Axis Bank And KIMS: Two Indian Stocks In HSBC's Asia Picks For 2025

In its latest report on the investment outlook for Asia in 2025, HSBC has highlighted two Indian stocks—KIMS and Axis Bank—as part of its top stock picks for the year ahead. The firm's research points to the shifting dynamics across the region, with mainland China showing signs of recovery, India facing a slowdown, and ASEAN seeing significant infrastructure investments. As these trends unfold, HSBC's analysts believe KIMS and Axis are well-positioned to capitalise on evolving opportunities in India, making them attractive choices for investors.

KIMS, or Kolkata-based Krishna Institute of Medical Sciences Ltd., has been singled out as a small-cap growth stock with significant upside potential. According to HSBC, KIMS is positioned to benefit from India's capital expenditure upcycle, which is expected to boost demand for healthcare services.

The scrip rose as much as 2.61% to Rs 572.30 apiece. It pared gains to trade at 1.30% higher at Rs 565 apiece, as of 10:59 a.m. This compares to a 1.13% advance in the NSE Nifty 50 Index.

It has risen 45.8% in the last 12 months. The relative strength index was at 59.7.

Out of 15 analysts tracking the company,14 maintain a 'buy' rating, one recommends a 'hold,' while no analysts suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 9.2%.

On the financial services front, Axis Bank has emerged among the top pick for 2025, with HSBC emphasising its attractive valuation and strong market positioning within the Indian banking sector. The report points out that Axis Bank is well-placed to benefit from India's financial deepening, which is set to accelerate in the coming years.

The scrip rose as much as 0.7% to Rs 1,134 apiece. It pared gains to trade 0.2% higher at Rs 1,128.95 apiece, as of 11:03 a.m. This compares to a 1.13% advance in the NSE Nifty 50 Index.

It has risen 14.19% in the last 12 months. The relative strength index was at 39.72.

Out of 48 analysts tracking the company, 40 maintain a 'buy' rating, eight recommend a 'hold,' and no analysts suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 20.7%.

HSBC’s report provides a comprehensive overview of how Asia’s economic landscape is changing. As mainland China recovers from a period of slowdown, growth in India is slowing, while ASEAN countries are poised to see heavy investments in infrastructure, especially in data centres and digital infrastructure. With AI and data centres booming in the region, the Indian stock picks are positioned to thrive within these broader regional dynamics.