The volatile year is behind us, and the countdown for 2026 has begun. As the investor begins to prepare for the new year, here are some recommendations from brokerages. Axis Securities has brought forth its Navratna offer with upside potential of as much as 20% in some of these stocks.
Here is a detailed analysis of the Axis Securities investment rationale –
Axis Securities on State Bank of India: Buy
Axis Securities’ first pick for the next year is the country’s biggest lender, State Bank of India. As per the brokerage, SBI’s performance has been the best amongst the larger banks and believes it to continue the performance. The management’s focus on deepening liability franchise, allocating capital to higher RoRWA assets, maintaining a disciplined pricing approach, and leveraging tech to drive operating efficiency is likely to support the performance.
The brokerage has a ‘Buy’ on the stock with a target price of Rs 1,135 per equity share, implying an upside of 16% from the CMP.
Axis Securities on Varun Beverages: Buy
The second stock is from the FMCG basket, Varun Beverages, which Axis Securities thinks is poised to maintain its strong growth trajectory, driven by multiple levers, such as the BevCo acquisition strengthening its presence in South Africa and the DRC and the international expansion of its snacks business.
Also, scaling high-margin brands like Sting, alongside increased focus on value-added dairy, sports drinks, and juices. All those factors, along with deepening rural distribution to widen market reach and improving operational efficiency.
These strategic initiatives are set to support sustained revenue and margin expansion of 22-23% CAGR, each, over CY24-27. The brokerage recommended a ‘Buy’ on the stock with a target price of Rs 550 per equity share, implying an upside of 17%.
Axis Securities on Hindalco Industries: Buy
Axis Securities picked Hindalco Industries with a ‘Buy’ call on the back of expansion projects in India and Novelis, and strong aluminium prices. The spot Aluminium prices are trading strongly above $2,800/t levels, supported by strong macro expectations for interest rate cuts and tight supply-demand fundamentals.
Also, the company’s FY26 capex guidance stands at Rs 8,000-8,500 crore, which will further rise in FY27 (guidance of Rs 11,500 crore) as expansion projects pick up pace. Novelis’s FY26 capex guidance is maintained at $1.9–$2.2 billion. The strong capex plan has been in line, along with controlled consolidated net debt to EBITDA, which is below 2.0x during the capex phase over the next four years.
The brokerage has a target price of Rs 950 per equity share, implying an upside of 12%.
Axis Securities on Nippon Life India Asset Management: Buy
The brokerage house has a ‘Buy’ on Nippon Life India Asset Management, with a target price of Rs 1,000 per equity share. This implies an upside of 13%. Axis Securities expects to deliver a healthy Mutual Fund Quarterly Average AUM of 21%, Revenue of 16%, and Earnings growth of 14% CAGR over FY26-28. This is likely to be supported by diversified product offerings, improving market share across segments, focus on passive offerings, and a strong SIP franchise.
Axis Securities on Dalmia Bharat: Buy
The cement company is undertaking strategic capacity additions to capitalise on strong demand and improve market presence. These expansions are expected to enhance volume growth, capture incremental market share, and support long-term revenue and EBITDA growth. The company’s capacity expansion plan of 12 mtpa is progressing well.
The cost optimisation initiatives are expected to realise savings in overall cost by Rs 150-200/tonne in the next two years, and along with improved realisation, margins are expected to increase.
Axis Securities recommended a ‘Buy’ rating on the stock with a target price of Rs 2,320 per equity share, implying an upside of 15%.
Axis Securities on Astral: Buy
Astral is entering a high-growth phase as its multi-year Capex plan begins to mature. The company invested Rs 1,400 Cr over the last four years. However, as utilisation scales up to the 40-50% level in the coming quarters, the new capacity will yield significant operational leverage.
Additionally, localised production will reduce logistics costs, which the company will use to strategically drive further market share gains, cementing its competitive advantage for years to come.
The other rationales behind picking Astral are reduced costs and pick up in Adhesives & Paints, improving margins due to backward integration, and healthy pickup in volumes post-festive season.
The brokerage has recommended a ‘Buy’ call on the stock with a target price of Rs 1,625 per equity share, implying an upside of 14%.
Axis Securities on Affle 3i: Buy
The company’s management remains confident in achieving 20% sustainable revenue growth and maintaining 23% EBITDA margins in the coming years.
Axis Securities believed Affle 3I’s Revenue and net profit to grow at a CAGR of 23% and 25%, respectively, over FY25-28, supported by its scalable CPCU model, strong strategic moat, and expansion into emerging markets. The brokerage has a ‘Buy’ call on the stock with a target price of Rs 2,000 per equity share, implying an upside of 16%.
Axis Securities on Healthcare Global: Buy
In the healthcare space, the brokerage has a ‘Buy’ recommendation on Healthcare Global Enterprises. The brokerage expects the stock to be supported by strong structural tailwinds from under-penetration in oncology care, sustained volume growth driven by rising incidence and limited quality capacity, operating leverage from maturing hospitals, disciplined capital allocation, and improving ROCE visibility. Axis Securities has a target price of Rs 850 per equity share, implying 20% upside.
Axis Securities on Mold-Tek Packaging: Buy
Axis Securities expects Mold-Tek Packaging to deliver robust growth, driven by rapid scaling of the pharma packaging segment, capacity expansions translating into higher volumes, improvement in margins driven by improved product mix, and focus on revenue diversification.
The brokerage picked the stock with a ‘Buy’ rating on the stock, with a target price of Rs 670 per equity share, implying an upside of 16%.