These 5 Nifty stocks are racing ahead. What's fuelling the growth?

Mint

20-05-2025

The NSE Nifty index, more popularly known as the Nifty, is a widely followed stock market benchmark in India and abroad. Launched in 1996 with an initial base value of 1,000, the index comprises some of India's top companies across diverse sectors including banking, IT, retail, telecom, oil and gas, and automotive.
Several prominent companies form part of the Nifty. From these, we have selected five companies that are experiencing rapid revenue growth. These stocks were filtered using Equitymaster's company screener.
#1 Jio Financial Services
First on the list is Jio Financial Services, part of Mukesh Ambani's Reliance group. The stock was included in the NSE Nifty this March, replacing Britannia Industries due to its superior market capitalization and liquidity.
Jio Financial Services operates through subsidiaries including Jio Finance, Jio Insurance, and Jio Payments Bank. The company recently entered a joint venture with BlackRock to enter the asset management business.
Jio Financial has witnessed strong income growth with a nearly 87% CAGR over the past three years. For FY25, assets under management (AUM) surged to ₹100.5 billion as of March 2025, up from ₹1.73 billion in March 2024 and ₹42 billion in December 2024.
Looking ahead, Jio Financial expects robust growth driven by a range of innovative financial products and services. It is expanding its distribution reach across both digital and physical channels. The company's digital ecosystem has been further strengthened by integrating its offerings into the MyJio app.
To support future growth and scale its diverse businesses, Jio Financial has infused additional equity of ₹13.4 billion into group entities, including Jio Finance, Jio Payments Bank, and the joint ventures with BlackRock for asset and wealth management.
With strong backing and diversified offerings, the company is well positioned for growth in the coming years.
#2 Eternal (formerly Zomato)
Second is Eternal, formerly known as Zomato, which operates in the quick commerce and food delivery sectors. Like Jio Financial, Eternal was added to the NSE Nifty index in March.
Read this | Nifty reshuffle: Zomato and Jio Financial could edge out Britannia and BPCL in India's benchmark index
The company has recorded a compounded annual sales growth rate of 82.5% over the last three years. While it reported losses in the early years, Eternal has recently turned a corner.
In Q4FY25, revenue from operations surged 63.75% year-on-year (YoY) to ₹58.33 billion. However, despite strong top-line growth, net profit declined sharply by 78% YoY to ₹390 million, down from ₹1,750 million in the same quarter last year.
Going forward, Eternal plans rapid expansion through quick commerce store growth. It added 294 new stores in Q4 FY25 alone, bringing the total to 1,301 stores, with a target of about 2,000 stores within 6 to 9 months.
Eternal's CEO Deepinder Goyal has taken direct control of the food delivery business to drive turnaround and accelerate growth.
Challenges remain, including making Blinkit profitable and maintaining execution capabilities amid rapid expansion.
#3 Trent
Third on the list is Trent, a retail company under the Tata group. Trent operates retail chains like Westside, Zudio, Star Bazaar, and Landmark, spanning multiple formats across fashion, lifestyle, groceries, and entertainment.
The company has posted a sales CAGR of 63% over the last three years, growing from ₹31,825 million in FY20 to ₹114,162 million in FY24.
However, its net profit declined sharply for the quarter ending March 2025. Consolidated net profit for Q4FY25 was ₹3.18 billion, down 55% YoY from ₹7.04 billion in Q4FY24.
It is important to note that the base quarter (Q4FY24) included an exceptional gain of ₹5.43 billion, which partly explains the decline in net profit.
Despite this, Q4FY25 results showed strong revenue growth driven by store expansion and brand strength, especially in Zudio and Westside. Profitability was pressured by higher expenses and discounting.
Read this | Zudio, Trent's greatest strength, may also be its biggest weakness
The company is investing aggressively in growth, which is weighing on short-term profits but strengthening its long-term market positioning.
#4 Indian Oil Corp
Next is Indian Oil Corp. (IOC), India's largest oil marketing company, owned by the Government of India. IOC operates across the entire hydrocarbon value chain, including refining, pipeline transportation, petroleum product marketing, exploration, production, and petrochemicals.
IOC's sales have grown at a CAGR of 44% over the last three years.
In Q4 FY25, IOC's revenue from operations stood at ₹2,213.60 billion, slightly down 1% YoY. The company reported a consolidated net profit of ₹81.24 billion for Q4 FY25, a 58% YoY increase, driven by improved refining margins and cost efficiencies.
Over the next few years, IOC plans significant capacity expansions at its Panipat, Vadodara, and Barauni refineries, aiming to increase total refining capacity from about 70 million metric tonnes per annum (MMTPA) to 88 MMTPA by 2030. On the petrochemicals front, it plans to triple its capacity.
Volatile crude oil prices may impact profitability going forward.
#5 Adani Enterprises
Finally, Adani Enterprises, the flagship company of the Adani Group, operates across sectors such as mining and trading of coal and iron ore, airport operations, edible oils, road, rail and water infrastructure, data centers, solar PV manufacturing, and agri-output storage.
Sales have grown at a CAGR of over 34% in the past three years.
In Q4 FY25, consolidated revenue from operations declined 8% YoY to ₹269.66 billion from ₹291.80 billion in Q4 FY24.
However, consolidated net profit surged to ₹38.45 billion in Q4 FY25, compared to ₹4.51 billion in Q4 FY24.
Adani Enterprises plans to grow its portfolio across infrastructure, energy transition (including green hydrogen and renewables), airports, data centres, roads, and mining services.
Conclusion
While past growth rates provide useful context, they should be supplemented with analysis of volatility, scale, industry conditions, and company fundamentals to form realistic expectations about future performance and valuation.
Relying solely on past growth can lead to overly optimistic assumptions that overlook risks, market saturation, or changes in company strategy. Growth often slows as companies mature, so it's important to evaluate all aspects before investing.
Investors should consider fundamentals, corporate governance, and stock valuations as key factors when conducting due diligence before making investment decisions.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com