Axis Securities’ Top Large-Cap Stock Picks for August: ICICI Bank, SBI, HDFC Bank, and More.

Top Large-Cap Stocks to Buy in August:

The Indian stock market indices, Sensex and Nifty 50, fell by around 1% on Friday due to weak global market cues and profit booking after reaching record highs the previous day.

Axis Securities still believes in the long-term growth of the Indian stock market. They say increased spending will help banks improve credit growth, supported by a favorable market structure.

“Current valuations limit further growth, so an increase in corporate earnings will drive market returns. Therefore, focusing on quality stocks at reasonable prices will be key to good returns in the next year,” Axis Securities said in a report.

Axis Securities maintains a March 2025 Nifty 50 target of 24,600, valuing it at 20 times the earnings of March 2026. They expect some short-term market volatility but see any market correction as a buying opportunity.

Their bull case target for March 2025 is 27,000, while the bear case target is 19,700.

Here are Axis Securities’ top large-cap stock picks for August 2024:

ICICI Bank | Target Price: ₹1,425

ICICI Bank shows strong performance with consistent credit and deposit growth, stable asset quality, and adequate capital. Axis Securities sees it as a top pick among banks.

Nestle India | Target Price: ₹2,800

Nestle India has a solid track record and strong growth prospects. Axis Securities is positive on its long-term growth.

State Bank of India (SBI) | Target Price: ₹1,010

SBI is expected to sustain a return on assets (RoA) above 1%. Axis Securities has a ‘Buy’ rating and a target price of ₹1,010.

Varun Beverages | Target Price: ₹1,800

Varun Beverages is expected to grow due to strategic acquisitions, expansion in rural areas, and new facilities. Axis Securities sees strong long-term growth for the company.

HDFC Bank | Target Price: ₹1,950

HDFC Bank focuses on deposit-led credit growth, aiming for profitable growth. Consistent deposit growth and improved net interest margin (NIM) are key factors. Axis Securities recommends buying with a target price of ₹1,950.

Bharti Airtel | Target Price: ₹1,650

Bharti Airtel has strong margins, subscriber growth, and increased 4G conversions. Axis Securities has upgraded the target price to ₹1,650.

TVS Motor Company | Target Price: ₹2,900

TVS Motor is expected to grow its revenue, EBITDA, and PAT at around 17%, 21%, and 25% CAGR over FY24-26E. Axis Securities likes its strong fundamentals and expects a strong ROE of 27%-30% in the coming years.

Cholamandalam Investment & Finance Company | Target Price: ₹1,710

CIFC is expected to sustain its growth momentum with a strong ~26% CAGR AUM growth over FY25-27E. Axis Securities recommends buying with a target price of ₹1,710.

HCL Technologies | Target Price: ₹1,810

HCL Technologies has long-term growth potential with multiple contracts with leading brands. Despite challenges from economic uncertainties and supply constraints, Axis Securities sees encouraging growth prospects and a target price of ₹1,810.