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Trent, NTPC, JSW Energy, VBL among 7 top stock ideas by Axis Securities
Domestic brokerage firm - Axis Securities in 3 separate research reports titled 'Top Conviction Ideas' dated June 5, 2025, has recommended 2 stocks each from the FMCG and retail sector; and 3 stocks from the power & utilities based on the recent March quarter earnings and future growth potential. Here's a summary of these stock ideas.
FMCG stocks ideas
Axis Securities in its report on FMCG top conviction ideas, said that while Q4 remained challenging for the FMCG firms, company managements have indicated a potential recovery beginning in H2FY26, supported by expected interest rate cuts and tax benefits, which will aid urban consumption, an above-normal rainfall, improving sowing patterns and rural demand and continued focus on cost rationalisation and efficiency. Further, rural demand showed early signs of recovery, supported by easing inflation, higher Minimum Support Prices (MSPs), increased government spending, and a promising monsoon outlook. The brokerage firm expects volume growth and margin expansion to gather pace gradually over the next 2–3 quarters amid hopes of Indian consumers rapidly shifting toward higher-end premium products and room for growth in underpenetrated markets - especially Tier 3+ towns. As such, Axis Securities recommends a 'Buy' on Varun Beverages (VBL) and DOMS Industries with a target price of ₹650 and ₹2,820, respectively. ALSO READ |
Top buy ideas in Retail space
Among retail-related stocks, Axis Securities recommends Trent and Ethos as its top picks with a target price of ₹6,650 and ₹3,150, respectively. The brokerage firm believes the retail sector is a compelling investment opportunity due to several factors. India's retail market is undergoing rapid formalisation, with significant opportunities emerging in smaller cities and towns that are largely unorganised. The increasing disposable income of consumers is leading to a noticeable shift towards branded products. Smaller cities and towns are outpacing metros in growth across categories such as apparel, QSR, and footwear, fueled by rising aspirations for branded products and increased disposable income. This structural growth story is expected to continue. Axis Securities expects rural demand to pick up steadily, supported by increased government spending and urban remittances, coupled with an eventual receding of consumer price inflation and stable raw material prices. ALSO READ | GRSE, BDL among 9 defence stocks up over 70% in 2 months; time to book gains?
Stocks to buy from Power & Utilities sector
The Power & Utilities sector showcased healthy financial health, margin expansion, and operational excellence led by NTPC, said Axis Securities in its report titled 'Top Conviction Ideas - Power and Utilities'. The outlook for the Power & Utilities sector remains positive as electricity demand is consistently improving. The Central Electricity Authority (CEA) projects a peak demand requirement of 366 GW by FY32, necessitating substantial capacity enhancements in both thermal and renewable energy. Among its top picks, it expects NTPC to rally to ₹400-mark; JSW Energy with a target price of ₹705 and Skipper with ₹570 are the top bets in the power & utilities sector. ALSO READ |
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