Are you an investor who is constantly on the lookout for stocks that have strong growth potential and attractive valuations? With this blog, we will be analyzing five key stocks from the Nifty 500 universe that have strong financials and are currently making headlines.
These top stocks have been considered based on their market capitalization, valuation trends, and growth expectations. It is important to note that despite the recent stock market crash, the decline from the year’s high is significantly smaller than the drop experienced by the Nifty 50 Index.
| Stock Name | Market Capitalization (in Cr) | Down from Year’s High (%) |
| Bajaj Finance | 526,157 | 2.85 |
| Kotak Mahindra Bank | 394,196 | 0.77 |
| Mahindra & Mahindra | 329,529 | 19.12 |
| SRF | 87,436 | 1.26 |
| Narayana Hrudayalaya | 32,187 | 6.88 |
| Nifty 50 Index | - | 14.5 |
(Source: Screener, Google Finance, UBS, Alpha Spread, Company Filings)
1. Bajaj Finance: Bajaj Finance is one of India’s leading non-banking financial companies (NBFCs) that offers consumer loans, business loans, and commercial lending solutions. The company also accepts public and corporate deposits, making it a key player in the financial sector.
As on 19th March 2025, the Bajaj Finance share price (NSE:BAJFINANCE) stood at ₹8,693.25, which is 0.12% higher from the previous day. The stock is currently trading at 6 times its Price-to-Book (P/B) ratio, which is 25% lower than its three-year median. This indicates that the stock is trading at a discount compared to its historical valuation.
Talking about what investors can expect in the future, then it is important to note that the management has guided for profit growth in the range of 20-23%, making Bajaj Finance an attractive long-term bet for investors looking for strong earnings growth.
2. Kotak Mahindra Bank: Kotak Mahindra Bank is a diversified financial services provider offering personal and business banking, investments, stock trading, loans, wealth management, and insurance services. It is one of India’s most well-established private sector banks.
As on 19th March 2025, the Kotak Mahindra Bank share price (NSE:KOTAKBANK) stood at ₹2021.95, which is a 0.59% dip from the previous day. The stock is currently trading at 2.7 times its P/B ratio, which is 40% lower than its five-year median. This suggests that the stock is relatively undervalued despite its strong fundamentals.
For the future, the company’s management has provided a growth target of 1.5x to 2x the GDP growth rate. If India’s GDP grows at 7%, investors can potentially expect Kotak Mahindra Bank to grow at 10.5% to 14%.
3. Mahindra & Mahindra (M&M): Mahindra & Mahindra is a leading automobile manufacturer producing a wide range of vehicles, including bikes, cars, trucks, and tractors. Apart from the automotive sector, the company also has a presence in finance, auto parts, hotels, construction, retail, and logistics.
As on 18th March 2025, the Mahindra & Mahindra share price (NSE:M&M) stood at ₹2,785, which is a 0.23% dip from the previous day. The stock is currently trading at 26.8 times its Price-to-Earnings (P/E) ratio, which is 30% higher than its three-year median. This suggests that the stock is trading at a premium compared to its historical valuation.
UBS expects M&M’s vehicle volume to grow by 9% in FY26, significantly outpacing the broader auto industry, which is projected to grow at just 2%.
4. SRF Ltd: SRF Ltd is a diversified chemical company engaged in manufacturing industrial chemicals, packaging films, high-performance fabrics, and plastic materials. The company has a strong presence in the specialty chemicals sector, making it a key player in various industrial applications.
As of 19th March 2025, the SRF share price (NSE:SRF) stood at ₹2,995.05, which is a 0.21% increase from the previous day. The stock is currently trading at 75 times its P/E ratio, which is 95% higher than its three-year median. This indicates that the stock is highly valued compared to its historical trading levels.
SRF expects its profit to grow by 14%, reflecting steady business expansion and demand for its products.
5. Narayana Hrudayalaya: Narayana Hrudayalaya is a leading healthcare provider, offering affordable medical services through a network of general and specialized hospitals across multiple locations. The company is known for its cost-effective approach to healthcare delivery, making it a preferred choice for many patients.
As of 19th March 2025, the Narayana Hrudayalaya share price stood at ₹1,649, which is a 1.98% increase from the previous day. The stock is currently trading at 41 times its P/E ratio, which is 20% higher than its three-year median. This suggests that investors are willing to pay a premium for the company's growth potential.
Narayana Hrudayalaya expects to grow its profit by 13%, supported by expanding hospital networks and increasing demand for quality healthcare services.
Final Thoughts: Should You Invest?
The above stocks present a mix of high-growth opportunities and attractive valuations, making them worthy of attention. However, before making investment decisions, it is important to consider your risk appetite, market conditions, and long-term investment goals. Keeping an eye on these stocks and tracking their performance can help you make well-informed investment choices in 2025.
Disclaimer
Investment in securities market are subject to market risk, read all the documents carefully before investing. The past performance of the stocks are not necessarily indicative of future performance. Registration granted by SEBI, membership of a SEBI recognized supervisory body, and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors INDmoney Private Limited 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, Research Analyst Registration No. INH000018948.
Research Analyst: Farhan Syed
Stock Universe: Nifty 500
Source: Screener, Google Finance, UBS, Alpha Spread, Company Filings (data as of 19th March 2025)