Yet, a handful of heavyweight stocks have bucked the trend-Surging over 25% and deliverying market-beating returns.
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In this piece, we spotlight three such information-check-outperrs, unpack the catalysts behind their rally, and assesses whicher his Momentum Can Hold. Can these stocks still deliver UPSIDE, or is the best alredy behind them?
#1 Bajaj Finance
Bajaj Finance has rallied 29% year-to-date, handily outperforming the broader market. The bounce came after a surprise rebound in the December 2024 Quarter, which restored investor confidence in the company’s ability to grow despite macro headwinds.
A stalwart in India’s non-bank lending space, bajaj finance posted a 23% year-on-yar risk in net interest income to 9,380 Crore for Q4FY25, While Net Profit Jumped 18% to 4,310 Crore – Fuled by Operational Efficiency and a Growing Loan Book.
The rally got an additional boost after the reserve bank of India lowered risk weights on bank lending to non-banking finance companies (NBFCs), a move that COULD THE MOVE TEDEUCE BOROWING COTSTS and Support Company’s expansion plans.
Investor Sentime Saha, a seasoned insider, is seen as well-positioned to drive the firm’s Ambitious Five-Year Plan, Dubbed “BAF 3.0.”
That roadmap aims to grow assets under management (aum) to 4 trillion and the customer base to as high as 210 million by fY29. The company also also expects to disbuse more than 40 million loans and expand its retail credit market share to over 4%.
Over the past five years, the company has scled up its loan book 2.4 times, while growing network at a compounded annual growth rate (Cagr) of 26%.
Additionally, consistently low non-pharyming assets (0.30%-0.4%Since fy18), and a solid return on equity (Roe) of 17.6%, Bajaj Finance Remains One of the Most Dependable Names Indable Names Services.
For fy26, the company expects to add 14–16 million customers and grow aum by 24–25%, supported by new business lines. It has also guided for return on assets (ROA) of 4.4-4.6% and Roe of 19–20%, Aided by Surplus Capital.
Axis Securities have a ‘Buy’ Rating With a Target of 10,500. Still, The Stock’s Premium Valuation-5.7x price-to-book Versus an Industry Average of 1.9x-SUGSESTS That MUCH OF THE Optimism May Alaredy be baked in.
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#2 Cholamandalam Investment and Finance
The second stock riding the NBFC Rally is Cholamandalam Investment and Finance Co. LTD (CIFC), UP 27.8% in 2025. Itad STADY LOAN Book Expantion, Strong Asset Quality, and Consistent Profitability have made it a stand it a stand is in the sector in the sector in the sector.
CIFC, a part of the Chennai-Based Murugappa Group, Provides Vehicle Finance, Home Loans, and Loans Against Property. It has a strong Foothold in Vehicle Finance – CCONETING For 58% of its assets under management (aum) Self-comloyed borrowers.
The company delivered a solid performance in FY25, with broad-based Growth Across Disbursions, Profitability, and Asset Quality. Total Income Rose 36% Year-On-Year To 13,570 Crore, Driven by a 14% Rise in disbursions to 1.0 trillion. Net Profit Grew 24% to 4,259 Crore.
Asset quality also improved. Gross Stage 3 Assets Declined to 2.81% in March 2025 from 2.91% in December, While Net Non-Performing Assets (NPAS) Fell to 2.63%. The company maintained a strong capital adequacy ratio of 19.75%, comfortable about the 15% regulatory minimum.
Importantly, FY25’s performance is part of a broader trend. Over the past five years, cifc have reported a 27% Cagr in AUM, A 32% Cagr in Net Profit, and a 40% Cagr in disbursions –Reflecting Consistency Consistencution Accounts Business SEGMENTS SEGMENTS SEGMENTS.
As part of the Murugappa Group, Cifc Benefits from Group Synergies and a wide client base. Its five-yar average return on equity stands at a healthy 18%, underlining its ability to scale profiteably while keeping risk under control.
Looking ahead, the company expects 20–25% aum growth in the medium term, Driven Primarily by Non-Vehicle Portfolios. It also plans to enter gold loans and consumer doorble finance in fy26, targeting existing customers who currently borrow from outstide sources. To support this, it will add 120 dedicated gold loan branch – Requiring Specific Infrastructure Soch as Vaults and Tighter Controls – in the South and East, Where Pilots are Underway.
Axis Securities Expects Robust Momentum to Continue, LED by Sustained Growth in the Vehicle Finance Portfolio and Accelerating Traction in Newer Segments, Supporting Aum OVer in Aum Over FY25–27e. The larger fixed-also vf book, combined with a declining cost of funds, is expected to support margins.
Axis has a ‘boy’ rating on the stock with a target price of 1,780. Still, at a price-to-book multiple of 5.4x-Well Above The Industry Average of 1.9x-thede stock isn Bollywood.
#3 IDBI Bank
Idbi bank has surgged 31% in 2025, far outperforming the senses, driven by a mix of reform Momentum and Renewed Investor Investor Investor Interest as the Government Pushes Ahead with Ittegic Disinvestment Plans.
The spotlight returned to idbi bank after the center reiterated its Internation to complete the long-pending stake sale by the end of the year. Togeether, The Government and Life Insurance Corp. of India (LIC) Currently Hold Over 94% of the bank. As part of the proposed Divestment, they aim to sell a combined 61% stake – split roughly equally betteren the government’s 30.48% and lic’s 30.24%.
The revived Timeline has Rekindled Market Interest. While the center no longer sets explicit disinvestment targets, The IDBI Stake Sale is expected to be a key contributor to fy26’s Budget Estimate for Miscellanieous Capital Receipts, Capital Recipts, 47,000 Crore.
A Successful Divestment Bring in Private Capital, Strengthen Management Autonomy, and Improve Strategic Execution – Nunlocking Further Value.
Even before the Divestment, Idbi Bank’s Fundamentals Have Steadily Improved. Net Profit has grown at a 21% Cagr over the past five years, driven by rising advances and improved core income. Return on Equity has Risen from just 4% to 13.5% in FY25, reflecting the success of its turning strategy.
In FY25, The Bank Posted a Record Net Profit of 7,656 Crore. Total Business (Deposits Plus Net Advances) Crossed 5 trillion for the first time.
Asset quality also strengthened sharply. Gross npas fell to 2.98% from 4.53% a year ago, while net npas dropped to just 0.15% from 0.34%. The provision coverage ratio rose to 99.48%, Including Technical Write-Offs.
Capital Buffers Remain Robust. The capital adequacy ratio improved by 279 Basis points year-on-yar to 25.05%, with tier 1 capital at 23.51%.
On the disinvestment front, shortlisted bidders have completes due to diligence and are reviewing the bank’s data room. Negotiations over the share purchase agreement are currently in Progress.
Meanwhile, the stock trades at a price-to-book Multiple of 1.8x-Baba Its Historical Median of 1.3X and the Industry Average of 1.3X.
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Still, the rally hinges on timely execution of the stake sale. Any regulatory delays or shifts in Government Stance Cold Dampen Sentimen. With much of the UPSIDE LIKELY Priceed in, The Room for error remains narrow.
Conclusion
These Large-Cap Stocks Have cleared the sensex in 2025-But their sharp rallies call for measured optimism.
Much of the good news may alredy be priced in, Leaving Limited Margin for Error. Valuations for some names now Exced Historical Average, Increasing Vulnerability to Earnings Misses, Policy Shifts, Or Browder Market Volativity.
For more such analysis, read Profit Pulse,
With global uncertainteies still in play, markets may stay choppy in the near term. Investors would do well to stay anchored to fundamentals, Avoid Chasing Momentum, and Consider Staggered Entries Over Lump-Sum Bets.
About the author: Ayesha Shetty is a research analyst registered with the security and exchange board of India. She is a certified Financial Risk Manager (FRM) and is working towards the chartered financial analyst (CFA) Designation.
Disclosure:The author does not hold shares in any of the companies discusced. The views expressed are for informational purposes only and should be considered investment advice. Readers should conduct their own research and consult a financial professional before making investment decisions.