Axis Securities' Top December Picks: HDFC Bank, Inox Wind, DMart, Mahanagar Gas And More — Check Full List

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Axis Securities Report

Here are Axis Securities’ top picks for December 2025: High-conviction ideas for strong returns

Inox Wind - Tapping The Wind Energy Potential / Potential upside -41%

The reverse merger with Inox Wind Energy Ltd. strengthens the balance sheet, while synergies from the group’s new solar venture (Inox Solar) will position Inox Wind as an integrated renewable solutions provider. The expanding operation and maintenance portfolio via Inox Green (5.1 GW, target 17 GW in two years) adds a recurring, high-margin revenue stream.

With a robust order pipeline, costefficient execution, and improved profitability, Inox Wind remains well placed to capitalise on India’s accelerating renewable energy buildout. India’s target of 100 GW wind capacity by 2030, supported by FY25 additions of ~4.15 GW (the highest in seven years), provides a structural growth runway.

Valuation and Recommendation: We assign a target P/E multiple of 30x to our FY27 EPS estimate. After adjusting for the minority stake in Inox Green Energy Services and Resco Global (~7%), we arrive at a target price of Rs 190/share.

Mahanagar Gas – Robust fundamentals at attractive valuation / Potential upside -28%

We value Mahanagar Gas Ltd. using the DCF method, considering a WACC of 11.5%. We forecast cash flows for 15 years and post that use a terminal growth rate of 3.0% to arrive at the terminal value.

We add net cash and investments at a 30% discount to arrive at our target price of Rs 1,540 per share.

DMart - Positioning for the next phase of growth / Potential upside - 24%

Avenue Supermarts Ltd. has faced several challenges over the past few years, impacted by a subdued demand environment, particularly in the value segment. Larger and newer stores have longer gestation periods, affecting overall profitability, along with increasing competition from both organised players and online platforms.

However, the company has undertaken several initiatives to address these challenges, such as:

1. changes in leadership to revamp the slowing general merchandise and apparel category,

2. focusing on improving profitability in DMart Ready through a gradual expansion strategy, and

3. targeting a 10-20% store addition on an existing base of 432 stores, which is a step in the right direction.

The overall improving consumer demand, supported by stable macroeconomics and a strong festive outlook in H2 FY26, is expected to further support these initiatives and drive growth in high-margin general merchandise and apparel categories.

Additionally, a reduction in the GST rate cut has spurred consumption and indirectly supports discretionary spending. Hence, we maintain our Buy rating on the stock.

HDFC Bank - Embracing the upturn - Potential upside - 16%

HDFC Bank Ltd. has been consistently performing on its guidance in its endeavour to revert to its pre-merger levels across metrics, and its execution capabilities remain strong.

With LDR at a <100% level, the bank will look to accelerate growth momentum in FY26 to match systemic growth. Further acceleration of growth in FY27E, while maintaining a strong deposit growth momentum, should enable HDFC Bank to bring down its LDR to sub-90%.

The margin compression seen in H1 is expected to reverse going into H2, supported by deposit repricing and CRR cut driving exit margins higher.

The NIM pressures would be adequately offset by controlled Opex and benign credit costs, enabling HDFC Bank to deliver RoA/RoE of 1.8-1.9%/15-16% over FY26-28E.

Key risks:

1. Slowdown in overall credit momentum owing to the bank’s inability to ensure deposit mobilisation,

2. Slower substitution of highercost debt with lower-cost deposits.

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