Stocks to buy: The corporate earnings for the fourth quarter of FY25 fared better than expectations, however, forward earnings revisions continue to exhibit weakness, with downgrades surpassing upgrades.
The Nifty 50 registered a modest 1% EPS growth in FY25, following a 20%+ CAGR during FY20-24. The Nifty trades at 21.8x FY26E earnings, near its LPA of 20.7x, said a note by Motilal Oswal Wealth Management.
While near-term challenges such as global macros, trade wars, and earnings will keep the market volatile and jittery, the brokerage firm believes that the medium-to-long-term growth narrative for India remains intact.
It continues to prefer large-cap stocks and domestic plays, given the current volatile backdrop. MOFSL is Overweight on BFSI, Consumer Discretionary, Industrials, Healthcare and IT.
In its focus investment ideas for June 2025, Motilal Oswal Wealth Management has five mid-cap and small-cap stocks to buy. These stock picks include Kaynes Technology India, Radico Khaitan, Nuvama Wealth Management, Niva Bupa Health Insurance Company and LT Foods shares.
Kaynes Technology India | Target Price: ₹7,300
Kaynes Technology India reported FY25 revenue of ₹27 billion, a growth of 51% year-on-year (YoY), slightly below guidance due to delayed railway orders. Motilal Oswal estimates the company to post a CAGR of 57%, 61%, and 70% in revenue, EBITDA and adjusted PAT over FY25-FY27, driven by margin expansion and operating leverage.
It has Kaynes Technology India share price target price of ₹7,300.
Radico Khaitan | Target Price: ₹3,000
Radico Khaitan’s diverse portfolio and premiumization strategy offer visible long-term earnings growth in India’s evolving IMFL market. We estimate revenue, EBITDA, APAT CAGR of 16%, 22%, 30% over FY25-FY28, supported by margin expansion and operating leverage, Motilal Oswal Wealth Management said.
Radico Khaitan share price target is set at ₹3,000 apiece.
Nuvama Wealth Management | Target Price: ₹8,600
Nuvama Wealth Management is estimated to see revenue and PAT growth at a CAGR of 18% and 19% over FY25-FY27, factoring improved yield and ongoing market share gains in institutional equity and investment banking. The target price of the stock is ₹8,600.
Niva Bupa Health Insurance Company | Target Price: ₹100
Niva Bupa Health Insurance Company is estimated to see 25% GWP and 32% PAT CAGR over FY25–28, driven by scale, operating leverage, and structural tailwinds in India’s health insurance sector. The stock price target is set at ₹100 level.
LT Foods | Target Price: ₹470
LT Foods is estimated to clock a revenue, EBITDA and adjusted PAT to grow at a 16%, 23% and 27% CAGR over FY25-FY27. LT Foods share price target is ₹470.
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.
