Motilal Oswal Financial Services, known for its comprehensive research and expert insights, has released its updated list of the top 16 stock picks in the Banking, Financial Services, and Insurance (BFSI) sector. This curated list is a reflection of the evolving dynamics of India’s financial market, with a specific focus on high-potential stocks that investors should consider in 2025.
Among the top picks, Motilal Oswal continues to favor large, diversified banks that have shown resilience amidst challenges. ICICI Bank and HDFC Bank, both leading players in the banking sector, retain their ‘Buy’ ratings with target prices of ₹1,670 and ₹1,150, respectively. These banks are seen as strong growth candidates, with a projected upside of up to 19%.
Other noteworthy stocks in the banking space include State Bank of India (SBI), which is also rated ‘Buy’, and AU Small Finance Bank, preferred for its consistent performance in the mid-sized banking category. In the Non-Banking Financial Companies (NBFCs) segment, CAMS (Computer Age Management Services) stands out with a target price of ₹5,000, driven by its leadership in mutual fund services and the rising trend of SIP inflows.
Additionally, Motilal Oswal has highlighted companies like Shriram Finance, HomeFirst Finance, and PNB Housing Finance, which are positioned to benefit from growing financial services demand in the housing and retail financing sectors.
Despite challenges such as margin pressures, Motilal Oswal anticipates a recovery in earnings in the second half of FY26. The brokerage expects that deposit repricing, reduced funding costs, and improvements in asset quality will drive growth in the BFSI sector.
Investors are encouraged to carefully consider these top stock picks as part of their financial strategy, keeping in mind their individual investment goals and risk tolerance.
