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.
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