Most Overrated Stocks in the Indian Stock Market (2025): A Reality Check for Retail Investors

Invest with your head, not with the herd.

Editorial
4 Min Read

India’s stock market is buzzing with retail investor activity like never before. From social media tips to YouTube “experts,” millions are entering the market hoping to build wealth. But while many stocks get hyped, not all live up to the promise.

Some stocks are grossly overvalued, driven by sentiment, influencer promotion, or herd mentality — not by strong fundamentals. A stock becomes overrated when it trades at unrealistic valuations, lacks consistent earnings growth, or is driven by hype rather than a sound business model.

Paytm (One97 Communications) continues to be a high-profile name, but it has failed to deliver profits despite years in the public market. Revenue growth is weak, regulatory scrutiny from the RBI is mounting, and multiple top-level resignations have raised questions about corporate governance. The company’s stock is buoyed more by name recognition than actual financial strength.

Zomato remains a favourite among retail investors, yet it is far from consistently profitable. Its quick-commerce arm Blinkit continues to burn cash, and overall earnings remain thin. Despite this, the stock enjoys inflated valuations thanks to aggressive influencer marketing and FOMO among new investors.

Nykaa (FSN E-Commerce Ventures) once captured the market’s imagination, especially during its IPO. But it now struggles with declining margins, logistical inefficiencies, and over-dependence on short-lived beauty trends. Investor confidence has been shaken by erratic leadership changes and underwhelming quarterly results.

Adani Group Stocks, including Adani Green and Adani Enterprises, saw meteoric rebounds after the Hindenburg controversy. However, many of these companies remain heavily leveraged and trade at valuations far above their earnings potential. Although operational performance is strong in parts, current prices may not account for systemic group-level risks.

Suzlon Energy’s revival story has captivated many investors looking for green energy exposure. But the company still carries the baggage of past debt defaults, and its financials remain fragile. Optimism around renewable energy often overshadows its low margins and unpredictable earnings.

IRCTC (Indian Railway Catering and Tourism Corporation) is often viewed as a safe monopoly play. However, its stock performance is highly influenced by government decisions and regulatory interference. With limited pricing freedom and revenue caps, its growth story may not be as robust as believed.

Vodafone Idea continues to be on life support, saddled with massive debt and shrinking market share. Without massive government aid or promoter infusion, its ability to compete against Jio and Airtel appears increasingly bleak. The company remains a speculative bet, not a sound investment.

Retail investors need to be wary of hype cycles and social media trends. Valuation metrics like PE ratio, debt-to-equity, and cash flow should guide your decisions — not popularity on X (Twitter) or YouTube. Investing isn’t about following the crowd; it’s about understanding the business and its true value.

The Indian stock market remains a promising avenue for wealth creation, but it demands caution, research, and patience. The stocks mentioned above are not inherently bad companies — but their prices may be disconnected from their real-world performance. Always invest with clarity, not emotion.

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The Dimapur Today Editorial Team is a group of passionate journalists, writers, and media professionals dedicated to delivering timely, accurate, and unbiased news from Nagaland and beyond. With a strong commitment to community-focused reporting, the team covers everything from local governance and development to youth issues, sports, and cultural events. We believe in ethical journalism and aim to empower readers with facts, insights, and stories that matter. Our newsroom thrives on integrity, teamwork, and the spirit of public service.
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