New Year 2026: VBL, SBI, Astral, Dalmia Bharat among 9 stock picks by Axis Securities
The brokerage calls SBI the best performer among large banks, citing its ability to 2x the balance sheet every 6 years. With a credit growth guidance of 12-14% for FY26 and margins expected to sustain above 3%.
- Dec 23, 2025,
- Updated Dec 23, 2025 12:10 PM IST
Brokerage Axis Securities has released its top stock picks for the new year. Predicting a cyclical recovery and an inflection point for corporate earnings, the brokerage has set a Nifty 50 target of 28,100 for December 2026, valuing the index at 20x December 2027 earnings.
While 2025 saw divergent performance with broader markets lagging, Axis Securities believes 2026 will be defined by earnings delivery, policy alignment, and macro stability. The firm expects corporate earnings to rebound meaningfully, accelerating to 12%-15% YoY over FY26-27, serving as the primary driver for the market's upward trajectory.
Betting on themes ranging from credit expansion and consumption to the commodity supercycle, here are the 9 top stock picks by Axis Securities for 2026.
State Bank of India (SBI) Target price: Rs 1,135
The brokerage calls SBI the best performer among large banks, citing its ability to 2x the balance sheet every 6 years. With a credit growth guidance of 12-14% for FY26 and margins expected to sustain above 3%, SBI remains a top bet. "Asset quality does not seem concerning at present," the brokerage said.
Varun Beverages Ltd (VBL) Target price: Rs 550
Varun Beverages, PepsiCo’s second-largest franchisee globally, is positioned for sustained growth through capacity expansion and new product pilots like Carlsberg beer in Southern Africa. Axis Securities expects the company's revenue and PAT to clock a CAGR of 23% and 29% respectively over CY24-27E, driven by its international footprint and snacks business.
Hindalco Industries Target: Rs 950
As the world’s largest aluminum company by revenue, Hindalco is a key beneficiary of strong metal prices and aggressive expansion projects. The brokerage highlights the company's focus on keeping net debt/EBITDA below 2.0x even during its capex phase, with the Novelis Bay Minette project expected to commission fully by H2CY26.
Dalmia Bharat Ltd Target: Rs 2,320
With a plan to expand capacity to 62 mtpa by FY28, Dalmia Bharat is capitalising on the consolidation wave in the cement sector. The brokerage notes that "cost optimisation initiatives are expected to realise savings," boosting EBITDA margins to the 21-22% range.
Astral Ltd Target: Rs 1,625
Axis said Astral is entering a high-growth phase as its multi-year capex cycle begins to mature. A key trigger is the company’s backward integration into CPVC resin, expected to commission by September 2026. This move is described as a game-changer for long-term profitability that will reduce reliance on imports.
Affle 3i Ltd Target: Rs 2,000
Technology play Affle 3i is favored for its proprietary consumer platform stack and AI-driven model. The company aims for 10x growth over the decade, with the brokerage projecting a 25% PAT CAGR over FY25-28E, supported by high-growth verticals like e-commerce and fintech.
Healthcare Global Enterprises (HCG) Target: Rs 850
HCG operates in a structural sweet spot due to the demand-supply mismatch in Indian oncology care, Axis said. With over 2,500 beds and a disciplined capital allocation strategy, the company is expected to see margin expansion to 21-22% over the medium term.
Nippon Life India Asset Management Target: Rs 1,000
Nippon Life is eyeing the launch of its SIF fund under the leadership of Andrew Holland. Axis Securities highlighted the company's growing offshore AUM and strong SIP franchise as key drivers, forecasting a 21% CAGR in mutual fund assets over FY26-28E.
Mold-Tek Packaging Target: Rs 670
Axis said, Mold-Tek is seeing a rebound in its paints segment and strong momentum in food and FMCG. New capacities at Panipat and Cheyyar are expected to boost volumes, positioning the stock for a 16% potential upside.
Brokerage Axis Securities has released its top stock picks for the new year. Predicting a cyclical recovery and an inflection point for corporate earnings, the brokerage has set a Nifty 50 target of 28,100 for December 2026, valuing the index at 20x December 2027 earnings.
While 2025 saw divergent performance with broader markets lagging, Axis Securities believes 2026 will be defined by earnings delivery, policy alignment, and macro stability. The firm expects corporate earnings to rebound meaningfully, accelerating to 12%-15% YoY over FY26-27, serving as the primary driver for the market's upward trajectory.
Betting on themes ranging from credit expansion and consumption to the commodity supercycle, here are the 9 top stock picks by Axis Securities for 2026.
State Bank of India (SBI) Target price: Rs 1,135
The brokerage calls SBI the best performer among large banks, citing its ability to 2x the balance sheet every 6 years. With a credit growth guidance of 12-14% for FY26 and margins expected to sustain above 3%, SBI remains a top bet. "Asset quality does not seem concerning at present," the brokerage said.
Varun Beverages Ltd (VBL) Target price: Rs 550
Varun Beverages, PepsiCo’s second-largest franchisee globally, is positioned for sustained growth through capacity expansion and new product pilots like Carlsberg beer in Southern Africa. Axis Securities expects the company's revenue and PAT to clock a CAGR of 23% and 29% respectively over CY24-27E, driven by its international footprint and snacks business.
Hindalco Industries Target: Rs 950
As the world’s largest aluminum company by revenue, Hindalco is a key beneficiary of strong metal prices and aggressive expansion projects. The brokerage highlights the company's focus on keeping net debt/EBITDA below 2.0x even during its capex phase, with the Novelis Bay Minette project expected to commission fully by H2CY26.
Dalmia Bharat Ltd Target: Rs 2,320
With a plan to expand capacity to 62 mtpa by FY28, Dalmia Bharat is capitalising on the consolidation wave in the cement sector. The brokerage notes that "cost optimisation initiatives are expected to realise savings," boosting EBITDA margins to the 21-22% range.
Astral Ltd Target: Rs 1,625
Axis said Astral is entering a high-growth phase as its multi-year capex cycle begins to mature. A key trigger is the company’s backward integration into CPVC resin, expected to commission by September 2026. This move is described as a game-changer for long-term profitability that will reduce reliance on imports.
Affle 3i Ltd Target: Rs 2,000
Technology play Affle 3i is favored for its proprietary consumer platform stack and AI-driven model. The company aims for 10x growth over the decade, with the brokerage projecting a 25% PAT CAGR over FY25-28E, supported by high-growth verticals like e-commerce and fintech.
Healthcare Global Enterprises (HCG) Target: Rs 850
HCG operates in a structural sweet spot due to the demand-supply mismatch in Indian oncology care, Axis said. With over 2,500 beds and a disciplined capital allocation strategy, the company is expected to see margin expansion to 21-22% over the medium term.
Nippon Life India Asset Management Target: Rs 1,000
Nippon Life is eyeing the launch of its SIF fund under the leadership of Andrew Holland. Axis Securities highlighted the company's growing offshore AUM and strong SIP franchise as key drivers, forecasting a 21% CAGR in mutual fund assets over FY26-28E.
Mold-Tek Packaging Target: Rs 670
Axis said, Mold-Tek is seeing a rebound in its paints segment and strong momentum in food and FMCG. New capacities at Panipat and Cheyyar are expected to boost volumes, positioning the stock for a 16% potential upside.