Stellar & disappointing stocks of 2025: leaders fall, laggards rise

Some stocks that rallied last year have been among the biggest laggards of 2025, while many underperformers have emerged as winners

Buying low and selling high has long been one of the simplest ways to profit from volatility in asset prices. That pattern has been especially visible in Indian equities in recent years, as stock prices have swung sharply in both directions. Many stocks that led the rally in 2024 have been among the biggest laggards in 2025, while several underperformers of last year have outperformed. 

In 2024, 36 per cent of companies in the broadbased BSE 200 index (69 out of 192) delivered returns of 30 per cent or more. By comparison, only 18 per cent of companies in the index have delivered returns of 30 per cent or more in 2025 so far. For equity investors, the reversal is striking. Of the 69 BSE 200 stocks that gained 30 per cent or more in 2024, as many as 39 have posted negative returns in 2025 so far. The stocks that ran the fastest last year have fallen the hardest this year. Similarly, 16 of the 35 stocks that are up 30 per cent or more year-to-date in 2025 delivered negative or flat returns in 2024. (See chart) 

This pattern might tempt investors to rotate portfolios annually — booking profits in outperformers and shifting into laggards — in the hope of beating the broader market. Below are five stocks each from the BSE 200 that have outperformed and underperformed the benchmark by the widest margins in 2025 so far. 

If history is any guide, the tables could turn again in 2026 as investors hunt for value in an increasingly expensive market and book profits in stocks that look stretched after a year-long rally. 

 

 

TOP GAINER 

 

Aditya Birla Capital

 

* Non-bank financial company Aditya Birla Capital Ltd (ABCL) has been the top gainer among the BSE 200 companies in the current calendar year

 

* The Aditya Birla group firm’s stock price has nearly doubled in 2025 on expectation of a faster recovery in its earnings after three rate cuts by the Reserve Bank of India (RBI) in the current calendar year

 

* The company's revenue and earnings, however, have struggled to grow in recent quarters due to a slowdown in its life insurance business and losses at its health insurance and other non-lending businesses

 

* In the second quarter of 2025-26 (Q2FY26), consolidated revenues were up just 2.6 per cent year-on-year (Y-o-Y), while net profit was down 14.1 per cent Y-o-Y

 

* Brokerages though expect a faster recovery in ABCL’s operational metrics driven by healthy growth in housing finance and general lending segments and a further improvement in asset quality

 

* The stock is currently trading at high valuation, with price-to-book value (P/BV) of 2x and trailing price-to-equity (P/E) multiple of 28x, which may limit further upside in the near term 

 

   

  TVS Motor

 

* TVS Motor is the best performing two-wheeler major with returns of about 55 per cent over past year 

 

* The company continues to outperform its peers. It posted domestic volume growth of 14 per cent compared to 2 per cent gain year-to-date in the two-wheeler sector. It gained 190 basis points market share to 18.8 per cent during this period

 

* The demand outlook remains positive supported by GST rate cuts and improving rural sentiment among other macroeconomic tailwinds

 

* The company expects commodity costs to be softer in Q3 compared to Q2 while pricing discipline, favourable product mix and material cost saving initiatives are likely to support margin expansion. A sharp rise in commodity prices is a risk though for the sector

 

* With strong product momentum, export recovery and sustained premiumisation, TVS is positioned to grow ahead of the industry, points out Geojit Research 

 

Maruti Suzuki 

* The country’s largest passenger car maker posted a gain of 54 per cent on the bourses over the last year

 

* Maruti Suzuki is among the key beneficiaries of the cuts in GST with the rate on small passenger vehicles reduced from 28 per cent to 18 per cent

 

* Maruti’s two new launches, eVitara and Victoris are expected to strengthen its presence in the high growth utility vehicle segment

 

* Its presence across powertrains, including internal combustion engine (petrol), hybrid, compressed natural gas or CNG and electric vehicles, are key to helping regain long-term market share target of 50 per cent

 

* Exports are another key driver of growth. After record exports in the first half of FY26, the company expects to exceed its 400,000 unit guidance for FY26 

 

   

  Ashok Leyland

 

* With a return of 61 per cent, the country’s second largest commercial vehicle (CV) player was the top gainer in the largecap auto space

 

* The second half of FY26 is set for robust growth, aided by the positive impact of GST 2.0 and a post-monsoon revival in mining, construction, and infrastructure capex

 

* Healthy fleet utilisation, firm freight rates, easing inflation, and accelerating government spending is expected to further support demand for CVs

 

* The Hinduja group firm has significantly reduced business cyclicality by diversifying into higher-margin, less cyclical segments with nearly 50 per cent of revenue now derived from non-truck businesses

 

* In addition to this, a high average age of trucks (about 10 years) is likely to drive replacement demand during FY27-28. Ashok Leyland remains a key beneficiary of the domestic CV upcycle, says Nomura Research 

 

   

  UPL

 

* The country’s largest agricultural chemicals major enriched investors by 55 per cent over the past year

 

* UPL delivered a strong revenue and operating performance in the September quarter (Q2) boosting the Street’s confidence about the rally

 

* The operating profit was up a sharp 40 per cent on the back of favourable product mix, low cost inventory, and better absorption of fixed cost

 

* A strong Q2 show led the management to raise its FY26 operating profit outlook to 12-16 per cent growth from the earlier 10-14 per cent growth

 

* Possibility of price increases going ahead is expected to support UPL’s margin performance 

 

* Antique Stock Broking believes that the worst is over for global/export players such as UPL and expects the growth momentum to continue 

 

 

TOP LOSER

Trent

 

* The fashion and lifestyle retailer, Trent has been the top underperformer among BSE 200 companies weighed down by slowdown in consumer demand and high valuations

 

* The stock is down 41 per cent YTD, erasing nearly 70 per cent of the market cap gains made by the company in CY24

 

* The decline in stock price has coincided with a sharp growth deceleration in Trent’s revenues and earnings in FY26 after two years of high double digit growth

 

* Trent’s consolidated net sales were up 15.9 per cent Y-o-Y in Q2FY26 while net profits were up 11.3 per cent Y-o-Y, its worst show in the last 18 quarters

 

* Growth slowdown has led to earnings downgrade with Axis Securities cutting Trent’s FY27 estimated net profit by 15 per cent post its Q2FY26 results

 

* Brokerages however maintain their ‘buy’ rating, given likely gains from store additions and company’s foray into new retail formats

 

* However, upside could be limited due to Trent’s rich valuation with trailing P/E of 94x, among the highest in the industry 

 

     

Oracle Financial Services Software

 

* IT Services exporter Oracle Financial Services Software (OFSS) has been the biggest underperformer in its industry with 39 per cent YTD decline in its share price

 

* The underperformance has been driven by a slowdown in OFSS’s revenues and earnings in recent quarters

 

* In Q2FY26, OFSS’s net sales were up just 6.9 per cent Y-o-Y, while its net profit was down 5.5 per cent Y-o-Y

 

* Some analysts expect OFSS to outperform going forward fuelled by its parent company, Oracle Corp’s ambitious growth outlook for its cloud business, driven by soaring demand for AI infrastructure and cloud services

 

* Besides, there has been a sharp decline in OFSS’s equity valuation in recent quarters after its persistent underperformance last year

 

* The stock is currently trading at a trailing P/E of 20x, lowest in the last three years and down from nearly 42x a year ago, creating space for value buying by long-term investors 

 

   

Dixon Technologies

 

* The electronic manufacturing services (EMS) major has lost nearly 30 per cent of its stock value over the past year

 

* Dixon’s September quarter performance was a mixed bag with revenues growing 29 per cent Y-o-Y on the back of a strong growth (41 per cent) in the mobile and EMS segment

 

* Consumer electronics and home appliances revenue declined 25 per cent Y-o-Y due to demand deferment following the GST rate cut

 

* The company is targeting ₹1 trillion in sales over the next three to four years even as it is expected to end FY26 with revenues of ₹58,700 crore

 

* While Dixon posted operating profit margin of 3.8 per cent in Q2, it has guided margins to be at 4-4.5 per cent through backward integration and original design manufacturing business growth

 

* YES Securities has a ‘reduce’ rating on the stock as the positives, in terms of 45 per cent annual revenue growth and margin expansion, are priced in 

 

   

  Thermax

 

* Capital goods maker, Thermax has been one of the top losers in BSE 200 and its stock price is down 25.9 per cent year-to-date (YTD) in CY25 underperforming BSE Sensex (up 9.3 per cent YTD) by a big margin

 

* The stock’s underperformance has followed a decline in Thermax’s revenues and earnings in recent quarters due a slowdown in corporate capex

 

* The company’s net sales were down 5.4 per cent year-on-year (Y-o-Y) in Q1FY26 while its net profit was down 39.3 per cent Y-o-Y, its worst show since FY18 barring the Covid19 period; trailing twelve months (TTM) show also lags with net profit down 19.9 per cent Y-o-Y

 

* Analysts however bet on a turnaround in Thermax’s earnings on the expectations of a rebound in industrial capex going forward. The company is also expected to gain from its expertise in energy transition & de-carbonisation technologies and solutions

 

* According to analysts at Prabhudas Lilladher, Thermax’s management expects 10-11 per cent compound annual growth (CAGR) for next 5 years with better margins and second half of 2025-26 (H2FY26) is expected to be better than the first half

 

* There has been a decline in Thermax’s valuation from record highs last year but they remain rich compared to the past

 

* Thermax is trading at a trailing P/E multiple of 59x and P/BV ratio of 7x, more than twice the ratio in the last 10 years   

 

     

REC Ltd

 

* The public sector power project financier, REC is one of the top underperformers in the NBFC space in CY25 as investors worry about its growth and margins trajectory

 

* REC’s share price is down 29 per cent YTD in CY25, underperforming the benchmark BSE Sensex by a big margin

 

* The public sector firm’s gross interest income was up 10.6 per cent Y-o-Y in Q2FY26, growing at a slowest pace in the last two years

 

* The lender’s net profit was up 9.3 per cent Y-o-Y in the Q2FY26, its worst show in nearly three years as margins shrunk and provisions for bad loans rose

 

* According to Elara Capital, REC’s net profit growth in Q2FY26 was broadly in line with their estimates; however net interest income declined 0.9 per cent Q-o-Q, weighed by muted interest income growth

 

* Elara Capital remains upbeat on the stock’s long-term prospects given its strong asset book, low valuation and relatively high return on net worth of about 19 per cent

 

* The stock is currently trading at trailing P/E of 5.5x and P/BV of 1.3x, both among the lowest in the non-bank lending space