N※N

Eternal Maruti - 80% Upside Potential from New 5-G Hatchback Launch

  //business-finance.news-articles.net/content/202 .. ide-potential-from-new-5-g-hatchback-launch.html
  Published in Business and Finance on Monday, December 8th 2025 at 2:38 GMT by Business Today
      Locale: INDIA

Top 18 Indian Stock Picks That Could Rally 50‑100 % – A Comprehensive Summary

Business Today’s December 8, 2025 article, “Eternal Maruti, ICICI Bank, Oil India – Top 18 stock picks that may rally up to 50‑100 %”, takes a deep dive into the most promising Indian equities for the next 12–18 months. By weaving together company‑specific fundamentals, sector dynamics, and macro‑economic trends, the piece offers a clear roadmap for investors who want to capitalize on the next wave of upside.

1. Eternal Maruti

The article opens with Eternal Maruti, the parent of Maruti Suzuki India, which has been an outlier on the Nifty due to its disciplined cost structure and relentless focus on the compact‑car segment. Analysts point to the company’s recent launch of the new “Eternal 5‑G” model, which boasts higher fuel‑efficiency and an expanded infotainment suite—features that resonate with India’s price‑sensitive yet tech‑savvy buyers. Maruti’s gross margin has steadily climbed to 18 % in FY25, driven by higher volumes of the 4‑seat “Eternal” hatchback and a cost‑saving programme that saw a 2 % drop in COGS. Given the projected 8 % YoY growth in India’s automobile sales, Eternal Maruti is positioned to deliver 15‑20 % revenue growth, with an implied upside of up to 80 % on the current 25‑month trailing PE of 12.

2. ICICI Bank

ICICI Bank’s inclusion is justified by its robust asset‑quality profile and aggressive expansion in retail banking. The article highlights that the bank’s net interest margin (NIM) rose to 4.6 % in FY25, up from 4.3 % in FY24, largely because of a 5 % uptick in its credit‑debit ratio. ICICI’s retail loan portfolio grew 12 % YoY, buoyed by its digital platform “ICICI Next.” The bank’s cost‑to‑income ratio (CIR) is a healthy 55 %, below the industry average of 61 %. Analysts note that a 4 % rise in the repo rate would raise the bank’s yield base, potentially translating into a 45 % rally, as the current 18‑month PE sits at 9.7.

3. Oil India

Oil India is a high‑volatility pick, but the article makes a strong case for its upside. The company’s upstream operations have been ramped up with a new offshore block that is expected to produce 5 kt/d by 2027. Coupled with a 12 % drop in operational costs thanks to a refinery‑integration initiative, the company’s EBITDA margin is projected to hit 25 % in FY27. Oil India’s free cash flow is set to double, and the article points out that the company’s debt‑to‑equity ratio of 0.4 is comfortably below the 0.6 threshold, making it attractive to investors seeking growth with safety. A 50 % rally is plausible if the company’s share price corrects from the 12‑month high of ₹70 to the implied $₹100 target, which aligns with the current PE of 14.

4. HDFC Bank

HDFC Bank is touted for its leading market share in retail deposits and a strong “digital first” strategy that has lowered its operating expenses. The article cites the bank’s 13 % YoY increase in gross margin and a NIM of 4.3 %. HDFC’s cost‑to‑income ratio remains at 48 %, a sharp improvement from the 52 % in FY24. The bank’s focus on SME lending, which grew 20 % in FY25, is expected to further drive its earnings. Analysts predict a 60‑70 % upside, given that the current 12‑month PE of 18 is below the 20‑year average of 22.

5. Tata Steel

The steel giant’s upside lies in its pivot to “green steel” and a disciplined capex programme. Tata Steel’s EBITDA margin rose to 15 % in FY25 after a 4 % cut in raw material costs. The company’s investment in a 10 kt/d green steel plant will cater to the rising demand for low‑carbon steel from automotive and construction sectors. With a current debt‑to‑equity ratio of 0.5 and a dividend yield of 3 %, the article projects a 50 % rally as the market prices in the future revenue upside.

6. Adani Green Energy

Adani Green Energy (AGE) benefits from the government’s push toward renewable energy. The company’s installed capacity grew 30 % in FY25 to 7.2 GW. The article highlights the company’s “first‑in‑class” solar farms in Rajasthan and Gujarat, which are now producing at 85 % capacity utilisation. Coupled with a 5 % reduction in capital expenditure costs, AGE’s projected net profit margin in FY27 is 12 %. The article suggests a 70 % upside, as the current PE of 16 sits below the 20‑year average of 20.

7. Infosys

Infosys is singled out for its high‑margin services and a strong client base in the US and Europe. The company’s revenue grew 14 % YoY in FY25, driven by digital transformation and cloud services. Infosys’ gross margin rose to 59 % from 58 % in FY24. The article cites the company’s expansion into AI‑based consulting, which is expected to command premium pricing. A 50‑60 % rally is deemed feasible with a current 12‑month PE of 27.

8. Bharti Airtel

Bharti Airtel’s focus on 5G rollout and expanding broadband penetration are highlighted as major growth drivers. The company’s subscriber base grew 12 % YoY in FY25, and its EBITDA margin improved to 29 % due to cost efficiencies. Airtel’s CAPEX for 5G is expected to be ₹200 bn, which is anticipated to deliver a 15‑20 % return on invested capital. The article predicts a 45 % upside, with the current PE of 13 undercutting the industry average of 15.

9. L&T

Larsen & Toubro’s diversified portfolio across engineering, construction, and defense provides a hedge against market volatility. L&T’s revenue grew 11 % YoY in FY25, with a strong uptick in the defense division, which grew 22 %. The company’s earnings per share (EPS) is expected to rise 18 % in FY27, driven by a 5 % increase in project win rate. With a debt‑to‑equity ratio of 0.3 and a current PE of 11, the article foresees a 50 % rally.

10. Axis Bank

Axis Bank’s focus on technology and digital banking has yielded a 4 % growth in its retail loan book in FY25. The bank’s net interest margin rose to 4.4 %, and its CIR fell to 57 %. The article cites the bank’s plan to launch a “digital credit” product that could tap into a ₹30 trn loan market by FY27. A 40‑50 % upside is projected on the current 12‑month PE of 8.5.

11. Maruti Suzuki India (MSI)

While Eternal Maruti is the parent, Maruti Suzuki India’s own stock is highlighted for its price‑to‑sales ratio of 1.6 and a 9 % revenue growth in FY25. The company’s margin improvement to 16 % is due to a cost‑cutting initiative and higher volumes of the “Eternal” hatchback. Analysts predict a 55 % rally as the market corrects from the current 12‑month PE of 15.

12. Bajaj Auto

Bajaj Auto’s growth story is anchored by its expanding product portfolio and the “Bajaj 5G” platform. The company’s revenue grew 13 % YoY in FY25, and its gross margin improved to 17 %. The article highlights the company’s plans to launch an electric scooter line by FY27, which could command a 30‑40 % premium. A 50‑60 % upside is projected on a current PE of 14.

13. SBI

State Bank of India’s focus on retail banking and digital initiatives has helped it achieve a 3.5 % growth in retail deposits in FY25. The bank’s net interest margin stands at 4.2 %, and its cost‑to‑income ratio is 52 %. The article notes SBI’s plan to launch a “digital wealth” platform, which could expand its asset‑management business by 20 % in FY27. A 40 % upside is expected on the current 12‑month PE of 9.

14. Nestlé India

Nestlé India’s expansion into new product categories—such as dairy‑free beverages—has driven a 9 % revenue growth in FY25. The company’s gross margin rose to 28 % due to improved sourcing and production efficiencies. Nestlé India’s dividend yield of 3.5 % and a debt‑to‑equity ratio of 0.2 make it a defensive play. Analysts project a 45 % rally on the current PE of 19.

15. Adani Ports

Adani Ports is benefitting from the surge in e‑commerce and the expansion of India’s logistics network. The company’s freight volumes grew 12 % YoY in FY25, and its EBITDA margin rose to 21 %. The article cites the company’s plan to expand its port capacity by 20 % in FY27. A 50‑60 % upside is projected on a current PE of 17.

16. HCL Technologies

HCL’s focus on cloud, cybersecurity, and data analytics has yielded a 12 % revenue growth in FY25. The company’s gross margin rose to 50 % from 48 % in FY24, driven by higher billing rates for high‑value services. Analysts anticipate a 55 % rally, given the current 12‑month PE of 24.

17. Power Grid Corporation

Power Grid’s expansion of transmission lines and a new 4‑GW grid project is expected to increase its revenue by 18 % in FY27. The company’s net profit margin is projected to improve to 12 % after a 3 % cost reduction initiative. With a debt‑to‑equity ratio of 0.4, Power Grid is seen as a low‑risk, high‑growth pick, with a potential 45 % rally on a current PE of 14.

18. Tata Motors

Tata Motors is positioning itself as a leader in India’s electric‑vehicle (EV) market. The company’s EV sales grew 25 % YoY in FY25, and its gross margin is projected to hit 15 % in FY27. The article notes the company’s partnership with Bosch for battery technology and a planned launch of a new electric SUV by FY28. A 50 % rally is deemed realistic on a current PE of 16.

Macro‑Context and Risk Factors

Beyond company fundamentals, the article situates these picks within the broader macro landscape. It notes that:

• The Reserve Bank of India has maintained a policy rate of 6.75 %, creating a conducive environment for banking earnings.
• India’s GDP growth is projected to hit 6.2 % in FY26, providing a backdrop for robust consumer spending and infrastructure investment.
• Government initiatives such as the “Make in India” program and the National Hydrogen Mission are expected to drive demand for automotive, steel, and renewable energy companies.
• The global shift toward ESG compliance is favouring companies with strong sustainability metrics, which is reflected in the inclusion of firms like Adani Green Energy and Power Grid.

The article also warns of risk factors such as:

• Rising commodity prices (oil and steel) could erode margins for manufacturing firms.
• Currency volatility, particularly a stronger rupee, might impact export‑heavy companies like Tata Steel and Maruti Suzuki.
• Regulatory changes, especially in the banking sector, could alter risk‑adjusted returns.

Conclusion

In sum, Business Today’s list of 18 Indian stocks presents a blend of high‑growth, high‑margin, and defensively positioned companies. Each pick is justified with a combination of robust fundamentals, strategic initiatives, and favourable macro conditions. The article posits that, on a 12‑month basis, many of these stocks carry a 50‑100 % upside potential, provided the market corrects any temporary over‑valuations and the macro‑economy continues its expansionary trajectory. For investors seeking to add value to their portfolio, these names offer a balanced mix of growth, dividends, and strategic positioning in the evolving Indian economy.