Axis Bank, L&T, and HDFC Life: Top Stocks in Focus
Axis Bank and L&T are the two major counters under brokerages’ lens on Thursday, one on the back of second quarter earnings while the other has been marked as a ‘quiet outperformer’. While analysts have maintained a neutral stance on Axis Bank with an unchanged target price, L&T’s target price was hiked by Jefferies as the stock has outperformed Nifty over a period one to five year.
Axis Bank Q2 Earnings: A Mixed Bag
The brokerage notes the Q2 earnings missed estimates, led by higher-than-expected provisions on crop loans. However, asset quality is improving, with both Gross Non-Performing Assets (GNPA) and slippages showing a decline. Net Interest Margins (NIMs) are stable, and corporate loans are the primary driver for overall loan growth.
CASA (Current Account Savings Account) growth was weak, which the brokerage attributes to lower government balances. Valuations are considered reasonable at 1.4x its estimated FY27 price-to-book, with Book Value Per Share (BVPS) up 15% year-on-year. To know more about Axis Bank Q2 results, click here.
L&T: A Quiet Outperformer
Maintains ‘Buy’ and raises the target price to Rs 4,345. Notes the stock has significantly outperformed the Nifty over 6-month, 1-year, and 5-year periods by a wide margin, anywhere between 1% to 201%. The brokerage is confident the company is on track to meet or exceed its FY26 guidance.
Anticipates core Engineering & Construction (E&C) EBITDA will rise by 20%, outpacing the 16% growth seen between FY15-19. Believes the combination of strong order visibility and conservative guidance should continue to drive the stock’s performance. For more information on L&T stock price, visit our website.
HDFC Life: A Buy Call
Maintains ‘Overweight’ with a target price of Rs 1,000. The key focus for the upcoming Q2 results will be on loan growth, Net Interest Margins (NIMs), and asset quality. Believes that an improving macroeconomic environment and better asset quality could drive faster loan growth in FY27 compared to FY26.
Expects a potential 30% re-rating for the stock over the next 9–12 months if the earnings trajectory shows improvement. To learn more about HDFC Life Q2 results, click here.
Other BFSI Counters in Focus
Reiterates ‘Neutral’ with a target price of Rs 820. Notes the second quarter (Q2FY26) was weak, characterized by muted AUM growth and elevated credit costs. A key positive was the expansion in Net Interest Margins (NIMs), which was aided by a lower cost of funds.
The rise in credit costs was primarily driven by stress in the Commercial Vehicle/Construction Equipment loan segments due to monsoon disruptions. Expects a strong rebound in the second half of the year, driven by festive demand and a recovery in retail lending. For the latest updates on BFSI sector news, visit our website.
Conclusion
In conclusion, Axis Bank, L&T, and HDFC Life are the top stocks in focus as brokerages weigh in on their Q2 performance and provide revised price targets. While Axis Bank’s Q2 earnings were a mixed bag, L&T has been marked as a ‘quiet outperformer’. HDFC Life is a buy call, with a potential 30% re-rating expected over the next 9-12 months.
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