Axis Securities has identified seven midcap and smallcap stocks that have shown resilience amid the current market conditions, with the Nifty 50 index outperforming on the back of strong contributions from IT, Financials, and select industrial companies. These stocks are expected to deliver significant upside potential, as per the brokerage's analysis.
Dalmia Bharat is projected to see a 26% upside, driven by its expansion projects and acquisition of JP Cement's Central India assets. The company plans to increase cement capacity to 67mt by Q3FY28, supporting sustained volume growth and market share gains.
LG Electronics, with a target price of Rs 1,815, is expected to achieve a 22% upside due to its strong balance sheet and expanding manufacturing footprint, despite near-term risks from commodity prices and currency fluctuations.
APL Apollo Tubes is viewed with a 24% upside, despite global disruptions and sector headwinds. The brokerage expects a 19% rise in revenue and a 22% jump in PAT CAGR over FY26-28E.
Ujjivan Small Finance Bank, with a 20% upside, is seen as a strong play on the MFI recovery cycle, with robust performance across key parameters.
Background
These recommendations reflect Axis Securities' confidence in the potential of these stocks to outperform amid rich valuations and investor preference for quality companies.
Investors should keep an eye on these stocks as they navigate the current market dynamics, with potential for significant growth in the coming years.
