Inventory picks publish Q2 outcomes: Motilal Oswal Monetary Providers (MOFSL) has launched its newest record of high-conviction inventory concepts following the Q2 earnings season, highlighting alternatives throughout infrastructure, retail, defence, metals and monetary companies. The brokerage expects 12–30 % upside throughout its prime suggestions, citing robust fundamentals, bettering sectoral tendencies and beneficial long-term progress drivers.
In response to the brokerage, its inventory picks embody IRB Infrastructure, Vishal Mega Mart, TVS Motor Firm, Bharat Electronics (BEL), Tata Metal, Radico Khaitan, and Aditya Birla Capital. The record blends a mixture of structural compounders, sector leaders and valuations-driven alternatives designed for long-term buyers.
Basic Actionable Concept
IRB Infrastructure: Motilal Oswal upgraded IRB Infrastructure to Purchase, setting a goal value of ₹52, indicating an upside potential of 20%
The brokerage mentioned IRB delivered a “first rate efficiency” in Q2, supported by asset monetisation and secure money flows from its InvIT portfolio. A strong ₹320 billion order guide—together with ₹305 billion in O&M contracts—additionally strengthens its long-term progress visibility. Motilal Oswal expects a 20 % income CAGR over FY25–28, supported by marquee tasks just like the Ganga Expressway and a probable pickup so as inflows within the second half of FY26. Current asset monetisation has additionally improved IRB’s balance-sheet power, enabling it to bid for extra BOT tasks.
Vishal Mega Mart: Vishal Mega Mart (VMM) stays one in all MOFSL’s prime retail picks, with the brokerage assigning a Purchase ranking and a goal value of ₹180, implying 30 % upside.
The corporate reported round 22 % year-on-year income progress in Q2, aided by early festive demand, regular retailer growth and sturdy same-store gross sales progress. The brokerage emphasised that Vishal Mega Mart’s distinctive enterprise mannequin, outlined by its widespread presence in Tier-II cities and past, vast product portfolio, vital contribution from non-public labels and one of many leanest value constructions within the worth retail house, offers it a robust aggressive edge. With regular growth, double-digit same-store gross sales progress and rising working leverage, Motilal Oswal expects the corporate to ship wholesome progress throughout income, EBITDA and PAT over FY25 to FY28.
Focus Funding Concepts
TVS Motor: MOFSL reaffirmed its Purchase name on TVS Motor Firm, with a goal value of ₹4,159, indicating an upside potential of 23 %. The brokerage expects the automaker’s robust product pipeline, worldwide enterprise traction and increasing EV portfolio to drive sustained earnings momentum.
Bharat Electronics (BEL): Motilal Oswal stays bullish on BEL, citing constant order inflows, Make-in-India tailwinds and its management in defence electronics. With the inventory buying and selling at ₹426 and a goal value of ₹490, the brokerage sees 17 % upside.
Tata Metal: The brokerage projected a restoration in profitability for Tata Metal, pushed by stronger home demand, value efficiencies and secure metal costs. MOFSL set a goal of ₹210, implying 16 % upside.
Aditya Birla Capital: For Aditya Birla Capital, the brokerage highlighted broad-based progress in lending, insurance coverage and asset administration. Sturdy Q2 disbursement tendencies—14 % progress in NBFC loans and 44 % in housing finance—underline its bettering monetary momentum. MOFSL sees 15 % upside to ₹380.
Radico Khaitan: Motilal Oswal additionally reiterated its optimistic stance on Radico Khaitan, assigning a goal of ₹3,600, signalling 10 % upside.
Technical Picks: Axis Financial institution, GRSE and BEL on Breakout Watch
Axis Financial institution: In response to the brokerage, Axis Financial institution has shaped a robust bullish candle accompanied by a noticeable surge in volumes. The inventory has rebounded convincingly from its 20-day exponential shifting common, and the RSI indicator has turned upward, signalling a optimistic momentum shift. Based mostly on this setup, Motilal Oswal believes the inventory provides a beneficial risk-reward alternative and recommends shopping for it with a cease loss positioned at ₹1,200 and a goal value of ₹1,310.
GRSE: Backyard Attain Shipbuilders & Engineers has additionally caught the brokerage’s consideration after staging a transparent consolidation breakout. The inventory has seen higher-than-average volumes, whereas its RSI continues to rise steadily, reinforcing the power of the continuing upward transfer. Motilal Oswal famous that GRSE has a agency help zone round ₹2,740, which may assist maintain the inventory’s upward trajectory if market volatility emerges.
BEL: Bharat Electronics is one other inventory the brokerage believes is nearing a major technical breakout. The value motion means that BEL is near pushing above the ₹430 mark, a stage that has acted as a spread cap in current periods. The inventory has already established a robust base close to its 50-day exponential shifting common, providing a layer of draw back safety. Motilal Oswal identified that ₹408 stays an vital help stage for the inventory, and a breakout above ₹430 may entice contemporary shopping for momentum.
Disclaimer: The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise buyers to verify with licensed specialists earlier than making any funding choices.
