Goldman Sachs’ Top 2025 Picks: HDFC Bank, Titan, M&M Among Key Bets

Global Brokerage Firm Identifies 10 Stocks with Strong Growth Potential

Global investment bank Goldman Sachs has unveiled its top 10 stock picks in India, spanning key sectors such as financials, consumer, industrials, and clean energy. These stocks are expected to generate strong returns over the next 12 months, backed by sectoral tailwinds, earnings resilience, and favorable macroeconomic conditions.

The brokerage firm has identified HDFC Bank, Titan, Mahindra & Mahindra (M&M), Adani Ports, and Indigo Airlines among its preferred choices, emphasizing their market leadership, growth potential, and financial stability.

HDFC Bank: Poised for Deposit and Loan Growth Acceleration

• Target Price: ₹2,090

• Sector: Financials

Goldman Sachs has placed HDFC Bank at the top of its financial sector recommendations, citing its robust deposit growth outlook and favorable liquidity measures introduced by the Reserve Bank of India (RBI).

• Deposit market share expected to expand, driven by the bank’s strong positioning in the sector.

• Loan-to-Deposit (L-D) ratio consolidation is complete, setting the stage for accelerated loan growth.

• Healthy earnings growth projected at 15% CAGR between FY25 and FY27.

AU Small Finance Bank: Strong Earnings Potential and Credit Cost Stabilization

• Target Price: ₹796

• Sector: Financials

Goldman Sachs sees AU Small Finance Bank as an attractive “growth at reasonable price (GARP)” investment, with a strong 31% earnings CAGR over FY25-27.

• Credit costs are peaking, with core portfolios showing resilience while the microfinance and credit card segments stabilize in H2FY26.

• Cost of funds expected to improve, especially as India moves into a lower interest rate cycle.

• The bank is trading at a discount, with valuations at 1 Standard Deviation (SD) below its historical mean, despite strong Return on Assets (ROA) and Return on Risk-Weighted Assets (RORWA).

Titan: Jewelry Business Set for High Growth

• Target Price: ₹3,900

• Sector: Consumer

Goldman Sachs expects Titan’s jewelry segment to drive significant revenue and earnings growth, supported by a strong demand outlook and expanding margins.

• Jewelry EBIT growth forecasted at 20% CAGR in FY26, a major acceleration from the 6.2% CAGR seen over FY23-25.

• Revenue from the jewelry segment to grow at over 15%, with margins improving to 11-11.5%.

Godrej Consumer Products (GCPL): Margin Recovery in Home Care Segment

• Target Price: ₹1,370

• Sector: Consumer

GCPL is expected to benefit from a turnaround in its home insecticides business, driven by new and improved formulations.

• Strong growth momentum in air care and fabric care categories.

• EBITDA margin recovery expected, as price hikes in soaps segment drive profitability.

Adani Ports & SEZ: Expansion in Key Port Operations

• Target Price: ₹1,400

• Sector: Industrials

Goldman Sachs forecasts double-digit volume growth in Adani Ports, driven by its expansion strategy across multiple locations.

• Major drivers include the ramp-up at Vizinjham, Gopalpur, and Tanzania, along with commissioning of the Colombo port.

• FY26 growth projections look stronger than FY25, with valuations remaining reasonable.

Indigo Airlines: Leading the Indian Aviation Market

• Target Price: ₹5,050

• Sector: Industrials

Indigo Airlines continues to consolidate its market leadership, supported by healthy aircraft deliveries and cost efficiency.

• Market share gains expected to be sustainable, given favorable industry consolidation.

• Profitability likely to improve, as the airline expands its international business.

MakeMyTrip: Strong Travel Demand Driving Growth

• Target Price: $124

• Sector: Internet

MakeMyTrip remains well-positioned to benefit from rising travel demand, supported by industry consolidation and favorable tax policies.

• Margin expansion expected, given the structural advantages of the online travel industry.

• Projected $300 million in free cash flow (FCF), which could lead to an expanded share buyback program.

Mahindra & Mahindra (M&M): EV Expansion and Farm Equipment Growth

• Target Price: ₹3,800

• Sector: Autos & Mobility

M&M is expected to capitalize on India’s electric vehicle (EV) revolution, while also benefiting from a strong agricultural machinery business.

• Supply ramp-up of battery EV models expected from Q2CY25.

• Farm equipment segment expected to gain momentum, post a strong monsoon season in CY24.

• Potential qualification for the Production-Linked Incentive (PLI) scheme in the EV segment could be a major growth catalyst.

• Value unlocking from unlisted subsidiaries in clean mobility and renewable energy adds further upside.

Apollo Hospitals: Higher Occupancy Rates to Drive Earnings Growth

• Target Price: ₹8,025

• Sector: Healthcare

Apollo Hospitals is on track for higher occupancy rates, which will enhance operating leverage and profitability.

• Occupancy rate expected to rise by 210 bps in FY26, driven by strong patient demand and improved marketing efforts.

• Apollo 24/7, its digital healthcare platform, is on track to achieve break-even.

• The diagnostics business is a key growth opportunity, adding another revenue stream.

Power Grid Corporation of India: Key Player in India’s Renewable Energy Transition

• Target Price: ₹375

• Sector: Clean Energy

Power Grid is expected to play a crucial role in India’s renewable energy transition, with significant investment in power transmission infrastructure.

• India’s grid needs major expansion to support hybrid renewable energy projects, reinforcing long-term demand for Power Grid’s services.

• The country requires $500 billion in power transmission investments by FY50, highlighting Power Grid’s structural growth potential.

Insights from Goldman Sachs’ India Stock Recommendations

• The investment firm has identified strong growth opportunities across multiple sectors, focusing on financial resilience, sectoral tailwinds, and market leadership.

• HDFC Bank, Titan, and Mahindra & Mahindra are among the preferred picks, poised for significant returns.

• The brokerage is bullish on aviation, healthcare, and power transmission, with Indigo, Apollo Hospitals, and Power Grid set for long-term growth.

• Renewable energy and electric vehicles (EVs) remain key investment themes, with M&M and Power Grid leading the sector.

• Adani Ports and Apollo Hospitals offer compelling valuation and strong upside potential, backed by infrastructure expansion and rising healthcare demand.

Goldman Sachs’ top stock picks reflect a well-diversified strategy, targeting high-growth companies with strong fundamentals and exposure to India’s evolving economic landscape.