5 Bluechip Growth Stocks to Watch Out for in 2025

'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price'.-
- Warren Buffett

As we look ahead to 2025, the stock market offers a wealth of opportunities, but for those seeking steady, reliable growth, blue-chip stocks remain a cornerstone of a robust investment strategy.

These established companies, known for their strong financials, industry leadership, and consistent performance, are expected to continue thriving amid shifting market dynamics.

In this article, we'll explore the blue-chip growth stocks to watch in 2025-companies poised to deliver substantial returns while maintaining the stability and resilience that investors rely on.

Hence, let's examine 5 such stocks selected from Equitymaster's screener for Bluechip Growth Stocks.

#1 Trent

First on this list is Trent.

Trent is engaged in retailing of apparels, footwear, accessories, toys, games, food, grocery & non-food products through various of its retail formats/ concepts.

The company is a part of the Tata group, with the Tata group holding around 37% (Tata Sons Pvt Ltd holding 32.5%) as of December 2024.

The company's revenue has grown at a compounded average growth rate (CAGR) of 79.9% in the last three years while its net profit has grown at a CAGR of 307.7%.

The company's three-year average return on equity (RoE) and return on capital employed (RoCE) were 22.3% and 35.3%, respectively.

Trent is venturing into international retail. The company plans to open a flagship store in Dubai, targeting the Indian diaspora and marking its initial step towards global retail expansion.

It is committed to broadening its footprint across India. The company aims to consistently add 30 to 40 new stores annually, focusing on both tier 2 and 3 cities to deepen market penetration and reach a wider customer base.

Additionally, Trent is piloting a few new formats across fashion & lifestyle (under Utsa, Samoh), beauty, personal care, fashion accessories, and decor (under Misbu).

The company has also announced a partnering with MAS Amity Pte. (MAS) Ltd to form a 50:50 joint venture (JV) for sourcing, design and manufacture of lingerie, activewear, and related products.

While these formats are still in the early days, Samoh and MAS JV could potentially ramp up meaningfully given the category's complexity, Trent's experience and retail presence, along with the technical and backend capability of MAS.

To know more, check out Trent's financial factsheet and latest quarterly results.

#2 Indian Railway Catering & Tourism Corporation (IRCTC)

Second on this list is IRCTC.

IRCTC is a mini-Ratna (Category 1, Central Public Sector Enterprises) and the only company authorized by the Indian government to provide online railway tickets, catering services, and packaged drinking water at railway stations and trains in India.

Coming to the financials, the company's revenue has grown at a CAGR of 76.5% in the last three years while its net profit has grown at a CAGR of 81.1%.

The company's three-year average RoE and RoCE were 41.6% and 56.7%, respectively.

The company's Q3 FY25 revenue reached an all-time high of Rs 12.3 billion (bn), a growth of approximately 10% year-on-year (YoY).

IRCTC is exploring non-conventional income sources beyond the convenience fee in the internet ticketing segment due to market saturation.

The E-Catering segment has shown significant growth, with meals served increasing from an average of 2,000 per day to over 102,000 meals per day.

Going forward, the management is confident about the growth trajectory, particularly in the tourism segment driven by luxury train offerings, Bharat Gaurav train initiative and increased demand for travel.

To know more, check out IRCTC's financial factsheet and latest quarterly results.

#3 Interglobe Aviation (IndiGo)

Next on this list is IndiGo.

Interglobe Aviation is the parent company of IndiGo.

IndiGo is India's largest passenger airline operating as a low-cost carrier.

It serves eighty-eight domestic and thirty-three international destinations. The company has grown its aircraft fleet to 262 aircraft.

The company's revenue has grown at a CAGR of 67.6% in the last three years while its net profit has grown at a CAGR of 133.9%.

To support long-haul international routes, IndiGo plans to introduce wide-body aircraft, with deliveries expected to commence in 2027.

Going forward, the airline is set to expand its fleet by adding over one new aircraft per week in the upcoming financial year, aiming to increase its fleet size to approximately 600 aircraft by 2030.

IndiGo plans to introduce business-class seating, branded as 'Stretch,' on major domestic routes. The airline is also exploring codeshare agreements with international carriers to enhance its global reach and service offerings.

In collaboration with Archer Aviation, InterGlobe Enterprises intends to launch an all-electric air taxi service across India by 2026.

To know more, check out Indigo's financial factsheet and latest quarterly results.

#4 The Indian Hotels Company Ltd (IHCL)

Fourth is IHCL.

IHCL is one of India's leading hospitality companies.

The company operates its hotels under four main brands catering different segments viz. luxury (Taj), upscale/ upper upscale (Vivanta and Seleqtions), and midscale/ lean luxury (Ginger) segments.

IHCL's operations are spread across four continents, twelve countries, and over one hundred cities.

The company's revenue has grown at a CAGR of 57.2% in the last three years while its net profit has grown at a CAGR of 145.6%.

The company's three-year average RoE and RoCE were 7% and 11.3%, respectively.

IHCL aims to increase its hotel count from the current 350 to over 700 properties, with more than 500 operational hotels by the end of FY30.

The company targets to double its consolidated revenue to Rs 150 bn by 2030, driven by both domestic and international expansion.

IHCL is focusing on international growth, particularly in markets with significant Indian diaspora, such as London, Singapore, and the Middle East, as well as in regions like Bhutan and Frankfurt.

Going forward, the company plans to invest Rs 50 bn over the next five years to support its expansion and enhancement initiatives, aiming to maintain a net cash-positive status and achieve a 20% return on capital employed.

Additionally, it plans to introduce new brands targeting tier 2 and 3 cities, employing a capital-light strategy through management contracts and operating leases to minimize financial risk.

In the future, IHCL's endeavor would be to target a total dividend payout ratio in the range of 20-40% of profit after tax (PAT).

To know more, check out IHCL's financial factsheet and latest quarterly results.

#5 Eternal Ltd (Zomato)

Last on this list is Zomato.

Zomato is one of the leading online food service platforms in terms of the value of food sold.

Its offerings include food delivery, dining-out services, quick commerce (Blinkit), events and movie ticket booking (District), loyalty programs, and others.

The company's revenue has grown at a CAGR of 56.9% in the last three years while its net profit has grown at a CAGR of 136.6%.

The fluctuations in the take rate are attributed to a higher sales mix of lower-margin categories, such as electronics, in Q3FY25, but management reported no significant downward trend in core or non-core categories.

The company's mature stores are generating healthy contribution margins, supporting continued expansion, while investments in newer stores with lower utilisation are impacting profitability, but are expected to normalise as these stores mature.

Zomato's 80% of business is still concentrated in the top 8 cities, but healthy traction in smaller cities was observed. The return on investment (ROI) in these areas appeared to be attractive.

The optimisations across delivery costs and consumer fees are expected to contribute to margin expansion, with a target of reaching 5% margins in the coming quarters.

Blinkit's increased AOV, driven by seasonal factors and higher ASP categories, is not expected to be a consistent trend.

However, strong retention rates are being maintained through service quality, not subsidies, while increased competition is likely to raise digital marketing costs, with retention strategies focusing on service improvement.

Zomato's losses are mainly due to its expansion efforts, including investments in infrastructure to scale from 1,000 to 2,000 stores, with management viewing these losses as a natural outcome of scaling operations, rather than operating with a fixed loss cap.

To know more, check out Zomato's financial factsheet and latest quarterly results.

Snapshot of Bluechip Growth Stocks on Equitymaster's Stock Screener

Here's a table that shows the bluechip growth stocks across various parameters.

Conclusion

While the stock market in 2025 is sure to present its fair share of challenges, bluechip growth stocks offer a blend of stability and potential for solid returns.

By investing in companies with proven track records, strong fundamentals, and the ability to adapt to changing economic conditions, investors can position themselves for long-term success.

However, remember that even the most established companies come with risks, so always conduct thorough research

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

With the right strategy, 2025 could be a year of significant growth and opportunity for your investments.

Happy Investing.

Disclaimer: This article is for educational purposes only. It is not a recommendation and should not be treated as such. Learn more about our recommendation services here...