ITC, SBI, Maruti Suzuki: 7 large-cap stocks with up to 40% upside potential

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Axis Securities believes the macroeconomic data and the upcoming earnings season will drive the market direction moving forward and hence Q4FY23 earnings remain critical at this juncture

Axis Securities on
Indian markets

Axis Securities believes it's a ‘Buy on Dips’ market. The brokerage firm continues to focus on the thematic approach of superior-quality companies and has come out with its top picks

'Buy on dips'

Target price: Rs 1,150
Current price: Rs 884.25
Axis Securities believes that ICICI Bank has been outperforming its peers and has been firing on all cylinders. On the valuation front also, the bank continues to be on a comfortable footing

ICICI Bank

Target price: Rs 1,300
Current price: Rs 1,103.10
Axis Securities believes Tech Mahindra has a superior services mix and multiple long-term contracts that are well-spread across the verticals, reducing its dependency on any one vertical

Tech Mahindra

Target price: Rs 9,760
Current price: Rs 8,502
Axis Securities believes that a strong order book, a higher share of premium SUVs in the sales mix will drive the revenue/EBITDA/PAT growth in FY23-25

Maruti Suzuki

Target price: Rs 740
Current price: Rs 526.65
Among PSU banks, SBI remains the best play on gradual recovery of Indian economy on account of its healthy PCR, robust capitalisation, strong liability franchise, and improved asset quality outlook, says Axis Securities

State Bank of India

Target price: Rs 1,800
Current price: Rs 1410.95
Axis Securities believes that higher offshoring, better utilisation, and lower attrition are likely to expand the company’s operating margin moving forward

Infosys

Target price: Rs 7,400
Current price: Rs 5,713
Axis Securities believes the marginal compression in NIMs will be offset by improved fee income, and stable credit costs, thereby enabling it to deliver superior return ratios moving forward

Bajaj Finance

Target price: Rs 460
Current price: Rs 378.95
Axis Securities believes that reasonable valuation among the entire FMCG pack provides a huge margin of safety. Also, it believes that the narrative around ITC is getting stronger as all its businesses are on the right track

ITC