Axis, KIMS among HSBC’s 12 ‘actionable’ stock ideas in Asia

ET BureauLast Updated: Nov 21, 2024, 05:47:00 AM IST

Synopsis

“We believe Asia in 2025 will look very different from what it did in the past few years,” said HSBC’s analysts. “Mainland China is turning a corner, India is slowing, ASEAN is investing in new infrastructure, and, in North Asia, the story is all about AI and returning cash to shareholders through dividends and share buybacks.

Axis Bank and Krishna Institute of Medical Sciences (KIMS) are among HSBC Global Research’s 12 ‘actionable’ stock ideas in Asia.

“We believe Asia in 2025 will look very different from what it did in the past few years,” said HSBC’s analysts. “Mainland China is turning a corner, India is slowing, ASEAN is investing in new infrastructure, and, in North Asia, the story is all about AI and returning cash to shareholders through dividends and share buybacks.

Axis Bank
Price Target: Rs 1,350 CMP: Rs 1,135 Upside: 18.9%

• Some large banks well placed to outperform in 2025 because of appealing valuations and better operating metrics versus peers.
• Bank's asset quality has improved, loan slippage has moderated, and its credit costs are declining Narrowing of its Return on Asset (RoA) gap with peers is the key to reducing its valuation discount

KIMS
Price Target: Rs 670 CMP: Rs 566.9 Upside: 18.2%

• Best-in-class small cap idea for 2025
• Embarked on a new capex cycle to expand its bed capacity by 60% over FY25-27.
• Profit after tax to grow two times over FY25-27

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