Stocks to buy: HDFC Bank to Zomato—Stoxbox recommends top 10 picks to boost your portfolio in 2025 | Stock Market News

The Indian stock market’s benchmark indices, Sensex and Nifty 50, have delivered commendable returns in 2024 despite navigating significant volatility. The Nifty 50 index has risen over 13% year-to-date (YTD). Looking ahead to 2025, analysts maintain a cautiously optimistic outlook for the Indian stock market. The optimism is underpinned by robust domestic economic growth, as India continues to hold its position as the world’s fastest-growing major economy.

India’s long-term market outperformance is often attributed to factors like domestic flows or robust GDP growth, but the real driver is its superior returns on equity. About one-third of Indian companies have consistently achieved an ROE of over 20%, second only to the U.S. in this regard. When adjusted for the cost of equity, India surpasses most peers, showcasing the strength of its corporate fundamentals. This remarkable performance emphasizes that the true reasons behind India’s market success lie in its high-quality returns, rather than the commonly cited growth or capital flow narratives.

Domestic brokerage Stoxbox suggests top 10 stocks to buy in 2025:

Stocks to buy in 2025:

Ambuja Cements stock has a current market price of ₹506 and a target price of ₹600, representing an upside of 19%. As a flagship company of the Adani Group, it is a leader in India’s cement manufacturing, with a current capacity of 89 million tons per annum (MTPA), projected to increase to 140 MTPA by FY28. Strategic acquisitions, including Orient Cement and the integration of Penna Cement, further strengthen its expansion plans.

Federal Bank, with a current market price of ₹212 and a target of ₹250, offers an upside of 18%. The bank has achieved record-high profits in Q2FY25, driven by its strategic focus on expanding the CASA base and maintaining asset quality through restrained unsecured advances. Under the leadership of its new MD & CEO, Mr. Manian, the bank has set an ambitious credit growth guidance of 18% for FY25. By avoiding high-cost deposits and adhering to prudent lending practices, Federal Bank has solidified its position as a strong contender among mid-sized banks.

HDFC Bank, with a current market price of ₹1,785 and a target of ₹2,105, offers an upside of 18%. Following its merger, the bank is optimizing its Loan-to-Deposit Ratio and replacing high-cost borrowings with low-cost deposits. Anticipated rate cuts in FY25 are expected to stabilize Net Interest Margins (NIMs), which are projected to rise from 3.47% to 4% over the next two years. With a strong focus on asset quality and efficient growth strategies, HDFC Bank continues to be a reliable long-term investment.

Hero MotoCorp, with a current market price of ₹4,867 and a target of ₹5,717, offers an 18% upside. The company is poised for strong growth, driven by its flagship models and entry into the EV market with upcoming e-scooter launches. A revival in rural and semi-urban demand, along with strong festive season sales, strengthens its market position. With a robust product portfolio and a focus on both premium and traditional segments, Hero MotoCorp is well-positioned for continued success.

ICICI Bank, with a current market price of ₹1,300 and a target of ₹1,560, offers a 20% upside. The bank’s improved asset quality is reflected in reduced GNPA and NNPA levels. With 51% of its loans linked to the repo rate, anticipated rate cuts in FY25 are expected to stabilize its Net Interest Margins (NIMs). ICICI Bank’s cautious approach to unsecured lending, combined with its consistent performance in core banking metrics, makes it a compelling choice for investors.

The Indian Hotels Company Ltd. (IHCL), with a current market price of ₹798 and a target of ₹930, offers a 17% upside. IHCL follows an asset-light expansion strategy and ventures into areas like Qmin and Amã Stays to capitalize on the growing domestic leisure travel market. The company’s focus on improving EBITDA margins and leveraging supply-demand imbalances ensures robust growth. With a strong balance sheet, IHCL remains a key player in the hospitality sector, well-positioned for continued success.

7) Laxmi Organics Industries

Laxmi Organics Industries Ltd., with a current market price of ₹255 and a target of ₹295, offers a 16% upside. The company, a leader in acetyl intermediates and specialty chemicals, has an ₹11 billion capex plan aimed at doubling its Ketene and Diketene production. Operational improvements, along with new product launches, position Laxmi Organics for significant revenue and EBITDA growth by FY28, making it well-positioned for long-term success.

Mahindra & Mahindra Ltd. (M&M), with a current market price of ₹3,048 and a target of ₹3,635, offers a 19% upside. The company boasts a strong lineup in utility vehicles (UVs) and is making significant inroads into the EV market. M&M’s strategic positioning minimizes cannibalization among its models, while the strong demand during the festive season further supports its leadership in the domestic UV market, positioning the company for continued growth.

Mankind Pharma Ltd., with a current market price of ₹2,628 and a target of ₹3,100, offers an 18% upside. The company’s acquisitions of Bharat Serums and Panacea Biotech have strengthened its chronic therapy and niche product portfolio. With a robust domestic market share and ongoing expansion in Tier-I cities, Mankind Pharma’s strategic initiatives and new product launches position it for sustained growth.

Zomato, with a current market price of ₹273 and a target of ₹325, offers a 19% upside. The company’s leadership in food delivery and quick commerce, along with Blinkit’s expansion and Hyperpure’s alternate revenue streams, positions Zomato for exponential growth. Rising internet penetration and evolving consumer behavior further strengthen its position, making Zomato a strong contender in India’s fast-growing digital economy.

The Indian stock market in 2025 offers diverse opportunities across banking, cement, hospitality, and technology sectors. Strategic initiatives, robust fundamentals, and sectoral growth prospects make these companies top picks. Investors should, however, consider individual risk tolerance and conduct thorough research before making investment decisions.