Stock picks post Q2 results: Motilal Oswal Financial Services (MOFSL) has released its latest list of high-conviction stock ideas following the Q2 earnings season, highlighting opportunities across infrastructure, retail, defence, metals and financial services. The brokerage expects 12–30 percent upside across its top recommendations, citing strong fundamentals, improving sectoral trends and favourable long-term growth drivers.
According to the brokerage, its stock picks include IRB Infrastructure, Vishal Mega Mart, TVS Motor Company, Bharat Electronics (BEL), Tata Steel, Radico Khaitan, and Aditya Birla Capital. The list blends a mix of structural compounders, sector leaders and valuations-driven opportunities designed for long-term investors.
Fundamental Actionable Idea
IRB Infrastructure: Motilal Oswal upgraded IRB Infrastructure to Buy, setting a target price of ₹52, indicating an upside potential of 20%
The brokerage said IRB delivered a “decent performance” in Q2, supported by asset monetisation and stable cash flows from its InvIT portfolio. A robust ₹320 billion order book—including ₹305 billion in O&M contracts—also strengthens its long-term growth visibility. Motilal Oswal expects a 20 percent revenue CAGR over FY25–28, supported by marquee projects like the Ganga Expressway and a likely pickup in order inflows in the second half of FY26. Recent asset monetisation has also improved IRB’s balance-sheet strength, enabling it to bid for more BOT projects.
Vishal Mega Mart: Vishal Mega Mart (VMM) remains one of MOFSL’s top retail picks, with the brokerage assigning a Buy rating and a target price of ₹180, implying 30 percent upside.
The company reported around 22 percent year-on-year revenue growth in Q2, aided by early festive demand, steady store expansion and robust same-store sales growth. The brokerage emphasised that Vishal Mega Mart’s unique business model, defined by its widespread presence in Tier-II cities and beyond, wide product portfolio, significant contribution from private labels and one of the leanest cost structures in the value retail space, gives it a strong competitive edge. With steady expansion, double-digit same-store sales growth and rising operating leverage, Motilal Oswal expects the company to deliver healthy growth across revenue, EBITDA and PAT over FY25 to FY28.
Focus Investment Ideas
TVS Motor: MOFSL reaffirmed its Buy call on TVS Motor Company, with a target price of ₹4,159, indicating an upside potential of 23 percent. The brokerage expects the automaker’s strong product pipeline, international business traction and expanding EV portfolio to drive sustained earnings momentum.
Bharat Electronics (BEL): Motilal Oswal remains bullish on BEL, citing consistent order inflows, Make-in-India tailwinds and its leadership in defence electronics. With the stock trading at ₹426 and a target price of ₹490, the brokerage sees 17 percent upside.
Tata Steel: The brokerage projected a recovery in profitability for Tata Steel, driven by stronger domestic demand, cost efficiencies and stable steel prices. MOFSL set a target of ₹210, implying 16 percent upside.
Aditya Birla Capital: For Aditya Birla Capital, the brokerage highlighted broad-based growth in lending, insurance and asset management. Strong Q2 disbursement trends—14 percent growth in NBFC loans and 44 percent in housing finance—underline its improving financial momentum. MOFSL sees 15 percent upside to ₹380.
Radico Khaitan: Motilal Oswal also reiterated its positive stance on Radico Khaitan, assigning a target of ₹3,600, signalling 10 percent upside.
Technical Picks: Axis Bank, GRSE and BEL on Breakout Watch
Axis Bank: According to the brokerage, Axis Bank has formed a strong bullish candle accompanied by a noticeable surge in volumes. The stock has rebounded convincingly from its 20-day exponential moving average, and the RSI indicator has turned upward, signalling a positive momentum shift. Based on this setup, Motilal Oswal believes the stock offers a favourable risk-reward opportunity and recommends buying it with a stop loss placed at ₹1,200 and a target price of ₹1,310.
GRSE: Garden Reach Shipbuilders & Engineers has also caught the brokerage’s attention after staging a clear consolidation breakout. The stock has seen higher-than-average volumes, while its RSI continues to rise steadily, reinforcing the strength of the ongoing upward move. Motilal Oswal noted that GRSE has a firm support zone around ₹2,740, which could help sustain the stock’s upward trajectory if market volatility emerges.
BEL: Bharat Electronics is another stock the brokerage believes is nearing a significant technical breakout. The price action suggests that BEL is close to pushing above the ₹430 mark, a level that has acted as a range cap in recent sessions. The stock has already established a strong base near its 50-day exponential moving average, offering a layer of downside protection. Motilal Oswal pointed out that ₹408 remains an important support level for the stock, and a breakout above ₹430 could attract fresh buying momentum.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
