ICICI Bank, Bajaj Finance among Axis Securities’ top 8 largecap stock picks for August

The Indian equity market extended its recovery over the past month after consolidating for several weeks. Benchmark indices witnessed broad-based gains, with leadership gradually shifting back towards largecap stocks. Here are the top eight large-cap stocks listed by Axis Securities for August.

The brokerage has indicated a 14% upside and maintained an overweight stance on Bajaj Finance. The company remains well positioned to sustain its robust growth trajectory, supported by a diverse product portfolio, strong customer acquisition, and disciplined risk management. Asset quality continues to improve, with credit costs gradually declining, supporting strong earnings growth.

With a 20% upside, the brokerage has maintained an equal weight stance on the stock. VBL is poised to sustain its strong growth trajectory, driven by multiple growth levers. PepsiCo has revised its exclusive bottling and trademark licence agreement with VBL in India, extending the partnership term until April 30, 2049, and removing SPV limitations. This provides greater operational flexibility to pursue growth opportunities by sharing distribution, production and supply chain resources across beverage lines, helping lower costs and improve profitability. International operations continued to scale steadily, led by Africa, with volumes growing 38.4% in Q2CY26 following the acquisition of Twizza.

Signalling a 28% upside, the brokerage has assigned an equal weight rating to the stock. The lender is well positioned to deliver around 17% loan CAGR over FY26–29E, supported by continued strength in secured lending, calibrated expansion of unsecured businesses, and the Deutsche Bank India retail acquisition. Improving asset quality should keep credit costs under control, while healthy fee income, operating leverage and stable margins, driven by granular liability mobilisation, are expected to support sustainable RoA of over 2% in the medium term. The ongoing MD & CEO transition remains a key monitorable, though management expects a seamless succession process.

The brokerage has assigned an overweight rating to the stock, with a 28% upside potential. Bharti Airtel leads the industry in ARPU, with management expecting further improvement from the current Rs 257 level, compared with Reliance's Rs 215.6. Growth is expected to be driven by a diverse customer base, continued migration from 2G to 4G/5G, and rising adoption of value-added services. The company remains on track to achieve its ARPU target of Rs 300, supported by higher data consumption and deeper rural penetration.

The brokerage sees a 24% upside in the D-Mart operator and has assigned an equal weight rating to the stock. D-Mart has consistently delivered 17-20% revenue CAGR over the past several quarters, driven by 14-15% expansion in its network and retail footprint. The recent investment in D-Mart Ready to support operations, working capital and expansion is expected to strengthen its position in the competitive online grocery market and deliver long-term benefits. Improving consumer demand, supported by stable macroeconomic conditions, is expected to aid new initiatives and drive growth in high-margin general merchandise and apparel categories.

Signalling a 25% upside, the brokerage has assigned an overweight rating to the stock. Business banking momentum remains strong, supported by stable asset quality, while retail growth is expected to improve as personal loan disbursements normalise. Management expects improving system-wide credit demand, aided by fiscal and monetary support, to sustain healthy growth through FY27. Incremental growth levers, including FCNR(B) mobilisation, healthy corporate demand at reasonable pricing, and continued traction in business banking, should further support the bank’s growth trajectory. The brokerage expects superior RoA/RoE delivery of 2.3% (+/-5 bps)/16-18% to continue over FY27-29E.

The brokerage sees a 17% upside in the stock and has assigned an equal weight rating. The long-term outlook for Nestlé India remains constructive, supported by a favourable demand environment and the positive consumption impulse expected from GST 2.0 reforms. Nestlé India is likely to benefit from the proposed GST rate reduction to 5% on packaged foods, dairy products, noodles, pasta, sauces and ketchup. The company reported robust revenue growth of 25.4% YoY, driven by double-digit volume expansion. Growth was led by strong momentum across confectionery, beverages, prepared dishes, pet food, and the Milk and Nutrition portfolio.

The brokerage sees a 19% upside in the parent company of Zomato and Blinkit and has assigned an equal weight rating, driven by the company’s transition to adjusted EBITDA profitability across key verticals, strong scalability potential, and continued expansion into adjacent consumption categories. The company delivered strong growth across segments, with food delivery NOV rising 20.1% YoY to Rs 10,769 crore, marking the fourth consecutive quarter of accelerating growth. Zomato’s Hyperpure turned profitable, while its District vertical expanded geographically. Blinkit strengthened its profitability outlook through operational efficiencies.