The Indian stock market has seen significant fluctuations in recent months, with the Nifty 50 index hitting a historic peak of 26,216 on September 26, 2024. However, the market faced a sharp decline of 16% by February 28, 2025. Fortunately, March 2025 brought a robust recovery, with a 6.3% increase. According to Axis Securities, the risk-reward scenario currently leans towards sectors focused on domestic markets, while export-driven industries appear to be adopting a cautious approach. Here’s a look at Axis Securities’ top large-cap stock recommendations for April.

Top Large-Cap Stock Picks for April

ICICI Bank: Strong Growth Potential

Axis Securities has set an ambitious target price of ₹1,500 for ICICI Bank, indicating an upside of 11%. The brokerage is optimistic about the bank’s ability to sustain a solid performance, projecting a return on assets (RoA) of 2.2-2.3% and a return on equity (RoE) of 17-18%. This positive outlook is bolstered by consistent business growth, a healthy credit-deposit ratio, and a stable fee income profile. With robust asset quality and strong capitalization, ICICI Bank is a clear favorite among banking stocks.

State Bank of India: Ready for Growth

For the State Bank of India (SBI), Axis Securities has a target price of ₹1,025, suggesting a potential upside of 33%. The brokerage highlights SBI’s favorable loan-to-deposit ratio (LDR), which is expected to drive credit growth, particularly in the retail and small-to-medium enterprise sectors. SBI aims to maintain an RoA of 1% in the medium term, supported by healthy growth across segments and a strong focus on low-cost deposits.

Varun Beverages: Strategic Growth Initiatives

Axis Securities has set a target of ₹710 for Varun Beverages, reflecting a 23% upside. The firm remains optimistic about its strategic initiatives, which include the acquisition of BevCo in South Africa and DRC, expansion in the snacks sector in Zimbabwe and Zambia, and efforts to enhance its rural distribution network. The rollout of new manufacturing facilities and high-margin products like the Sting energy drink are likely to contribute to long-term revenue and profitability.

HDFC Bank: Strengthening Financials

With a target price of ₹2,150, Axis Securities anticipates an 18% upside for HDFC Bank. The brokerage points to the bank’s capacity to enhance net interest margins (NIMs) while keeping operating expenses in check. These factors are expected to support an RoA of 1.8-1.9% and an RoE of 14-15% over the fiscal years 2025-2027. Improvements in LDR and NIM expansion are critical for re-evaluating the stock’s valuation.

Bharti Airtel: Leading in ARPU Growth

Axis Securities has assigned a target price of ₹1,900 for Bharti Airtel, indicating a 10% upside. The company leads in average revenue per user (ARPU) at ₹245, compared to Reliance Jio’s ₹195. Growth drivers include the transition from 2G to 4G/5G, an increase in value-added services, and deeper rural market penetration. Airtel’s impressive data consumption per user, averaging 24.5 GB/month, is expected to bolster revenue growth.

Cholamandalam Investment & Finance: Solid Growth Expectations

For Cholamandalam Investment & Finance, Axis Securities has set a target price of ₹1,780, suggesting a 17% upside. The brokerage forecasts strong growth in assets under management (AUM), net interest income (NII), and earnings, projecting CAGR rates of 27%, 27%, and 28%, respectively, from FY25 to FY27. Cholamandalam is expected to maintain a healthy RoA of 2.3-2.4% and an RoE of 19-22% during this period.

Hero MotoCorp: Driving Growth Through Innovation

Axis Securities has set a target price of ₹5,285 for Hero MotoCorp, indicating a significant upside of 42%. The brokerage is closely monitoring Hero’s electric vehicle (EV) strategy, including investments in Ather and the launch of the VIDA V2 model aimed at mass markets. Additionally, expansions in the mid-weight motorcycle segment and new international markets are expected to further enhance growth. Government initiatives to boost rural incomes could elevate demand, especially in entry-level and 125cc segments.

Trent: Expanding Horizons

Axis Securities has a target price of ₹6,570 for Trent, anticipating a 23% upside. The retailer is expected to see strong sales growth driven by an aggressive store expansion and fresh product offerings. Key positives include the turnaround at Star Bazaar and increasing traction with the Inditex joint venture. Trent’s foray into the UAE market and the launch of new product lines are projected to serve as significant growth catalysts.

Conclusion

Investors looking for large-cap opportunities in the Indian market should consider these stocks recommended by Axis Securities. Each company presents a unique growth story, backed by strong fundamentals and strategic initiatives aimed at capitalizing on market trends. As the market continues to evolve, these stocks could play a pivotal role in portfolio performance.