Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting June 9, 2025) are PNB Housing Finance and Prestige Estate. Let’s take a look:
PNB Housing FinancePNB Housing delivered a healthy all-round performance in 4QFY25, with PAT rising 25% YoY, supported by 18% retail loan growth, 5bps QoQ NIM expansion, better asset quality, and recoveries from written-off retail loans, resulting in provision write-backs. PNBHF expects a stronger FY26 for the mortgage sector, driven by easing interest rates and rising demand.It targets 18% YoY retail loan growth, with its affordable housing loan book projected to reach ~₹95b by Mar ’26 and ~₹150b by Mar’27. PNBHF secured a credit rating upgrade to AA+ in 4QFY24–1QFY25 backed by strong performance, and expects another upgrade by end-FY26 to further lower borrowing costs. We expect PNBHF to deliver a CAGR of 19% each in loans/PAT over FY25-27E and 4% RoE in FY27.Prestige EstatePEPL reported a strong 48% YoY and 131% QoQ rise in pre-sales to INR 69.6 billion in 4QFY25, though below estimates due to no guided launches. For FY25, bookings declined 19% YoY to INR 170.2 billion, missing both estimates and guidance as launch delays were deferred to FY26.Key contributions in 4QFY25 came from Nautilus, Southern Star, Spring Heights, Raintree Park, and Suncrest. The company launched 14.03 msf in 4QFY25 across four projects and 26.28 msf during FY25, primarily in Bengaluru, Mumbai, and Hyderabad, with a GDV of INR 262.2 billion. Ongoing inventory stands at INR 201 billion. With growth in residential, commercial, and hospitality segments, the stock is poised for further re-rating.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.
