Motilal Oswal picks seven stocks, sees returns of up to 38 per cent

The stock market has been in a steep decline for the past few sessions. The Sensex has fallen by more than 4.80 per cent in the past six months. There has been heavy selling, especially in IT stocks and oil marketing stocks. Even so, brokerages say some select stocks could deliver good returns.

Meanwhile, leading brokerage Motilal Oswal has released a new report on the shares of several companies. It takes a detailed look at a total of seven stocks in the banking, finance, IT and consumer sectors. Some of these are expected to give returns of up to 38 per cent, while caution has been advised on some others.

For Punjab National Bank (PNB), the brokerage has given a target of Rs 140 and a Buy rating. The share is currently at Rs 116. The bank's costs and provisions are well under control, so its results were better than expected. Margin has improved by 0.08 per cent quarter on quarter, and asset quality is also in very good shape.

The target for LTIMindtree is Rs 5,050 with a Buy rating. The current price is Rs 4,385. The company's growth is expected to be higher than that of other large IT companies. According to the brokerage, both the company's revenue and margin could rise by FY2028 because of AI-related contracts.

Federal Bank has a target of Rs 385 and a Buy rating, while its price is Rs 337. The bank's loan book has recorded strong growth and deposits have risen 19 per cent. Non-performing assets (NPA) have also declined. This is why the brokerage has given a Buy rating.

The brokerage has given Bajaj Housing Finance a Neutral rating with a target of Rs 95. Its current price is Rs 83. The brokerage's view is that the company's business is stable, but expected future growth is already priced into the current share price. Rising interest rates could put slight pressure on the company's margin.

L&T Finance has a target of Rs 330, a price of Rs 311 and a Buy rating. Between 2026 and 2028, the company's loan book is expected to grow at a CAGR of 24 per cent and its profit by 28 per cent. It has also been noted that new rules on commission for the sale of insurance products could have a slight effect on the company's earnings.

For Angel One, the target is Rs 380, the current price is Rs 300 and the rating is Buy. Although F&O trading has declined, the company has earned strongly from its distribution business and recorded a record increase in commodity trading. Its operating margin is above 45 per cent.

Crompton Greaves Consumer has a target of Rs 300, a price of Rs 217 and a Buy rating. The company will benefit from rising demand for BLDC fans and from its Solapur rooftop wire business. The management aims for an EBITDA margin of 11 to 12 per cent by 2029.

This information is for information only and is not advice on the stock market or investment. Consult your financial adviser before investing in the stock market.