As uncertainty jumped across global markets in FY25, Indian stocks turned volatile. In the first half, the Nifty 50 surged 16.98%, and reached a record high of 26,277.3 on 27 September 2024, supported by market momentum and investor enthusiasm. The trend turned in the second half, however, and portfolios turned red as India’s growth disappointed. Foreign investors pulled their money out, as highly valued Indian stocks posted disappointing corporate earnings in Q2 and Q3. 

Hard questions about valuation, which always get postponed when markets are on a bull run, cropped up again. This led to an 8.8% decline in the second half of FY25, limiting the index’s overall return to just 5.3% for the overall financial year.

Despite these challenges, the market showed resilience towards the end of FY25. In March 2025, the Nifty 50 rose 6.3%, with early signs of government spending and improving economic indicators. Foreign investors returned as US stocks lost momentum. But Abhishek Jain, Head of Research, Arihant Capital, cautioned, “Investors should moderate their return expectations, as the market is shifting towards a stock-specific phase rather than broad-based rallies.”

In FY25, finding multibagger stocks proved trickier than usual. In FY24, 215 stocks (with market cap of Rs 5,000 crore and above) gave multibagger returns, but in this fiscal year it dropped to just 38. Similarly, among Nifty 500 stocks, 157 gave multibagger returns in FY24, but only 18 managed to do so in FY25.

Jai Balaji Industries, GE Vernova, and Aurionpro Solutions saw the highest returns of 2,031%, 640%, and 650% in FY24 but could not maintain that performance in FY25. Among the top multibaggers in FY24 and FY25, BSE was the only stock to feature in both years, delivering returns of 516% and 122.5%, respectively. 

PG Electroplast, Shakti Pumps, V2 Retail, and Shaily Engineering are among the top stocks that outperformed the market trend in FY25. In this edition of Chart of the Week, we analyze the top multibagger stocks in FY25 and why they beat the market index.

Government incentives give defense, energy, and electronics industries a boost

The government’s 'Make in India' push gave electronics, defense, and renewable energy industries momentum in FY25. Increased spending and initiatives like the PLI scheme for white goods and electronics also drove growth in these sectors.

PG Electroplast, the largest supplier of plastic-molded components for the consumer electronics industry, saw its share price rise by over 476% in FY25. Increased demand for electronics, production shifts from China, and PLI benefits for white goods contributed to this growth. 

Shakti Pumps, a market leader in solar pumps within the industrial machinery industry, saw a 335% stock gain. The company capitalized on its 40% share in solar PV water pumping systems and government schemes, securing orders of Rs 2,070 crore, including from the Maharashtra, Uttar Pradesh, and Rajasthan state governments under PM-KUSUM for FY25. A QIP and a bonus issue contributed to the stock price jump.

Mazagon Dock Shipbuilders, a leading manufacturer of defense warships and submarines within the defense industry, saw its stock price increase by 179% in FY25. Government orders and increased defense investments expanded its order book to Rs 34,787 crore in Q3FY25, supported by major contracts, including those for ONGC and submarine projects.

Some cyclical stocks rise on better operational and financial performance

Cyclical stocks in FY25 fluctuated due to economic slowdowns, commodity price changes, and supply chain disruptions. Sectors such as power, engineering, automotive, metals, and gold saw higher volatility. But companies like Shaily Engineering and GMR Power outperformed the broader market.

Shaily Engineering, a high-precision engineered plastic products exporter, saw its shares rise by 252% in FY25. Growth was supported by a 94% increase in healthcare sales and a 56% YoY rise in EBITDA. The company expects medical devices to contribute 25% of its revenue within three years.

GMR Power, an electric utilities company, saw its shares rise 160% after securing a Rs 7,593 crore smart meter order, reducing debt, and improving thermal plant efficiency. Asset monetization strengthened liquidity and drove a strong financial turnaround, pushing Q3FY25 operating revenue up 46.1% YoY.

PC Jeweller, a Gems & Jewelry company, rose 150%, driven by a Rs 3,760 crore debt settlement and Rs 646 crore fundraise, strengthening its balance sheet. The company turned profitable in FY25, with net profit surging 174.7% YoY and revenue soaring 1471.8% in Q3FY25.

Expansion and investments lift industrial, healthcare, and consumer stocks

Consumer discretionary spending is increasing, particularly among high-income households, despite inflation and higher interest rates. In response, industries are expanding their production capabilities. This shift has resulted in improved financial performance, positively impacting investors in these companies.

JSW Holdings, the holding company of the JSW Group, saw its share gain 217%, rising to Rs 22,985 in FY25. This growth was driven by investments in EV ventures, a $1.5 billion battery plant, non-ferrous metals, steel, and green energy. Strong Q2 and Q3FY25 performance contributed to the share price growth.

Transformers & Rectifiers, a heavy electrical equipment company, saw its shares rise 184% in FY25. This growth was supported by the energy expansion and a 145% YoY rise in work orders to Rs 3,686 crore by Q3FY25. 

Wockhardt, a pharmaceutical firm, soared 154% to an eight-year high after reporting positive clinical results for its cancer drug Zaynich in the US and planning an India launch at an 85-90% discount. The company also reduced pledged shares from 69% to 37% and returned to a Rs 14 crore profit in Q3FY25.

Higher customer engagement boosts retail and telecom stocks

Indian companies have been using discounts and promotions to expand their customer base.  A growing focus on digital platforms and personalized services is boosting stock performance for some players in retail and telecom.

V2 Retail Ltd, specializing in fashion retail, saw its shares surge by 300% in FY25. This was backed by a 58% rise in operating revenue, Rs 590.9 crore in Q3FY25, and a 117.2% YoY profit rise to Rs 51 crore. Sales per square foot improved to Rs 1,219 from Rs 1,085, reflecting better space utilization.

Bharti Hexacom, a telecom service company, rose 159.3%. The stock’s initial rise was driven by 'Buy' ratings from brokerage firms. Growth was supported by a higher mobile ARPU, which increased to Rs 241 in Q3FY25 from Rs 200 due to tariff hikes. Net profit grew 23% to Rs 261 crore, while operating revenue rose 25%. Mobile service revenue increased to 25.5%, supported by network expansion.