This Nifty firm rallied over 100% in 2024; here’s what brokerages suggest for 2025

Just one firm in the benchmark NSE Nifty index doubled investors’ wealth in 2024 — a year marked by market volatility and selected sectoral growth. This is a Tata group firm Trent Limited. Shares of the retail major climbed nearly 130% to Rs 7,012.50 on December 12, 2024, against Rs 3,054.95 on December 29, 2023. On the other hand, the 50-share index gained around 13% during the same period.

The company has witnessed impressive top and bottom line growth in the past decade. Its consolidated gross sales increased at a compounded growth rate (CAGR) of more than 18% to Rs 12,375.11 crore in FY24 against Rs 2,272.31 crore in FY14. Meanwhile, the company reported a consolidated net profit of Rs 1,486 crore in FY24 against a loss of Rs 18.55 crore in FY14.

As of September 2024, Trent’s portfolio comprised 226 Westside, 577 Zudio and 28 stores across other lifestyle concepts. In Q2FY25, it added seven Westside and 34 Zudio stores while consolidating 16 Zudio and nine Westside stores.

Despite the recent outperformance of Trent, brokerages are further bullish on the company. Nuvama Institutional Equities in November maintained a ‘Buy’ rating on Trent with a target price of Rs 7,475. Motilal Oswal Financial Services also retained a ‘Buy’ call on Trent with a target price of Rs 8,200.

“Trent’s industry-leading growth, driven by healthy SSSG, store productivity, and robust footprint additions, along with the scale-up of Zudio and newer categories (beauty, lab-grown diamonds), offer a huge runway for growth over the next few years. Further, Trent’s focus on ramping up Star (currently 74 stores in 10 cities) through Fresh and its own brands, provide an additional growth driver in the grocery segment,” Motilal Oswal Financial Services said.

Coming to the other major gainers in the Nifty50 index, Mahindra & Mahindra emerged as the next gainer on the list. Shares of the auto major advanced 77% YTD. It was followed by Bharat Electronics (up 70%), Shriram Finance (up 58%), Bharti Airtel (up 56%), and Sun Pharmaceutical Industries (up 43%).

While sharing his view on the 2025, Shripal Shah, MD and CEO, Kotak Securities, said, “India maintains its position as one of the world’s fastest-growing major economies, making it a compelling investment destination for global investors. While we remain confident in India’s long-term growth potential, we advise investors to approach the market with a degree of cautious optimism.”

“We foresee the equity market to gain more momentum and commodities crossing its historic best in 2025. Alongside, an increase among young investors entering the stock market to build wealth early on, will also add to the overall market growth,” Shah said. Kotak Securities believes Nifty may hit the 26,100-mark by December 2025 in the base case scenario, 28,800 in the bull case and 23,300 in the bear case scenarios.

For stock-specific investors, brokerage JM Financial suggested stocks such as Axis Bank (target price: Rs 1,425), Nippon AMC (Rs 800), Maruti Suzuki (Rs 15,250), SAMIL (Rs 210), Ahluwalia Contracts (Rs 1,315), KPIT (Rs 2,040), Zee Entertainment (Rs 200), Havells (Rs 2,031), Cyient DLM (Rs 960), Metropolis (Rs 2,500), Global Health (Rs 1,440) and BHEL (Rs 371) for the next year.