Axis Bank, Nippon AMC, Maruti: JM Financial picks 12 stocks to buy for 2025

JM Financial top stock picks for 2025: As the calendar turns toward 2025, domestic brokerage JM Financial has set its sights on a curated list of stocks set to shine in the coming year. 

 

With a keen eye on sectors driving India's economic momentum, the brokerage has crafted a portfolio that reflects both confidence and strategy. From the robust banking and financial services domain, Axis Bank and Nippon AMC make the cut. The auto industry sees Maruti Suzuki and Samvardhana Motherson International (SAMIL) in the spotlight, while Ahluwalia Contracts stands tall in the infrastructure space.

 

In the information technology (IT) and engineering and research and development (ER&D) sector, KPIT emerges as a tech leader, and Zee Entertainment takes centre stage in media. Consumer Durables and Electronic Manufacturing Services (EMS) boast Havells and Cyient DLM, while Global Health and Metropolis Healthcare are set to make waves in hospitals and diagnostic services. Lastly, BHEL lights up the power equipment sector, rounding out a dynamic dozen picks for 2025.

 

Here’s what JM Financial said about the top stock picks:

 

According to Venkatesh Balasubramaniam, Shalin Choksy, and Hitesh Suvarna of JM Financial, Axis Bank stands out with its strong ability to navigate tight liquidity conditions, effectively manage operating expenses, and maintain control over credit costs. The bank's provision cushion remains robust at approximately 1.2 per cent of loans, which positions it to outperform peers. Considering these factors, JM Financial has set a target price of Rs 1,425, reflecting an upside of 22.5 per cent. 

 

Nippon AMC has capitalised on the Small and Mid-Cap (SMID) rally, with its SIP market share improving majorly from 6 per cent in Q4FY22 to 12.6 per cent in Q2FY25. To address declining revenue yields, the company negotiated a variable payout to distributors, which should cushion yields and enhance operating leverage. As ESOP costs decline between FY25-FY27, JM Financial forecasts a PAT growth of 19.5 per cent CAGR for FY24-27E. Hence, the brokerage has set a target price of Rs 800, marking an upside of 9 per cent.

 

Maruti Suzuki India (MSIL) has regained its leadership position in the SUV B-segment with a market share of around 26 per cent, thanks to successive new launches. Its tech-agnostic approach across hybrids, EVs, CNG, and flex-fuel vehicles positions it strategically amidst slowing electrification trends. Strong momentum in hybrids and CNG models, along with multiple new hybrid launches planned over the next few years, are expected to drive better-than-industry growth. Thus, JM Financial has set a target price of Rs 15,250, marking an upside of 35.4 per cent.

 

SAMIL continues to outpace the market despite a softening demand environment for global light vehicles. The company benefits from higher content per vehicle driven by premiumisation and hybridisation. Its diversified portfolio and global presence boost its long-term growth prospects. JM Financial sees the stock rising to Rs 210, reflecting an upside of 25.7 per cent.

 

With a robust order backlog of Rs 16,200 crore (3.9x TTM revenue) and a lean balance sheet, analysts believe, Ahluwalia Contracts offers strong revenue visibility and consistent free cash flow generation. Therefore, analysts at JM Financial project an upside of 22.7 per cent, with a target price of Rs 1,315.

 

In the IT and ER&D space, KPIT delivered solid revenue growth in Q2FY25 (4.7 per cent Q-o-Q and 20 per cent YoY in constant currency). Although a softer H2 outlook led to a post-results correction, analysts believe this is temporary. KPIT’s focus on automotive embedded software, strong client relationships, and leadership in middleware and software-defined vehicle programmes ensure its competitive edge. JM Financial projects a target price of Rs 2,040, marking upside of 33.1 per cent.

 

Following the Zee-Sony merger fallout, Zee Entertainment has shifted its focus toward profitable growth. With management aiming for 8-10 per cent revenue CAGR and 18-20 per cent Ebitda margins by FY26, analysts see substantial room for improvement. The company’s efforts to curtail losses in Zee5 and reduce content and advertising expenses have expanded margins. JM Financial has set a target of Rs 200, reflecting a 9 per cent upside.

 

Havells is set to benefit from a recovery in consumer demand, especially during the festive season, alongside improved growth in real estate and capital expenditure cycles. Over the medium to long-term, Havells' ex-Lloyd portfolio is expected to witness a revenue CAGR of 15 per cent from FY24-FY27E. JM Financial has set a target price of Rs 2,031, representing an upside of 18.4 per cent. On the other hand, Cyient DLM stands out in the EMS space with its growing revenue base, aided by new client additions, global tailwinds, and value-added services. Margin expansion driven by a favorable mix shift and higher export contributions positions the stock for significant growth. JM Financial’s target price of Rs 960 marks a robust 44.8 per cent upside.

 

In the hospitals and diagnostic services space, Metropolis Healthcare is benefitting from a robust B2C segment, wellness initiatives, and reduced discounting, which have supported B2B growth. JM Financial has set a target of Rs 2,500, indicating an upside of 14.3 per cent.

 

Global Health, known for its Medanta brand, has ambitious growth plans with upcoming hospitals in Noida, South Delhi, Mumbai, and Pitampura. Analysts highlight its focus on clinical excellence and high-quality assets, projecting a target price of Rs 1,440, reflecting a 23.1 per cent upside.

 

BHEL is well-placed to benefit from India’s push to address potential power deficits. With 31 GW of thermal power projects under construction and plans to add 93 GW by FY32, BHEL’s growth trajectory looks promising. Its revenue and Ebitda are forecasted to grow at 30 per cent and 103 per cent CAGR through FY24-FY27E. JM Financial has set a target price of Rs 371, the highest upside at 49 per cent.