NSE Nifty 50 looks set to hit the 20200 target this year by December, as its positive long-term outlook remains intact, Axis Securities said in a report. The brokerage firm also noted that the overall boost in the Union Budget 2022-23 expenditure will help deliver a broad-based growth in FY23. “The Indian market has entered into an upcycle of earnings with the expectation of a 20% Nifty EPS CAGR over FY21-24 against a single digit 7% growth it reported over FY09-21,” it added. In the previous fiscal, the 50-share index rallied nearly 20 per cent. In the last two weeks of March, Axis Securities said that some recovery was visible in the market from the oversold zone, driven by key drivers such as ongoing peace talk between Russia-Ukraine; the US Fed decision along expected lines; and state election results in favour of the ruling government.
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CMP: Rs 742.15, Target : Rs 990, Upside: 33.4%
ICICI Bank has been outperforming its peers and has been ticking most boxes on growth, margins and asset quality. Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help the bank achieve ROAE/ROAA expansion over FY22-23E, Axis Securities said.
CMP: Rs 3,808.45, Target: Rs 4,250, Upside: 11.6%
Bajaj Auto is well-placed to capitalize on demand normalization and premiumization trends in the 2W industry which should support profitability and operational performance going forward, Axis Securities said. Moreover, it expects the company to gain further market share in exports, driven by its market leadership position, brand equity, and enhanced distribution network.
CMP: Rs 1,488.90, Target: Rs 2,060, Upside: 38.3%
Axis Securities said 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.
Maruti Suzuki India
CMP: Rs 7,760.50, Target: Rs 9,800, Upside: 26.3%
Maruti Suzuki India could emerge as the biggest beneficiary of demand recovery in the post-COVID period, considering its stronghold in the Entry-Level segment and a favorable product lifecycle, the report said. “Going forward, we expect new product launches to resume with a mix of product upgrades and new model launches. We expect the company’s volumes to witness a strong growth CAGR of 15% over FY21- 24E,” it added.
State Bank of India
CMP: Rs 509.30, Target: Rs 720, Upside: 41.4%
Among the PSU banks, SBI continues to be the best play on the gradual recovery of the Indian economy given the bank’s healthy PCR, robust capitalization, a strong liability franchise, and an improved asset quality outlook, Axis report said.
CMP: Rs 586.65, Target: Rs 660, Upside: 12.4%
With continued deleveraging, lower earnings risk at Novelis (55-60% EBITDA), robust LME Aluminium outlook, Axis Securities said Hindalco is well placed to deliver strong performance.
CMP: Rs 766.25, Target: 870, Upside: 13.5%
Axis Securities has given a ‘buy’ rating on the company on expectations of superior margins, stronger subscriber growth, and higher 4G conversions.
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