As we approach 2025, JM Financial has picked a basket of the top 12 stocks for the upcoming year, 2025. The brokerage chose these stocks through a bottom-up approach along with an approach of growth at a relatively reasonable price (GARRP). The brokerage picked stocks keeping in mind different themes and sectors. 

“Why GARRP and not GARP (growth at a reasonable price)? We would have been that more comfortable if the stocks and the broader market had been 20-25% cheaper (as that would provide a better margin of safety),” said JM Financial Services.

Here’s a list of the top 12 stocks picked by JMFL for 2025:

Axis Bank 

JMFL believes Axis Bank’s ability to navigate tight liquidity conditions, moderation in opex, and control on credit costs (maintains provision cushion at 1.2% of loans), should help sustain outperformance over peers. Talking about the challenges of slow deposit accretion, the brokerage expects that Axis Bank’s liability franchise continues to see improvement and this should continue in the medium term (2QFY25: loans grew +11.4% YoY/+2.0% QoQ, deposits grew +13.7% YoY/+2.3% QoQ). The brokerage house is positive on the name given limited valuation downsides from current levels (core bank trades at 1.6x FY26E BVPS), and is at a meaningful discount of 31% to ICICI Bank’s valuations (core bank trades at 2.1x FY26E BVPS).

Nippon AMC

NAM stock has gained from the SMID (Small and Mid-Caps) rally over FY24-FY25, and its SIP market share has improved from 6% in Q4 FY22 to 12.6% in Q2 FY25. The growth in equity AUM of 67% in the trailing 12 months (Oct-23 to Oct-24) has been the highest among listed peers leading to improvement in equity AUM market share by +34bps v/s +20bps for HDFC AMC and -46bps for UTI AMC. As ESOP costs reduce through FY25-FY27, the brokerage firm forecasts FY24-27 PAT growth at 19.5% CAGR. It assumes normalised market returns (7%-8% MTM in equity) following strong SMID performance through FY24 to the first half of FY25. NAM appears fairly valued at 26.8x FY26 EPS for a PAT to average AUM of 0.28%. 

Maruti Suzuki

The automobile major, with back-to-back SUV launches, has strengthened its presence in the B-segment (regained leadership position with 26% market share). With its tech-agnostic approach (Hybrids, EVs, CNG, Flex-fuel, etc.), it is well-positioned and also hedged amidst the slowing pace of electrification. Maruti Suzuki’s healthy momentum in Hybrids/CNG portfolio and new launches (multiple strong hybrid models over the coming 2-3 years) is expected to drive better than industry growth. Strong ASP growth owing to this favourable shift in the powertrain mix is still underappreciated by the street and is expected to drive healthy operating leverage. The stock is trading at 18x FY27E EPS (below its 5-year average of 27.5x).

SAMIL

While the demand environment for global light vehicles has moderated. SAMIL continues to outperform led by higher content per vehicle owing to premiumisation and hybridization. Its powertrain-agnostic product portfolio and customer/geographic diversification augur well. Higher profitability has been driving improvement in its RoCE, and a healthy balance sheet with net debt/EBITDA at 1x provides headroom for large acquisitions, their DNA. The second half is expected to be better than the first half both in terms of volume and margin performance owing to seasonality and cost-inflation pass-through to customers. The consumer electronics business (JV with BIEL Crystal) commenced its operations in November 2024 and its rampup during 2H is expected to further support growth.

Ahluwalia Contracts

A diversified building construction company with a proven track record and a robust order backlog of Rs 16,200 crore (3.9x trailing 12 months revenue) provides strong revenue visibility. Lean balance sheet drives strong RoEs even at average EBITDA margins. FCF generation consistent over the past 10 years. Factor in an EPS CAGR of 30% over FY24-27E and 43% over FY25-27E driven by (1) strong revenue growth and (2) margin expansion, which is expected to be the result of a better project mix. The stock is currently at 19x/14x FY26E/27E EPS, and the brokerage values it at 20x Sept-26 EPS and arrives at a price target of Rs 1,315.

KPIT Technologies

KPIT reported a strong revenue growth in Q2 FY25 (4.7% cc QoQ; 20% cc YoY). However, a soft second-half commentary and guidance band growth to be towards the lower end of its 18-22% cc guided band for FY25 led to a correction in stock price post results. Onshore to offshore shift of some projects hit revenue growth; the brokerage believes this is transitory. A strong deal pipeline with large deals should aid near-term revenue growth. Though there are some concerns about near-term spending by OEMs due to the global automotive slowdown, the brokerage expects the Auto ER&D sector to have strong structural industry tailwinds. Within ERD, ‘softwarisation’ is likely to see the maximum spending ($47 billion of cumulative outsourced ER&D spending over the next five years). The brokerage house expects KPIT, with its sole focus on the automotive embedded software space, longstanding client relationships with some of the leading OEMs/Tier-1s and early wins in their middleware/SDV programs is well positioned. The brokerage has a “Buy” rating on the stock with a target price of Rs 2,040.

Zee Entertainment

Stock is currently trading at 13x FY26 EPS. For a media company with a 17% viewership share; we think it is undervalued. Post the Zee-Sony merger falling off, Zee pivoted to focus on profitable growth. Management guidance is 8-10% revenue CAGR and 18-20% EBITDA margin by FY26. Curtailed losses in Zee5, prudent content spending and lower A&P have resulted in margin expansion from 10.2% (3QFY24) to 12.8% (1QFY25). Management expects ad revenues to pick up in the second half on the back of better monsoons; FMCG companies’ brand marketing and festive spending. The brokerage estimates are conservative compared to management guidance; 5.6% Revenue CAGR over FY24-26 and EBITDA margin expanding to 18% in FY26 (10.5% in FY24). 

Havells 

In the short term, ex-Lloyd, consumer demand and growth momentum are expected to pick up driven by festive demand, pick-up in the real estate and capex cycle. Consumer sentiment has also started improving for the kitchen and domestic appliances portfolio. Over the medium/long term (ex-Lloyd), the brokerage expects volume to grow on the back of a pickup in construction activity, demand improvement from tier 2/3 cities, and market share gains. The brokerage believes (ex-Lloyd) revenue CAGR of 15% over FY24-FY27. 

Cyient DLM

The revenue is positively impacted by the addition of new logos, global tailwinds, and increased offering of value-added services. Forecast margin expansion led by a change in mix, and a consequent increasing share from higher margin segments and a higher share of export. The company is diversifying revenues via inorganic expansion. Based on these factors, the brokerage expects revenue/EBITDA/PAT CAGR of 44%/54%/66% over FY24-26E with OPM of 9.7%/10.6% in FY25/26E. The stock is currently trading at P/E 63x/31x FY25/26E EPS, and the brokerage house maintains a “Buy” rating with a target price of Rs 960 at 45x FY26 EPS.

However, JM Financial Services warned that the company has a substantial export share which may face risks stemming from global inflation, economic downturns, and geopolitical uncertainties.

Metropolis

The company’s B2C, wellness and Mumbai market growth has been outpacing overall growth whilst phasing out of discounts, which has aided B2B growth. The reduction in competitive intensity, margin expansion and inorganic expansion suggests a favourable outlook for the company. The stock currently trades at 47x/39x our FY26/27E earnings estimates and above the 5-year average consensus P/E. The brokerage house has built in an EPS CAGR of 30% over FY24-27E and 25% over FY25E-27E. It values the stock at a 50x EPS arriving at a target price of Rs 2,500.

Global Health

Medanta’s upcoming major hospital projects in Noida (FY26), South Delhi (FY28), Mumbai (FY29), and the recently announced Pitampura O&M project are expected to be strategically located and will contribute significantly to future growth. Given its strong emphasis on clinical excellence, high-quality assets, and new developments, JMFL sees a significant growth trajectory ahead. The brokerage firm built in an EBITDA CAGR of 19% over FY24-27E and 25% over FY25E-27E. At present, the company trades at 22.5x FY27 EV/EBITDA. It values the company at a 30x EBITDA to arrive at a target price of Rs 1,440.

BHEL

Currently, 31 GW of thermal power plants are under construction. The government is on fire fighting mode to control possible power deficit from FY26 onwards and is targeting to add 93 GW of thermal power plants by FY32. BHEL has received orders for 9,600 MW of thermal power projects during FY24 (1,320 MW FY23). During FY25, it has already bagged orders for 10,400 MW of projects. Additionally, tenders for 7,960 MW have been issued. With this, it bagged orders worth Rs 31,600 crore (Rs 29,800 crore power, Rs 1,700 crore industry, Rs 100 crore exports) during Q2 FY25. The brokerage expects revenue/EBITDA to grow at a CAGR of 30/103% through FY24-FY27E. JM Financial has a “Buy” rating on the stock (currently trading at FY27E P/E of 20), with a target price of Rs 371 (35x Sep’26EPS).