Top 5 Rising Finance Stocks in India 2025 – Trending Yet Undervalued Picks

India’s finance sector is growing rapidly in 2025, with several hidden gems showing strong future potential. While many big names dominate the headlines, some lesser-known finance stocks are quietly gaining momentum — offering a great opportunity for early investors.

In this blog, we highlight the Top 5 Rising Finance Stocks in India for 2025 that are trending and still undervalued. These companies show strong fundamentals, future-ready business models, and consistent performance.

📈 1. Muthoot Finance Ltd (NSE: MUTHOOTFIN)

Why It’s Rising: With increasing demand for gold loans and strong rural presence, Muthoot continues to expand its customer base.

• Strong balance sheet
• Low NPAs (Non-performing assets)
• High RoE (Return on Equity)

2025 Target: ₹1,800+

🏦 2. Shriram Finance Ltd (NSE: SHRIRAMFIN)

Why It’s Undervalued: After its merger with Shriram City Union Finance, the company has become a diversified NBFC with strong focus on used vehicle financing and small business loans.

• Strong rural & semi-urban customer base
• Healthy profit growth
• High dividend yield

2025 Target: ₹2,300+

📊 3. Ujjivan Financial Services Ltd (NSE: UJJIVAN)

Why It’s Trending: Ujjivan is gaining attention for its microfinance operations and aggressive growth in digital banking. It’s turning profitable after restructuring and merger with Ujjivan Small Finance Bank.

• Digital expansion strategy
• Improving net interest margins (NIMs)
• Favorable for long-term investors

2025 Target: ₹650+

🏛️ 4. Can Fin Homes Ltd (NSE: CANFINHOME)

Why It’s Promising: This HFC (Housing Finance Company) is focused on salaried middle-class housing loans, with low NPAs and high growth potential in tier-2 & tier-3 cities.

• Backed by Canara Bank
• Low-risk retail lending model
• Consistent quarterly performance

2025 Target: ₹1,000+

🏢 5. Aptus Value Housing Finance Ltd (NSE: APTUS)

Why It’s Underrated: Aptus focuses on self-employed customers with no formal income proof – a large untapped segment in housing finance. Strong unit economics and low cost-to-income ratio makes it a long-term bet.

• Growing in underserved regions
• Digitally enabled operations
• Strong revenue CAGR

2025 Target: ₹525+

💡 Final Thoughts

These 5 finance stocks are rising stars in 2025. While they may not be as popular as HDFC or ICICI, they offer huge upside potential if bought early and held patiently. Always remember to do your own research or consult a financial advisor before investing.

🔍 Bonus Tip:

Keep an eye on stock fundamentals like EPS, P/E ratio, Debt-to-Equity, and ROE while investing. Also, track quarterly results and management guidance.

📢 Disclaimer

This blog is for educational purposes only. Stock market investments are subject to risk. Do your own research or consult with a certified advisor before investing.

💬 What Do You Think?

Are you planning to invest in any of these finance stocks? Or do you have your own hidden gem to share? Drop your thoughts in the comments below!