The Indian stock market staged a recovery in the month of June as decline in geopolitical risks following the de-escalation of tensions in West Asia, coupled with a sharp correction in crude oil prices, encouraged investors to gradually rebuild equity exposure.
The Nifty 50 index gained marginally by 1.35%, and the Nifty 500 and Nifty Midcap 100 indices rose by 1.5% and 0.12%, respectively, in June. However, the Nifty Smallcap 250 rallied over 4% and Nifty Microcap 250 jumped more than 6% last month, outperforming the frontline indices, supported by strong domestic liquidity.
Axis Securities believes the Indian economy remains well-positioned for sustained growth, acting as a relative safe haven amid global economic volatility. Its constructive long-term outlook is underpinned by India’s favourable economic structure, increased capital expenditure outlined in the Union Budget 2026–27, and the implementation of GST 2.0 reforms, all of which are expected to accelerate credit growth, particularly for banks.
“These structural drivers should support double-digit corporate earnings growth, enabling Indian equities to deliver healthy double-digit returns over the next 2–3 years. We project Nifty 50 earnings to grow at a robust 13% CAGR over FY23–28, with financials expected to remain the largest contributors to earnings growth in FY27 and FY28,” said the brokerage firm.
In its base case, Axis Securities maintained its December 2026 Nifty target of 27,220, based on a valuation of 19.5x December 2027 earnings.
Axis Securities recommends investors maintain good liquidity (10-15%) to use any dips in a phased manner and build a position in high-quality companies (where the earnings visibility is quite high) with an investment horizon of 12-18 months.
In its bull case, the brokerage firm values Nifty at 20.5x, implying a December 2026 target of 28,615, while its base case values Nifty at 16.5x, implying a target of 23,030.
Axis Securities has recommended 15 stocks across largecap, midcap and smallcap segments for the month of July. The stock picks are Kotak Mahindra Bank, Bajaj Finance, Bharti Airtel, Avenue Supermarts, ICICI Bank, Varun Beverages, APL Apollo Tubes, Healthcare Global Enterprises, LG Electronics India, Nestle India, Eternal, Ujjivan Small Finance Bank, Chalet Hotels, Minda Corporation, and Dalmia Bharat.
Here are midcap and smallcap stock picks by Axis Securities:
Dalmia Bharat | Buy | Target Price: ₹2,430
Dalmia Bharat share price is currently trading at 10.5x and 9.5x FY27E/FY28E EV/EBITDA and EV/tonne of $65 and $61. The valuation remains attractive compared to other larger peers, said Axis Securities. It maintained a ‘Buy’ rating on Dalmia Bharat stock with a target price of ₹2,430 per share.
APL Apollo Tubes | Buy | Target Price: ₹2,250
APL Apollo Tubes stock price is trading at 32x its 12-month forward consensus EPS vs. its long-term average of 37x. Axis Securities expects Revenue, EBITDA and PAT CAGR of 19%, 19% and 22%, respectively, over FY26-FY28. Hence, it recommends a ‘Buy’ call on the stock, with APL Apollo Tubes share price target of ₹2,250 apiece.
Ujjivan Small Finance Bank | Target Price: ₹78
Ujjivan Small Finance Bank appears well-positioned to deliver healthy and sustainable growth over the medium term, supported by the acceleration of its portfolio diversification strategy, strong traction in secured businesses, and an improving liability franchise, Axis Securities said. It has a target price of ₹78 apiece on Ujjivan Small Finance Bank shares.
Chalet Hotels | Target Price: ₹1,000
Stabilisation of recently added inventory, ramp-up of resorts, and commissioning of commercial real estate assets are expected to drive earnings growth over the next few years. The company expects monthly CRE rentals to rise to ₹30 crore in FY27, while Cygnus 2 and Hyderabad projects provide long-term upside, said the brokerage firm.
Axis Securities has Chalet Hotels share price target of ₹1,000 level.
Minda Corporation | Target Price: ₹785
The brokerage firm remains positive on Minda Corporation’s growth trajectory, supported by strong order inflows, premiumization, expanding EV opportunities, and technology-led product offerings.
Backed by a robust ₹10,000 crore order book and management’s confidence in outperforming industry growth through organic and inorganic initiatives, it projects a CAGR of 18%, 22% and 30% in Revenue, EBITDA and Adjusted PAT over FY27-FY28, with a higher share of profits from associates expected to further support PAT growth.
Axis Securities has Minda Corporation share price target of ₹785 apiece.
Healthcare Global Enterprises | Target Price: ₹750
Healthcare Global Enterprises’ strong outlook relies on tripling outpatient centres, recruiting 23 specialised oncologists, continuous brownfield capacity growth, and aggressively ramping up operations at both Whitefield and North Bangalore hospital facility hubs. Axis Securities expects the company’s revenue, EBITDA, and PAT to grow by 10%, 19% and 231% CAGR for FY26-FY29, respectively, with EBITDA margins expanding by 200 bps to 21.3% by FY28.
It has a target price of ₹750 apiece on Healthcare Global Enterprises shares.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
