Stocks to buy in 2025: The Indian stock market registered significant growth, with equity indices Nifty 50 and Sensex posting gains between 8-10 per cent. Global economic trends, domestic policy reforms and sector-specific growth drove this positive performance. Domestic institutional investors (DIIs) played a crucial role, highlighting the growing confidence in India’s economic story.
Domestic retail participation also surged, driven by increasing financial literacy and greater access to digital trading platforms, making equities a preferred asset class for many investors. Looking ahead to 2025, India’s economy is expected to maintain its upward trajectory, with GDP growth projected at 6.3 per cent for FY25.
According to domestic brokerage SMC Global Securities, global monetary conditions are expected to ease, particularly as the US Federal Reserve adjusts its policies. India is well-positioned to attract foreign capital, supporting market stability. On the global front, the economic outlook is stabilizing.
Financials stood out in 2024 in sectors, supported by a 15 per cent annual increase in credit growth and improved asset quality across banks and financial institutions. This trend may continue into 2025 as the emphasis on digitization, financial inclusion, and regulatory reforms strengthen the sector.
The technology sector rebounded in the latter half of 2024, driven by increased demand for digital transformation services, cybersecurity solutions, and generative AI. This sector is expected to remain a key growth driver in 2025. The healthcare and pharmaceutical sectors performed steadily, bolstered by strong domestic demand and export opportunities.
While the outlook for 2025 remains positive, investors should remain cautious of risks such as geopolitical tensions, trade conflicts, and economic slowdowns in regions like China and Europe. “Despite these challenges, India’s long-term growth potential, supported by diversified sectors, presents significant investment opportunities,” said the brokerage.
In the current market scenario, SMC Global Securities has released its top 10 New Year stock picks for 2025 and sees a potential upside of 15-30 per cent from the current levels. The domestic brokerage has selected quality stocks based on technical and fundamental parameters.
Let's take a look at the top 10 technical and fundamental stocks for the New Year by domestic brokerage SMC Global Securities:
1.ICICI Bank: Target: ₹1,527; Upside: 18 per cent
ICICI Bank shows strong business growth and improved asset quality. It is leveraging digital and technology across businesses to grow the risk-calibrated core operating profit. It sees increasing customer adoption and usage of its digital platforms. The brokerage expects the stock to see a price target of Rs. 1,527 in 8 to 10 months on two years’ average P/BV of 3.37x and FY26 (E) BVPS of Rs. 453.03.
2.Larsen & Toubro (L&T): Target: ₹4,270; Upside: 17 per cent
L&T retains the focus on the profitable execution of its robust order book despite a relatively stable environment. It is well-positioned to exploit emerging opportunities across the diversified business portfolio and limit exposure to non-core businesses. The brokerage expects the stock to see a price target of Rs. 4,270 in 8 to 10 months on a target P/E of 30.40x and FY26 EPS of Rs.140.46.
3.Indian Bank: Target: ₹641; Upside: 18 per cent
The bank has introduced a range of digital products to enhance customers' banking experience and ensure seamless and convenient services. Business growth, improved asset quality, and sufficient liquidity bode well for the bank's future prospects. The brokerage expects the stock may see a price target of Rs. 641 in 8 to 10 months on a two-year average P/BV of 1.19x and FY26 (E) BVPS of Rs. 538.26.
4.SJVN Ltd: Target: ₹134; Upside: 22 per cent
SJVN plans to float tenders for an additional 18.6 GW, with an awarded capacity of 8.1 GW. Expected capacity additions of 1,800 MW in FY24-25, with a significant ramp-up in subsequent years (6,357 MW in FY25-26 and 3,000 MW in FY26-27). SJVN plans to incur a capex of Rs.9,000 crore in FY25, most of which is expected to be incurred for renewable capacity addition through SJVN Green Energy.
A capex of Rs.13,000 crore is expected during FY26-27. The management is optimistic about achieving growth targets and expanding the renewable energy portfolio. The stock is expected to see a price target of Rs. 134 in 8 to 10 months on one-year average P/BV of 3.46x and FY26 BVPS of Rs.38.63.
5.Radico Khaitan Ltd: Target: ₹3,196; Upside: 26 per cent
Radico Khaitan is focusing on innovation and strengthening its premium brands. It expects 15-18 per cent volume growth in the P&A segment for FY25 on strong demand for flagship brands like Magic Moments Vodka, Royal Ranthambore, and After Dark Premium Whisky. It aims to deliver steady growth with input cost pressure easing. The brokerage expects the stock to see a price target of Rs. 3,196 in 8 to 10 months on current P/BV of 13.22x and FY26 BVPS of Rs.241.78.
6.Natco Pharma: Target: ₹1,641; Upside: 20 per cent
Natco Pharma has effectively established a local presence through its partners, ensuring sustained business growth. The management plans to focus more on markets like Canada and Brazil, which offer robust growth opportunities. The company continues to lay a good foundation for business growth in the Asia-Pacific region.
The management expects a 20 per cent growth in revenue for Q3 FY25 compared to the previous year. It also anticipated strong year-on-year growth, although Q3 may be weaker sequentially due to seasonality. Revlimid market share is performing well, with expectations to capture 1/3 of the market by January.The brokerage expects the stock to see a price target of Rs. 1,641 in 8 to 10 months on a two-year average P/BV of 3.13x and FY26 BVPS of Rs.524.20.
Also Read: India’s high-frequency indicators recovering in Q3, to lift GDP in H2: RBI December Bulletin
7.Welspun Corp Ltd: Target: ₹901; Upside: 14 per cent
Welspun Corp boasts a strong order book and pipeline driven by rising oil and gas production in the US, India, and Saudi Arabia. The acquisition of Sintex, a manufacturer of water tanks and home-building products, supports the company's diversification strategy. A ₹2,500 crore capex plan to expand Sintex's pipes and building materials offerings bodes well for the company.
It sees a robust demand of almost 2.7 million tonnes of line price projects in the next 2 to 3 years with major demand coming from the large PSUs like GAIL, IOCL, ONGC, HPCL and BPCL. It expects strong demand from U.S market as it has an order book until the quarter 3 of FY25. The brokerage expects the stock to see a price target of Rs. 901 in 8 to 10 months on a one-year average P/BV of 3.03x and an FY26 BVPS of Rs. 297.30.
8.Lemon Tree Hotels Ltd: Target: ₹203; Upside: 34 per cent
India's growing demand for branded rooms and rising discretionary consumption are expected to outpace supply growth. Lemon Tree's investment in hotel renovations will enable the company to capitalize on this trend, commanding premium pricing and solidifying its position as a preferred mid-market brand. The brokerage expects the stock to see a price target of Rs. 203 in 8 to 10 months on two year average P/BV of 10.24x and FY26 BVPS of Rs.19.84.
9.Metropolis Healthcare: Target: ₹2,661; Upside: 32 per cent
Metropolis Healthcare has outpaced the industry volume growth for eight consecutive quarters. The healthcare major's management remains optimistic about sustaining this trend. The company aims to balance volume growth with price realization for hitting the long-term profitability.
In FY2026, it plans to continue renovation activities, with an investment of Rs. 250-300 crore planned over three years. Renovation expenses anticipated to stabilize at 1.5-1.6 per cent of revenue post-renovation. Anticipated EBITDA from renovated properties to reach approximately Rs. 125 crore annually, with an expectation of 15-20 per cent revenue growth post-renovation stabilization.
It expects revenue growth from existing and new networks and operational efficiencies to maintain current margins in FY25 and further improve them beyond FY25. The brokerage expects the stock to see a price target of Rs.2,661 in 8 to 10 months on a two-year average P/BV of 8.17x and FY26 BVPS of Rs.325.73.
10.Mastek Ltd: Target: ₹3,423; Upside: 16 per cent
Mastek's performance in the Americas, UK, and Europe remained strong. New customer acquisitions and a robust deal backlog continue to fuel momentum. A healthy order book of Rs. 2,195 crore provides visibility into future growth prospects. The brokerage expects the stock to see a price target of Rs. 3,423 in 8 to 10 months on current P/E of 24.90x and FY26 EPS of Rs. 137.48.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
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