Diwali Muhurat Picks: Top Long-Term Stock Ideas by Axis Securities for Samvat 2080

Axis Securities has identified a set of promising long-term stock ideas for Samvat 2080, showcasing their potential in the evolving market landscape. The firm’s recommendations encompass a diverse range of companies, each with unique growth prospects:

TVS Motor Company:

Axis Securities recommends a Buy rating on the stock with a Target Price of Rs 2,100/share, valuing it at a sustainable premium P/E multiple of 30X on Dec’25 core EPS. This, along with other investments at 1x P/BV, and TVS Credit Services at 2X P/BV, presents an upside potential of 34% from the current market price (CMP).

Bharti Airtel:

With the management expecting consistent Capex levels, Bharti Airtel is anticipated to continue its investments in broadband, enterprise, and data centers. Notably, 4G-related radio Capex is expected to decrease, and the company is actively reducing network costs through the identification of over 2,500 sites for cost reduction.

APL Apollo Tubes:

The company’s incremental production from the Raipur plant is poised to drive higher EBITDA/t. Axis Securities values APL Apollo Tubes at 33x PE of Sep’25 EPS, based on continued demand visibility, arriving at a Target Price of Rs 1,950/share. The stock maintains a Buy rating.

Jyothy Labs:

Analysts expect Jyothy Labs to deliver robust Revenue/EBITDA/PAT growth at CAGRs of 13%/25%/25% over FY23-26E, which will elevate the company’s overall return profile. The company’s ROE is projected to rise from 15% in FY23 to 21% in FY26. With a better earnings growth outlook and return profile, the stock appears attractive in the Small to Midcap Consumer space.

KPIT Technologies:

Axis Securities believes that KPIT has a resilient business model with strong earnings visibility through long-term contracts with globally leading brands. The company is well-positioned to capture growth opportunities, driven by robust demand for ER&D spend, client retention for sustainable growth, margin tailwinds, and an expected strong revenue growth of 29% CAGR over FY24E- FY26E.

HDFC Bank:

The bank is expected to sustain its growth momentum following a merger that offers substantial opportunities, including a larger customer base, distribution network, and cross-sell potential to existing HDFC Ltd. customers. The stock is considered reasonably valued and remains below the long-term average.

Astral:

Astral has increased its advertising spending by 22% and expanded its dealer count. It has diversified its product range, started the sale of paints and sanitaryware, and opened new plants. The company’s HR and technology strategies are being streamlined, and employee strength doubled YoY in FY23.

Ahluwalia Contracts India:

The company exhibits favorable attributes such as a strong and diversified order book, a healthy bidding pipeline, new order inflows, an asset-light model, and emerging opportunities in the construction sector. Axis Securities recommends a Buy rating on the stock with a target price of Rs 770/share, implying a 16% upside from the CMP.

SBI Life Insurance:

SBI Life maintains a leadership position with industry-leading cost ratios. The company’s APE growth and channel productivity are expected to continue their strong performance. Axis Securities recommends a Buy on the stock with a target price of Rs 1,535/share, indicating a 14% upside from the CMP.

These investment choices reflect a mix of growth potential, sector diversification, and strategic positioning, offering investors an array of opportunities in the evolving market landscape for Samvat 2080.