Axis Sec sees up to 18% upside in these 4 stocks; charts show bullish trend

SBI, Federal Bank, Shriram Finance and Ujjivan SFB are showing strong bullish uptrend, with all 4 stocks trading above the key moving averages across time-frames, suggest technical charts.

SBI, Federal Bank, Shriram Finance and Ujjivan Small Finance Bank are among the top picks in Axis Securities Banking, Financial Services, and Insurance (BFSI) sector outlook. Analysts at the brokerage firm are upbeat on these 4 financial firms, and predict up to 20 per cent appreciation in the underlying share prices.  Meanwhile, these 4 stocks - SBI, Federal Bank, Shriram Finance and Ujjivan Small Finance Bank - show a well-established uptrend on the technical charts, quoting firmly above the respective key moving averages - 20-, 50-, 100- and 200-day moving averages (200-DMAs) across time-frames.  "From a technical perspective, the moving average is one of most reliable tools to identify a market trend," says Drumil Vithlani, technical analyst at Bonanza. The analyst reckons that stocks trading above all 4 moving averages reflect a healthy bullish trend.  ALSO READ | Tech Mahindra, Infy among top analyst picks as IT stocks continue to slide 

Here's Axis Securities view on these 4 stocks, and the technical charts:

 

SBI

Current Market Price: ₹1,194 

 

 

    Axis Securities has pegged an upside target of ₹1,280 on SBI stock; this translates into an upside potential of 7.2 per cent from current levels.  The brokerage firm believes that SBI has seen broad-based growth, and the buoyancy is expected to continue based on the management's upwardly revised growth guidance to 13-15 per cent vs. 12-14 per cent earlier.  "The Rural, Agriculture, MSME (RAM) segment has seen continued healthy growth, while the corporate book has seen a decisive revival in growth and is expected to deliver a healthy double-digit growth going into Q4," said Axis Securities in its report.  SBI's asset quality remains at decadal best levels. The management's focus on deepening its liability franchise and leveraging tech to drive operating efficiency among other key aspects bodes well for the bank, the brokerage noted. 

Federal Bank

Current Market Price: ₹287 

 

    Axis Securities has projected a target price of ₹320 for the stock - up 11.5 per cent from here.  Federal Bank share appears to be progressing well across most of its key focus areas and is making considerable progress, with NIMs seeing a healthy uptick, a gradual build-up of the fee income, and strong CASA Ratio expansion, said the brokerage firm.  Asset quality challenges appear to be fading and should thereby keep credit costs under control. Axis Securities expects Federal Bank's RoA improvement to 1.3-1.4 per cent over FY27–28E vs. a rather lacklustre 1.1 per cent in FY26E. 

Shriram Finance

Current Market Price: ₹1,081 

 

    The brokerage expects the Shriram Finance stock to gain around 11.3, with projected target price at ₹1,200 per share.  Shriram Finance management expects margins to remain resilient, with NIMs likely to range broadly between 8.5-9 per cent going forward. They remain optimistic about growth momentum sustaining and Q4 disbursements. Overall, they do not expect any material change in the AUM mix over the medium-term, reinforcing its growth strategy within existing product segments, and have guided for AUM growth to range between 18-20 per cent over the next 2-3 years, highlights Axis Securities. 

Ujjivan Small Finance Bank (SFB)

Current Market Price: ₹62.69 

 

  Axis Securities believes the Ujjivan Small Finance Bank stock can zoom to ₹74 - up 18 per cent from present levels.  Ujjivan SFB's management remains confident of maintaining margins at current levels, with room for further expansion supported by continued TD repricing and benefit from the recent SA rate cut. Over the medium term, overall yields are expected to gradually decline as the loan mix shifts towards secured lending, with the bank looking to maintain a 50:50 mix in FY26, said the brokerage firm.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.