Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting June 30, 2025) are Federal Bank, and Prince Pipes. Let’s take a look:
Federal BankFederal Bank has demonstrated strong business growth, rebalancing its portfolio toward medium- and high-yielding segments like LAP, used CVs, gold loans & credit cards to drive profitability. We estimate loan growth to sustain at 17% CAGR over FY25-28E, with asset quality remaining robust. Deposit growth is expected to accelerate at 15% CAGR over FY25–28, driven by a CA-led CASA push, a stronger NR franchise, and branch realignment. CASA ratio is expected to rise to 34–35% by FY28E. Asset quality remains strong with GNPA/NNPA at 1.84%/0.44% and Prov. coverage ratio above 75%. Under new CEO Mr. KVS Manian, FB is addressing its gaps and pivoting toward sustainable, return-driven growth across businesses and geographies. We estimate RoA/RoE at 1.4%/15.6% by FY28E, driven by better margins, asset mix shift, and improved cost efficiency. FB is one of our preferred BUY-rated ideas among mid-size private banks.Prince PipesPrince Pipes is among India’s top five plastic piping providers and operates seven plants (398K MTPA by FY25) with 7,200+ SKUs and a 1,500+ distributor network. With ~25% of revenue from CPVC and ~70% from real estate, PRINCPIP is set to benefit from India’s growing real estate sector.Further, strategic expansion in East India, premium product launches, and government infrastructure projects further drive growth. Its revenue/EBITDA/Adj. PAT would report a robust CAGR of 15%/38%/73% over FY25-FY28E due to a low base, driven by 12% volume CAGR.Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
