JM Financial has curated a list of 12 bottom-up stock picks for 2025, each offering strong growth potential and attractive valuations. These stocks span diverse sectors, making them compelling options for investors seeking long-term returns.
Key Stock Picks and Targets
1. KPIT Technologies
- Target Price: ₹2,040
- Highlights:
- Projected 17% revenue CAGR from FY24-FY27.
- Strong deal pipeline, despite temporary revenue impacts from an onshore-to-offshore shift.
- Ebitda margin expansion from 20.2% in FY24 to 21.3% in FY27.
2. BHEL (Bharat Heavy Electricals Ltd)
- Target Price: ₹371
- Highlights:
- Orders for 10,400 MW of projects secured in FY25.
- Revenue/Ebitda growth projected at 30%/103% CAGR through FY24-FY27.
3. ZEEL (Zee Entertainment Enterprises Ltd)
- Target Price: ₹200
- Highlights:
- Strategic pivots post-merger, with a focus on profitable growth.
- Margin improvements from 10.2% in Q3FY24 to 12.8% in Q1FY25.
4. Axis Bank
- Target Price: ₹1,425
- Highlights:
- Improved liability franchise and sustained credit growth.
- Positioned at a 31% discount to ICICI Bank’s valuations.
5. Maruti Suzuki India Ltd
- Target Price: ₹15,250
- Highlights:
- Dominance in the SUV market with 26% market share.
- Strong momentum in hybrid/CNG models and upcoming launches.
6. Nippon AMC (NAM)
- Target Price: ₹800
- Highlights:
- Equity AUM grew by 67% YoY in FY24.
- Improved SIP market share from 6% to 12.6% since FY22.
7. Havells India Ltd
- Target Price: ₹2,031
- Highlights:
- Robust growth across Tier 2/3 cities and consumer segments.
- Estimated 15% revenue CAGR (excluding Lloyd) over FY24-FY27.
8. Cyient DLM
- Target Price: ₹960
- Highlights:
- Strong revenue/Ebitda/PAT CAGR of 44%/54%/66% from FY24-FY26.
- Positive impacts from new clients and value-added services.
9. Ahluwalia Contracts
- Target Price: ₹1,315
- Highlights:
- Revenue visibility supported by a ₹16,200 crore order backlog.
- EPS CAGR projected at 30% over FY24-FY27.
10. Metropolis Healthcare
- Target Price: ₹2,500
- Highlights:
- Margin expansion through phasing out discounts and inorganic growth.
- EPS CAGR of 30% from FY24-FY27.
11. Global Health (Medanta)
- Target Price: ₹1,440
- Highlights:
- Significant contribution expected from upcoming hospital projects in Noida, South Delhi, and Mumbai.
- Ebitda CAGR of 19% over FY24-FY27.
12. SAMIL (Sundaram Finance Holdings Ltd)
- Target Price: ₹210
- Highlights:
- Outperformance driven by premiumization and hybridization in light vehicles.
- Revenue growth supported by new product portfolios in consumer electronics and aerospace.
Why These Stocks Stand Out
These stock recommendations are grounded in a bottom-up approach, focusing on company fundamentals, growth potential, and sector-specific trends. With expected returns of up to 49% in 2025, these picks are well-suited for investors seeking value at a reasonable price.
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