8,600 | Upside Potential: 30%

The company’s digital initiatives and business transformation are key positives to look forward to and are currently progressing well with sequential improvement visible across metrics. With the digital transformation journey likely to be completed by FY23, it believes it should contribute meaningfully to the overall growth.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)


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