As the Indian stock market grapples with turbulence stemming from Donald Trump’s tariff threats and escalating global uncertainties, one brokerage firm is choosing a different path. Motilal Oswal, a prominent player in the financial industry, has opted to issue ‘Buy’ ratings on select stocks, highlighting their robust long-term fundamentals amidst the chaos on Dalal Street.
Investing in Resilience: Motilal Oswal’s Stock Picks
Motilal Oswal’s strategic selections include a mix of retail and banking stocks, showcasing companies like Trent, Union Bank of India, Indian Bank, and Equitas Small Finance Bank. The brokerage firm believes these stocks possess the resilience needed to thrive in challenging conditions.
Trent: Retail Powerhouse with Growth Potential
Despite current market jitters, Trent has emerged as a beacon of stability. Motilal Oswal has reaffirmed a ‘Buy’ rating for Trent, setting a target price of Rs 6,800, which signifies a potential upside of 22% from its current market price of Rs 5,563.
- The brokerage notes that while Trent’s growth moderated to 28% year-on-year in Q4FY25, down from 36% in the previous quarter, its ambitious expansion plans are still in motion.
- “The store additions reflect an aggressive yet strategic growth approach,” Motilal Oswal stated, emphasizing the company’s commitment to long-term development.
Union Bank of India: Stability Amidst Growth
Union Bank of India has also caught the attention of Motilal Oswal, earning a ‘Buy’ rating based on its solid performance indicators. The current market price stands at Rs 122, with positive growth expectations ahead.
- The brokerage observes that although loan growth has not kept pace with systemic trends, deposit momentum surged in Q4FY25.
- Total business reached Rs 22.9 trillion, with deposits growing by 7.2% year-on-year and CASA deposits seeing a 7.8% quarter-on-quarter increase.
- “We expect the bank to enhance its credit growth in the upcoming quarters,” the report highlighted, reflecting confidence in the institution’s strategic direction.
Indian Bank: Strong Performance Indicators
Indian Bank has also been rated as a ‘Buy’ by Motilal Oswal, with the current market price at Rs 546. While a specific target price isn’t provided, the outlook remains positive.
- The brokerage reports a 10.2% year-on-year growth in gross advances, driven primarily by the RAM (Retail, Agriculture, and MSME) sectors.
- “We anticipate consistent performance moving forward, supported by a balanced asset-liability mix,” Motilal Oswal added, suggesting a strong foundation for future growth.
Equitas Small Finance Bank: Signs of Stabilization
Completing the list is Equitas Small Finance Bank, which also receives a ‘Buy’ rating with a current market price of Rs 56.
- According to Motilal Oswal, gross advances increased by 10.6% year-on-year, with deposits soaring by 19% year-on-year in Q4FY25.
- The bank’s CASA ratio remains stable at 29%, and its cautious approach to microfinance disbursements is beginning to yield positive results.
- “Early signs of stability in the MFI segment are emerging,” the brokerage noted, highlighting a collection efficiency of 98.36% in March, and a reduction in gross NPA to 5.91% from 6.5% quarter-on-quarter.
In summary, while the market faces significant challenges, Motilal Oswal’s targeted selections indicate that certain stocks, driven by strong fundamentals, are poised for potential growth. Whether it’s retail expansion or banking stability, these stocks represent opportunities for investors who are willing to look beyond the immediate turmoil.
