TTop 5 Stocks to Buy in May 2025: Bajaj Auto, NTPC, JSW Steel & More-he Indian stock market is buzzing with opportunities as the Nifty 50 holds steady at 24,800 amidst volatility driven by Foreign Institutional Investor (FII) selling and Domestic Institutional Investor (DII) buying. Brokerage firms have identified five stocks with significant upside potential for May 2025: Bajaj Auto, JSW Steel, Ashok Leyland, NTPC, and Infosys. This article breaks down the latest brokerage recommendations, target prices, and key factors driving their bullish outlook, helping you make informed investment decisions.

Market Context: Nifty 50 and Key Trends

The Nifty 50 closed at 24,853.15, up 0.99%, and the BSE Sensex at 81,721.08, up 0.95%, driven by optimism over early monsoons, fiscal consolidation, and India-US trade talks. Despite FII selling, DIIs continue to fuel market resilience, creating opportunities in select stocks. Below are the top picks from leading brokerages like Goldman Sachs, JP Morgan, and Nomura, as highlighted in a recent Zee Business report.

1. Bajaj Auto: Strong Growth in Two-Wheeler Segment

• Brokerage Recommendations:
• • Goldman Sachs: Buy, Target Price: ₹9,600
  • CLSA: Buy, Target Price: ₹10,149
  • BofA (Bank of America): Buy, Target Price: ₹11,000
• Current Price: ₹8,960 (as of May 27, 2025)
• Upside Potential: Up to 22.8% (₹11,000 target)
• Why Invest? Bajaj Auto reported a Q4 FY25 net profit of ₹2,195.65 crore, with a market cap of ₹250,878.88 crore. The stock’s TTM P/E ratio is 31.80, and 34 analysts (12 strong buy, 11 buy, 4 sell) are optimistic due to robust domestic demand and export growth, particularly in Latin America. Bernstein highlights margin resilience and a positive export outlook, with 6-8% domestic industry growth projected for FY26.
• Key Drivers: Strong Pulsar portfolio, EV segment expansion, and dynamic pricing strategies.

2. JSW Steel: Steel Sector Leader

• Brokerage Recommendations:
  • JP Morgan: Buy, Target Price: ₹1,185
  • Nomura: Buy, Target Price: ₹1,100
• Current Price: ~₹910 (estimated, as of May 2025)
• Upside Potential: Up to 30% (₹1,185 target)
• Why Invest? JSW Steel posted a 16% YoY increase in Q4 FY25 net profit at ₹1,503 crore, with EBITDA at ₹6,378 crore (14.2% margin). Despite a 3% YoY revenue drop to ₹44,819 crore, lower coking coal prices and improved margins drive optimism. Morgan Stanley noted in-line results but flagged weaker overseas performance. The stock remains a top pick in the steel sector.
• Key Drivers: Cost efficiencies, strong domestic demand, and global steel price recovery.

3. Ashok Leyland: Commercial Vehicle Powerhouse

• Brokerage Recommendations:
  • Citi: Buy, Target Price: ₹290
  • Goldman Sachs: Buy, Target Price: ₹270
  • Nomura: Buy, Target Price: ₹275
• Current Price: ₹235.65 (as of May 30, 2025)
• Upside Potential: Up to 23% (₹290 target)
• Why Invest? Ashok Leyland’s Q4 FY25 net profit surged 38.4% YoY to ₹1,246 crore, boosted by a ₹173 crore tax credit, with revenue up 5.7% at ₹11,907 crore. The company announced a 1:1 bonus share issue and a ₹4.25 per share dividend. Emkay Global raised its FY26E/27 EPS by 6% and set a ₹280 target, citing strong MHCV volume growth and non-vehicle revenue streams like defense. With a TTM P/E of 19.32 and a market cap of ₹69,199.26 crore, 34 analysts (11 strong buy, 14 buy, 2 sell) are bullish.
• Key Drivers: MHCV growth, cost reductions, and aftermarket revenue.

4. NTPC: Powering India’s Energy Future

• Brokerage Recommendations:
  • Jefferies: Buy, Target Price: ₹490
  • CLSA: Buy, Target Price: ₹459
  • JP Morgan: Buy, Target Price: ₹444
• Current Price: ₹338.25 (as of May 27, 2025)
• Upside Potential: Up to 44.8% (₹490 target)
• Why Invest? NTPC, India’s largest power producer, reported a 22.6% sequential Q4 FY25 net profit increase to ₹5,778 crore, with revenue at ₹43,903.7 crore (up 6% QoQ). The company declared a ₹3.35 per share dividend. With a market cap of ₹327,989.73 crore and a TTM P/E of 14.80, 24 analysts (11 strong buy, 9 buy, 1 sell) favor NTPC for its stable power generation and renewable energy growth via NTPC Green Energy.
• Key Drivers: Capacity additions, renewable energy focus, and consistent dividends.

5. Infosys: IT Sector Resilience

• Brokerage Recommendations:
  • Nomura: Buy, Target Price: ₹1,670
  • JP Morgan: Buy, Target Price: ₹1,650
  • Citi: Buy, Target Price: ₹1,685
• Current Price: ~₹1,500 (estimated, based on March 2025 data)
• Upside Potential: Up to 13% (₹1,685 target)
• Why Invest? Infosys remains a leader in the resilient Nifty IT index, driven by demand for digital transformation and global client engagements. While specific Q4 FY25 data is unavailable, brokerages are bullish due to Infosys’ strong deal pipeline and innovation in AI and cloud services.
• Key Drivers: Digital transformation demand, global IT spending, and operational efficiency.
• Why These Stocks?

The bullish outlook is supported by:

• Market Resilience: Nifty 50’s stability at 24,800 despite FII outflows.
• Sectoral Strength: Auto, steel, power, and IT sectors benefit from domestic growth and global trends.
• Brokerage Confidence: Top firms like Goldman Sachs, JP Morgan, and Nomura back these stocks with data-driven targets.

Investment Considerations

• Upside Potential: NTPC offers the highest upside (44.8%), followed by JSW Stone (30%), Bajaj Auto (22.8%), Ashok Leyland (23%), and Infosys (13%).
• Risks: Market volatility, FII selling, and global economic shifts may impact performance.
• Due Diligence: Consult a financial advisor before investing, as stock markets carry inherent risks.

Conclusion

Bajaj Auto, JSW Steel, Ashok Leyland, NTPC, and Infosys are poised for growth in May 2025, backed by strong fundamentals and brokerage confidence. Stay informed with updates from trusted sources like Moneycontrol and LiveMint to track these stocks.

Disclaimer: Stock investments involve risks. The above recommendations are based on brokerage reports for informational purposes only. Always consult a qualified financial advisor before making investment decisions.

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