Stocks to buy in FY25
Stocks to buy in FY25: Small-cap and mid-cap indices hit three-month lows in March 2024 and witnessed strong fluctuations in the last fortnight of FY2024.
In the new financial year, the mid-cap and small-cap segment of the Indian stock market is likely to give good returns.
Small Cap, Mid Cap Stocks
Small-cap and mid-cap stocks are showing signs of recovery after a sustained slowdown over the past few months. Investors are showing interest in buying these. But market experts suggest that low risk investors should go towards mid cap stocks and high-risk investors should go towards small cap stocks. Market experts recommend buying Tata Chemicals, Indus Tower, IREDA, Mahindra Life Space, Shakti Pumps stocks in the mid-cap and small-cap segment in FY 2025. However, it is clear that these should be considered as a long-term investment.
Is Small Cap Better? Or mid cap stocks?
Manish Chaudhary, Head of Stocks Box Research suggested that stock market investors should look towards mid-cap stocks. “Currently the market is witnessing steady growth in revenue and profit margins of mid-cap companies. Investors should look at companies with a healthy balance sheet and low financial risk. However, it is important to recognize the inherent difficulties in short-term forecasting due to market volatility. Despite challenges in forecasting short-term trends, selected mid- Cap companies can provide long-term profits,” explained Manish Chaudhary.
Know your risk tolerance first
Market experts suggest that stock market investors should choose small cap or mid cap stocks based on their risk appetite. “After huge fluctuations, small cap and mid cap indices have recovered. It offers new opportunities to investors based on their objectives and risk appetite,” said VLA Ambala, Founder, Stock Market Today.
These stocks are better for long-term buying
Market experts have made the following recommendations for stocks to buy at the start of FY 2025.
Tata Chemicals: Tata Chemicals grew year-on-year (YoY) at 16.26%. Tatachem stocks can be bought between Rs 980 to Rs 1020. In a short period of time, it is Rs. 1150 to Rs 1400. Indus
Tower: Indus Tower’s annual growth (YoY) is 91.11%. This stock can be bought between Rs 21 to Rs 23. It is likely to touch Rs 26 to Rs 40 in short term.
IREDA: IREDA’s annual growth (YoY) is 126.67%. This stock is priced at Rs. It can be purchased between Rs.127 to Rs.135. It is likely to reach Rs. 150 to Rs. 170.
Mahindra Life spaces (Mahindra Life spaces): You can invest in Mahindra Life space with a long-term investment strategy. The company aims to increase the revenue by 5 times in the next 5-7 years. If bought at the current market price, 23% growth is possible in a short period of time.
Shakti Pumps: Shakti Pumps (India) Ltd. is also on a growth trajectory. Looking at the company’s top line and order book, it is clear that the company will definitely witness strong growth in the coming period. Market experts say that if you buy at the current price, a 24% growth is guaranteed soon.
Note: The above opinions, recommendations are those of individual analysts, experts, broking companies and not Hindustan Times Telugu. Investors are advised to consult certified professionals before taking any investment decisions.