Hopeful of good earnings, Axis Securities has maintained its target for benchmark Nifty 50 and shortlisted seven stocks from large cap category to buy in February for up to 37% return in one year.
Hopeful of good earnings, Axis Securities has maintained its target for benchmark Nifty 50 and shortlisted seven stocks from large cap category to buy in February for up to 37% return in one year. It believes that the stock market may be under pressure due to rising bond yields, global factors and higher-than-expected market borrowing by the government, but long-term story of the Indian market remains intact.
The brokerage was betting on increased capex allocation in the budget, which in turn would enable banks to improve credit growth and help deliver broad-based growth moving forward. “This, in turn, would improve the earnings trajectory of Indian corporates. We maintain our Dec’22 NIFTY50 target of 20200,” it added.
Meanwhile, the brokerage also identified seven stocks ranging from IT, banking & financial Servies, metal, auto and telecom space. It picked ICICI Bank and State Bank of India from banking & financial services, Bajaj auto and Maruti Suzuki from auto space, Tech Mahindra from IT, Hindalco from metal and Bharti Airtel from telecom space.
1 Banking & financial Servies: ICICI Bank and State Bank of India
While downgrading the BFSI sector to ‘Equal Weight’ stating that the sector will have to bear the brunt of re-imposition of lockdowns, it advised to remain watchful on the developments in the sector. Even as Axis Bank and ICICI bank reported a good set of numbers, the economic challenges cannot be wished away, it underlined while picking ICICI Bank and SBI from this space.
ICICI Bank: At the base price of Rs 810, the brokerage set a target price of Rs 990 for the private lender in one year. This translates into 22 per cent upside.
State Bank of India (SBI): Axis Securities sees an upside of 21 per cent in the public sector bank in on year. At base price of Rs 532, the brokerage feels that SBI is strong enough to hit target of Rs 645.
2.Consumer Discretionary: Bajaj Auto and Maruti Suzuki
It said though this space is witnessing a strong revival and many categories are normalising, the current lockdowns are posing serious challenges to the recovery rate. It maintained with ‘Equal Weight stance’ for this segment.
Bajaj Auto: For this large cap stock from auto space, Axis Securities sees 20% on base price Rs 3,534 to Rs 4250 per share in one year.
Maruti Suzuki India: Another pick from auto space, the brokerage gave a target price of Rs 9,800, which translates into an upside of 14% on base price of Rs 8,559.
3. Information Technology: Tech Mahindra
Recommending an Overweight stance on the sector, Axis Securities gave most aggressive target for this large cap player from IT space. At base price of Rs1506, the brokerage predicted an upside of 37% to Rs 2060 in one year for this tech stock.
4. Material: Hindalco Industries Ltd
It sees an upside of 12% against base price of Rs 511 for Hindalco in one year. Target price of stock of this company catering to aluminum industry was put out at Rs 570 in 12 months.
5. Communication Service: Bharti Airtel
Saying telecom has become the most critical sector during the current challenging times to keep the businesses up and running, it recommended an OverWeight stance on the sector. At base price of Rs 723, the target price put out by Yes Securities in 12 months was Rs 810, an increase of 12%.
