If you are looking to invest in undervalued Indian stocks that still have a lot of opportunity to grow and you want to build a smart equity portfolio in 2025, then these top 7 undervalued stocks might be worth your attention.
All of them have a market cap under ₹1 trillion and offer a maximum of 63% combined upside potential, which is based on recent analyst reports.
Let’s dive in and explore Top 7 Undervalued Stocks to Buy Now in India for 2025 and find out why it’s undervalued, and what could drive its growth.
Top 7 Undervalued Stocks to Buy Now in India for 2025
1. Glenmark Pharmaceutical (Glenmark Pharma)
Why it’s undervalued:
Glenmark pharma got a big growth recently after its $700 million cancer drugs licensing deal with AbbVie. Motilal Oswal increased its target price to ₹2,430 from ₹1,904, which is a 28% potential upside.
Growth factors:
- Huge pharma licensing contracts
- Very strong product pipeline
- Positive progress after drug approvals
2. Power Finance Corporation (PFC)
Why it’s undervalued:
Morgan Stanley started coverage on PFC (Power Finance Corporation) with an above average rating and expects an 18% potential to grow. The company is benefiting from India’s push to fund infrastructure and rural developments.
Growth factors:
- Organized PSU bank books
- Loan demand of rural area is growing
- Solid project funding pipeline
3. REC Ltd. (Rural Electrification Corporation)
Why it’s undervalued:
REC is also supported by Morgan Stanley, with a 22% prediction of growth potential. It is gaining from strong lending growth and steady asset quality, especially with ongoing government spending in Power and infrastructure sectors.
Growth factors:
- Growing loan book
- Trustworthy repayment rates
- Capex-driven demand from the government
4. Bank of Baroda (BoB)
Why it’s undervalued:
Nomura believes that Bank of Baroda (BoB) has an upside of 18%, which is setting a target of ₹265 from ₹223. The bank has shown solid recovery and cleaner loan books because of reforms in the public banking sector.
Growth factors:
- Better margins (NIMs)
- Credit costs are falling
- Strong PSU banking pushing to reform
5. CG Power & Industrial Solutions
Why it’s undervalued:
As per Emkay Global, CG Power has scope to rise by 28% because of a restructuring phase and rising industrial demand.
Growth factors:
- Business transformation
- Industrial technology demands are rising
- Clarity in the strategy are greater
6. KEI Industries
Why it’s undervalued:
As per Nuvama, KEI Industries expects a 25% upside, which is supported by India’s ongoing infrastructure growth and solid demand for power cables.
Growth factors:
- Higher investment in power and infra sectors
- Demands of cables are growing
- Improve in the margins
7. Varun Beverages
Why it’s undervalued:
Goldman Sachs gave it a “Buy” rating by targeting ₹600 from ₹492, and estimating an upside of 22%. With India’s soft drink market growing fast with time, Varun Beverages is likely to profit greatly.
Growth factors:
- PepsiCo bottling leader
- Ready-to-drink (RTD) beverages demands are keep on rising
- Distribution network is wider
Why These Stocks May Offer Up to 63% Gains
While most of the individual stocks are projected to rise by 18 to 28%, here is how some experts are predicting a 63% total upside:
- Analyst Targets: Brokerages like Goldman Sachs, Motilal Oswal, and Morgan Stanley have all forecasted the bullish price targets.
- Strong Sectors: PSU banks, infrastructure, pharma, and FMCG are likely to lead India’s recovery.
- Macro Tailwinds: Indian markets are still trading under fair value levels.
- Re-rating Potential: If reforms continue, then PSU and mid-cap industrial sector stocks could re-rate sharply, by adding 20 to 25% more upside.
So, if you mix Glenmark or CG Power’s 28% upside with amore extensive 35% market rally, then you could get up to 63% total gains over the next 12 to 18 months.
How to Make the Most of These Opportunities
1. Track Long-Tail Keywords
Stay in front by keeping the track of search terms like:
- Buy undervalued pharma stock India
- PSU bank upside potential 2025
These keywords show what investors are currently interested in and where progress is building.
2. Build a Balanced Portfolio
It is very important to create a balanced portfolio Mix of seasonal stocks like Glenmark or KEI with steady options like PFC or BoB to reduce the risks.
3. Use Stop-Losses and Set Targets
Always make sure to set alerts or stop-loss levels. If stocks approach analyst targets, consider booking partial profits.
4. Monitor Results in FY26
For banks, industries, and infra companies, look out for asset quality numbers, order books and fresh projects, and quarterly earning growth.
Summary Table
| Stocks | Sector | Analyst Upside |
| Glenmark Pharma | Pharma | 28% |
| PFC | PSU Finance | 18% |
| REC | PSU Finance | 22% |
| Bank of Baroda | PSU Banking | 18% |
| CG Power | Heavy Industry | 28% |
| KEI Industries | Infrastructure | 25% |
| Varun Beverages | FMCG (RTD) | 22% |
Final Thoughts
If you are searching for undervalued Indian stocks to buy now, this list offers a solid mix of PSU, infra, pharma, and FMCGs. With solid fundamentals and optimistic outlooks of analysts, these Top 7 Undervalued Stocks to Buy Now in India for 2025 might be the hidden gems for your 2025 portfolio needs.
FAQs
How do analysts decide these upside targets?
They usually use models like discounted cash flow )DCF), peer comparisons, and consider important events like reforms or drug approvals.
Are PSU banks really undervalued right now?
Yes. Companies like Nomura and Morgan Stanley believe PSU banks have potential to grow, which is backed by better profits and cleaner books.
Should I wait for stock prices to drop more?
Not really, because many of these stocks are already priced attractively. You can buy slowly and use SIP investing.
Is this a short-term or long-term opportunity?
It’s a medium-term investment, because most price targets are set for 12 to 18 months, which is based on business cycles and government policies.
Can small-cap undervalued stocks give better returns?
Yes, but come with higher risks.