Domestic stock markets have rebounded after a recent sharp decline. This recovery depends on corporate earnings in the fourth quarter and overall market sentiment.
However, global market uncertainty has increased due to US tariffs and retaliatory warnings from other countries.
In this environment, brokerage firm Motilal Oswal has recommended five fundamental stocks for long-term investors.
The Nifty index gained 2.1% this week, while the Nifty Midcap 100 index rose by 2.9%, and the Nifty Smallcap 250 index surged 5.8%.
Despite global instability, these gains indicate market strength. Traders should be prepared for significant fluctuations across different asset classes during periods of major market changes.
Top Stock Recommendations
Mahindra & Mahindra (M&M)
Motilal Oswal has issued a “BUY” rating for Mahindra & Mahindra (M&M), a manufacturer of passenger and utility vehicles.
The target price is set at Rs 3,675 per share, whereas the stock currently trades at Rs 2,728.20, suggesting a potential 35% upside.
52-week high: Rs 3,276.30 (recorded on February 10, 2025)
52-week low: Rs 1,790
Current stock is 17% below its peak
Market capitalization: Rs 3,39,259.54 crore
Performance:
Up 5.58% in a week
Down 14.68% in a month
44% return in the last year
115% return in the past two years
Indian Hotels
Indian Hotels, a leading hotels and resorts company, has been given a “BUY” recommendation with a target price of Rs 960 per share. The stock closed at Rs 744.45 on Friday, implying a 29% potential upside.
52-week high: Rs 894.15
52-week low: Rs 507.45
Current stock is 17% below its peak
Market capitalization: Rs 1,05,967.41 crore
Performance:
Down 15% this year
14% return in the last six months
27% return in the last year
More Investment Opportunities
ICICI Bank
Motilal Oswal has identified ICICI Bank as a strong positional stock, setting a target price of Rs 1,550 per share. The stock, currently at Rs 1,214.30, has a potential 28% upside.
52-week high: Rs 1,361.35 (September 20, 2024)
52-week low: Rs 1,048.35
Market capitalization: Rs 8,57,743.03 crore
Performance:
1% gain in a week
3.39% decline in a month
11.62% return in the past year
40% return in two years
Bharti Airtel
Bharti Airtel, a leading telecom company, has a “BUY” rating with a target price of Rs 1,985 per share. The stock closed at Rs 1,631.45 on Friday, indicating a 22% upside potential.
52-week high: Rs 1,778.95 (September 26, 2024)
52-week low: Rs 1,151.30
Market capitalization: Rs 9,30,269.97 crore
Performance:
4% gain in a week
3% decline in a month
36% return in the past year
113% return in two years
Shriram Finance
Motilal Oswal recommends buying Shriram Finance, a non-banking financial company (NBFC), with a one-year target price of Rs 700 per share.
The stock closed at Rs 631 on Friday, suggesting an 11% potential increase.
52-week high: Rs 730.43
52-week low: Rs 438.83
Performance:
8% gain in two weeks
13% gain in a month
2.60% decline in six months
29% return in the past year
153% return in two years
