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Axis Securities sees Nifty at 17,700 by December, picks these 16 stocks to lead the rally

ICICI Bank, Tech Mahindra, Bharti Airtel among 16 stocks Axis Securities is bullish on

September 03, 2021 / 11:47 AM IST
Based on the earnings upgrade, Axis Securities upgrade its December Nifty50 target to 17,700 and continue to remain optimistic on the market, focus on earnings sustenance will be a key, moving forward.
Based on the earnings upgrade, Axis Securities has upgraded its December Nifty50 target to 17,700 and continue to remain optimistic on the market. According to the brokerage, focus on earnings sustenance will be key moving forward. Here are 16 stocks the brokerage is bullish on.
ICICI Bank | Rating: Buy | LTP: Rs | Target: Rs 810 | Upside: percent. Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help ROAE/ROAA expansion over FY22-23E. Valuation wise, Axis Securities believe the bank has further scope for expansions vis-a-vis its peers.
ICICI Bank | Rating: Buy | LTP: Rs 725 | Target: Rs 810 | Upside: 11 percent. Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help ROAE/ROAA expansion over FY22-23E. Valuation wise, Axis Securities believes the bank has scope for expansions vis-a-vis its peers.
State Bank of India | Rating: Buy | LTP: Rs | Target: Rs 555 | Upside: percent. Broking firm believe credit costs normalization and improved operational performance will lead to double-digit ROEs of 13-15% by FY22-23E.
State Bank of India | Rating: Buy | LTP: Rs 429 | Target: Rs 555 | Upside: 29 percent. Credit costs normalization and improved operational performance will lead to double-digit ROEs of 13-15% by FY22-23E.
Federal Bank | Rating: Buy | LTP: Rs | Target: Rs 100 | Upside: percent. Given strong underwriting standards, changing loan mix, and strong retail deposit franchise, broking firm expect the bank’s valuation to improve from current levels if asset quality trends are maintained and ROA improvement keeps on track.
Federal Bank | Rating: Buy | LTP: Rs 82 | Target: Rs 100 | Upside: 22 percent. Given strong underwriting standards, changing loan mix, and strong retail deposit franchise, the broking firm expects the bank’s valuation to improve from current levels if asset quality trends are maintained and ROA improvement remains on track.
Equitas Small Finance Bank | Rating: Buy | LTP: Rs | Target: Rs 76 | Upside: percent. The bank has recently approved the scheme of amalgamation (reverse merger) with the promoter (Equitas Holdings), which would ensure compliance with the regulatory requirements.
Equitas Small Finance Bank | Rating: Buy | LTP: Rs 61 | Target: Rs 76 | Upside: 24 percent. The bank has recently approved the scheme of amalgamation (reverse merger) with the promoter (Equitas Holdings), which would ensure compliance with the regulatory requirements.
Varun Beverages | LTP: Rs | Target: Rs 960 | Upside: percent. Axis Securities expect company to register revenues/earnings CAGR of 17%/53% respectively over CY20-23E on account of a low base in CY20.
Varun Beverages | LTP: Rs 882 | Target: Rs 960 | Upside: 9 percent. Axis Securities expect the company to register revenues/earnings CAGR of 17%/53% respectively over CY20-23E on account of a low base in CY20.
Mold-Tek Packaging | LTP: Rs | Target: Rs 585 | Upside: percent. Broking house expect company to register Revenue/EBITDA/PAT CAGR of 18%/17%/20% respectively over FY20-24E.
Mold-Tek Packaging | LTP: Rs 485 | Target: Rs 585 | Upside: 20 percent. Broking house expects the company to register Revenue/EBITDA/PAT CAGR of 18%/17%/20% respectively over FY20-24E.
Camlin Fine Sciences | Rating: Buy | LTP: Rs | Target: Rs 215 | Upside: percent. Axis Securities expects the company to register Revenue/EBITDA/PAT CAGR of 19/24/37% respectively over FY21-24E.
Camlin Fine Sciences | Rating: Buy | LTP: Rs 176 | Target: Rs 215 | Upside: 22 percent. Axis Securities expects the company to register Revenue/EBITDA/PAT CAGR of 19/24/37% respectively over FY21-24E.
Amber Enterprises India | LTP: Rs | Target: Rs 3,330 | Upside: percent, Broking firm estimate company to register a revenue CAGR of 37% over FY21-23E. While the long-term outlook remains intact with demand recovery and growth in the underpenetrated domestic market, firm reduce FY22E revenue estimates by 3.4% and tweak its FY23 estimates higher by 0.3%.
Amber Enterprises India | LTP: Rs 3,203 | Target: Rs 3,330 | Upside: 4 percent. The broking firm estimates the company to register a revenue CAGR of 37% over FY21-23E. While the long-term outlook remains intact with demand recovery and growth in the underpenetrated domestic market, the firm reduces FY22E revenue estimates by 3.4% and tweak its FY23 estimates higher by 0.3%.
Minda Corporation | Rating: Buy | LTP: Rs | Target: Rs 148 | Upside: percent. Research house expect company's profitability to improve over FY22-23E in the backdrop of its wide product basket, robust market share, consistent new product addition, and operating leverage. The company is expected to deliver excellent growth in profitability by FY23E owing to the attributes such as improved content-per-vehicle as well as higher indigenous content.
Minda Corporation | Rating: Buy | LTP: Rs 130 | Target: Rs 148 | Upside: 14 percent. Research house expects the company's profitability to improve over FY22-23E in the backdrop of its wide product basket, robust market share, consistent new product addition, and operating leverage. The company is expected to deliver excellent growth in profitability by FY23E owing to the attributes such as improved content-per-vehicle as well as higher indigenous content.
Steel Strips Wheels | LTP: Rs | Target: Rs 2,122 | Upside: percent. Axis Securities expect company to outperform the industry growth given its sticky and well-nurtured relations with OEMs across all the auto segments. Furthermore, expect operating leverage to kick in as the company’s capacity utilization improves with domestic auto-recovery, increasing penetration in alloy wheels and improving exports.
Steel Strips Wheels | LTP: Rs 1,889 | Target: Rs 2,122 | Upside: 12 percent. Axis Securities expects the company to outperform the industry growth given its sticky and well-nurtured relations with OEMs across all the auto segments. Furthermore, it expects operating leverage to kick in as the company’s capacity utilization improves with domestic auto-recovery, increasing penetration in alloy wheels and improving exports.
Krishna Institute of Medical Sciences | LTP: Rs | Target: Rs 1,570 | Upside: percent. The comapny 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. This could lead to a total bed capacity of 4,500. It is planning to add an incremental 500 capacity in current hospitals to meet growing demand. Furthermore, an incremental 1,000 bed capacity in adjacents markets such as Bangalore, Chennai, Bhubaneswar, Indore, Aurangabad, and Nagpur. KIMS is expected to incur a Capex of Rs 300 Cr per year over the next 3-4 years to create these capabilities.
Krishna Institute of Medical Sciences | LTP: Rs 1,258 | Target: Rs 1,570 | Upside: 24 percent. The company 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. This could lead to a total bed capacity of 4,500. It is planning to add an incremental 500 capacity in current hospitals to meet growing demand. Furthermore, an incremental 1,000 bed capacity in adjacents markets such as Bangalore, Chennai, Bhubaneswar, Indore, Aurangabad, and Nagpur. KIMS is expected to incur a Capex of Rs 300 Cr per year over the next 3-4 years to create these capabilities.
Tech Mahindra | Rating: Buy | LTP: Rs | Target: Rs 1,600 | Upside: percent. Axis Securitiess believe Tech Mahindra has a resilient business structure and better revenue growth visibility from a long-term perspective but trading at discount as compared to its Indian peers.
Tech Mahindra | Rating: Buy | LTP: Rs 1,438 | Target: Rs 1,600 | Upside: 11 percent. Axis Securities believes 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.
Bharti Airtel | Rating: Buy | LTP: Rs | Target: Rs 740 | Upside: percent. Business fundamentals remain strong and continue to improve. The management foresees the huge potential for continued strong revenue and profit growth, supported by expanding distribution in rural areas, investing in the network, and increasing 4G coverage.
Bharti Airtel | Rating: Buy | LTP: Rs 666 | Target: Rs 740 | Upside: 11 percent. Business fundamentals remain strong and continue to improve. The management foresees the huge potential for continued strong revenue and profit growth, supported by expanding distribution in rural areas, investing in the network, and increasing 4G coverage.
HCL Technologies | Rating: Buy | LTP: Rs | Target: Rs 1,300 | Upside: percent. Broking house believes the COVID-19 outbreak will create huge opportunities across geographies and services for HCL Tech to post strong organic growth over different verticals. The company has a resilient business structure from a long-term perspective.
HCL Technologies | Rating: Buy | LTP: Rs 1,173 | Target: Rs 1,300 | Upside: 11 percent. Broking house believes the COVID-19 outbreak will create huge opportunities across geographies and services for HCL Tech to post strong organic growth over different verticals. The company has a resilient business structure from a long-term perspective.
Orient Cement | Rating: Buy | LTP: Rs | Target: Rs 180 | Upside: percent. Broking firm believe the company is well-positioned to grow its revenue and profitability moving forward. The growth will be supported by a revival of cement demand in its key markets in both trade and non-trade segment, cost optimization measures as well as increasing premium cement sales aided by capacity expansions.
Orient Cement | Rating: Buy | LTP: Rs 156 | Target: Rs 180 | Upside: 15 percent. Broking firm believes the company is well-positioned to grow its revenue and profitability moving forward. The growth will be supported by a revival of cement demand in its key markets in both trade and non-trade segment, cost optimization measures as well as increasing premium cement sales aided by capacity expansions.
Ashok Leyland | Rating: Buy | LTP: Rs | Target: Rs 155 | Upside: percent. The company is focusing 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. It remains well-positioned to benefit from a strong recovery in the CV cycle on the back of new product launches and a well-diversified product portfolio.
Ashok Leyland | Rating: Buy | LTP: Rs 121 | Target: Rs 155 | Upside: 28 percent. The company is focusing 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. It remains well-positioned to benefit from a strong recovery in the CV cycle on the back of new product launches and a well-diversified product portfolio.
Rakesh Patil
first published: Sep 3, 2021 11:00 am

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