Best Stocks for SIP Investment in September 2025: Bharat Electronics, Trent & More Based on 5-Yr CAGR

Systematic Investment Plans (SIPs) remain one of the most popular ways for retail to gain equities exposure. Systematic Investment Plans gives the benefits of compounding and reduce the risks of market timing.

As India’s economy continues to expand across sectors such as defence, retail, automobiles, healthcare, and infrastructure, identifying stocks with strong multi-year compounding potential becomes crucial for long-term investors.

Here’s a list of the best-performing stocks for SIP investment in September 2025, ranked by their 5-year CAGR.

Top Stocks for SIP in September 2025 Based on 5-Yr CAGR Basis

Note: The stocks listed above are ranked based on 5-year CAGR as of September 2, 2025.

Overview of the Best 5 SIP Stocks in September 2025

1. Bharat Electronics Ltd (BEL)

With a 5-year CAGR of 59.69%, BEL tops the list. The company reported ROCE of 33.75% and ROE of 29.29%. Since the start of FY26, BEL has announced order inflows worth ₹7,348 crore, which is already 27% of its full-year guidance of ₹27,000 crore. Its strong order book reinforces growth visibility in the defence electronics sector.

2. Trent Ltd

Delivering a 5-year CAGR of 53.55%, Trent has emerged as a leading retail player. With ROCE of 30.1% and ROE of 31.94%, the company’s fundamentals remain strong. Revenue from operations rose 19% year on year in Q1 FY26 to ₹4,883 crore, driven by its expanding store network and strong brand positioning.

3. Adani Enterprises Ltd

Posting a 5-year CAGR of 52.05%, Adani Enterprises remains a diversified growth story. With ROCE at 10.93% and ROE at 14.13%, its large infrastructure projects including the Navi Mumbai Airport, copper plant, and Ganga Expressway are expected to start contributing to EBITDA from FY26 onwards.

4. Mahindra & Mahindra Ltd (M&M)

M&M delivered a 5-year CAGR of 40.41%. The company’s ROCE stands at 15.17% and ROE at 14.97%. In Q1 FY26, M&M reported a consolidated revenue increase of 22% to ₹45,529 crore, while profit after tax surged 24% to ₹4,083 crore, showcasing its robust presence in the four wheeler and tractor segments.

5. Tata Motors Ltd 

With a 5-year CAGR of 36.85%, Tata Motors continues to be a key auto sector player. The company recorded ROCE of 20.8% and ROE of 25.79%. Its Q1 FY26 consolidated revenue stood at ₹1.03 trillion, reflecting strong performance across passenger and commercial vehicles, even as the stock faced short-term price corrections.

Read More: Best Waste Management & Recycling Stocks in September 2025: Baheti Recycling, Va Tech Wabag & More Based on 1-Yr Return.

Conclusion

The SIP stocks listed above represent companies with strong 5-year CAGR performance across diverse sectors such as defence, retail, infrastructure, healthcare, and automobiles. While past returns highlight their compounding potential, future performance will depend on sector dynamics, corporate earnings, and broader market conditions. Investors should evaluate these factors carefully before making long term investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.