ICICI Bank, SBI, Varun Beverages, BOB, TVS Motor, Bharti Airtel shares: 10-25% upside? 8 stock picks by Axis Securities

ICICI Bank, SBI, Varun Beverages, BOB, TVS Motor, Bharti Airtel shares: 10-25% upside? 8 stock picks by Axis Securities

Axis Securities in its latest strategy note suggested eight stocks namely ICICI Bank Ltd, State Bank of India (SBI), Nestle India, Coal India, Varun Beverages, Bank of Baroda (BOB), Bharti Airtel Ltd and TVS Motor as its preferred March largecap picks. The brokerage sees 10-25 per cent potential upside for the stocks.

ICICI Bank | Target price: Rs 1,250

Axis Securities ICICI Bank has been consistently outperforming  its peers and has been firing on all cylinders. It continues to like ICICI Bank for its strong retail-focused liability franchise, buoyant growth prospects, stable asset quality along with healthy provision cover, adequate capitalisation, and potential to deliver robust return  ratios.

“We maintain our BUY rating on the stock with a target price of Rs  1,250/share (SOTP basis core book at 2.75 times September 2025E and Rs 163 Subsidiary value). ICICI Bank remains our most preferred pick amongst the banks,” it said.

Coal India | Target price: Rs 510

Axis Securities said the demand for coal will continue to rise, driven by the addition of  80 GW of thermal power plants by FY30. The company will not be taking any employee cost  hikes in the next two years, the brokerage said while valuing the stock at 5 times 1-year forward  EV/Ebitda multiple on FY26E adjusted Ebitda basis. The key risk to Axis’ ‘Buy’ rating on the Coal India stock is the fall in international coal  prices from the current level leading to a collapse in e-auction premiums.  The decline in E-Auction volumes against expectations could pose a  downside risk to target price and rating, it said.

Nestle India Ltd  | Target price: Rs 2,880

Axis Securities said it remains positive on Nestle India as it has  consistently delivered resilient performance, led by efforts towards rural penetration and market share gains through the RURBAN strategy, constant focus on innovation, driving premiumisation in the  core categories (Maggi noodles range) and launching differentiated  products.

Besides, Axis Securities cited Nestle India’s foray into new categories of the future (Purina Pet care  and Gerber’s for toddler nutrition), and introduction of D2C platform to gauge consumer attention as efforts to gain margin share.

“We believe Nestle has all the right levers for growth in the long run,” it said.

State Bank of India | Target price: Rs 860

Among PSU banks, SBI remains the best play on the gradual  recovery of the Indian economy on account of its healthy PCR, robust  capitalisation, strong liability franchise, and improved asset quality outlook, Axis Securities.

“We believe despite the margin pressures, SBIN remains well poised to  deliver ROA/RoE of 1 per cent/15-17 per cent over FY24-25E, supported by stable  credit costs and steady NIMs. We maintain our BUY rating on the stock  with a target price of Rs 860/share (core book at 1.4x Sep’25E and  subsidiaries at Rs 183/share),” it said.

Varun Beverages Ltd | Target price: Rs 1,550

Axis Securities said Varun Beverages is expected to continue its strong growth momentum on account of normalcy of operation and market share gains of newly acquired territories post COVID-19 disruptions. It cited the management’s continued focus on the efficient go-to-market execution  in acquired and underpenetrated territories as reflected in its recently  commissioned Bihar plant operations. Besides, the brokerage pointed out the expansion in VBL’s its distribution reach, focus on expanding high-margin Sting energy  drink across outlets coupled with increased focus on expansion of value-added dairy, sports drink (Gatorade) and Juice segment and robust  growth in the International geographies.

Bank of Baroda | Target price: Rs 300

Axis Securities said BOB currently trades at 1 time Sep25 adjusted book value (ABV), which is undervalued given the consistent growth and improving asset  quality. It maintained its ‘BUY’ rating on the stock with a revised target  price of Rs 300 per share based on 1.2 times Sep25E ABV and value of subsidiaries at Rs 12 per share).

Bharti Airtel | Target price: Rs 1,400

The brokerage said its ‘BUY’ rating on the telecom stock is  retained due to the company’s superior margins, impressive subscriber  growth, and increased 4G conversions. The stock is valued at Rs 1,400 per share through a SOTP valuation, suggesting a substantial  upside from the current market price, it said.

TVS Motor Company Ltd | Target price: Rs 2,350

Axis Securities said TVS Motor is ahead in introducing a range of EV products ahead of other 2W OEMs. Being well-placed  among listed players, it expect sthe company’s sales to grow 17 per cent, Ebitda 21 per cent and profit after tax, compounded annually, over FY24E-26E.

“We like TVS Motor 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). Based on the above strong fundamental outlook, we expect the company  to deliver a strong ROE ranging between 27%-30% over the next few years,” it said.

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