The brokerage house Motilal Oswal has placed its bets on three stocks across the banking and manufacturing space. They expect meaningful upside in each of these stocks. According to the brokerage report, Federal Bank, Punjab National Bank, and Prince Pipes and Fittings are well placed to deliver growth in the coming years, with upside potential ranging between 15 – 31%.
Let’s take a look at what is the brokerage say on these stocks –
Motilal Oswal on Federal Bank
Motilal Oswal has reiterated a ‘Buy’ call on Federal Bank, setting a target price of Rs 235. This implies an upside of nearly 19%.
The brokerage highlighted that the bank’s focus on asset diversification and efficiency has helped it withstand macro challenges. It added, “With ongoing liability optimisation, focus on improved asset mix, and controlled credit cost, the bank is on a path to improved profitability.”
Federal Bank is trading at 1.2x FY27E adjusted book value, which Motilal Oswal sees as attractive. The firm also noted that “We expect Federal Bank to deliver 1.2% RoA in FY27, with further improvement to be witnessed in FY28 at 1.3%.”
In terms of earnings, the brokerage believes the bank’s CASA push, branch rationalisation, and digital investments will keep costs in check and improve scalability.
Motilal Oswal on Punjab National Bank
Among public sector banks, Motilal Oswal has picked Punjab National Bank as a top ‘Buy’ recommendation, with a target price of Rs 130. This translates into a 15% upside potential.
The brokerage pointed out that gross NPAs have come down to 3.78% and net NPAs to 0.38%, while PCR has improved to 90.3%. These improvements, along with controlled credit costs at 14 bps, provide confidence in earnings stability.
According to the brokerage report, “The bank’s near-term profitability is weighed down by elevated opex and one-offs, but structural earnings drivers remain intact.” It added that re-rating triggers include sustained loan growth, progress on reducing cost ratios, and consistent asset-quality leadership.
Motilal Oswal expects the bank to deliver a RoA of around 1% in FY27/28, while trading at attractive valuations compared to private peers.
Motilal Oswal on Prince Pipes and Fittings
In the industrial space, Motilal Oswal has issued a ‘Buy’ call on Prince Pipes and Fittings with a target price of Rs 440. The stock offers an upside potential of nearly 31%.
The brokerage said the company is navigating a weak near-term demand environment but remains structurally strong due to capacity expansion and product diversification.
A key highlight is the commissioning of the Begusarai facility in Bihar, which adds around ktpa capacity. This plant is expected to operate at 60–65% utilistion in FY27, boosting the company’s presence in Eastern India.
As per the brokerage, “A significant strategic milestone is the commissioning of the Begusarai facility in Bihar…positioning Prince Pipes and Fittings stronger foothold in Eastern India.”
Motilal Oswal expects a around 12% volume CAGR for the company between FY25–FY28, aided by operating leverage and a better product mix.
It also noted that “Structural demand drivers such as government housing schemes, plumbing upgrades, and GST rationalisation should provide tailwinds in H2FY26 and beyond.”