6 small & midcap ideas with upside potential of up to 18% from Axis Securities

Target price: Rs 1,330 | Upside potential: 9.4%

Aurobindo has already invested Rs 7,000 crore in capex over the last two years, primarily in segments like biosimilars and Pen-G (API). Aurobindo’ valuations in the coming years will be influenced by the return on invested capital (ROIC) generated from this capex.

Despite these challenges, Axis is considering the favorable industry trends and investments in new growing sectors.

Target price: 1,785| Upside potential: 9.2%Double-digit growth in the India business is expected as the company has alreadyincreased MR (Medical Representative) numbers to 1,000. An uptick in the API (Active Pharmaceutical Ingredient) business, as the API industry is witnessing a demand revival.

Target price: Rs 205 | Upside potential: 16.7%The bank's shift in portfolio mix is likely to support margins while business growth is expected to remain robust. With the asset quality to remain a priority, Axis Securities remains positive on Federal Bank's future outlook.

Target price: Rs 630; Upside potential: 4.6%

The domestic brokerage firm is optimistic about the company’s growth prospects driven by several factors like operational performance and focus on building an EV product portfolio, healthy order book position skewed towards EVs in Europe and steady growth in Indian/Mexican operations, strong free cash flow (FCF) generation capabilities and capacity building to meet demand from Indian OEMs.

Target price: Rs 980 | Upside potential: 18%

Axis maintains its positive outlook on Westlife Foodworld with its confidence in

the company’s bright future prospects being supported by the company's strong

execution track record of Revenue/EBITDA growth of 17%/51% over FY16-20, which was driven by new product launches and cost rationalization programs.

Target price: Rs 920| Upside potential: 5.15%

Considering strong and diversified order book position, healthy bidding pipeline, new order inflows, emerging opportunities in the construction space, the company’s efficient and timely execution and strong financial credence, we expect JKIL to report Revenue/EBITDA/APAT CAGR of 17%/19%/22% respectively over FY24-FY26E.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)