Stocks to Buy: HDFC Bank to Zomato – Stoxbox Recommends Top 10 Picks to Boost Your Portfolio in 2025

The Indian stock market’s benchmark indices, Sensex and Nifty 50, have delivered commendable returns in 2024 despite significant volatility. The Nifty 50 index is up over 13% year-to-date (YTD). Looking ahead to 2025, analysts maintain a cautiously optimistic outlook for the Indian stock market. The optimism is underpinned by robust domestic economic growth, as India continues to maintain its position as the world’s fastest growing major economy.

The long-term outperformance of the Indian market is often attributed to factors such as domestic flows or robust GDP growth, but the real driver is superior equity returns. About a third of Indian companies have consistently achieved ROE above 20%, which is second only to the US in this regard. Adjusted for the cost of equity, India outperforms most peers, demonstrating the strength of its business fundamentals. This remarkable performance highlights that the real reasons behind India’s market success lie in its high-quality returns, rather than the oft-cited growth or capital flow stories.

Domestic brokerage Stoxbox suggests the top 10 stocks to buy in 2025:

Stocks to buy in 2025:

The Ambuja Cements share has a current market price of ₹506 and a target price of ₹600, which represents an increase of 19%. As the flagship company of the Adani Group, it is a leader in Indian cement production, with a current capacity of 89 million tonnes per annum (MTPA), which is expected to increase to 140 MTPA by FY28. Strategic acquisitions, including Orient Cement and the integration of Penna Cement, further strengthen the expansion plans.

Federal Bank, with a current market price of ₹212 and a target of ₹250, offers an 18% benefit. The bank achieved record high profits in the second quarter of ’25, driven by its strategic focus on expanding the CASA base and maintaining asset quality through restrained, unsecured advances. Led by its new MD & CEO, Mr Manian, the bank has set ambitious loan growth expectations of 18% for FY25. By avoiding expensive deposits and adhering to prudent lending practices, the Federal Bank has consolidated its position as a strong competitor among mid-sized banks.

HDFC Bank, with a current market price of ₹1,785 and a target of ₹2,105, offering an increase of 18%. After the merger, the bank optimizes its Loan-to-Deposit Ratio and replaces expensive loans with cheap deposits. The expected rate cuts in FY25 are expected to stabilize net interest margins (NIMs), which are expected to rise from 3.47% to 4% over the next two years. With a strong focus on asset quality and efficient growth strategies, HDFC Bank remains a reliable long-term investment.

Hero MotoCorp, with a current market price of ₹4,867 and a target of ₹5,717, offers an advantage of 18%. The company is poised for strong growth, driven by its flagship models and entry into the EV market with upcoming e-scooter launches. A revival in demand in rural and semi-urban areas, together with strong sales during the festive season, strengthens the market position. With a robust product portfolio and a focus on both premium and traditional segments, Hero MotoCorp is well positioned for continued success.

ICICI Bank, with a current market price of ₹1,300 and a target of ₹1,560, offers a 20% benefit. The bank’s improved asset quality is reflected in lower GNPA and NNPA levels. With 51% of loans linked to the repo rate, expected rate cuts in FY25 are expected to stabilize net interest margins (NIMs). ICICI Bank’s cautious approach to unsecured lending, combined with its consistent performance on key banking metrics, makes it an attractive choice for investors.

The Indian Hotels Company Ltd. (IHCL), with a current market price of ₹798 and a target of ₹930, offers a 17% advantage. IHCL is pursuing a low-resource expansion strategy, venturing into areas such as Qmin and Amã Stays to capitalize on the growing domestic leisure travel market. The company’s focus on improving EBITDA margins and exploiting supply-demand imbalances is driving robust growth. With a strong balance sheet, IHCL remains a key player in the hospitality sector, well positioned for continued success.

7) Laxmi organic industries

Laxmi Organics Industries Ltd., with a current market price of ₹255 and a target of ₹295, offers a 16% advantage. The company, a leader in acetyl intermediates and specialty chemicals, has a ₹11 billion capex plan aimed at doubling production of Ketene and Diketene. Operational improvements, along with new product launches, position Laxmi Organics for significant revenue and EBITDA growth in FY28, making it well positioned for long-term success.

Mahindra & Mahindra Ltd. (M&M), with a current market price of ₹3,048 and a target of ₹3,635, offers a 19% advantage. The company has a strong offering in commercial vehicles (UVs) and is making significant inroads into the EV market. M&M’s strategic positioning minimizes cannibalization among its models, while strong holiday demand further supports its leadership in the domestic UV market, positioning the company for further growth.

Mankind Pharma Ltd., with a current market price of ₹2,628 and a target of ₹3,100, offers an 18% benefit. The acquisitions of Bharat Serums and Panacea Biotech have strengthened the portfolio of chronic therapies and niche products. With a robust domestic market share and continued expansion in Tier-I cities, Mankind Pharma’s strategic initiatives and new product launches position the company for sustainable growth.

Zomato, with a current market price of ₹273 and a target of ₹325, offers a 19% advantage. The company’s leadership in food delivery and quick commerce, along with Blinkit’s expansion and Hyperpure’s alternative revenue streams, positions Zomato for exponential growth. Rising internet penetration and evolving consumer behavior further strengthen Zomato’s position, making Zomato a strong competitor in India’s fast-growing digital economy.

The Indian stock market in 2025 offers various opportunities in the banking, cement, hospitality and technology sectors. Strategic initiatives, robust fundamentals and sector growth prospects make these companies top choices. However, investors should consider individual risk tolerance and conduct thorough research before making investment decisions.