Top Stock Picks for Q1 2025: Industries and Companies to Watch

The first quarter of the financial year 2024-2025 is off to a flying start, with both the Nifty 50 and the Sensex touching record highs. As our economy continues to expand, the stock market is poised to reach higher highs in the future. If you’re planning to invest in the Indian stock market, there’s no time like the present. Here are some of the top stocks to watch and a few industries that you can consider investing in during Q1 2025. 

Top 10 Company Shares to Watch in Q1 FY25

Including the following list of companies in your portfolio may provide you with the much-needed impetus for long-term wealth creation. Here’s a brief overview of 10 of the top company shares and their key metrics. 

1. Tata Chemicals

Tata Chemicals, a part of the Tata Group of Companies, is one of India’s largest manufacturers of basic and specialty chemicals. The company’s products are used in more than 15 industries, both in India and abroad. 

• Return on Equity (ROE): 6.60%
• Earnings Per Share (EPS): Rs. 90.95
• Book Value Per Share (BVPS): Rs. 809.49 
• Net Profit Margin: 13.80%

2. Mahindra Lifespaces

Headquartered in Mumbai, Mahindra Lifespaces is a fast-growing infrastructure development and real estate company in India. As one of the top stocks to watch, the company offers both value and premium residential flats in six different major cities in the country. 

• Return on Equity (ROE): 5.61%
• Earnings Per Share (EPS): Rs. 6.56
• Book Value Per Share (BVPS): Rs. 116.76
• Net Profit Margin: 16.71%

3. IREDA 

The Indian Renewable Energy Development Agency Limited (IREDA) is a government-owned enterprise that’s involved in providing financial support to entities and projects in the renewable energy space.

• Return on Equity (ROE): 11.56%
• Earnings Per Share (EPS): Rs. 4.41
• Book Value Per Share (BVPS): Rs. 38.18
• Net Profit Margin: 13.04%

4. Tata Power 

Among the top 10 company shares in India you can consider investing in is Tata Power. The company is involved in both conventional and renewable energy generation, transmission and distribution. It is one of the country’s largest integrated energy companies. 

• Return on Equity (ROE): 11.58%
• Earnings Per Share (EPS): Rs. 10.43
• Book Value Per Share (BVPS): Rs. 107.04
• Net Profit Margin: 6.05%

5. SBI Life

One of the largest life insurance entities in the country, SBI Life offers multiple individual and group insurance policies. As of December 31, 2023, the company’s total Assets Under Management (AUM) were Rs. 3,714.1 billion. 

• Return on Equity (ROE): 13.21%
• Earnings Per Share (EPS): Rs. 17.19
• Book Value Per Share (BVPS): Rs. 130.06
• Net Profit Margin: 2.13%

6. Chola Investment

Cholamandalam Investment and Finance Company Limited is another one of the best stocks for Q1 2025. The company is involved in providing multiple loan products, ranging from personal loans and home loans to vehicle loans and SME loans. 

• Return on Equity (ROE): 18.57%
• Earnings Per Share (EPS): Rs. 32.38
• Book Value Per Share (BVPS): Rs. 174.44 
• Net Profit Margin: 20.68%

7. Voltas

A part of the Tata Group of Companies, Voltas Limited is currently the country’s largest manufacturer of air conditioners and other cooling appliances. The company also manufactures a range of consumer home appliances under the Voltas Beko brand. 

• Return on Equity (ROE): 2.47%
• Earnings Per Share (EPS): Rs. 4.08
• Book Value Per Share (BVPS): Rs. 166.07 
• Net Profit Margin: 1.42%

8. MCX India

With the popularity of commodity trading picking up, MCX India is one of the top stocks to watch in FY2025. The Multi Commodity Exchange of India is the largest commodity derivatives exchange in the country. It offers a wide range of agricultural and non-agricultural commodity derivative contracts. 

• Return on Equity (ROE): 10.07%
• Earnings Per Share (EPS): Rs. 29.27
• Book Value Per Share (BVPS): Rs. 290.06
• Net Profit Margin: 29.01%

9. Happiest Minds

Happiest Minds Technologies is a fast-growing entity in the Indian Information Technology (IT) sector. The company provides a wide range of IT solutions across different segments, such as data analytics, cloud computing, digital engineering and artificial intelligence (AI). 

• Return on Equity (ROE): 27.53%
• Earnings Per Share (EPS): Rs. 16.01
• Book Value Per Share (BVPS): Rs. 58.54
• Net Profit Margin: 16.16%

10. Neogen Chemicals

Neogen Chemicals is one of the best stocks for Q1 2025 in the chemicals sector. The company manufactures lithium- and bromine-based specialty chemicals, Grignard reagents and advanced intermediates. 

• Return on Equity (ROE): 10.35%
• Earnings Per Share (EPS): Rs. 20.03
• Book Value Per Share (BVPS): Rs. 193.47 
• Net Profit Margin: 7.28%

Note: The key financial metrics of all of the companies listed above are as of April 20, 2024. 

Top Industries to Watch in Q1 FY25

Now that you’ve seen the top 10 company shares you can consider investing in, let’s look at some of the key industries to keep an eye on during the first quarter of FY 2024-2025. 

• Agriculture 

According to the Indian Meteorological Department (IMD), the financial year 2024-2025 is likely to experience an ‘above normal’ monsoon. The abundant rainfall is likely to boost agricultural production significantly. In fact, the agriculture and allied industries are expected to grow at a rate of more than 6% through the year.

• Manufacturing 

The manufacturing industry has grown by leaps and bounds thanks to the ‘Make in India’ initiative. More reforms, especially in laws relating to land acquisition and labour, and various tax and other incentives may be announced during Q1 FY25, making manufacturing stocks something to watch out for. 

• Infrastructure 

As India ambitiously attempts to become the third-largest economy in the world, the infrastructure industry must contribute heavily to make it happen. The speed at which infrastructure projects are implemented is likely to be sped up in the coming years to help the country achieve its target. This could potentially make infrastructure companies some of the best stocks for Q1 FY25.  

• Clean Energy 

The clean energy industry is also likely to be emphasised more in the next five years. Already, several schemes, such as the National Green Hydrogen Mission and the Pradhan Mantri Suryoday Yojana, have been launched to promote clean energy. Investing in some of the top company shares in this industry could potentially help you leverage its growth potential. 

Conclusion

With this, you must now be aware of the top stocks to watch and some of the few industries with high future growth potential. Now, before you proceed to invest in any of them, remember to conduct thorough fundamental research of your own. This could not only help you ensure that your investments are in line with your financial goals but also protect you from the impact of adverse market movements. 

The Research 360 platform, powered by Motilal Oswal, can provide you with all the fundamental insights you need to make an investment decision. The Sector Analysis and Industry Analysis features of the app can give you a detailed overview of all of the companies within a sector or an industry in terms of fundamentals, technicals, market performance and shareholding. 

You can also click on a particular company within this section to get a more comprehensive look at its financials and technicals. To get access to all of these features and more for free, simply sign up for the Research 360 platform of Motilal Oswal.