Top stocks to buy (AI image)

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:

Vishal Mega MartVMM 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 IndiaSBI 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.Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.