Zomato, ICICI Bank, HCLTech, L&T among top 10 picks for Motilal Oswal for 2025

2025 is set to kick off in a couple of sessions and 2024 is likely to deliver about 10 per cent gains for the investors. Domestic brokerage firm Motilal Oswal Financial services believe that 2025 can unfold the tale of two halves with first one signaling market consolidation, while second one for recovery. The brokerage firm has suggested 10 stock picks for the upcoming calendar year.

The brokerage believes that domestic factors like Union Budget, government spending, FIIs trend and rate cut cycle by RBI, along with global triggers including Trump's economic policy, US rate cut cycle and geopolitical concerns will guide the market, beside earnings and valuations of India Inc. Here are the top picks from Motilal Oswal for 2025 for up to 36 per cent upside:

ICICI Bank | Target Price: Rs 1,550 | Upside Potential: 19%

ICICI Bank is poised for strong growth, driven by healthy loan growth, robust asset quality, and operating leverage. With solid deposit inflows, a favorable CD ratio, and strong underwriting standards, the bank is well-positioned for profitable growth. We project a 15 per cent PPoP CAGR and 12 per cent PAT CAGR over FY25-27E, with RoA/RoE of 2.1 per cent/16.7 per cent by FY27.
 

HCLTechnologies | Target Price: Rs 2,300 | Upside Potential: 22%

HCLTech revised its FY25 growth guidance to 3.5%-5.0% YoY, supported by strong deal wins and its leading position in data/SAP modernization. Its investments in next-gen platforms position it well for the GenAI revolution and future recovery in client spending, with expected margin improvements to 18.9 per cent by FY26 and an 8.4 per cent CAGR in USD revenue over FY25-27.
 

Larsen & Toubro | Target Price: Rs 4,300 | Upside Potential: 19%

L&T is poised to secure large domestic orders in H2, alongside recent international wins, boosting execution growth and margins. L&T's strategic initiatives in electrolyzers, semiconductors, data centers, nuclear tech and real estate are expected to drive steady revenue growth and improve RoE in the coming years.
 

Zomato | Target Price: Rs 330 | Upside Potential: 21%

Zomato raised Rs 8500 crore via QIP to invest in Blinkit for marketing, scaling operations, and expanding its dark store network, targeting 1,000 stores by FY25. While the food delivery business is stable, Blinkit continues to lead the quick commerce market with GOV up 25 per cent QoQ/120 per cent YoY. We expect Zomato to report a PAT margin of 4.7 per cent, 8.6 per cent and 12.9 per cent in FY25, FY26 and FY27, respectively.


Polycab India | Target Price: Rs 8,330 | Upside Potential: 17%

Polycab’s cables & wire segment will benefit from strong demand from power T&D, private capex growth, & real estate sector. It is expanding its Gujarat EHV plant by FY26-end and also secured Rs 5,650 crore BharatNet initiative Phase-III contracts for an initial period of 3 years. We project 15 per cent earnings CAGR over FY24-27.
 

Godrej Properties| Target Price: Rs 3,725 | Upside Potential: 32%

Godrej Properties (GPL) launches spanned 5.6 msf, with significant sales in MMR, NCR, and Bangalore. GPL invested Rs 1,680 crore in land, ensuring future development potential project pipeline strength. It is expected to achieve Rs 30,000 crore in launches & sustained growth through FY26. GPL is on track to exceed its FY25 pre-sales target of Rs 27,000 crore by H2FY25.

Nippon Life India Asset Management | Target Price: Rs 900 | Upside Potential: 23%

NAM India has improved its equity market share by 60 bps in October 2024 from Apr 2022 through sustained fund performance & focused granular SIP additions from lower-tier towns. Its growth will be driven by incremental AUM from the non-EPFO segment, where NAM is a market leader, and fundraising from large offshore funds in the medium term. We expect 28 per cent PAT CAGR for FY24-27E.

IPCA Laboratories | Target Price: Rs 1,930 | Upside Potential: 18%

IPCA Labs specializes in domestic formulations and exports, with a strong presence in the pharmaceutical industry. The company aims to outperform in domestic formulations and ROW markets, driven by Unichem’s improving performance and new product offerings. We forecast a 26 per cent earnings CAGR over FY25-27.
 

Lemon Tree Hotels | Target Price: Rs 190 | Upside Potential: 28%

Lemon Tree is set for strong 2H growth, driven by Aurika Mumbai’s stabilization and robust wedding season demand. As of September 30, 2024, the total operational inventory comprised 112 hotels with 10,318 rooms and the pipeline comprised 75 hotels with 5,220 rooms. We estimate Lemon Tree’s PAT to grow at a 33 per cent CAGR over FY24-27.
 

PN Gadgil | Target Price: Rs 950 | Upside Potential: 36%

PN Gadgil (PNG), the second-largest retailer in Maharashtra, has 48 stores across 21 cities. It aims to expand further within Maharashtra and into other states. The company aims to reach 80 stores by FY27, funded by IPO proceeds for expansion and debt reduction. We project 23 per cent and 36 per cent CAGR for revenue and PAT during FY24-27, respectively.