Synopsis:
Motilal Oswal has identified two stocks with strong growth potential, rating them as ‘Buy.’ These picks are Prince Pipes, and AU Small Finance Bank offers upside potential up to 33%.
Motilal Oswal has rated two stocks as ‘Buy,’ highlighting their strong growth potential. With upside prospects of up to 33%, these stocks present promising investment opportunities for investors seeking robust returns and long-term value in the market.
Prince Pipes & Fittings Ltd
Prince Pipes and Fittings Ltd is a leading Indian manufacturer of polymer pipes and fittings, catering to plumbing, water supply, and irrigation needs. The company focuses on innovation, quality products, and expanding its distribution network across urban and rural markets.
With market capitalization of Rs. 3,652 cr, the shares of Prince Pipes & Fittings Ltd are closed at 330.35 per share, from its previous close of Rs. 337.20 per share. Motilal Oswal gave a buy target of Rs. 440 per share, upside of 33% upside from the current levels.
Motilal Oswal forecasts a 12% volume CAGR from FY25 to FY28, supported by operating leverage and an improved product mix. The company is navigating weak near-term demand but remains strong due to capacity expansion and diversification. The new Begusarai plant in Bihar adds significant capacity and is expected to run at 60–65% utilization by FY27, strengthening the company’s presence in Eastern India.
AU Small Finance Bank Ltd
AU Small Finance Bank Ltd is a prominent Indian small finance bank providing banking and financial services to individuals and businesses. It focuses on inclusive banking, offering loans, deposits, and digital banking solutions, with a strong presence in urban and semi-urban areas.
With market capitalization of Rs. 55,286 cr, the shares of AU Small Finance Bank Ltd are closed at 741.60 per share, from its previous close of Rs. 736.15 per share.
Motilal Oswal gave a buy target of Rs. 875 per share, upside of 18% upside. Brokerage stated that AU Small Finance Bank is well-positioned for growth despite near-term challenges. GNPA rose slightly to 2.47%, with stress expected to peak in 2Q. Credit costs are projected to decline in the second half, with full-year guidance at 100 basis points.
Loan growth is supported by festival demand and GST cuts, while deposit mobilisation remains strong with stable deposits at about 79%. NIM dipped to 5.4% in 1QFY26 but is expected to stabilise. AUBANK will deliver a healthy 24% loan CAGR over FY26-28, supported by improving operating metrics, which in turn should drive a strong 33% earnings
Written by Manideep Appana
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