Trent, Hero Moto, ICICI Bank, Lupin, HDFC Bank among pick

Domestic brokerage firm Axis Securities has chalked out as many as 16 stocks including Trent, SBI, HDFC Bank, HCL Tech, Lupin and more for the month of February 2025.

Domestic brokerage firm Axis Securities has chalked out as many as 16 stocks for the month of February 2025. The brokerage claims that its basket of cherry picker stocks has outperformed the Nifty50 index, delivering a return of 12 per cent in the last one year, compared to the benchmark index’s return of only 8.2 per cent.

The previous four months were highly volatile for the market, and a notable mixed performance was seen across sectors, market caps, and style indices. The Axis Top Picks basket declined by 6.5 per cent in the last three months, led by volatility, while the Nifty 50 was down by 3.4 per cent during the same period, said Axis Securities.

Indian stock markets have had a volatile start for 2025 as the broader markets have taken a bigger hit. The broader markets corrected up to 20 per cent their highs, while the benchmark indices saw a double digit sell-off on the back of consistent FIIs selling, rise in the dollar index, higher US Bond yields, inflation concerns and trade-war tariffs.

The Union Budget 2025-26, presented on Saturday by the Finance Minister Nirmala Sitharaman, gave a huge boost to domestic consumption as she increased the income tax threshold limit to Rs 12 lakh. Axis Securities believes that the budget has played a balancing act between maintaining fiscal discipline and supporting consumption-led demand in the economy.

The expectations from the Budget were reasonably high as the Indian economy was facing signs of moderation in economic growth during H1FY25 due to a reduction in government spending, credit tightening in unsecured lending, consumption slowdown (especially in the urban areas), extended monsoon, and inflation, it said.

The past decade was defined by development-focused schemes, with the construction of roads, bridges, metro systems, and other infrastructure projects serving as benchmarks for the ruling party’s success, Axis noted. “The current level of India’s VIX is below its long-term average, indicating that the market is currently in a neutral zone,” it said.

Based on the recent developments, Axis Securities has made multiple changes to its top picks recommendations. This includes the removal of Aurobindo Pharma, Gravita India, Sansera Engineering, Chalet Hotels and J Kumar Infra, and the addition of Trent, Hero Motocorp, Max Healthcare, and Indian Hotels, signaling a shift towards consumption theme and largecaps.

Axis has maintained a bottom-up stock picking with a focus on ‘growth at a reasonable price’ and ‘quality’ would be key levers to generate satisfactory returns in the next one year. It has a target of 26,100 for the Nifty50 index for December 2025 in the base case, the index targets for bull and bear case come to be 28,700 and 23,500, respectively.

From the largecap basket, Axis Securities has picked up ICICI Bank Ltd with a target price (TP) of Rs 1,500; State Bank of India with a target price of Rs 1,040; HDFC Bank Ltd with a target price of Rs 2,000; Bharti Airtel with a target price of Rs 1,880; Hero MotoCorp with a target price of Rs 5,250 and Trent with a target price of Rs 7,450.

It is also bullish on Varun Beverage (TP: Rs 700), Cholamandalam Investment & Finance Company (TP: Rs 1,650), HCL Technologies (TP: Rs 2,175). From the midcap basket Lupin (TP: Rs 2,600), Max Healthcare (TP: Rs 1,315), Dalmia Bharat (TP: Rs 2,040) and Prestige Estate Projects (TP: Rs 1,820) make it to the list. Only one smallcap stock Healthcare Global Enterprises (TP Rs 575) has made it to the list.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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