Stock picks for 2025: HDFC Bank to Senco Gold – Religare Broking suggests ‘accumulating’ these six stocks for the long term

Stock picks for 2025: indian stock marketIts performance in 2024 has been remarkably positive, with significant gains in key indices. On the benchmark front, both nifty 50 And Sensex This marked the ninth consecutive calendar year of high growth and an increase of nearly nine percent. The upward trend reflects a broad rally, with both the indices continuously hitting new highs and Nifty crossing multiple milestones from 22,000 to 26,000 in a relatively short period.

However, the market faces challenges such as weak corporate earnings, foreign outflows, elevated inflation and sluggish economic growth in the second half of 2024. Despite these headwinds, continued buying by domestic investors and strong participation from retail investors have supported the market.

Outlook for 2025

As we move into 2025, several notable trends are expected to impact the markets in India and globally. Changes in US trade policies, including higher tariffs, could alter international trade patterns and supply chains, prompting countries like India to reevaluate trade agreements and adding uncertainty to the market.

Additionally, resolving ongoing geopolitical conflicts could stabilize global markets and improve economic sentiment. Corporate earnings are expected to improve as businesses recover from a period of slow growth, supported by higher government capital expenditure and renewed private sector investment.

If inflationary pressures ease, the demand environment may improve, consumer spending will increase and purchasing power will increase. According to D-Street Brokerage, these factors combined will create a dynamic environment in the coming year, providing opportunities and challenges for investors.

Analysts at domestic brokerage Religare Broking say investors should focus on accumulating fundamentally strong stocks during market downturns to weather the ups and downs, especially those with solid balance sheets and growth potential. But.

In the current market scenario, Religare Broking has released its top six New Year stock picks for 2025 And recommends accumulating stocks for long-term potential returns. The domestic brokerage has selected quality stocks for investors based on technical and fundamental parameters.

Stock picks for 2025 by Religare Broking:

Let’s take a look at the top six tech and fundamental stocks for the new year by domestic brokerage Religare Broking:

1.HDFC Bank: Current Market Price (CMP): 1,797.65; Accumulation Limit: 1,720-1,810; Target: 1,920-2,008

After the merger with HDFC, the private bank saw a significant decline in its credit-to-deposit (CD) ratio, reaching a high of 108.4 per cent. However, this trend has recently begun to reverse, with the CD ratio falling to 100.7 per cent in Q2FY20, as the bank has increased its focus on deposit growth.

Asset quality remains strong: Asset quality witnessed a slight deterioration during the quarter, but overall, assets remain strong as gross NPAs (GNPAs) and net NPAs (NNPAs) remained at the lower end of their historical ranges. Have happened and are expected to remain around this. Current level only.

Rerating Potential: Elevated CD ratio has been a significant challenge for HDFC Bank, adversely impacting its margins and growth and leading to a decline in its valuation multiples. However, as the bank is gradually improving its CD ratio, we can expect to see gradual margin expansion over the next few quarters, and the possibility of a re-rating should not be ignored.

2.Life Insurance Corporation (LIC): CMP: 887.60; Accumulation Limit: 840-900; Target: 1,045-1,160

Increasing share on non-par products: It has significantly increased its share on non-par products, thereby increasing its VoNB margins. During the last year, the contribution of non-equivalent products to individual APE increased Rs 967 crore 3,164 crore, increasing their stake from 11.1 per cent to 27.7 per cent. This focus on higher-margin non-comparable products is expected to improve its margins.

Well positioned in the emerging scenario: India’s LIC, a leading life insurance company, is showing strong growth driven by stable premium income and improved margins from high-margin non-participating and non-participating products. With a strategic focus on expanding its product mix and enhancing profitability, LIC is well positioned for continued success in the evolving insurance landscape.

3.DLF: CMP: 835.05; Accumulation Limit: 800-850; Target: 960-1,050

Strong launch pipeline: DLF has a strong launch pipeline with projected sales potential Rs 41,000 crore more for FY2025 Rs 63,500 crore in the medium term beyond FY25, highlighting strong revenue growth potential. Some of the major upcoming projects include Dahlias (Phase 5), new developments in Downtown Gurugram, Goa, Mumbai and the next phase of Privana. Management maintained pre-sale guidance ₹17,000 crore for FY2025.

Strategic Expansion and Market Leadership: DLF holds the leading position in Delhi-NCR real estate, backed by extensive land reserves with a development potential of 187 MSF. The company is strategically expanding its footprint in other key markets including Chandigarh Tri-City area, Mumbai and Goa.

Benefit from India’s growing residential demand: DLF is expected to benefit from the strong growth potential of the real estate industry. The residential sector in India is experiencing a resurgence, with demand exceeding supply in major cities. Urbanization, increasing household income, and desire for home ownership are driving demand in the residential sector.