Stocks Targets: Is it time for blue chip stocks to shine? Axis Securities picks 3 winners

Synopsis :- Axis Securities is bullish on select growth leaders, highlighting potential upside of up to 27%, supported by strong fundamentals, improving earnings visibility, margin expansion, and favourable long-term sectoral trends.

One of the leading brokerage firms, Axis Securities, has turned bullish on select growth leaders, citing strong fundamentals, improving earnings visibility, and favourable sectoral trends, while identifying key stocks with sustained long-term growth potential.

Bajaj Finance

Axis Securities has maintained its ‘Buy’ rating on the stock with the target price of Rs. 1,200, with an upside of 24.39 percent from CMP of Rs. 964.65. According to Axis Securities, Bajaj Finance is likely to sustain its growth momentum, with AUM expected to grow at a healthy 24–25 percent CAGR over the medium term, driven by core product strength and incremental contributions from scaled-up new products, with growth resuming from FY27.

Bajaj Finance Limited is an Indian deposit-taking NBFC offering a wide range of consumer, personal, SME, and commercial loans, along with deposits, insurance distribution, and broking services. Incorporated in 1987 and headquartered in Pune, it is a subsidiary of Bajaj Finserv Ltd.

With the market capitalization of Rs. 6,00,251.71 crore, the shares of Bajaj Finance Limited is trading at Rs. 964.65, down by 0.14 percent from its previous day’s close price of Rs. 963.30 per equity share. 

In Q3FY26, revenue rose to Rs. 21,214 crore, registering a healthy YoY growth of about 17.6 percent from Rs. 18,035 crore in Q3FY25 and a QoQ increase of roughly 5.1 percent over Rs. 20,179 crore in Q2FY26. 

EBITDA stood at Rs. 5,937 crore, broadly flat on a YoY basis with a marginal decline of around 0.4 percent from Rs. 5,958 crore, while declining 13.5 percent QoQ from Rs. 6,861 crore, indicating some pressure on operating margins. Profit for the quarter came in at Rs. 4,066 crore, down 5.6 percent YoY from Rs. 4,308 crore and lower by 17.8 percent QoQ compared with Rs. 4,948 crore in Q2FY26, reflecting weaker sequential profitability despite steady revenue growth.

At the moment, the company’s P/E ratio is 33x higher as compared to its industry P/E 18.9x. The company’s ROE and ROCE are 19.2 percent and 11.4 percent respectively, and the D/E ratio of 3.85, indicates the company’s financial performance.

HDFC Bank

Axis Securities has maintained its ‘Buy’ rating on the stock with the target price of Rs. 1,190, with an upside of 25.30 percent from CMP of Rs. 949.70. According to Axis Securities, HDFC Bank continues to execute well on its post-merger strategy, with steady progress toward pre-merger performance levels, a stronger retail deposit focus, and gradual margin improvement driven by better CASA mobilisation and repricing of high-cost funds.

HDFC Bank Limited is a leading Indian bank offering a wide range of retail, wholesale, and treasury banking services, including deposits, loans, cards, payments, trade finance, and insurance products. Incorporated in 1994 and headquartered in Mumbai, it operates in India and select international markets.

With the market capitalization of Rs. 14,61,406.44 crore, the shares of HDFC Bank Limited is trading at Rs. 949.70, down by 0.36 percent from its previous day’s close price of Rs. 953.10 per equity share. 

HDFC Bank reported Net Interest Income of Rs. 32,620 crore in Q3 FY26, up 6.4 percent YoY from Rs. 30,650 crore in Q3 FY25 and 3.4 percent QoQ from Rs. 31,550 crore. Net profit rose 11.5 percent YoY to Rs. 18,650 crore from Rs. 16,740 crore, and increased 0.1 percent QoQ from Rs. 18,640 crore.

Bharti Airtel

Axis Securities has maintained its ‘Buy’ rating on the stock with the target price of Rs. 2,530, with an upside of 27 percent from CMP of Rs. 1,992.20. According to Axis Securities,Bharti Airtel is a Buy pick for February, supported by strong margins, rising subscriber additions, and higher 4G/5G conversions. The smartphone user base increased by 5.1 million QoQ, now forming 78 percent of customers, while ARPU is targeted at Rs 300, backed by 28.3 GB monthly data usage per user.

Bharti Airtel Limited is a global telecommunications company providing mobile voice and data services, broadband, digital TV, and enterprise solutions across India, Africa, and South Asia. Founded in 1995 and headquartered in New Delhi, it operates across consumer, home, digital, and business segments.

With the market capitalization of Rs. 11,35,973.42 crore, the shares of Bharti Airtel Ltd closed at Rs. 1,992.20, down by 1.766 percent from its previous day’s close price of Rs. 2.025.80 per equity share. 

At the moment, the company’s P/E ratio is 37.3x lower as compared to its industry P/E 38.9x, and its ROE and ROCE are 23.2 percent and 13.5 percent respectively, and the D/E ratio of 1.77, indicates the company’s financial performance.

In Q2FY26, revenue increased to Rs. 52,145 crore, delivering a strong YoY growth of about 25.7 percent from Rs. 41,473 crore in Q2FY25 and a steady QoQ rise of nearly 5.4 percent over Rs. 49,463 crore in Q1FY26. 

EBITDA rose to Rs. 29,561 crore, up a robust 35.3 percent YoY from Rs. 21,846 crore and higher by around 6.2 percent QoQ compared with Rs. 27,839 crore, reflecting improved operating performance. Profit for the quarter surged to Rs. 8,651 crore, more than doubling with a YoY growth of approximately 108.2 percent from Rs. 4,153 crore, while also increasing 16.6 percent QoQ from Rs. 7,422 crore, indicating strong earnings momentum.

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