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Axis Securities recommends 10 stocks including ICICI Bank, ITC. Here's the list

Updated : 2020-07-06 14:22:33

Axis Securities' 'top picks' basket has delivered a return of 9.4% (6% in June) since the launch in the month of May with 9 out of 10 picks registering gains. According to the brokerage, IT, consumer and telecom sectors will be back in focus with quarterly earnings season. Value stocks, mid and small caps could further see increased allocation depending on pricing power, it added. "Except BFSI, there's limited valuation comfort across sectors," said the brokerage. Here's a list of 10 stocks recommended by Axis Securities:

Axis Securities has increased the target price of ICICI Bank to Rs 495, an upside of 41 percent. The brokerage believes that the recent price correction offers another attractive entry point into the stock.
Axis Securities has increased the target price of ICICI Bank to Rs 495, an upside of 41 percent. The brokerage believes that the recent price correction offers another
attractive entry point into the stock. "We also believe it offers the best risk-reward among our bank coverage given a healthy, sustainable earnings outlook," the report added. "We expect higher provisioning over FY21/22E cushioned by stable NIM, low cost of funds, and healthy capital adequacy," it said further. (Image: Reuters)
ITC's target price was increased to Rs 230, with an upside of 18 percent, as per the Axis Securities report. It said that the balance sheet and cash flows for FY20 remained strong, with a cash balance of Rs 300 billion.
ITC's target price was increased to Rs 230, with an upside of 18 percent, as per the Axis Securities report. It said that the balance sheet and cash flows for FY20 remained strong, with a cash balance of Rs 300 billion. "Progressive normalization of operations across segments, share gain possibilities in core cigarette biz, quicker recovery in FMCG sales given increased in-home consumption and consumers’ preference towards trusted brands could support a quicker recovery in earnings," the report added. (Image: Reuters)
For Manappuram Finance, the brokerage has increased the target price to Rs 173, with an upside of 14 percent.
For Manappuram Finance, the brokerage has increased the target price to Rs 173, with an upside of 14 percent. "We believe it can sustain performance in the critical business environment, which has been tough for most NBFCs, due to its well-matched ALM profile, strong liquidity, cost controls, stable asset quality and tailwind from high gold prices," said the brokerage. (Image: Reuters)
Bharti Airtel's target price was risen to Rs 650, with an upside of 16 percent, said the brokerage. The report said,
Bharti Airtel's target price was risen to Rs 650, with an upside of 16 percent, said the brokerage. The report said, "Regulatory challenges are well known and Bharti Airtel is well capitalized to deal with the payouts as it has raised enough capital (Rs 450 billion equity in FY20) and has access to debt as there are no major business solvency risks associated with it." (Image: Reuters)
HCL Technologies saw its target price raised to Rs 653, with an upside of 17 percent, by Axis Securities.
HCL Technologies saw its target price raised to Rs 653, with an upside of 17 percent, by Axis Securities. "Recent deal trend continues to be healthy and is reflective of traction in Retail & CPG, Manufacturing and BFSI verticals. HCL Tech has received various digital transformational deals worth more than $2.4 billion in Q3 FY20. We believe that COVID outbreak will create huge opportunity across geographies for HCL Tech to post strong organic growth over different verticals," said the brokerage. (Image: Reuters)
Axis Securities increased the target price of MindTree to Rs 1,088, with an upside of 18 percent. The brokerage said that the management has initiated strong cost control measures like reducing the subcontractors, better service mix and higher execution which will help to gain long term sustainable operating margins.
Axis Securities increased the target price of MindTree to Rs 1,088, with an upside of 18 percent. The brokerage said that the management has initiated strong cost control measures like reducing the subcontractors, better service mix and higher execution which will help to gain long term sustainable operating margins. "We expect annual revenue to grow by 11% y/y and 11% y/y in FY21E and FY22E, respectively," the report added. (Image: Reuters)
In case of Varun Beverages, the brokerage upgraded the target price to Rs 804, with an upside of 18 percent on the back of attractive valuations.
In case of Varun Beverages, the brokerage upgraded the target price to Rs 804, with an upside of 18 percent on the back of attractive valuations. "The company has multiple long term growth drivers 1) lower product ticket size to aid quicker recovery in volumes compared to other discretionary items, 2) highly underpenetrated soft drinks, juices category in rural areas, 3) no major capex going ahead and focus on working capital efficiency and cost rationalization shall aid VBL in sailing through the current challenging conditions," said the brokerage. (Image: AP)
For CCL Products, Axis increased the target price to Rs 267, with an upside of 14 percent given a healthy demand outlook. The report said that the home consumption of instant coffee will be driven by - 1) expertise in customized blends & cost-efficient business model, 2) largest manufacturer & exporter of instant coffee in India, 3) long-standing client relationships, 4) presence in Vietnam, 5) capacity additions in value-added products and 6) steadily improving branded retail business. (Image: Reuters)
For CCL Products, Axis increased the target price to Rs 267, with an upside of 14 percent given a healthy demand outlook. The report said that the home consumption of instant coffee will be driven by - 1) expertise in customized blends & cost-efficient business model, 2) largest manufacturer & exporter of instant coffee in India, 3) long-standing client relationships, 4) presence in Vietnam, 5) capacity additions in value-added products and 6) steadily improving branded retail business. (Image: Reuters)
Biocon received an upgrade to Rs 474, with an upside of 22 percent, said the brokerage. As per the report, Biocon is expected to invest aggressively thereby ploughing back substantial capital over the next couple of years to build its product portfolio, conduct trials and support it with adequate manufacturing capacities which would limit free cash flow generation. It has also received US FDA's approval for Insulin Glargine which paves the way for the launch in the US market. (Image: Reuters)
Biocon received an upgrade to Rs 474, with an upside of 22 percent, said the brokerage. As per the report, Biocon is expected to invest aggressively thereby ploughing back
substantial capital over the next couple of years to build its product portfolio, conduct trials and support it with adequate manufacturing capacities which would limit free cash flow generation. It has also received US FDA's approval for Insulin Glargine which paves the way for the launch in the US market. (Image: Reuters)
The brokerage raised Minda Industries target price to Rs 318, with an upside of 16 percent. Axis Securities report said,
The brokerage raised Minda Industries target price to Rs 318, with an upside of 16 percent. Axis Securities report said, "It will beat industry performance by 1) leveraging the broader vehicular trends of industry like EV, premiumization, automation 2) strategic inorganic acquisition 3) maintaining balance sheet discipline and optimal leverage, 4) investing in R&D 5) tap on its deep-rooted relationship with OEM’s to increase kit value." (Image: Reuters)
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