Axis Securities Names Chalet Hotels, Minda Corp, Navin Fluorine Among Top Small-Cap Stock Picks for June

India's Economy and Corporate Earnings Remain Constructive

The medium-to-long-term outlook for the Indian economy and corporate earnings is constructive, supported by domestic demand resilience, improving earnings visibility, and structural reforms. According to Axis Securities, the near-term may witness increased volatility driven by commodity price movements, global risk aversion, and foreign fund flows.

To navigate this volatility, Axis Securities recommends that investors maintain good liquidity (10-15%) to use any dips in a phased manner and build a position in high-quality companies, where the earnings visibility is quite high, with an investment horizon of 12-18 months.

Nifty 50 Target Price

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In its bull case, Axis Securities values Nifty 50 at 20.5x, implying a December 2026 target of 28,615. With Nifty earnings expected to sustain 13%+ CAGR over FY23–28, this backdrop could attract fresh capital inflows into emerging markets and support a re-rating of valuations, strengthening the equity outlook.

In its bear case, it values Nifty at 16.5x, and has a December 2026 Nifty target of 23,030.

Top Small-Cap Stock Picks

Axis Securities has recommended top stock picks for the month of June 2026, including five small-cap stocks to buy:

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Stock Analysis

• Ujjivan Small Finance Bank: The bank appears well-positioned to deliver healthy and sustainable growth over the medium term, supported by the acceleration of its portfolio diversification strategy, strong traction in secured businesses, and improving liability franchise. Strong NIMs and gradually moderating credit costs should offset the impact of higher Opex as the bank continues to invest in the franchise at tech, enabling it to scale RoA to 1.6-1.8% over FY27-28E.
• Chalet Hotels: The management remains optimistic on the medium-term hospitality outlook despite near-term geopolitical uncertainties. Demand trends in April and May have already improved meaningfully, while leisure assets continue to witness strong traction. Stabilisation of recently added inventory, ramp-up of resorts, and commissioning of commercial real estate assets are expected to drive earnings growth over the next few years.
• Minda Corporation: The brokerage firm remains positive on Minda Corporation's growth trajectory, supported by strong order inflows, premiumization, expanding EV opportunities, and technology-led product offerings. Backed by a robust ₹10,000 crore order book and management's confidence in outperforming industry growth through organic and inorganic initiatives, Axis Securities projects a CAGR of 18%, 22%, and 30% in Revenue, EBITDA, and Adjusted PAT over FY27-28E.
• Navin Fluorine International: The company continues to focus on capacity expansion, operational efficiencies, and productivity improvements across segments. A strong order book provides medium-term revenue visibility. With new capacities, product additions, and sustained traction in CDMO partnerships, the company is well placed to deliver healthy growth over FY27–FY28.
• Kalpataru Projects International: The company's share price is currently trading at 18x and 15x FY27E and FY28E EPS. Axis Securities maintains a 'Buy' call and a share price target of ₹1,450 per share.