Axis Securities has maintained a bullish stance on a mix of largecap, midcap and smallcap stocks in its May 2026 top picks basket. According to the brokerage house, companies with earnings visibility, pricing power and strong execution are likely to remain market favourites through FY27 as market participants turn increasingly selective in a volatile environment.
The brokerage’s latest recommendations included names such as Bharti Airtel, Eternal, Kotak Mahindra Bank, Chalet Hotels and Dalmia Bharat, with implied upside ranging from about 12% to 48%.
Here are some of the key stock calls from the brokerage’s May 2026 list.
Axis Securities on Eternal
Axis Securities retained Eternal in its May conviction basket with a target price of Rs 360, indicating an upside of 46%. The brokerage continued to back the company as one of its preferred consumer discretionary ideas despite pressure on sentiment around food delivery and quick commerce stocks.
According to Axis Securities. maintained that the market environment is becoming increasingly selective, with greater focus on earnings sustainability and business quality.
“In the current context, with crude oil prices elevated, liquidity conditions tightening, and FII outflows persisting, the market environment is likely to remain discerning,” Axis Securities said.
The brokerage added that companies capable of sustaining growth while managing cost pressures are likely to outperform through FY27.
Axis Securities on Bharti Airtel
Axis Securities retained Bharti Airtel among its preferred largecap picks with a target price of Rs 2,530, implying an upside of 34%. The brokerage continued to overweight telecom as part of its broader sector allocation strategy for FY27.
The brokerage stated that defensives and quality growth franchises are likely to remain in favour amid macro uncertainty and volatile global conditions.
“We continue to overweight BFSI, Telecom, Capital goods, Healthcare, Power and Energy,” Axis Securities said.
Axis Securities added that telecom companies with strong market positioning and stable earnings visibility remain well placed even as broader markets stay range-bound.
Axis Securities on Minda Corporation
Axis Securities assigned a target price of Rs 710 to Minda Corporation, implying an upside of 37%. The stock remained part of the brokerage’s preferred smallcap basket linked to the automobile and consumption cycle.
The brokerage continued to favour businesses with strong earnings visibility and execution capability amid ongoing sector rotation in the market.
“Bottom-up stock selection and tactical sector rotation will remain critical to navigating this phase and generating alpha,” Axis Securities said.
Axis Securities on Kotak Mahindra Bank
Axis Securities assigned a target price of Rs 500 to Kotak Mahindra Bank, indicating an upside of 30%. The bank remained part of the brokerage’s preferred financial basket alongside Bajaj Finance and State Bank of India.
The brokerage maintained that financials are expected to remain key contributors to earnings growth over the next few years as domestic economic activity improves.
“We project Nifty earnings to grow at a robust 13% CAGR over FY23–28, with financials expected to remain the largest contributors to earnings growth in FY26 and FY27,” Axis Securities said.
Axis Securities on Chalet Hotels
Axis Securities retained Chalet Hotels in its preferred smallcap basket with a target price of Rs 1,120, implying an upside of 48%, the highest among its May top picks. The brokerage remained constructive on the hospitality company amid firm travel demand, improving occupancy and healthy traction in premium room pricing.
The report explained that consumption-linked businesses with strong domestic demand visibility are likely to remain resilient despite broader market volatility.
“We continue to maintain a positive view on discretionary and retail consumption plays,” Axis Securities said.
Axis Securities on Bajaj Finance
Axis Securities retained Bajaj Finance in its preferred largecap financial basket with a target price of Rs 1,160, implying an upside of 24%. The brokerage continued to favour lenders with strong retail franchise, steady loan growth and healthy earnings visibility despite tighter liquidity conditions and elevated market volatility.
Axis Securities maintained that financials are likely to remain among the largest contributors to earnings growth over the next few years as domestic demand and credit offtake improve.
“We project Nifty earnings to grow at a robust 13% CAGR over FY23–28, with financials expected to remain the largest contributors to earnings growth in FY26 and FY27,” Axis Securities said.
Axis Securities on State Bank of India
Axis Securities retained State Bank of India in its May top picks basket with a target price of Rs 1,350, indicating an upside of 26%. The brokerage remained constructive on the country’s largest lender amid improving domestic economic activity, policy support and sustained credit demand.
The report maintained that India’s long-term growth story remains intact despite near-term pressure from crude prices and global uncertainty.
“India’s domestic growth outlook remains relatively resilient, supported by strong domestic demand, continued government capital expenditure, and gradual recovery in private sector investments,” Axis Securities said.
Axis Securities on Avenue Supermarts
Axis Securities retained Avenue Supermarts in its preferred consumer staples basket with a target price of Rs 5,270, implying an upside of 15%. The brokerage continued to favour companies linked to urban consumption and organised retail amid expectations of resilient domestic demand.
The report maintained that quality consumption businesses with strong market positioning are likely to remain preferred plays despite broader market volatility.
“We continue to maintain a positive view on discretionary and retail consumption plays,” Axis Securities said.
Axis Securities on Max Healthcare Institute
Axis Securities retained Max Healthcare Institute in its largecap healthcare basket with a target price of Rs 1,250, indicating an upside of 26%. The brokerage continued to overweight healthcare as part of its broader sector strategy for FY27.
Axis Securities maintained that defensive growth sectors with strong earnings visibility are likely to remain in focus amid uncertainty in global markets.
“We continue to overweight BFSI, Telecom, Capital goods, Healthcare, Power and Energy,” Axis Securities said.
The brokerage also maintained that healthcare companies with strong execution and expanding demand visibility remain well positioned over the medium term.
Axis Securities on LG Electronics India
Axis Securities retained LG Electronics India Ltd. in its preferred consumer discretionary basket with a target price of Rs 1,815, implying an upside of 14%. The brokerage continued to favour companies linked to premium consumption and rising domestic demand despite near-term macro headwinds.
The report maintained that selective consumption-oriented businesses remain attractive from a medium-term perspective after the recent correction in markets.
“Current valuations have corrected meaningfully, with benchmark indices now trading closer to their long-term averages,” Axis Securities said.
The brokerage also maintained that companies with strong brands and sustained demand visibility are likely to remain market favourites through FY27.
Axis Securities on Nestle India
Axis Securities retained Nestle India Ltd. in its preferred consumer staples basket with a target price of Rs 1,640, indicating an upside of 12%, the lowest among its May top picks. The brokerage remained constructive on defensive consumption names amid volatility in global and domestic markets.
The report maintained that stable earnings delivery and strong business quality are likely to remain important in the current market cycle.
“The focus should remain on bottom-up stock selection, with emphasis on companies that can navigate cost pressures while sustaining growth,” Axis Securities said.
Axis Securities on Navin Fluorine International
Axis Securities retained Navin Fluorine International in its preferred smallcap materials basket with a target price of Rs 7,750, implying an upside of 14%. The brokerage remained selective on export-oriented and specialty chemical companies amid ongoing global uncertainty and slowdown concerns.
The report maintained that stock-specific selection remains important as broader market conditions stay uneven.
“Quality and growth-oriented companies with sustainable business models, pricing power, and earnings visibility will remain key outperformers through FY27,” Axis Securities said.
Axis Securities on Kalpataru Projects International
Axis Securities retained Kalpataru Projects International in its preferred industrials basket with a target price of Rs 1,450, indicating an upside of 16%. The brokerage remained constructive on infrastructure and capital goods companies amid continued government spending and resilient domestic capex activity.
The report maintained that infrastructure and industrial segments continue to show healthy demand trends despite broader macro volatility.
“Demand resilience in infrastructure, capital goods, and select consumption segments” remained one of the key themes emerging from management commentary this earnings season, Axis Securities said.
Axis Securities on Ujjivan Small Finance Bank
Axis Securities retained Ujjivan Small Finance Bank in its May top picks basket with a target price of Rs 74, implying an upside of 30%. The brokerage continued to favour select financial names tied to domestic growth and improving credit demand.
The report maintained that India’s macro environment remains relatively resilient despite pressure from crude oil prices and currency volatility.
“India’s domestic growth outlook remains relatively resilient, supported by strong domestic demand, continued government capital expenditure, and gradual recovery in private sector investments,” Axis Securities said.
Axis Securities on Dalmia Bharat
Axis Securities retained Dalmia Bharat in its preferred midcap basket with a target price of Rs 2,430, implying an upside of 27%. The brokerage remained constructive on select infrastructure and capex-linked plays amid continued government spending and industrial demand.
The report added that infrastructure and capital goods continue to show resilience despite broader macro pressure.
“Demand resilience in infrastructure, capital goods, and select consumption segments” remained one of the key themes emerging from management commentary this earnings season, Axis Securities said.
Axis Securities also maintained a positive stance on industrial and capital goods segments heading into FY27.
Conclusion
Axis Securities’ May 2026 stock basket leaned heavily towards companies with domestic growth exposure, stable earnings visibility and strong balance sheets rather than highly cyclical bets. Banking, telecom, consumption, hospitality and infrastructure remained among the brokerage’s preferred themes as volatility continued across global markets.
Disclaimer: The stock recommendations and target prices mentioned above are based on reports by Axis Securities and do not constitute an offer or solicitation by this publication. Given the inclusion of smallcap and midcap stocks, investors should be aware of higher volatility and liquidity risks associated with such segments. We strongly recommend consulting a SEBI-registered investment advisor before making any financial decisions based on these projections.
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