Top 10 Stocks for 2025: Buy Recommendations from SMC Research Desk for New Year

As 2024 comes to a close and 2025 approaches, we’re revving up with fresh energy and enthusiasm. This year, the Domestic stock market saw significant growth, with key indices such as the Nifty 50 and Sensex posting gains of 8% -10%. This positive performance was driven by a combination of global economic trends, domestic policy reforms, and sector-specific growth. In this blog, we’ll explore the top 10 stock picks for 2025 recommended by SMC Global Securities’ Research Team.

List of 10 Best Stocks to Buy Now for 2025

Here is the list of top 10 stocks along with their upside potential. These stocks are expected to achieve the target price in the coming eight to ten months:

S. No.	Company Name	Sector	Closing Price (in ₹)	Target Price (in ₹)	Upside Potential (%)
1	ICICI Bank	Banks	1,297.65	1,527	18%
2	Larsen & Toubro	Capital Goods	3,642.3	4,270	17%
3	Indian Bank	Banks	541.20	641	18%
4	SJVN	Power Generation	109.90	134	22%
5	Radico Khaitan	Alcoholic Beverages	2,534.25	3,196	26%
6	Natco Pharma	Pharmaceuticals	1,372.30	1,641	20%
7	Welspun Corp	Steel	787.85	901	14%
8	Lemon Tree Hotel	Hotels	151.65	203	34%
9	Metropolis Health	Healthcare	2,012.00	2,661	32%
10	Mastek	IT – Software	2,963.75	3,423	16%

*Closing Price as on December 24, 2024

Top 10 Stocks Picks: Complete Overview

Here is a detailed insight into each stock’s past performance, valuation, and future financial performance:

1. ICICI Bank Limited

The first one on the list of top 10 stocks for 2025 is ICICI Bank. The ICICI Bank share price was ₹1,297.65 (as on December 24, 2024) and its target price is ₹1,527 with an upside potential of 18%.

ICICI Bank: Investment Rationale

• ICICI Bank is a large private sector bank in India offering a diversified portfolio of financial products and services to retail, SME, and corporate customers. The bank has an extensive network of branches, ATMs, and other touchpoints.
• It has robust digital platforms that offer reliable, seamless, and scalable services, delivering best-in-class customer experience. It added 26 branches and trimmed 982 ATMs in Q2 FY25, taking the overall tally to 6,613 branches and 16,120 ATM’s end of September 2024.
• The business of the bank has increased 15% YoY to ₹27,75,001 crores end of September 2024, driven by a 15% surge in advances to ₹12,77,240 crores. Deposits rose 16% to ₹14,97,761 crores at the end of September 2024.

ICICI Bank: Valuation

ICICI Bank is showing strong growth in business and improved asset quality. It is leveraging digital and technology across businesses to grow the risk-calibrated core operating profit. It is seeing increasing adoption and usage of its digital platforms by its customers.

Thus, it is expected that the stock may see a price target of ₹1,527 in 8 to 10 months’ time frame on 2 year’s average P/BV of 3.37x and FY26 (E) BVPS of ₹453.03.

2. Larsen & Toubro Limited

Larsen & Toubro share price was ₹3,642.30 (as on December 24, 2024) and its target price is ₹4,270 with an upside potential of 17%.

Larsen & Toubro Limited: Investment Rationale

• One of the top 10 stocks for 2025, Larsen & Toubro is a USD 27 billion Indian multinational engaged in EPC Projects, Hi-Tech manufacturing, and services. It operates in over 50 countries worldwide.
• A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.
• In Q2 FY25, the company received orders worth ₹80,045 crores at the group level registering a growth of 10% YoY. The consolidated order book of the group as of September 30, 2024, was at ₹5,10,402 crore registering growth of 7% over Mar’24, with the share of international orders at 40%.

Larsen & Toubro Limited: Valuation

Larsen & Toubro retains the focus on the profitable execution of its robust order book in the backdrop of a relatively stable environment. According to the management of the company, the projects & manufacturing businesses of the company continue to perform well.

Thus, it is expected that the stock may see a price target of ₹4,270 in 8 to 10 months’ time frame on target P/E of 30.40x and FY26 EPS of ₹140.46.

3. Indian Bank

Indian Bank share price was ₹541.20 (as on December 24, 2024) and its target price is ₹641 with an upside potential of 18%.

Indian Bank: Investment Rationale

• Indian Bank has 5,856 domestic branches (including 3 DBUs), out of which 1,983 are Rural, 1,532 are Semi-Urban, 1,174 are Urban, and 1,167 are in the metro category.
• The bank has 3 overseas branches and 1 IBU (Gift City Branch). It has 5,217 ATMs and BNAs and 12,993 numbers of business correspondents.
• In Q2 FY25, it reported healthy business growth at 10% YoY to ₹12,43,759 crores, driven by a 12% surge in advances to ₹5,50,644 crores. Deposits rose 8% to ₹6,93,115 crores.

Indian Bank: Valuation

Indian bank is on the list of top 10 stocks and it has introduced a range of digital products to enhance customers’ banking experience, ensuring seamless and convenient services. Strong business growth, coupled with improved asset quality and sufficient liquidity, bodes well for the bank’s future prospects.

Thus, it is expected that the stock may see a price target of ₹641 in 8 to 10 months time frame on a two year average P/BV of 1.19x and FY26 (E) BVPS of ₹538.26.

4. SJVN Limited

SJVN share price was ₹109.90 (as on December 24, 2024) and its target price is ₹134 with an upside potential of 22% having been selected for the top 10 stocks investment for 2025.

SJVN Limited: Investment Rationale

• SJVN is engaged in the business of electricity generation. The company is also engaged in the business of providing consultancy for hydropower projects. It was declared Navaratna status in August 2024.
• SJVN’s ambitious growth targets, with plans to achieve 25,000 MW by 2030 and 50,000 MW by 2040, focus on hydro, renewable energy, and round-the-clock renewable energy solutions.
• The company plans to incur a capex of ₹9,000 crores in FY25 and a similar capex of ₹12,000 crores – ₹13,000 crores is expected during FY26-27.

SJVN Limited: Valuation

SJVN plans to float tenders for an additional 18.6 GW, with an awarded capacity of 8.1 GW to date. Management is optimistic about achieving growth targets and expanding the renewable energy portfolio, with SJVN being recognized as a renewable energy implementing agency by the Ministry of New and Renewable Energy.

Thus, it is expected that the stock may see a price target of ₹134 in 8 to 10 months’ time frame on one year average P/BV of 3.46x and FY26 BVPS of ₹38.63.

5. Radico Khaitan Limited

Radico Khaitan share price was ₹2,534.25 (as on December 24, 2024) and its target price is ₹3,196 with an upside potential of 26%.

Radico Khaitan Limited: Investment Rationale

• Radico Khaitan is among the largest manufacturers of Indian Made Foreign Liquor (“IMFL”) in India making it part of the top 10 stocks for 2025. The company’s brand portfolio includes Magic Moments and Verve Vodka, Jaisalmer Indian Craft Gin, 1965 Spirit of Victory Rum, After Dark Whisky, and Old Admiral Brandy.
• The company also has a strong presence in the CSD market, serving the Indian Armed Forces. It has a total owned capacity of 320 million litres and operates 43 bottling units. It is also one of the largest exporters of Alcoholic beverages from India, with brands available in over 102 countries.

Radico Khaitan Limited: Valuation

Radico Khaitan is focusing on innovation and strengthening its premium brands. The company expects 15% -18% volume growth in the P&A segment for FY25 on the back of continued strong demand for flagship brands. With input cost pressure easing, it expects to deliver steady profitable growth going forward.

Thus, it is expected that the stock may see a price target of ₹3,196 in 8 to 10 months’ time frame on current P/BV of 13.22x and FY26 BVPS of ₹241.78.

6. Natco Pharma Limited

Natco Pharma share price was ₹1,372.30 (as on December 24, 2024) and its target price is ₹1,641 with an upside potential of 20% and is considered in the top 10 stocks checklist for 2025.

Natco Pharma Limited: Investment Rationale

• Natco Pharma is engaged in the business of pharmaceuticals, which comprises research and development, manufacturing, and selling of bulk drugs and finished dosage formulations.
• The company has manufacturing facilities in India, which cater to both domestic and international markets, including regulated markets like the US and Europe.
• The management of the company expects a 20% growth in revenue for Q3 FY25 compared to the previous year. It also anticipated strong YoY growth, although Q3 may be weaker sequentially due to seasonality.

Natco Pharma Limited: Valuation

Natco Pharma has effectively established a local presence through its partners, ensuring sustained business growth. The management of the company plans to focus more on markets like Canada and Brazil, which offer robust growth opportunities going forward. The company continues to lay a good foundation for business growth in the Asia-Pacific region.

Thus, it is expected that the stock may see a price target of ₹1,641 in 8 to 10 months’ time frame on two-year average P/BV of 3.13x and FY26 BVPS of ₹524.20.

7. Welspun Corp Limited

Welspun Corp share price was ₹787.85 (as on December 24, 2024) and its target price is ₹901 with an upside potential of 14%.

Welspun Corp Limited: Investment Rationale

• Welspun Corp, a part of the $5 Bn Welspun World, with forays in Pipe Solutions and Building Materials, has undertaken some of the most challenging projects around the world, namely, the world’s deepest pipeline, the world’s heaviest pipeline, and the world’s longest pipeline, among others.
• WCL has forayed into a state-of-the-art Greenfield facility at Anjar, Gujarat to manufacture Ductile Iron (DI) Pipes with a total production capacity of 5,00,000 MT per annum. All this has also been an important factor in making it to the menu of the top 10 stocks for next year.
• According to the management, the company has become the first Indian pipe mill to produce an API grade X65 ERW pipe for transporting hydrogen. This is an important achievement for future business growth opportunities and sustainability as the market is moving toward carbon capture and hydrogen pipelines.

Welspun Corp Limited: Valuation

Welspun Corp boasts a strong order book and pipeline, driven by rising oil and gas production in the US, India, and Saudi Arabia. Its acquisition of Sintex, a water tanks and home-building products manufacturer, supports its diversification strategy. A ₹2,500 crore capex plan to expand Sintex’s offerings in pipes and building materials also bodes well for the company.

Thus, it is expected that the stock may see a price target of ₹901 in 8 to 10 months’ time frame on one year average P/BV of 3.03x and FY26 BVPS of ₹297.30.

8. Lemon Tree Hotels Limited

Lemon Tree Hotels share price was ₹151.65 (as on December 24, 2024) and its target price is ₹203 with an upside potential of 34%, entering into the diversified list of top 10 stocks for 2025.

Lemon Tree Hotels Limited: Investment Rationale

• Lemon Tree Hotels Limited (LTHL) is a leading hotel chain in India, operating a diverse portfolio of hotels across various segments, including upscale, upper-midscale, midscale, and economy.
• With a strong focus on delivering high-quality service and value, LTHL offers seven distinct brands to cater to diverse guest needs. The company has a significant presence in major metro cities and tier I, II, and III cities across India. LTHL has also expanded its international footprint with hotels in Dubai, Bhutan, and Nepal.
• In FY26, the company plans to continue renovation activities, with an investment of ₹250-300 crores planned over three years. Renovation expenses are anticipated to stabilize at 1.5%-1.6% of revenue post-renovation completion.

Lemon Tree Hotels Limited: Valuation

India’s growing demand for branded rooms, coupled with rising discretionary consumption, is 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.

Thus, it is expected that the stock may see a price target of ₹203 in 8 to 10 months’ time frame on two year average P/BV of 10.24x and FY26 BVPS of ₹19.84.

9. Metropolis Healthcare Limited

Metropolis Healthcare share price was ₹2,012 (as on December 24, 2024) and its target price is ₹2,661 with an upside potential of 32%.

Metropolis Healthcare Limited: Investment Rationale

• Metropolis Healthcare is a diagnostics company, with a presence in 23 states and 601 towns. Internationally, the company has a presence in South Asia, Africa, and the Middle East.
• It offers a comprehensive range of 4,000 plus tests and profiles that include advanced tests in the diagnosis of cancer, neurological disorders, infectious diseases, and an array of genetic abnormalities. The company has a network of over 202 labs, 4,336 collection centres, and over 10,000 touchpoints.
• According to the management, during the September quarter its EBITDA and PAT growth have outpaced revenue growth and strong performance has been fuelled by a 21% YoY growth in B2C revenue, along with expansion in Tier 3 cities and an improvement in our average revenue per patient.

Metropolis Healthcare Limited: Valuation

Metropolis Healthcare has outpaced industry volume growth for eight consecutive quarters. Management remains optimistic about sustaining this trend.

The company aims to balance volume growth with price realization for long-term profitability. It expects revenue growth from existing and new networks, along with operational efficiencies, to maintain current margins in FY25 and further improve them beyond FY25.

Thus, it is expected that the stock may see a price target of ₹2,661 in 8 to 10 months’ time frame on a two years average P/BV of 8.17x and FY26 BVPS of ₹325.73, making it to the research report of top 10 stocks for 2025.

10. Mastek Limited

Mastek share price was ₹2,963.75 (as on December 24, 2024) and its target price is ₹3,423 with an upside potential of 16%.

Mastek Limited: Investment Rationale

Mastek is an enterprise digital and cloud transformation partner that engineers excellence for customers in industries such as healthcare and life sciences, retail and consumer, manufacturing, financial services, and the public sector, across 40 countries, including the UK, US, Europe, the Middle East, and Asia Pacific.

A preferred Oracle, Salesforce, Microsoft, AWS, and Snowflake partner, Mastek has 5000+ employees and delivers right-fit solutions to both medium businesses and global Fortune 1000 clients.

The company has entered into a strategic partnership with Innovaccer, a leading healthcare AI company to drive better outcomes at lower costs and meet contracted performance targets.

Mastek Limited: Valuation

Mastek’s performance in the Americas, UK, and Europe remained strong, driving growth. New customer acquisitions and a robust deal backlog continue to fuel momentum. A healthy order book of ₹2,195 crores provides visibility into future growth prospects.

Thus, it is expected that the stock may see a price target of ₹3,423 in 8 to 10 months’ time frame on a current P/E of 24.90x and FY26 EPS of ₹137.48.

Conclusion

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 opportunities for investors. With a strategic, staggered investment approach, 2025 offers a promising environment for those looking to capitalize on India’s expanding market.

So, open Demat Account with SMC Global Securities today and make your new year an investment-filled ride with these top 10 stocks.

Author: All Content is verified by SMC Global Securities.