Here are Axis Securities’ top picks
As Indian stock markets have surged to new highs, domestic brokerage firm Axis Securities has suggested six stock picks that investors can consider buying as part of its festive ideas. The brokerage expects the stocks to perform well, during festival time due to demand for their products during this time of the year.
Axis Securities’ top festive stock picks –
HUL: The brokerage likes HUL’s superior agility and nimbleness despite it being larger than peers in capitalizing on the emerging growth trends and remaining ahead of competition.
“Near term growth drivers like pick up in discretionary portfolio, tailwinds from GSK-CH integration and gains from investments in digitization, distribution are key growth enablers,” the note said. Its Buy rating comes with a revised target price of ₹3,100 (earlier ₹2,670).
Hero MotoCorp: It expects Hero to continue its dominance in the 2W industry driven by the benefits of premiumisation of its products, a strong foothold in the entry level motorcycle segments, and aggressive product offerings in the scooters segment. It has maintained Buy on the stock with a target price of ₹3,400/share.
SBI Cards: Axis Securites believes SBI Cards has strong moats which will support robust long-term growth and aiding market share gains. It recommends a Buy rating on the stock with a target price of ₹1,210/share.
“We believe our target multiple reflects SBIC’s superior ROE profile, strong growth visibility, likelihood of market share improvement, and strong business moats.”
Relaxo Footwear: Strong operating cash flows, healthy asset turns (3x), sustained improvement in EBITDA Margins and efficient working capital are key positives from a longer term perspective, as per the brokerage. It has upgrade the stock to Buy with a revised target price of ₹1,290 per share.
Aditya Birla Fashion & Retail: Innerwear and other fashion ventures including ahtleisure and ethnic wear are likely to provide ABFRL with incremental growth opportunity, Axis expects. In light of the immense growth potential, it continues with Buy rating and an SOTP based target price of ₹250/share.
Safari Industries: The brokerage has maintained its Buy rating given the strong growth outlook in the domestic leisure travel and gradual opening up of the international travel. Its revised target price is ₹922/share (earlier ₹900/share)
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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