Top picks! Bank of Baroda, Varun Beverages among 8 largecap stocks that can rally up to 27%

Axis Securities maintained its Buy rating on SBI with a target price of Rs 800, showing an upside potential of 25% from the current market prices.

"Among PSU banks, SBI remains the best play on the gradual recovery of the Indian economy on account of its healthy PCR, robust capitalization, strong liability franchise, and improved asset quality outlook. We believe despite the margin pressures, SBIN remains well poised to deliver RoA/RoE of 1%/15-17% over FY24-25E supported by stable credit costs and steady cost ratios," it said.

The brokerage firm Axis Securities has a target price of Rs 1,450 on Varun Beverages, which indicates an upside potential of 17% from the current market prices.

"VBL seems to be well-placed to increase its lost market share. In CY23, it plans to increase the overall reach to 3.5 Mn outlets from ~3 Mn in CY22 and plans to add 40,000-50,000 visi-coolers annually going forward.," it said.

Axis Securities maintained its Buy rating on TVS Motor with a target price of Rs 2,350, which implies an upside potential of 19% from the current market prices."We continue to like TVSL considering its strong focus on the EV product pipeline ahead of incumbent 2W OEMs, product premiumisation in the ICE category, and growth in export markets. Being well-placed among listed players, we expect the company’s Revenue/EBITDA/PAT to grow by 18%/24%/28% CAGR over FY23E26E," the brokerage firm said.

The brokerage firm Axis Securities has a target price of Rs 255 on Bank of Baroda, which shows an upside of 10% from the current market prices.

"With strong advances in growth, stable margins, healthy NII, asset quality under control and adequate capital, we believe the bank is well-positioned to deliver a sustainable RoA of 1% going forward. We believe current valuations of 0.9x FY25E ABV are attractive and believe BoB is ripe for re-rating, especially given its growth potential," it said.

Axis Securities has a target price of Rs 540 on ITC, which shows an upside potential of 15% from the current market prices."We expect overall cigarette volume growth to remain stable. At the industry level, the cigarette volumes have surpassed the pre-Covid levels and ITC is gaining lost market share from its peers. Moreover, the government's stance on stable taxation and crackdown on the illicit cigarette players has been icing on the cake, especially for the ITC which has been grappling with this issue for the last few years," it said.

The brokerage firm Axis Securities maintained its Buy rating on Bharti Airtel with a target price of Rs 1,155, showing an upside potential of 13% from the current market prices.

"We maintain our BUY rating on the stock given the company's superior margins, stronger subscriber growth, and higher 4G conversions," it said.

The brokerage firm Axis Securities maintained its Buy recommendation on ICICI Bank with a target price of Rs 1,250, implying an upside potential of 27% from the current market prices."The bank has been consistently outperforming its peers and has been firing on all cylinders. We continue to like ICICIB for its strong retail-focused liability franchise, buoyant growth prospects, stable asset quality along with healthy provision cover, adequate capitalization, and potential to deliver robust return ratios," it said.

The brokerage firm Axis Securities maintained its Buy rating on Maruti Suzuki with a target price of Rs 11,800, showing an upside potential of 16% from the current market prices."MSIL has completely refreshed its portfolio and a higher share of premium MPV/SUVs in the sales mix will drive the Revenue/EBITDA/PAT growth in FY23-26E. Strong order book, higher share of premium SUVs, CNG vehicles in the sales mix to improve ASP in FY24/25; further improved chip supplies and stable commodity prices to drive Revenue/EBITDA/PAT CAGR of 14%/20%/19% from FY23-26E," Axis Securities said.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)