Axis Direct’s top ideas: 5 stocks backed by housing, travel and consumer demand

As per the brokerage house report, premium housing demand, improving consumer spending, market-share gains by organised players and continued momentum in domestic travel remain among the key factors supporting its positive view on these companies.

Axis Direct on Arvind SmartSpaces: Business development pipeline and bookings momentum support outlook

Axis Direct maintained a ‘Buy’ rating on Arvind SmartSpaces with a target price of Rs 750, implying an upside of 24%.

The brokerage said the company delivered its highest-ever quarterly bookings and collections during the March quarter, with both metrics exceeding Rs 600 crore. FY26 bookings rose 22% year on year to Rs 1,550 crore, supported by strong response to projects in Bengaluru and Vadodara. 

Axis Direct said the company continued to expand its development pipeline, adding projects with a gross development value of around Rs 3,140 crore during FY26 and subsequently signing a high-rise residential project in the Mumbai Metropolitan Region with an estimated gross development value of Rs 2,400 crore.

Axis Direct noted, “The company remains focused on asset-light joint development and redevelopment opportunities while maintaining strong balance-sheet discipline and healthy cash generation.”

The brokerage added that operating cash flow generation remained robust and management indicated significant unrealised operating cash flows from the existing project portfolio over the next four to five years.

Axis Direct on Prestige Estates Projects: Record pre-sales and annuity portfolio provide visibility

Axis Direct maintained a ‘Buy’ rating on Prestige Estates Projects with a target price of Rs 1,830, implying an upside of 15%.

The brokerage added that the company reported record pre-sales of more than Rs 30,000 crore during FY26, representing growth of 76% year on year. Collections increased 53% to over Rs 18,500 crore, while the company continued to strengthen its presence beyond Bengaluru through projects in the National Capital Region, Mumbai and Hyderabad.

Axis Direct said occupancy levels remained strong across recurring income assets, with office occupancy at 92% and retail occupancy approaching 99%. The brokerage also highlighted hospitality revenue exceeding Rs 1,050 crore during FY26 and a launch pipeline of approximately Rs 68,000 crore for FY27.

“The outlook for premium and luxury residential remains cautiously positive, with new launches accompanied by sustained sales continuing to be the key driver of growth for the sector,” added the Axis Direct report. 

According to the brokerage, the company’s expanding annuity portfolio and large launch pipeline provide visibility for future growth.

Axis Direct on LG Electronics India: Premiumisation and localisation remain key growth drivers

Axis Direct maintained a ‘Buy’ rating on LG Electronics India with a target price of Rs 1,815, implying an upside of 19%.

The brokerage said LG Electronics India reported its highest-ever quarterly revenue of Rs 8,054 crore during Q4FY26, supported by strong demand across premium and mass-premium product categories. Axis Direct highlighted growing traction in products such as OLED televisions, French-door refrigerators and higher-star-rated air conditioners, which continue to improve product mix and support profitability.

The brokerage also pointed to the company’s localisation strategy. Axis Direct said localisation levels improved to 55.2%, while investments of nearly Rs 5,000 crore in the Sri City facility are expected to expand manufacturing capacity and support exports.

Axis Direct said, “The company continues to strengthen its leadership position through premiumisation, localisation and expansion across adjacent product categories.”

The brokerage also identified opportunities in annual maintenance contracts, business-to-business solutions and commercial air-conditioning segments as additional growth drivers.

Axis Direct on Greenply Industries: MDF expansion and organised market-share gains support growth

Axis Direct maintained a ‘Buy’ rating on Greenply Industries with a target price of Rs 340, implying an upside of 17%.

The brokerage said medium-density fibreboard continues to emerge as a major growth engine for the company, with management guiding for volume growth of 25% to 30% during FY27. Axis Direct said recent price increases, operating leverage benefits and capacity expansion initiatives are expected to support profitability.

The brokerage also said industry dynamics remain favourable for organised players. According to Axis Direct, higher compliance requirements, raw material pressures and working capital constraints are creating challenges for unorganised manufacturers, allowing established brands to gain market share.

Axis Direct said, “The company remains well positioned to benefit from structural shifts in the industry and increasing preference for organised players.”

The brokerage added that Greenply’s distribution network, brand strength and focus on original equipment manufacturer channels continue to strengthen its competitive position.

Axis Direct on Indian Hotels Company: Travel demand and expansion pipeline remain key positives

Axis Direct maintained a ‘Buy’ rating on Indian Hotels Company Ltd. with a target price of Rs 765, implying an upside of 16%.

The brokerage said the company delivered its 16th consecutive quarter of record performance despite geopolitical disruptions and softer international travel trends. FY26 consolidated revenue increased 16% year on year to Rs 9,689 crore, while EBITDA rose 15% to Rs 3,196 crore.

Axis Direct highlighted the company’s diversified presence across luxury, upscale, mid-scale and homestay formats, which continues to support performance across demand cycles. The brokerage also noted that Indian Hotels has a pipeline exceeding 31,000 keys and plans to open more than 60 hotels during FY27.

Axis Direct said, “The company’s strong balance sheet, diversified brand portfolio and expansion pipeline continue to provide confidence in long-term growth prospects.”

The brokerage added that gross cash exceeding Rs 4,300 crore provides flexibility for expansion, renovations and strategic investments.

Conclusion

Axis Direct’s latest conviction list reflects its preference for companies linked to domestic consumption, premium housing demand, organised market-share gains and travel-led spending. Arvind SmartSpaces offers the highest upside potential among the brokerage’s preferred ideas at 24%, followed by LG Electronics India at 19%, Greenply Industries at 17%, Indian Hotels Company at 16% and Prestige Estates Projects at 15%. According to Axis Direct, strong operational performance, expanding growth pipelines and favourable sector trends continue to support the investment case across all five companies.

Disclaimer: The stock ratings, target prices, and operational projections discussed in this report are based on institutional retail research updates from Axis Direct and do not constitute direct ‘Buy’, sell, or hold recommendations for retail investors. Equity investments across real estate, hospitality, consumer durables, and building materials carry inherent sector-specific risks. These include cyclical demand shifts, regulatory approvals, commodity cost inflation, real estate execution timelines, and macroeconomic variables, meaning individual portfolio performance and returns can vary significantly. Readers are strongly advised to consult a SEBI-registered investment advisor or a qualified financial consultant before executing any fresh capital allocations or changing their investment strategies.

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