As the Indian stock markets bleed amid Donald Trump’s tariff threats and rising global uncertainties, the brokerage firm, Motilal Oswal has gone against the tide. The brokerage has issued ‘Buy’ ratings on select stocks, betting on their long-term fundamentals even as panic selling grips Dalal Street.
From retail giant Trent to banking players like Union Bank of India, Indian Bank, and Equitas Small Finance Bank, the brokerage believes these stocks have enough strength to weather the storm.
Let’s break down what the brokerage sees in each of these companies and why it’s backing them despite the chaos.
Motilal on Trent: Retail growth, Store boom, and long-term
In a jittery market, Trent has managed to stay in the spotlight for all the right reasons. The brokerage firm, Motilal Oswal has maintained a ‘Buy’ call on Trent, with a target price of Rs 6,800, offering an upside potential of 22% from its current market price (CMP) of Rs 5,563.
According to the brokerage, “Trent’s growth moderated to 28% YoY in Q4FY25, lower than the previous quarter’s 36%, but its expansion plans remain aggressive.”
“Store additions continue to be back-ended, which reflects Trent’s aggressive yet calculated expansion strategy,” as per the brokerage.
Motilal on Union Bank of India: Stable CASA and improving deposit growth
Union Bank of India also earned a Buy rating from the brokerage firm Motilal Oswal, with expectations of steady growth ahead. The CMP is Rs 122, and while a specific target price isn’t mentioned.
According to the brokerage, “Loan growth for Union Bank continues to trail systemic growth, but deposit momentum picked up in Q4FY25.” Total business stood at Rs 22.9 trillion, with deposits growing 7.2% YoY and CASA deposits rising 7.8% QoQ. The CASA mix remained stable, and credit-deposit (CD) ratio dropped 278 bps QoQ to 72.9%, suggesting better liquidity management. “We believe the bank is on track to improve its credit growth in the upcoming quarters,” the brokerage noted.
Motilal on Indian Bank: Consistent advances, stable CD ratio
Indian Bank has also secured a Buy rating. The CMP is Rs 546, and while the brokerage hasn’t specified a target price.
According to Motilal Oswal, “Gross advances grew 10.2% YoY and 5.2% QoQ, driven by RAM (retail, agriculture, and MSME) segments.”
“We expect steady performance going ahead with a balanced asset-liability mix,” added the brokerage in its report
Motilal on Equitas Small Finance Bank: MFI stabilising, Deposits growing
Rounding up the list is Equitas Small Finance Bank, the brokerage firm has a Buy rating with the CMP at Rs 56. Though no target price is provided.
As per the brokerage, “Gross advances rose 10.6% YoY, while deposits jumped 19% YoY in Q4FY25.” The CASA ratio remained stable at 29%, and the bank’s conscious strategy to slow down disbursements in the microfinance (MFI) segment seems to be paying off.
“Stress in MFI is showing early signs of stability,” the brokerage observed, citing a March collection efficiency of 98.36%, which is even better outside Karnataka. Gross NPA also showed a decline, improving to 5.91% from 6.5% QoQ.