Axis Securities Flags Nine Indian Stocks to Buy in 2026 Amid Earnings-Led Market

Indian equities enter 2026 with valuations already stretched and investors focusing more on earnings growth. Axis Securities identifies nine "stocks to buy in 2026", projecting potential gains of up to 20% as the brokerage sets a Nifty 50 base-case target of 28,100 for December 2026, based on 20x Dec 2027 estimated earnings.

"The year 2026 is expected to be more constructive for Indian equities, transitioning from a period of valuation-led consolidation to an earnings-led market. The favourable domestic macro drivers, combined with policy support and the anticipated resolution of US tariff issues, create a compelling investment case. We also suggest a "Buy on Dips" strategy in the stocks listed below, with an investment horizon of over 12 months," said Axis Securities.

The broader market performance in 2025 remains mixed as December 2026 approaches. On 1 December 2025, the Nifty 50 touches a lifetime peak of 26,326, giving an annual return of 10.2%. The Nifty 500 advances 6.4% during the same period, while the Nifty smallcap 250 declines 6.4%, highlighting pressure in smaller names.

Axis Securities argues that earnings now drive the next leg of the market rather than pure liquidity. The brokerage expects supportive domestic macro conditions and government policies to aid profitability for select sectors. Within this framework, the nine highlighted stocks span banking, beverages, metals, asset management, cement, building materials, digital advertising, healthcare and packaging.

The brokerage recommends these nine stocks to buy in 2026 with a one-year view from 19 December 2025. Target prices imply upside potential between 12% and 20%, assuming Axis Securities’ base Nifty scenario materialises by December 2026. Key details of the stocks to buy in 2026 are summarised below for finance readers.

Stocks to buy in 2026	CMP in Rs as of 19 December 2025	Target price in Rs	Implied upside
State Bank Of India	980	1,135	16%
Varun Beverages	469	550	17%
Hindalco Industries	852	950	12%
Nippon Life India Asset Management Ltd.	888	1,000	13%
Dalmia Bharat Ltd.	2,015	2,320	15%
Astral Ltd.	1,424	1,625	14%
Affle 3i Ltd.	1,719	2,000	16%
Healthcare Global Enterprises Ltd.	707	850	20%
Mold-Tek Packaging Ltd.	578	670	16%

Stocks to buy in 2026 and Axis Securities view on SBI and VBL

Among the stocks to buy in 2026, Axis Securities highlights State Bank of India as its preferred large bank. "SBI's performance has been the best amongst the larger banks. The bank remains well-poised to sustain its performance, supported by the management's focus on deepening its liability franchise, allocating capital to higher RoRWA assets, maintaining a disciplined pricing approach, and leveraging tech to drive operating efficiency," said the research analysts of Axis Securities.

"The bank is making concentrated efforts to contain Opex growth by focusing on improving productivity and maintaining the C-I Ratio at Varun Beverages Target Price" remains a key operational comment in the note, although the C-I ratio level is truncated in the source text. Axis Securities also sees Varun Beverages as a core consumer play within its stocks to buy in 2026 list, backed by multi-country and multi-category expansion.

As per Axis Securities VBL is poised to maintain its strong growth trajectory, driven by multiple levers, such as (1) The BevCo acquisition strengthening its presence in South Africa and the DRC; (2) International expansion of its snacks business, especially into Zimbabwe and Zambia; (3) Deepening rural distribution to widen market reach; (4) Capacity enhancement through new greenfield and brownfield facilities, improving operational efficiency; and (5) Scaling high-margin brands like Sting, alongside increased focus on value-added dairy, sports drinks, and juices.

"These strategic initiatives are set to support sustained revenue and margin expansion. We expect Revenue/EBITDA/PAT to grow at 23%/22%/29% CAGR over CY24-27E. We recommend a BUY on the stock with a target price of Rs 550/share," the research analysts of Axis Securities recommended.

Stocks to buy in 2026 and Axis Securities outlook on Hindalco, NAM and Dalmia Bharat

In the metals basket, Hindalco Industries features among Axis Securities’ preferred stocks to buy in 2026, supported by project pipelines and supportive prices. "Our BUY recommendation is supported by a) Expansion projects in India and Novelis b) Strong Aluminum prices: Spot aluminum prices are trading strongly above $2,800/t levels, supported by strong macro expectations for interest rate cuts and tight supply-demand fundamentals. We recommend a BUY on the stock with a target price of Rs 950/share," recommended the research analysts of Axis Securities.

The brokerage also includes Nippon Life India Asset Management Ltd. in its stocks to buy in 2026, citing benefits from financialisation trends. "We expect NAM to deliver a healthy MF QAAUM/Revenue/Earnings growth of 21/16/14% CAGR over FY26-28E, supported by (i) Diversified product offerings, (ii) Improving market share across segments, (iii) Focus on passive offerings, and (iv) Strong SIP franchise. We recommend a BUY on the stock with a TP of Rs 1,000/share," as per Axis Securities.

Within cement, Dalmia Bharat Ltd. appears on the list of stocks to buy in 2026 due to expansion plans and demand visibility. "The company is undertaking strategic capacity additions to capitalise on strong demand and improve market presence. These expansions are expected to enhance volume growth, capture incremental market share, and support long-term revenue and EBITDA growth. We expect DBL to deliver Volume/Revenue/EBITDA/PAT CAGR of 7%11%/27%/47% over FY25-FY27E. We recommend a BUY on the stock with a target price of Rs 2,320 /share," the research analysts of Axis Securities said.

Stocks to buy in 2026 and Axis Securities stance on Astral, Affle, HCG and Mold-Tek

Building-materials company Astral Ltd. is another of Axis Securities’ stocks to buy in 2026, supported by an improving product mix. "Our BUY recommendation is supported by a) Maturing capex cycle, b) Reduced costs and pick up in Adhesives & Paints, c) Improving margins due to backward integration, and d) Healthy pickup in volumes post festive season. We expect Astral to deliver a strong 15/17/21% CAGR Revenue/EBITDA/PAT growth over FY25-28E. We recommend a BUY on the stock with a target price of Rs 1,625/share," commented the research analysts of Axis Securities.

Digital advertising company Affle 3i Ltd. joins the Axis Securities portfolio of stocks to buy in 2026 on expectations of steady revenue growth. "Management remains confident in achieving 20% sustainable revenue growth and maintaining 23% EBITDA margins in the coming years. We believe Affle's Revenue/EBITDA/PAT to grow at a CAGR of 23%/23%/25% over FY25-28E, supported by its scalable CPCU model, strong strategic moat, and expansion into emerging markets. The company is currently trading at a 40x/31x P/E multiple for FY27E/FY28E. We recommend a BUY on the stock with a target price of Rs 2,000/share," recommended the research analysts of Axis Securities.

Healthcare Global Enterprises Ltd. (HCG) appears in the healthcare segment of Axis Securities’ stocks to buy in 2026, reflecting structural demand for oncology services. "Our BUY recommendation is supported by strong structural tailwinds from under-penetration in oncology care, sustained volume growth driven by rising incidence and limited quality capacity, operating leverage from maturing hospitals, disciplined capital allocation, and improving ROCE visibility. We expect HCG to deliver a 16% sales CAGR over FY25-FY28E and ~22% EBITDA growth, with margins expanding to ~21-22% and ROCE rising above 20% over the medium term. We recommend a BUY with a target price of Rs 850/share," stated the research analysts of Axis Securities.

Rounding out the list of stocks to buy in 2026, packaging player Mold-Tek Packaging Ltd. is backed by growth in pharma and diversified orders. "We expect Mold-Tek to deliver robust growth, driven by (a) rapid scaling of the pharma packaging segment, (b) capacity expansions translating into higher volumes, (c) improvement in margins driven by improved product mix, and (d) focus on revenue diversification. We recommend a BUY on the stock, with a target price of Rs 670/share," commented the research analysts of Axis Securities.

Axis Securities’ list of stocks to buy in 2026 aligns with its wider view that Indian equities shift towards earnings-led performance, supported by macro stability and sector-specific growth triggers. The recommendations and projections cited above remain the views of Axis Securities’ analysts, and investors need to evaluate these independently before taking any investment decisions.

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