The growth prospects of the Indian economy are likely to improve in the forthcoming quarters and the Financial Year 2026 is expected to be better than FY25, driven by fiscal tailwinds, private capex revival, and easing credit conditions post-CRR cuts, according to Axis Securities.
Nifty 50 EPS is projected to grow by 7.6% in FY25, with growth expected to accelerate to 13.7% in FY26 and 11% in FY27, reflecting a robust 14% CAGR over the FY23–27 period. This growth will be supported by the real estate cycle, private capex recovery, and strong construction activity during this period, the brokerage firm said in a report.
While risks include global macro uncertainties, inflation pressures, and potential earnings downgrades post-Q3, Axis Securities remains optimistic about double-digit earnings growth over the next 2–3 years, driven by stable economic conditions, political continuity, and structural growth story.
“We continue to believe in the long-term growth story of the Indian equity market. However, with current valuations offering limited scope for further expansion, an increase in corporate earnings will be the primary driver of the market returns moving forward. Hence, bottom-up stock picking with a focus on ‘Growth at a Reasonable Price’ and ‘Quality’ would be keys to generating satisfactory returns in the next one year,” Axis Securities said.
The brokerage firm suggests six golden themes for 2025. These are –
Stocks to buy for long term
Axis Securities recommends a “Buy on Dips” strategy for its list of stocks to buy in 2025 with an investment horizon of over 12 months. The New Year stock picks for 2025 by Axis Securities are Shriram Finance, Fortis Healthcare, Prestige Estates Projects, City Union Bank, Ambuja Cements, DOMS Industries, Ethos, Bharti Airtel and Cipla.
Shriram Finance | Buy | Target Price: ₹3,825
Fortis Healthcare | Buy | Target Price: ₹860
Prestige Estates Projects | Buy | Target Price: ₹2,195
City Union Bank | Buy | Target Price: ₹215
Ambuja Cements | Buy | Target Price: ₹675
DOMS Industries | Buy | Target Price: ₹3,120
Ethos | Buy | Target Price: ₹3,750
Bharti Airtel | Buy | Target Price: ₹1,880
Cipla | Buy | Target Price: ₹1,735
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
