Motilal Oswal Top Buy Recommendations: In a fast-moving market environment, leading brokerage firm Motilal Oswal has released its top ‘Buy’ recommendations, highlighting three stocks with strong growth potential: CEAT Ltd, Shriram Finance, and PNB Housing Finance. Backed by fundamental strength, sectoral tailwinds, and favorable valuations, these stocks have been identified as top investment bets for investors seeking short- to mid-term gains.
Motilal Oswal Top Buy Recommendations
1. Shriram Finance Share Price Target
Target Price: ₹800
Current Price: ₹688.25
Upside Potential: 23%
Motilal Oswal Top Buy Recommendations: Motilal Oswal believes Shriram Finance is well-positioned to benefit from the normalization of surplus liquidity and a favorable interest rate environment. The ongoing downtrend in interest rates is expected to boost net interest margins (NIM) and improve overall operational efficiency.
Key Investment Highlights:
- Market leadership in the NBFC sector
- Diversified lending portfolio, especially in high-growth non-auto segments
- Attractive valuation levels and strong earnings visibility
- Asset quality and AUM growth outperforming peers over the last two years
The brokerage expects current challenges in asset quality and NIM compression to fade over time, making Shriram Finance a compelling pick among non-banking financial companies.
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2. CEAT Ltd Share Price Target
Target Price: ₹4,159
Upside Potential: 15%
Motilal Oswal Top Buy Recommendations: Motilal Oswal has retained a ‘Buy’ rating on CEAT after meeting with the management, citing sustained demand in the tractor and two-wheeler (2W) tyre replacement market. Despite some cooling in OEM (original equipment manufacturer) demand, especially in 2W and PV (passenger vehicle) segments, the replacement market continues to perform well.
Growth Catalysts:
- Strong traction in rural demand (tractor and 2W replacement)
- Raw material cost advantages expected to reflect from Q2 FY26
- Stable pricing discipline even amid market fluctuations
- Camso acquisition worth $225 million to enhance global footprint
CEAT’s ability to maintain its margins and pricing power in a volatile input cost environment signals managerial discipline and strategic foresight, making it an attractive mid-cap bet.
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3. PNB Housing Finance Share Price Target
Target Price: ₹1,230
Upside Potential: 16.4%
Motilal Oswal Top Buy Recommendations: PNB Housing Finance has emerged as a focused player in the housing finance space. Motilal Oswal highlights its improved asset quality, favorable credit environment, and consistent loan book expansion.
Why It Stands Out:
- Gross Stage 3 (GS3) improved to 1.1% in March 2025, down from 1.5% in March 2024
- Expectation of continued provision write-backs due to recoveries
- Projected to deliver 19% CAGR in loan book and 18% CAGR in net profit during FY25–FY27
- Return on Assets (RoA) forecasted at 2.5%, and Return on Equity (RoE) at 13.3% by FY27
The firm is well-prepared to handle narrowing NIMs in the current rate cycle through a strategically optimized product mix. Motilal Oswal models a credit cost of -10 bps in FY26, signaling a healthy and improving lending portfolio.
Motilal Oswal Top Buy Recommendations:
Motilal Oswal Top Buy Recommendations —Shriram Finance, CEAT, and PNB Housing Finance—offer attractive upside opportunities backed by strong fundamentals, sector-specific tailwinds, and improving macroeconomic trends.
Summary of Recommendations
| Stock | Target Price | Upside Potential | Key Drivers |
|---|---|---|---|
| Shriram Finance | ₹800 | 23% | NIM boost, AUM growth, stable asset quality |
| CEAT Ltd | ₹4,159 | 15% | Tyre replacement demand, cost control, global expansion |
| PNB Housing Finance | ₹1,230 | 16.4% | Asset quality turnaround, high RoA/RoE, housing finance focus |
Whether you’re a long-term investor or a short-term trader, these three picks can be considered potential multibaggers for 2025.
Final Thoughts
As the Indian stock market shows continued strength amid supportive monetary policies, carefully selected stocks like these can offer risk-adjusted returns. With solid fundamentals, improving sector dynamics, and clear visibility on earnings, CEAT, Shriram Finance, and PNB Housing Finance stand out as top brokerage-endorsed buys in the current market landscape.
