Top stocks to buy: Stock recommendations for the week starting July 21, 2025
Stock market recommendations:
According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting July 21, 2025) are Vishal Mega Mart, and State Bank of India (SBI). Let's take a look:
Stock Name
CMP (Rs)
Target (Rs)
Upside (%)
Vishal Mega Mart
138
165
20%
State Bank of India
823
925
12%
Vishal Mega Mart
VMM is one of India's largest offline-first value retailers, operating 696 stores across 458 cities, with ~72% in Tier 2+ India.
VMM aims to add 100+ stores per year across 1,250+ Tier 2+ towns & untapped Tier 1 cities, supported by robust store-level economics. VMM's mix—Apparel (44%), FMCG & GM (~28% each)—with 73% revenue from private brands, drives footfall, wallet share, and TAM expansion.
With <2-year payback, >50% RoCE, & double-digit SSSG, VMM enjoys strong store-level profitability & self-funded expansion through disciplined, asset-light operations.
We expect revenue/EBITDA/PAT CAGR of 19%/20%/24% over FY25–28, driven by steady store additions and margin gains. Forecast cumulative OCF/FCF of ₹32b/₹23b ensures ample internal funding, while private label scale & operating leverage further enhance profitability.
State Bank of India
SBI launched a ₹25,000-crore QIP on July 16, its first equity raise in eight years and the largest by any Indian entity. The Indicative QIP price range is ₹806.75–₹831.70 per share, implying up to a 3% discount to July 16 NSE close.
The fundraise aims to support the bank's growth plans and strengthen its capital adequacy ratio, which stood at 14.25% as of March 25.
With a robust ₹3.4t credit pipeline and a conservative CD ratio of 69%, it is well placed to deliver 12-13% credit growth over FY26-27E, ahead of systemic trends. SBIN remains well-positioned for sustainable growth, underpinned by strong credit expansion and controlled asset quality risks.
We estimate 5% earnings CAGR over FY25-27E, with RoA/RoE expected at 1.0%/15.6% by FY27E.
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