Axis Securities’ Top Large-Cap Picks for April 2025: ICICI Bank, SBI, HDFC Bank & More with Up to 42% Upside
📉 Market Recap:
Indian equity markets experienced significant volatility in recent months. The Nifty 50 surged to an all-time high of 26,216 in September 2024 before a 16% correction till February 2025. However, a strong rebound of 6.3% occurred in March 2025.
📊 Sector Outlook:
- Axis Securities favors domestic-facing sectors with minimal impact from reciprocal taxes.
- Export-oriented sectors remain cautious, adopting a wait-and-watch approach.
🔑 Axis Securities’ Top Large-Cap Stock Picks for April:
- ICICI Bank
- Target Price: ₹1,500 (11% Upside)
- Strong fundamentals with steady RoA of 2.2-2.3% and RoE of 17-18%.
- Robust business growth, stable credit-deposit ratio, and controlled operating expenses.
- Axis sees ICICI Bank as a preferred pick in the banking sector.
- SBI (State Bank of India)
- Target Price: ₹1,025 (33% Upside)
- Comfortable Loan-to-Deposit Ratio (LDR) supports credit growth, especially in retail and SME segments.
- Expected to sustain RoA of 1% with healthy growth across segments and a focus on CASA deposits.
- Varun Beverages
- Target Price: ₹710 (23% Upside)
- Positive outlook due to strategic initiatives: acquisition of BevCo, expansion in South Africa, Zimbabwe, and Zambia, and growth in high-margin products like Sting energy drink.
- Projected CAGR growth: Revenue 23%, EBITDA 25%, and PAT 33% (CY24-27E).
- HDFC Bank
- Strong fundamentals with a focus on retail growth, solid asset quality, and a dominant market position. Axis Securities remains bullish on its future prospects.
📈 Growth Potential: Axis Securities remains optimistic about the long-term growth prospects of these stocks due to their strong fundamentals and sectoral positioning.
