Axis Securities has released its list of top stock picks for July 2026, with its recommendations spanning banks, consumer companies, telecom, healthcare and industrials — 15 companies spanning large, mid and small caps have made the cut. Cement maker Dalmia Bharat tops the list on expected returns, with the brokerage projecting a 43% upside over the next 12 to 18 months, driven by capacity expansion across Kadapa, western India and central India, along with cost cuts that have already trimmed Rs 100 a tonne off expenses this financial year.
Bharti Airtel follows with a targeted upside of 37%, on the back of the telecom major's industry-leading average revenue per user of Rs 257, a management target of Rs 300, and a fast-scaling data centre business under its Nxtra unit.
Eternal, the company formerly known as Zomato, carries a 36% upside target as its quick commerce and food delivery businesses turn adjusted-EBITDA positive, with management guiding for $3 billion in quick commerce order value by 2030.
Banking names feature prominently on the list, with Kotak Mahindra Bank, ICICI Bank and Ujjivan Small Finance Bank carrying upside targets of 27%, 24% and 32% respectively. The brokerage has cited a turning credit cycle, easing stress in unsecured loan books, and stable net interest margins across the sector. Bajaj Finance rounds out the financials segment with a 15% target, as the company's asset quality is expected to improve once its captive two-wheeler financing book winds down.
Among consumption stocks, Varun Beverages carries a 24% upside target after extending its PepsiCo bottling rights in India through 2049. Avenue Supermarts, which runs the D-Mart chain, is given a 20% target on continued store expansion and steady gross and EBITDA margins of around 15% and 7-8% respectively.
Nestlé India and LG Electronics both carry 17% upside targets, with the brokerage pointing to premiumisation and rural distribution gains at both companies. APL Apollo Tubes, given a 26% target, is flagged for prioritising per-tonne profitability over volume growth amid volatile steel prices.
Two stocks were dropped from the list this round — Axis Securities exited Kalpataru Projects and Navin Fluorine on profit-booking, replacing them with APL Apollo Tubes and Healthcare Global Enterprises. The latter was added on the back of India's shortage of advanced cancer-care infrastructure and the hospital chain's plan to add 1,000 beds by 2030.
Earnings Estimates
The brokerage has also cut its FY27 Nifty earnings per share estimate by 2.8% to Rs 1,231 following the March-quarter earnings season. The biggest downgrades came in IT, financials, FMCG and discretionary, oil and gas, and cement, while metals, industrials, automobiles and telecom saw upgrades.
Axis Securities said investors should maintain 10-15% liquidity to deploy during market declines in a phased manner. It recommended building positions in high-quality companies with strong earnings visibility and an investment horizon of 12-18 months.
Axis Securities has described the broader market outlook as cautiously constructive. Brent crude has fallen to around $73 a barrel following the ceasefire in West Asia, while bond yields have eased and the Nifty 50 trades close to its long-term average valuation of 18 times forward earnings. The brokerage maintained its December 2026 Nifty target at 27,220, implying about 20% upside from current levels, with a bull case of 28,615 and a bear case of 23,030.
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