ICICI Bank, Hero MotoCorp among 7 large & midcap stocks that can rally up to 40%

Domestic brokerage firm Axis Securities is positive on eight large and midcap-cap stocks, which can rise up to 34%. These stocks belong to different sectors such as telecom, banking, finance and information technologies. These stocks include ICICI Bank, HDFC Bank, and Bharti Airtel.

Here's a list of 7 large and midcap stocks that can rally up to 40%, according to Axis Securities: The brokerage firm Axis Securities has set a target price of Rs 1,500 on ICICI Bank, indicating an upside potential of 13% from the current market prices. "We expect the bank to continue delivering a strong performance over the medium term, enabling a consistent RoA/RoE delivery of 2.2-2.



3%/17-18%. This would be supported by strong business growth while maintaining a steady C-D Ratio, focus on strengthening fee income, range-bound Opex ratios with no aggressive investments in sight, pristine asset quality metrics and adequate capitalisation," it said. Axis Securities maintained its Buy rating on SBI with a target price of Rs 1,025, implying an upside potential of 33% from the current market prices.

"SBI remains well-positioned to sustain its growth momentum, supported by its comfortable Loan-to-Deposit Ratio (LDR), which provides it with levers to accelerate credit growth, especially in retail and SME segments, while also offering scope to support Net Interest Margins (NIMs). We believe SBI could continue to deliver a sustainable RoA of 1% over the medium term, supported by healthy growth visibility across segments, strengthening deposit franchise with focus on CASA deposits, ramping-up the fee income profile, controlled Opex and Provisions," it said. The brokerage firm Axis Securities has a target price of Rs 710 on Varun Beverages, which indicates an upside potential of 31% from the current market prices.

"VBL is set to sustain its strong growth momentum, supported by several strategic factors: 1) The acquisition of BevCo, strengthening its presence in South Africa and DRC; 2) Expansion of its snacks portfolio beyond India, targeting markets like Zimbabwe and Zambia; 3) A focused push to widen its distribution network, especially in rural areas; 4) Commissioning of greenfield and brownfield facilities to enhance manufacturing capacity, expand market reach, and optimise logistics costs; and 5) Scaling up its high-margin Sting energy drink while increasing focus on value-added dairy products, sports drinks (Gatorade), and juice offerings," it said. The brokerage firm Axis Securities has maintained its 'Buy' rating on HDFC Bank with a target price of Rs 2,150, which indicates an upside of 20% from the current market prices. "Supported by (i) Adequate levers to improve NIMs, (ii) Controlled Opex growth and improving productivity ensuring cost ratio moderation, and (iii) Pristine asset quality, ensuring controlled credit costs should enable HDFCB to deliver an improving trend on return ratios.

RoA/RoE is expected to range between 1.8-1.9%/14-15% over FY25-27E.

Faster improvements in LDR and NIM expansion remain key re-rating levers for the bank," it said. The brokerage firm Axis Securities maintained its Buy rating on Bharti Airtel with an upgraded target price of Rs 1,900, showing an upside potential of 8% from the current market prices. "We maintain our ‘buy’ rating on the stock, driven by the company's superior margins, impressive subscriber growth, and increased 4G conversions," it said.

The brokerage firm Axis Securities recommended a Buy on Cholamandalam Investment & Finance with a target price of Rs 1,580, showing an upside potential of 8% from the current market prices. "CIFC is expected to continue to deliver a strong AUM/NII/Earnings growth of 27/27/28% CAGR over FY25-27E. We expect CIFC to deliver a healthy RoA/RoE of 2.

3-2.4%/19-22% over FY25-27E," Axis Securities said. The brokerage firm Axis Securities has a target price of Rs 5,285 on Hero Motocorp, which indicates an upside potential of 40% from the current market prices.

"We are monitoring (1) Hero’s roadmap in the EV product portfolio, including investments in Ather, the ramp-up of VIDA V2, and the launch of the sub-Rs 1 Lc Vida V2 Lite catering to mass markets; (2) Strategy in the mid-weight MC segment amidst growing competition; (3) Expansion into new international markets," it said. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times).