Stocks to buy: Axis Securities lists 16 picks across segments; do you have any?

The brokerage firm has maintained its December 2023 Nifty target at 20,400 in the base case scenario, valuing the index at 20 times December 2024 earnings, an upside of 12 per cent from current levels (Nifty close of 18,147.65 on May 2).

On the upside, Axis values ​​the Nifty at 22 times, resulting in a December 2023 target of 22,500, representing an upside of 24 per cent. In the case of bears, Axis values ​​the Nifty at 18x ​​which would translate into a December 2023 target of 18,400, an upside of one per cent.

“The Indian economy stands at a good juncture of growth and remains a land of stability against the backdrop of a volatile global economy. We continue to believe in the long-term growth story of the Indian equity market, fueled by an emerging favorable structure Axis Securities said, increasing capex (capital expenditure) helps banks improve credit growth.

While the medium to long term outlook for the overall market remains positive, the brokerage firm said that we could see volatility in the near term with the market reacting in either direction.

Axis reported that the Nifty 50 universe continues to have a strong earnings trajectory and the brokerage firm projects Nifty earnings per share (EPS) growth of 10 per cent, 16 per cent and 13 per cent in FY2023, FY24 and FY25 respectively. is estimated.

Furthermore, the brokerage firm pointed out that the current level of the volatility index India Wix is below its long-term average, indicating that the market is currently in a neutral zone (neither panic nor euphoria).

Axis said it is a ‘buying on the decline’ market and advises investors to maintain good liquidity (10 per cent) to utilize such declines in a phased manner and invest in high quality companies (where earnings visibility is high enough) to take a position. Investment horizon of 12-18 months.

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Axis’s Top Picks for May

Recommended Brokerage Firms ICICI Bank, Maruti Suzuki India, State Bank of India, Dalmia Bharat, Federal Bank, Varun Beverages, Ashok Leyland, PNC Infra, ITC, Aarti Drugs, Gland Pharma, Mahindra CIE, Praj Industries, CCL Products (India) Does , Polycab India, and Bajaj Finance for the month of May.

These stocks can give double digit returns in the range of 10% to 55%.

The brokerage firm highlighted that its Top Picks basket delivered an impressive return of 14.4 per cent in the last one year, outperforming the benchmark Nifty by an encouraging margin.

Axis said that in April 2023, the basket gained 3.6 per cent, while the Nifty gained 4 per cent.

Axis claimed that its Top Picks basket has delivered an impressive 158 per cent returns since its inception in May 2020, which is much higher than the 95 per cent returns delivered by the Nifty 50 during the same period.

Disclaimer: The views and recommendations expressed in this article are those of the brokerage firm. These do not represent the views of Mint. We advise investors to do due diligence with certified experts before making any investment decision.