Mirae Asset Capital Markets has unveiled its top stock picks for December 2024, spotlighting companies with robust growth potential and strong fundamentals. The list includes established market leaders such as Infosys and Maruti Suzuki, alongside emerging players like Aadhar Housing Finance and Lemon Tree Hotels.
These nine companies represent diverse sectors, from technology and finance to automotive and hospitality, showcasing Mirae Asset’s strategic outlook for the Indian economy. Here’s a closer look at the picks:
1. Aadhar Housing Finance (CMP: ₹422)
Aadhar Housing Finance leads the affordable housing finance market in India, commanding a significant market share with an AUM of ₹21,700 crore. Its strong presence in underpenetrated markets and a diversified portfolio have enabled rapid scaling while mitigating risks.
In Q2FY25, Aadhar delivered impressive results, with robust profitability, lower-than-expected credit costs, and a 5% QoQ AUM growth driven by strong disbursements.
2. Bank of Baroda (CMP: ₹263)
Bank of Baroda showcased stellar Q2FY25 performance, with a PAT increase of 18% QoQ, supported by higher bad loan recoveries. Focused on CASA deposits and retail term deposits, the bank is poised for moderate but steady growth.
The bank’s consistent performance across parameters, including business growth and credit cost management, makes it a reliable pick for December.
3. Home First Finance (CMP: ₹1,017)
Home First Finance sustained its growth momentum with a 35% YoY AUM increase in Q2FY25. Its innovative digital underwriting processes and strong execution capabilities have bolstered its market position.
The company’s core PPOP grew 11.4% QoQ, driven by NIM expansion and fee income, supported by a new insurance partnership.
4. Infosys (CMP: ₹1,949)
Infosys, a leader in the technology sector, has retained its FY25 margin guidance of 20-22%, with projections for EBIT margins reaching 22.2% by FY27.
The company’s market share gains, stable demand, and robust performance across multiple verticals underline its long-term growth prospects. Analysts expect Infosys to remain a top performer, driven by cost-efficient deals and increasing volumes.
5. KRBL (CMP: ₹308)
KRBL, a key player in the food sector, is expected to see a revenue CAGR of 5.9% over FY24-27E, supported by improvements in international markets like Saudi Arabia and Europe.
With a focus on both domestic and export segments, the company’s growth trajectory remains promising, driven by revenue diversification and EBITDA expansion.
6. Lemon Tree Hotels (CMP: ₹140)
As of September 2024, Lemon Tree Hotels operates 112 hotels with over 10,300 rooms. The company is undergoing renovations that will enable it to reprice rooms at 20-25% higher rates, boosting ARR.
With a pipeline of 5,220 rooms under development, Lemon Tree is well-positioned to leverage growth opportunities in India’s hospitality sector.
7. LT Foods (CMP: ₹439)
LT Foods is diversifying its portfolio and expanding its geographic reach. The company’s focus on digital transformation and evolving industry dynamics positions it for 12% CAGR revenue growth between FY24-27E, with a 200-bps improvement in EBITDA margins.
8. Maruti Suzuki (CMP: ₹11,203)
Maruti Suzuki continues to lead India’s automotive market, with a strong portfolio of low-emission vehicles and growing exports. Its focus on hybrid, SUV, and EV launches, alongside capacity expansion, strengthens its long-term growth story.
The Nexa distribution network and new model launches like the Fronx are expected to boost rural and urban sales alike.
9. TVS Motor (CMP: ₹2,519)
TVS Motor is poised for innovation, with upcoming launches in the 2W and 3W segments, including a new version of its iQube electric scooter.
The company is investing heavily in EV technology and manpower, positioning itself as a leader in India’s growing EV market.
Mirae Asset’s Outlook
Mirae Asset’s December picks reflect confidence in India’s economic trajectory. With a mix of established leaders and emerging innovators, the list caters to both stability-focused and growth-oriented investors.
