ITC, Infosys, ICICI Bank & Bajaj Auto among top Nifty picks, say analysts

Benchmark index Nifty has delivered returns of 23.49% in a year. On similar lines, Sensex has gained 21% during the same period. Both indices touched their record highs in September end this year. While Sensex rose to a record high of 85,978 on September 27, Nifty hit a high of 26,277 in the same session.  

However, the Indian equity market has seen profit-booking, correction due to high valuations, weak global cues and subdued Q2 earnings in the last one month. Nifty is down 9.19% and Sensex has lost 9% from record highs.

Sachin Shah, Executive Director and Fund Manager, Emkay Investment Managers  listed out top Nifty picks for the next one year.

Shah said private sector banking, IT, pharma, and select auto stocks will outperform. Leaders in each of these sectors, such as HDFC Bank, ICICI Bank, Infosys, HCL Tech, and Sun Pharma, have posted results exceeding most street estimates.

“Valuations in private sector banking remain reasonable following underperformance over the past 2-3 years. In autos, select companies like Maruti and Eicher Motors should benefit from the ongoing premiumization trend, added Shah.

Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers is bullish on Nifty stocks such as ITC, Bajaj Auto and ICICI Bank for the next one year.

ITC

Price target: Rs 560

ITC’s consolidated Q2 topline rose by 15.6% YoY and 11.2% QoQ to Rs222,819 Million, driven by strong growth in Hotels, Value-Added Agri products, and Leaf Tobacco. EBITDA grew 4.8% YoY, but margin declined by 315bps YoY to 30.4%. PBT increased by 2.7% YoY, impacted by exceptional demerger costs, while PAT grew by 1.8% YoY. ITC’s packaged foods (like Ashirwad, Sunfeast, YiPPee!, Bingo!) and personal care products continued gaining traction. With a solid balance sheet, no debt, and value from its hotel demerger, ITC is well positioned for profitability. The brokerage maintained a BUY call with a target price of Rs 560.

ICICI Bank

Buy

Healthy loan growth and strong other income drove ICICI Bank’s Q2 15% yoy PAT growth. A conservative, process-driven approach and agile management would drive best-in-class, 2.4%, RoA over FY24-27. We believe ICICI is the gold standard in banking and will continue to see expanded multiples. At our higher Rs 1,451 price target, the stock would trade at 2.7x FY26e BV, with subsidiaries valued at Rs 212. Reiterate high conviction Buy.

Bajaj Auto

Price target:  Rs 14,000

"We expect Bajaj Auto’s volume growth to be stronger in FY26 (>20%) after 13% expected in FY25. Success of its CNG motorcycle launch, a rebound in Africa and an EV ramp-up would be key drivers of a strong performance. We expect the company to be the best performer in the industry in FY26 (>20% growth; TVS 15%, Hero MotoCorp 11%) driven by market-share gains on the success of its CNG 2Ws, EVs and Triumph range. We recommend a Buy with sum-of-parts target of Rs 14,000,” said  Solanki

Jathin Kaithavalappil, Assistant vice president at Choice broking finds Infosys, Bajaj Auto and Maruti shares as his top picks for the next one year.

Infosys

The company is witnessing strong traction in GenAI projects spanning software engineering, process optimization, customer support, advisory services, and sales and marketing. This widespread growth, coupled with margin expansion, substantial large deals, and record cash generation, bolsters confidence in near-term growth prospects.

Bajaj Auto

“We remain optimistic about Bajaj Auto’s growth trajectory in the medium to long term, supported by several key factors: 1) a growing focus on exports to drive sales; 2) increasing demand for the 125cc 2W “Freedom”; 3) strong demand for the 2W EV “Chetak”; and 4) an aggressive marketing push for CNG-based 2-wheelers and electric variants. 5) With the rising contribution of premium products like Triumph, solid growth in the EV portfolio (2W+3W), and improving profitability from “Chetak,” Jathin said.

Maruti  Suzuki

Jathin listed out five factors for picking the Maruti stock.

1) A large distribution network (3,925 sales outlets, 5000 service touch-points)

2) Largest low emission product portfolio offering

3) New/refresh launches in the Hybrid/ SUV and EV segment

4) Capacity expansion to (4mn units by 2030-31)

5) Growing export volume (addition of newer model from UV segment) and increasing Nexa distribution network in rural market.