Stocks to Watch: JM Financial’s 11 Picks for 50% Returns

Stocks to Watch

Stocks to Buy: 11 Stocks with 50% Return Potential – JM Financial’s Top Picks for 2025

With just a few weeks left in the year, investors are already looking ahead to what 2025 holds for the stock market.

In a timely move, JM Financial, a well-known brokerage firm, has released its top stock picks for the new year.

The list features 11 stocks, including both large-cap and mid/small-cap stocks, offering potential returns ranging from 9% to 50%.

The firm has stated that most of these stocks are currently trading at their lowest levels, which reduces the downside risk and increases the likelihood of significant upside in the coming year.

Let’s take a detailed look at these 11 stocks, their potential growth, and the target prices set by JM Financial.

1. Axis Bank

• Target Price: ₹1,425
• Potential Return: +22.5%

Axis Bank is one of the prominent private-sector banks in India, and JM Financial sees strong potential for growth.

The bank has managed to reduce its operating expenses and keep credit costs under control, which will positively impact its profitability.

With improving asset quality and a growing loan book, Axis Bank is positioned well to perform in 2025. JM Financial expects the stock to rise by 22.5% to ₹1,425.

2. Nippon Asset Management (Nippon AMC)

• Target Price: ₹800
• Potential Return: +9%

Nippon Asset Management is a well-established player in India’s asset management space. JM Financial sees great value in its stock due to its attractive valuation and the consistent growth of its profit.

With projected profit growth of 19.5% between FY 2024 and 2027, the stock offers an upside potential of 9%, bringing its target price to ₹800.

The brokerage also highlights the firm’s market position and strategic initiatives in growing its AUM (Assets Under Management).

3. Maruti Suzuki

• Target Price: ₹15,250
• Potential Return: +35%

As India’s largest automaker, Maruti Suzuki has maintained a dominant position in the country’s automobile market.

JM Financial believes that the market has undervalued Maruti’s future growth prospects, especially in the hybrid and electric vehicle segments.

The company is planning to launch a wide range of hybrid and electric models in the coming years, which will give a strong boost to sales. The brokerage expects the stock to rise by 35%, setting a target price of ₹15,250 for 2025.

4. Samvardhana Motherson

• Target Price: ₹210
• Potential Return: +25.7%

Samvardhana Motherson is a global automotive components manufacturer with a strong presence across various regions.

JM Financial highlights the company’s continuous expansion into new markets and the growing demand for automotive components globally.

With the automotive sector recovering and the company constantly innovating and expanding its product portfolio,

Samvardhana Motherson has a good chance of delivering strong returns. The target price is ₹210, which represents a 25.7% potential upside.

5. Ahluwalia Contracts

• Target Price: ₹1,315
• Potential Return: +22.7%

Ahluwalia Contracts is a leading construction and engineering company in India. The firm has shown impressive performance over the years, and JM Financial expects this trend to continue with strong EPS growth projected at 30% during FY 2024 to FY 2027.

The company’s strong order book and increasing involvement in large infrastructure projects are likely to fuel its growth. JM Financial has set a target price of ₹1,315, expecting a 22.7% return from the current price.

6. KPIT Technologies

• Target Price: ₹2,040
• Potential Return: +33.1%

KPIT Technologies, a mid-cap IT company focused on the automotive and manufacturing sectors, has been showing impressive growth.

The company is expected to benefit from the digital transformation trends across industries, particularly in electric vehicle technologies and autonomous driving solutions.

JM Financial believes KPIT’s revenue growth will continue at 17% CAGR between FY 2024 and FY 2027.

The stock is poised for strong upside potential, with a target price of ₹2,040, representing a 33.1% return.

7. Zee Entertainment

• Target Price: ₹200
• Potential Return: +41%

Zee Entertainment has seen its stock price fall nearly 50% from its peak, making it a potential value buy according to JM Financial. Despite its recent troubles, including corporate restructuring, the stock is currently undervalued.

JM Financial sees strong potential for a rebound, with the company’s renewed focus on content creation, distribution, and digital expansion. The target price of ₹200 represents an upside of 41% from current levels.

8. Havells India

• Target Price: ₹2,031
• Potential Return: +18.5%

Havells India, a leader in the electrical equipment and consumer durables space, has seen consistent growth over the years.

JM Financial believes that the company’s focus on product innovation and expanding market share will continue to drive its growth.

Excluding the Lloyd brand (which has seen slower growth), Havells’ revenue is expected to grow at 15% CAGR between FY 2024 and FY 2027. With a target price of ₹2,031, the stock offers a potential return of 18.5%.

9. Cyient DLM

• Target Price: ₹960
• Potential Return: +45%

Cyient DLM, a player in the electronics manufacturing services (EMS) sector, is gaining attention due to its focus on merger and acquisition opportunities and its expanding portfolio in the defense, aerospace, and automotive industries.

JM Financial sees significant growth potential here, with the company set to benefit from the rising demand for high-precision electronics. The stock is expected to rise by 45%, with a target price of ₹960.

10. Metropolis Healthcare

• Target Price: ₹2,500
• Potential Return: +14.3%

Metropolis Healthcare, a leading diagnostic service provider in India, is seeing increased demand due to the growing healthcare needs in the country.

With strong performance in its EPS growth expected to be 25% from FY 2025 to FY 2027, Metropolis Healthcare is well-positioned to benefit from the sector’s expansion. The stock offers a 14.3% return potential with a target price of ₹2,500.

11. Bharat Heavy Electricals Limited (BHEL)

• Target Price: ₹371
• Potential Return: +49%

BHEL, a leader in the Indian power sector, is expected to see strong growth in the coming years. The company’s revenue growth is forecasted at 30%, while its EBITDA growth is projected to be an impressive 103% from FY 2024 to FY 2027.

JM Financial sees BHEL as a top pick for 2025, with an expected return of 49%, setting a target price of ₹371.

Summary of JM Financial’s Top 11 Picks for 2025

1. Axis Bank – ₹1,425 (+22.5% Return)
2. Nippon AMC – ₹800 (+9% Return)
3. Maruti Suzuki – ₹15,250 (+35% Return)
4. Samvardhana Motherson – ₹210 (+25.7% Return)
5. Ahluwalia Contracts – ₹1,315 (+22.7% Return)
6. KPIT Technologies – ₹2,040 (+33.1% Return)
7. Zee Entertainment – ₹200 (+41% Return)
8. Havells India – ₹2,031 (+18.5% Return)
9. Cyient DLM – ₹960 (+45% Return)
10. Metropolis Healthcare – ₹2,500 (+14.3% Return)
11. BHEL – ₹371 (+49% Return)

Final Remarks:

JM Financial’s list of top stock picks for 2025 presents a well-rounded portfolio for investors looking to capitalize on high-growth opportunities across different sectors. From automobile and IT stocks to banking and infrastructure, these 11 stocks offer a mix of growth potential and value buying at current levels.

Whether you’re looking for steady long-term growth or higher risk with a potential reward, these picks cater to a range of investment goals.

As always, conducting further research and seeking professional advice is crucial before making any investment decisions.