HDFC Bank, SBI, Bharti Airtel Among Axis Securities' Large Cap Picks For January

Axis Securities has announced its top large-cap picks for January, spotlighting seven stocks across banking, finance, FMCG, telecom, and IT sectors.

These companies — ICICI Bank Ltd., State Bank of India Ltd., Varun Beverages Ltd., HDFC Bank Ltd., Bharti Airtel Ltd., Cholamandalam Investment and Finance Co. Ltd., and HCL Technologies Ltd. — stand out for their robust fundamentals, strategic growth drivers, and strong market positioning. 

Axis Securities favours ICICI Bank as a top large-cap pick for January, citing its robust liability franchise, balanced retail and corporate portfolio, and consistent credit growth.

The bank’s subsidiaries, including ICICI Prudential AMC, ICICI Lombard, and ICICI Securities, continue to excel in their respective domains, further enhancing overall performance.

Investments in the business banking and credit card segments are expected to drive growth, with credit penetration still offering substantial headroom. Despite asset quality challenges in the unsecured segment, the bank is well-positioned to sustain a healthy compound annual growth rate of 16% in credit growth over fiscal 2025 through 2027. The brokerage sets a target price of Rs 1,500, indicating a 17% upside.

SBI features among Axis Securities' top pick for January due to its strong deposit growth momentum, with expectations of 10–11% growth in fiscal 2025 while maintaining a deposit market share of 22–23%.

The bank has shown significant improvement in current account and term deposits, with a renewed focus on boosting savings account deposits. SBI’s subsidiaries across financial services continue to add substantial value, generating stable returns and bolstering overall performance. With a target price of Rs 1,040, Axis Securities expects a potential upside of 31%.

Axis Securities highlights Varun Beverages for its strategic focus on distribution expansion, increased penetration of high-margin Sting energy drinks, and growth in value-added dairy, sports drinks, and juice segments.

The company’s acquisitions, such as BevCo, have strengthened its presence in key international markets like South Africa and the Democratic Republic of Congo.

Furthermore, ongoing greenfield and brownfield projects are set to optimise manufacturing efficiency and expand market reach, the note said. With these growth levers, the brokerage sets a target price of Rs 700, implying a 10% upside.

HDFC Bank remains a preferred choice for January, given its consistent track record of maintaining asset quality across economic cycles through strong underwriting practices and risk-calibrated lending, says Axis Securities.

The bank continues to focus on balancing growth and risk, with healthy performance across corporate, agricultural, and retail segments. Management’s emphasis on reducing the loan-to-deposit ratio to pre-merger levels ensures sustainable growth. Axis Securities expects the stock to deliver a 14% upside, with a target price of Rs 2,025.

Bharti Airtel stands out for its industry-leading Average Revenue Per User and strong growth prospects driven by rising data consumption, rural penetration, and customer upgrades from 2G to 4G/5G services.

The company’s ARPU is expected to improve significantly, supported by a premium customer mix and robust network investments. Bharti Airtel’s strategic rural expansion and focus on enhancing realisations further solidify its growth outlook. Axis Securities has a target price of Rs 1,880, indicating an 18% upside.

Axis Securities highlights Cholamandalam Investment for its strong growth potential in vehicle finance, home loans, and loan-against-property segments.

The company plans to maintain a sustainable pace of disbursement growth, targeting 25-28% in fiscal 2025, while capping unsecured business exposure at 10%. Diversifying its product portfolio and maintaining momentum in key lending segments position CIFC for sustained growth, the note said. The brokerage has set a target price of Rs 1,675, implying a 41% upside.

HCL Technologies is Axis Securities’ top pick in the IT sector, driven by its robust deal pipeline valued at $3.2 billion in second quarter of fiscal 2025, with significant wins across services and software verticals.

The company is well-placed to capitalise on increasing demand in the automotive sector, including areas like infotainment, connected technologies, and electric mobility. Its strong revenue visibility for fiscal 2025 to 2026, supported by large transformation deals, reinforces its growth outlook. The brokerage sets a target price of Rs 2,110, suggesting a 10% upside.