Stock market recommendations: Federal Bank, and TVS Motors – Motilal Oswal Wealth Management Research Desk has recommended these two stocks as the top stock picks for the July 27, 2026 week:
Federal BankFederal Bank reported a strong 1QFY27 performance with PAT of INR11.8b (+37% YoY, 3% above est), driven by 26% YoY NII growth (5% beat), while adjusted NIM expanded 13bp QoQ to 3.33% on the back of lower cost of funds. Provisions declined 21% YoY, supporting healthy earnings growth. Advances grew 15% YoY (5% QoQ), led by the SME, gold loan & corporate segments, with mngt guiding for loan growth at the higher end of the mid-teen range.Asset quality continued to improve, with GNPA/NNPA at 1.52%/0.18%, lower slippages of INR4.1b, & a PCR of 88.2%. We have raised FY27/FY28 PAT estimates by 4.6%/1.8%, factoring in sustained NIM expansion, healthy loan growth, stable fee income & contained credit costs of 50–55bp. We expect FY27E RoA/RoE of 1.25%/12.1%, supported by improving profitability, strong asset quality & steady earnings.TVS MotorsTVS Motor’s 1QFY27 EBITDA exceeded our estimate by 8%, driven by an improved product mix, favorable currency benefits, and disciplined cost control, while PAT of INR10.2b (+32% YoY) remained in line with estimates. Management expects the domestic two-wheeler industry to deliver double-digit growth in 2QFY27, with demand momentum similar to or slightly better than 1Q. It will continue investing ~INR35b in new products and capacity expansion, raising annual two-wheeler capacity to 8.3m units and three-wheeler capacity to 420k units by FY27-end. We raise our FY27/FY28 EPS estimates by 8%/5% and project TVS to record a revenue/EBITDA/PAT CAGR of 20%/23%/24% over FY26-28, supported by continued market share gains, margin improvement, and a healthy product launch pipeline, sustaining premium valuations.Stock market round-up from last weekBSE Sensex and Nifty50 finished in the red on Friday, marking their fifth straight session of losses, as investors remained on edge amid elevated crude oil prices driven by geopolitical tensions in West Asia and fresh concerns over US trade tariffs.Market sentiment was also weighed down by continued foreign institutional selling and weakness in heavyweight HDFC Bank.Over the past five trading sessions, the BSE Sensex has declined by 2,091.68 points, or 2.67%, while the NSE Nifty has lost 566.85 points, or 2.32%.Developments in the West Asia conflict, movements in crude oil prices and the outcome of the US Federal Reserve’s policy meeting are expected to be the primary factors influencing the stock market this week, according to analysts.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)