Motilal Oswal Picks TVS Motor & M&M Financials as Top Stocks for the Week

Motilal Oswal Financial Services Ltd has recommended TVS Motor Company and M&M Financials as their top stock selections for the trading week commencing November 3, 2025.

For TVS Motor Company, analysts are optimistic due to its robust product pipeline and consistent sales volumes, which are expected to drive sustained performance. The company's focus on premiumization and diversification across various segments, including electric vehicles and exports, is yielding market share gains and enhancing its resilience. Improvement in EBITDA margins, driven by revenue growth and favorable market conditions like GST rate cuts and a strong festive season, further bolster the outlook. Analysts have revised earnings forecasts upwards, anticipating strong revenue, EBITDA, and profit growth.

M&M Financials (Mahindra & Mahindra Financial Services Limited) reported a strong second quarter of Fiscal Year 2026, with significant year-on-year profit growth exceeding expectations. This was boosted by increased other income from fee and dividend income. The net interest margin saw an expansion, attributed to lower funding costs and reduced leverage post-rights issue. Business momentum has picked up, supported by GST cuts benefiting tractor and passenger vehicle sales, and the used-vehicle segment is also gaining traction. Asset quality has shown improvement, with further gains anticipated. The company aims for 15% loan book growth in FY26, with improved credit cost guidance.

Impact: This news can directly influence investor sentiment towards the auto and non-banking financial sectors, potentially leading to increased trading activity and price movements in TVS Motor Company and M&M Financials. It may also attract interest from other institutional investors and analysts. Rating: 6/10

Difficult terms explained: CMP: Current Market Price, the price at which a stock is currently trading on the stock exchange. Target: The price level that analysts predict a stock will reach within a specific timeframe. Upside: The potential percentage increase from the current market price to the target price. EBITDA margins: Earnings Before Interest, Taxes, Depreciation, and Amortization, expressed as a percentage of revenue, indicating operational profitability. CAGR: Compound Annual Growth Rate, the mean annual growth rate of an investment over a specified period longer than one year. PAT: Profit After Tax, the profit remaining after all expenses and taxes have been deducted. Net interest margin: The difference between interest income earned and interest paid by a financial institution, relative to its interest-earning assets. basis-points: A unit of measure used in finance to describe the percentage change in a financial instrument. 1 basis point equals 0.01%. Loan book: The total amount of loans issued by a financial institution. Disbursement: The act of paying out money for a loan. Credit cost: The cost incurred by a lender due to loan defaults or potential defaults, often expressed as a percentage of assets. FY26: Fiscal Year 2026, typically running from April 1, 2025, to March 31, 2026.