Axis Securities, a leading domestic brokerage firm, has identified five standout stocks that it believes hold strong upside potential for the month of July. These recommendations are backed by detailed company analysis and projections that highlight both fundamental strength and strategic positioning in their respective sectors.
Among the top picks is Bajaj Finance, one of India’s most well-known non-banking financial institutions. With a target price of 1050 rupees, the firm expects a 12 percent upside. Bajaj Finance is projected to grow its assets under management, net interest income, and earnings by over 25 percent annually over the medium term. The growth outlook is supported by expectations of lower funding costs, improved operating efficiency, and healthy asset quality. The continued leadership of Rajeev Jain as Vice Chairman also reinforces confidence in the company’s execution strategy.
State Bank of India also made it to the list with a target price of 1025 rupees, reflecting a potential upside of 25 percent. Despite credit growth in the past year falling slightly below projections due to unexpected pre-repayments by public sector units, SBI has shown strong performance across retail lending. Its low loan-to-deposit ratio and a well-diversified business model provide room for credit growth. Axis Securities believes that SBI will continue to maintain a return on assets of 1 percent, backed by a growing deposit base, expanding fee income, and controlled operational costs.
Varun Beverages emerged as the stock with the highest expected return in this list. The only bottler of PepsiCo outside the United States has been given a target price of 650 rupees, which suggests a massive 42 percent upside. The company’s growth strategy includes expanding its footprint in Africa through the BevCo acquisition and international snack business rollouts in Zimbabwe and Zambia. It is also enhancing production capacity and rural distribution. High-margin products like Sting energy drink and its entry into dairy and sports drinks are expected to boost both revenue and profitability.
HDFC Bank has also been recommended with a price target of 2250 rupees, offering an estimated 12 percent return. The private sector lender continues to demonstrate resilience post its merger and remains focused on returning to pre-merger performance levels. Supported by strong fundamentals, the bank is expected to deliver return on assets of up to 1.9 percent and return on equity of up to 15 percent in the next two years. Its strict control on operational expenses, stable asset quality, and steady income streams place it in a good position for sustainable growth.
The final pick is Bharti Airtel, with a price target of 2330 rupees and a 16 percent upside forecast. Bharti continues to lead the telecom space with its highest-in-industry average revenue per user, currently at 245 rupees. The company is set to benefit from increasing subscriber growth, strong 4G and 5G conversions, and the expansion of value-added services. Its rural penetration and increasing data usage, averaging over 25 GB per customer each month, are expected to further support its target of 300 rupees in average revenue per user. These factors combined position Bharti Airtel for robust growth in the coming quarters.
Overall, Axis Securities’ top picks for July reflect a diverse portfolio spanning finance, banking, beverages, and telecom. Each recommendation is grounded in strong fundamentals and forward-looking strategies that suggest notable upside potential for investors looking to position themselves in quality stocks.
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