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​Top Picks
Axis Securities says Nifty earnings will post excellent growth of 15% CAGR over FY23-26. Financials remain the biggest contributors for FY24/25 earnings, it added. Amid this backdrop, here are the top stocks from the largecap space that the brokerage has recommended for April:

ET Bureau & Agencies

​ICICI Bank | Target Price: Rs 1,250

2/9

​ICICI Bank | Target Price: Rs 1,250

Rationale: The bank has been consistently outperforming its peers and has been firing on all cylinders. Axis Securities continues to like ICICI Bank for its (1) Strong retail-focused liability franchise, (2) Buoyant growth prospects, (3) Stable asset quality along with healthy provision cover, (4) Adequate capitalization, and (5) Potential to deliver robust return ratios. ICICI Bank remains our most preferred pick amongst the banks, it said.

Agencies

​Coal India | Target Price: Rs 510

3/9

​Coal India | Target Price: Rs 510

Rationale: Axis Securities values the stock at 5.0x 1-year forward EV/EBITDA multiple on FY26E Adj. EBITDA.
​Nestle India | Target Price: Rs 2,880

4/9

​Nestle India | Target Price: Rs 2,880

Rationale: Axis Securities remains positive on Nestle as it has consistently delivered resilient performance, led by 1) Efforts towards rural penetration and market share gains through the RURBAN strategy, 2) Constant focus on innovation (launching 125 products in the last seven years), thereby leading growth, 3) Driving premiumisation in the core categories (Maggi noodles range) and launching differentiated products, 4) Entering into new categories of the future (Purina Pet care and Gerber’s for toddler nutrition), and 5) Introducing D2C platform to gauge consumer attention. Nestle has all the right levers for growth in the long run, it said.

ETMarkets.com

​State Bank of India | Target Price: Rs 860

5/9

​State Bank of India | Target Price: Rs 860

Rationale: Among PSU banks, SBI remains the best play on the gradual recovery of the Indian economy on account of its healthy PCR, robust capitalization, strong liability franchise, and improved asset quality outlook. Axis Securities believes despite the margin pressures, SBI remains well poised to deliver ROA/RoE of 1%/15-17% over FY24-25E, supported by stable credit costs and steady NIMs.

Reuters

​Varun Beverages | Target Price: Rs 1,550

6/9

​Varun Beverages | Target Price: Rs 1,550

Rationale: Axis Securities believes VBL is expected to continue its strong growth momentum on account of 1) Normalcy of operation and market share gains, 2) The management’s continued focus on the efficient go-to-market execution in acquired and underpenetrated territories, 3) Expansion in its distribution reach to 3.5 mn outlets in CY23 from 3 mn currently, 4) Focus on expanding high-margin Sting energy drink across outlets and 5) Robust growth in the International geographies.

IANS

​Bank of Baroda | Target Price: Rs 300

7/9

​Bank of Baroda | Target Price: Rs 300

Rationale: BOB currently trades at 1x Sep25E ABV which we believe is undervalued given the consistent growth and improving asset quality, said Axis Securities.

ETMarkets.com

​Bharti Airtel | Target Price: Rs 1,400

8/9

​Bharti Airtel | Target Price: Rs 1,400

Rationale: The Buy rating on the stock is retained due to the company’s superior margins, impressive subscriber growth, and increased 4G conversions, the brokerage said.

ETMarkets.com

​TVS Motor Company | Target Price: Rs 2,375

9/9

​TVS Motor Company | Target Price: Rs 2,375

Rationale: Axis Securities believes TVS to be ahead in introducing a range of EV products ahead of other 2W OEMs. Being well-placed among listed players, we expect the company’s Revenue/EBITDA/PAT to grow by ~17%/21%/24% CAGR over FY24E-26E. We like TVSL because of its engineering and R&D capabilities, strong domestic retail network, and increasing sales volumes from premium offerings in developed countries (Norton business to be developed in a few years).

ANI

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