Axis Securities has released its “Top Picks” for January 2026. The firm notes that while 2025 was a challenging year for Indian equities, the current setup looks better for an earnings revival. Domestic institutional investors remain buyers, and the brokerage has identified specific companies across various sectors that are positioned to outperform over the next 12 months.
Top stocks to buy in January 2026
Here is a detailed analysis of the top picks by Axis Securities and the investment rationale guiding them-
Axis Securities on Bajaj Finance: ‘Buy’
Axis Securities believes Bajaj Finance Ltd. is set to witness improved margins, supported by faster transmission of rate cuts in the Cost of Funds (CoF) and an optimal borrowing mix. While the majority of segments continue to deliver healthy growth, the firm notes that emerging stress in the MSME segment could weigh on near-term growth, though the long-term digital transformation remains a key driver. The firm has set a target price of Rs 1,200 for the stock, indicating a potential upside of 22%.
Axis Securities on State Bank of India: ‘Buy’
The brokerage states that State Bank of India remains well-poised to sustain its growth momentum, supported by a comfortable Loan-to-Deposit Ratio (LDR). This provides the bank with leverage to accelerate credit growth. While near-term pressures might be visible on Net Interest Margins (NIMs), the firm expects benefit from deposit rate cuts to support a NIM recovery in the second half of the year. Axis Securities recommends a ‘Buy’ with a target price of Rs 1,135, representing a 16% upside.
Axis Securities on HDFC Bank: ‘Buy’
Axis Securities observes that HDFC Bank has been consistently performing on its guidance to revert to pre-merger levels across metrics. With execution capabilities remaining strong and LDR at a sub-100% level, the firm expects the bank to accelerate growth momentum in FY26 to match systemic growth. The report values the stock at a target price of Rs 1,170, which offers an 18% upside from current levels.
Axis Securities on Bharti Airtel: ‘Buy’
The firm reports that Bharti Airtel’s business fundamentals remain strong with continued improvements across key metrics. The management anticipates sustained revenue and profit growth driven by expanding rural distribution, network investments, and increasing 4G and 5G coverage. Based on this analysis, the brokerage eyes a target price of Rs 2,530, suggesting a 20% upside.
Axis Securities on Avenue Supermarts (DMart): ‘Buy’
The brokerage notes that while Avenue Supermarts Ltd. has faced challenges like subdued demand in the value segment and increasing competition, the company has undertaken several initiatives to address these. Axis Securities expects the company’s store expansion and focus on operational efficiency to drive future profitability. The firm maintains a target price of Rs 4,960, implying a significant upside of 31%.
Axis Securities on Max Healthcare Institute: ‘Buy’
Axis Securities highlights Max Healthcare Institute management’s guidance of 3–7% ARPOB (Average Revenue Per Occupied Bed) growth in mature hospitals. This is expected to be led by higher case complexity and clinical mix, alongside sustained occupancy levels of approximately 80%. Developing hospitals are also expected to ramp up gradually. The brokerage has set a target price of Rs 1,400, pointing to a 34% upside.
Axis Securities on Prestige Estates Projects: ‘Buy’
The firm favors Prestige Estates Projects due to its aggressive expansion into the Mumbai and NCR markets. Axis Securities points to strong pre-sales momentum and a robust pipeline of residential and commercial projects as the primary reasons for their positive outlook. They have issued a target price of Rs 2,000, which reflects a 25% upside.
Axis Securities on APL Apollo Tubes: ‘Buy’
Axis Securities views APL Apollo Tubes Ltd. as a leader in the structural tubes market. The firm expects the company to benefit from the government’s continued focus on infrastructure and the ramp-up of new capacity, which should lead to volume growth. The analysis leads to a target price of Rs 2,100, showing a 10% upside potential.
Axis Securities on Mahanagar Gas: ‘Buy’
The report highlights that Mahanagar Gas Ltd. is trading at attractive valuations compared to its peers. The firm believes the company will maintain stable margins and benefit from the increasing adoption of CNG and PNG in its key geographical areas. Consequently, Axis Securities sees the stock reaching a target price of Rs 1,540, a 36% upside.
Axis Securities on Ujjivan Small Finance Bank: ‘Buy’
The brokerage expects Ujjivan Small Finance Bank Ltd. to deliver robust credit growth driven by its focus on the microbanking and affordable housing segments. They note that the bank’s asset quality remains manageable, supporting a healthy return on assets (RoA) profile. The firm’s target price stands at Rs 65, suggesting an upside of 23%.
Axis Securities on Chalet Hotels: ‘Buy’
Axis Securities identifies Chalet Hotels Ltd. as a prime beneficiary of the upcycle in the Indian hospitality sector. The firm expects higher Average Room Rates (ARRs) and increased contributions from newly added rooms and commercial assets to drive earnings growth. The stock is valued at a target price of Rs 1,120, offering a 29% upside.
Axis Securities on Inox Wind: ‘Buy’
Inox Wind Ltd. notes a significant turnaround in Inox Wind’s operations, supported by a massive order book and a leaner balance sheet. Axis Securities believes the company is well-positioned to capture the rising demand in the wind energy sector. The report sets a target price of Rs 190, indicating a massive 54% upside.
Axis Securities on Kirloskar Brothers: ‘Buy’
Axis Securities points to the company’s strong positioning in the industrial and agricultural pump segments. They expect Kirloskar Brothers Ltd. to benefit from export opportunities and improved domestic demand for specialized engineering products. While the P/E data is unavailable, the firm sets a target price of Rs 2,330, an upside of 45%.
Axis Securities on Sansera Engineering: ‘Buy’
The brokerage expects Sansera Engineering Ltd. to gain from its diversification into non-auto segments like aerospace and defense. The firm also notes the company’s readiness for the EV transition through the development of specialized components. The analysis supports a target price of Rs 1,950, representing a 16% upside.
Axis Securities on Kalpataru Projects International: ‘Buy’
Axis Securities highlights Kalpataru’s strong execution in the power transmission and distribution (T&D) space. The firm expects the company’s healthy order book and presence in international markets to ensure steady revenue visibility over the next two years. The brokerage has assigned a target price of Rs 1,475, which is a 24% upside.
Conclusion
The data from Axis Securities suggests a cautious but optimistic outlook for 2026. By focusing on quality companies with strong management and clear growth paths, the firm believes investors can navigate the current market environment. They emphasize that all target prices have been calculated with an investment horizon of over one year.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.