As the curtains close on calendar year 2024, investors grow more curious about the investment strategy for the upcoming year. On raising demands from investors on such ideas, JM Financials gave out its top 12 stocks for 2025, including blue chips like Maruti Suzuki India Ltd. and Axis Bank Ltd.
"Our approach to picking stocks is akin to growth at a relatively reasonable price," JM Financials said in a report on Dec. 10. It would have been that much more comfortable if the stocks and the broader market had been 20-25% cheaper, the note said.
1) Axis Bank
Ability to navigate tight liquidity conditions, moderation in opex and control on credit costs should help sustain outperformance over peers.
Ensured leadership continuity with Managing Director Amitabh Chaudhry's three-year extension.
Axis Bank's liability franchise continues to see improvement.
While credit costs in first half remained elevated, we expect second half to see moderation given that it already holds excess provisions on its balance sheet.
Remains positive on the name, given limited valuation downsides from current levels.
2) Nippon AMC
Growth in equity asset under management has been highest among listed peers, leading to improvement in equity AUM market share.
Variable payout to distributors should cushion yields and drive operating leverage.
The company appears fairly valued.
3) Maruti Suzuki
Back-to-back SUV launches have strengthened its presence in the B-segment.
With its tech-agnostic approach, it is well-positioned and also hedged amid slowing pace of electrification.
Strong ASP growth owing to this favourable shift in powertrain mix is still underappreciated by the street.
4) Samvardhana Motherson
Samvardhana Motherson continues to outperform led by higher content per vehicle owing to premiumisation and hybridisation.
Its powertrain-agnostic product portfolio and customer/geographic diversification augur well.
The second half is expected to be better than the first, both in terms of volume and margin performance.
The company with its global presence, wide customer base and expanding product portfolio presents a multi-year growth opportunity.
5) Ahluwalia
Diversified building construction company with a proven track record.
Lean balance sheet drives strong return on equities even at average Ebitda margins.
Free cash flow generation consistent over the past 10 years.
6) KPIT Technologies
Onshore to offshore shift of some projects hit revenue growth, but this is transitory.
KPIT still will be able to deliver a 17% revenue CAGR over fiscal 2024-27 and 22% earnings per share CAGR.
7) Zee Entertainment
Management expects ad revenues to pick-up in second half on back of better monsoons.
As the merger-related settlement is closed, one off expenses should be behind and result in better reported profits.
8) Havells India
Consumer demand and growth momentum is expected to pick-up driven by festive demand.
Consumer sentiment has also started improving.
Expects the management will focus on improving the profitability.
9) Cyient DLM
Revenue being positively impacted by addition of new logos and global tailwinds.
The company is diversifying revenues via inorganic expansion.
10) Metropolis
The reduction in competitive intensity, margin expansion and inorganic expansion suggests a favourable outlook for the company.
11) Global Health
Given its strong emphasis on clinical excellence, high-quality assets, and new developments, the brokerage sees a significant growth trajectory ahead.
12) BHEL
With a growing and executable order book, pick up in execution and, improving margins, the company has regained its growth trajectory.
Expects revenue/Ebitda to grow at CAGR of 30/103% through fiscal 2024-FY27E.
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