Stocks to buy: Lupin, Kalpataru Projects, Max Healthcare, among small-cap, mid-cap stock picks for July
For the month of July, Axis Securities has recommended a selection of mid-cap stocks including Lupin Ltd, Max Healthcare Institute Ltd, Colgate-Palmolive (India) Ltd, Prestige Estates Projects Ltd, and APL Apollo Tubes Ltd, along with small-cap stocks such as Sansera Engineering Ltd and Kalpataru Projects International Ltd.
The brokerage is of the opinion that the Indian market began to recover from March 2025, evidenced by a 15% increase in the Nifty 50, and a rise of 25% and 29% in the Mid and Small-cap sectors respectively, since the lows recorded in February 2025. In the past month, the Small-cap index has appreciated by 5.7%, while the Mid-cap index has climbed by 4%, in contrast to the Nifty 50, which has seen a modest rise of 3.1%.
Axis Securities believes that the risk-reward scenario is gradually favoring Mid and Small-cap stocks. However, the recovery is expected to be slow and steady as we approach FY26, driven by optimistic earnings projections, enhanced domestic liquidity, and stable macroeconomic conditions in India.
In light of this situation, the brokerage continue to prioritize growth at a reasonable price, focusing on ‘quality’ stocks, monopolistic companies, market leaders in their fields, and sectors and stocks that are oriented towards the domestic market. The brokerage house anticipates that these may outperform the overall market in the near future.
Top picks stocks for July
Lupin Ltd: CMP: ₹1,938; Target Price: ₹2,500; Upside: 29%
According to the brokerage, Lupin is optimistic about its growth trajectory, bolstered by robust new product launches, an expanding portfolio of complex generics, and a strong pipeline. In the US market, the recently introduced Darunavir and Spiriva have captured market shares of 30% and 25%, respectively.
The recently launched Tolvaptan (with a market size of $287 million) and Xyway (with a market size of $958 million and 180-day exclusivity) are anticipated to add to revenue in the first half of the year.
Max Healthcare Institute Ltd: CMP: ₹1,276; Target Price: ₹1,450; Upside: 14%
As per the brokerage, Max Healthcare maintains a balanced revenue mix, with consistent growth observed in both its institutional and international patient segments. The recent increase in the share of institutional business is anticipated to stabilise as more higher-value payer segments develop.
Although the launch of new hospitals might initially impact margins, this effect should diminish as these facilities enhance their operational capabilities. Profitability in Lucknow and Nagpur is projected to further improve, supported by rising occupancy rates and the rollout of new clinical programs.
Colgate-Palmolive (India) Ltd: CMP: ₹2,407; Target Price: ₹2,830; Upside: 18%
The brokerage expressed its appreciation for the company’s overarching long-term strategy, which aims to drive revenue growth through several initiatives: 1) Introducing premium science-based products to improve overall realizations, 2) Building the category by boosting awareness through marketing efforts, 3) Enhancing the frequency of consumption and penetration in rural areas, and 4) Broadening the personal care lineup to reduce risks linked to the sluggish growth in the oral care segment.
Furthermore, the demand landscape is expected to improve in the upcoming quarters, and the recent decline in stock prices offers a better margin of safety. As a result, they continue to uphold their BUY rating with a new target price of ₹2,830/share.
Prestige Estates Projects Ltd: CMP: ₹1,657; Target Price: ₹1,900; Upside: 15%
Based on brokerage insights, following a lackluster performance in 9MFY25, PEPL’s pre-sales surged in Q4FY25, totaling ₹6,957 Cr (+48% YoY), fueled by an increase in property launches (14 Mn sq. ft.). The growth primarily resulted from price increases, with additional support from a stronger regional contribution.
However, despite this recovery, FY25 pre-sales fell 19% YoY due to postponed launches linked to regulatory challenges, leading to a ~30% shortfall compared to the initial target of ~ ₹24,000 Cr. Looking ahead to FY26E, Prestige plans to counter the subdued FY25 results with an extensive launch pipeline valued at ₹42,000 Cr. Along with an existing inventory valued at ₹21,000 Cr, we believe Prestige is well-equipped to achieve a 65% YoY increase in pre-sales, reaching ₹28,000 Cr.
APL Apollo Tubes Ltd: CMP: ₹1,739; Target Price: ₹2,035; Upside: 17%
As per the brokerage’s analysis, the firm aims to increase its capacity to 10 MTPA by FY30, offering a favorable growth opportunity in the long term. We uphold our target price of ₹2,035 per share. The stock is currently priced at a 12-month forward price-to-earnings ratio of 38x. The brokerage assesses it with a 12-month forward target multiple of 35x based on our estimated EPS for FY27.
Kalpataru Projects International Ltd: CMP: ₹1,227; Target Price: ₹1,350; Upside: 10%
As per the brokerage, the firm is poised to take advantage of a strong order backlog, favorable trends in both the domestic and international Transmission & Distribution (T&D) and Building & Factory (B&F) sectors, enhanced performance from its overseas subsidiaries, favorable government policies, and anticipated improvements in margins. It is expected to achieve a compound annual growth rate (CAGR) of 18%/22%/41% for the period from FY25 to FY27E.
Sansera Engineering Ltd: CMP: ₹1,380; Target Price: ₹1,580; Upside: 15%
Based on the brokerage’s analysis, considering factors such as a) a larger proportion of sales in Non-Automotive ICE components, b) a rising trend toward premium products, c) a dedicated focus on enhancing margin performance, d) a strong capability to generate operating cash flow, and e) plans for capacity expansion, we anticipate that Revenue, EBITDA, and PAT will experience a CAGR of 17%, 21%, and 30%, respectively, from FY25 to FY27E.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
