Top stock recommendations for the week starting February 10, 2025

Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting February 10, 2025) are Coromandel International and M&M Financial Services. Let’s take a look:

Coromandel International:

CRIN reported robust 3Q results with EBIT up 2.2x YoY, driven by growth in Nutrient, Other allied business, & crop protection. Margin expansion was aided by higher volumes & lower raw material costs. With improved reservoir levels & above-normal northeast monsoons, it expects strong fertilizer volume growth. Stabilizing agrochemical prices should further aid performance in 4Q & FY26. CRIN’s outlook remains strong, supported by backward integration (Kakinada facility by CY26), product diversification (Nano fertilizers, new crop protection), market expansion, CDMO scale-up, & subsidiary growth (Daksha). We expect 17% PAT CAGR by FY27E.

M&M Financial Services:

M&M Financial reported a 62% YoY PAT growth in 3QFY25, led by a 13% increase in NII and 60% rise in other income to 1.9b. NIM improved 10bps QoQ to 6.7%, with a long term target of 7%. MMFS posted 7% YoY/25% QoQ disbursement growth, led by PVs/ tractors, & guided for mid-to-high-teen growth in FY26. Q3 saw lower credit costs & expect it to stay in range of 1.3%-1.5% in FY25. MMFS focused on collections, maintaining stable asset quality with GS3 up ~10bps QoQ & no abnormal slippages across segments. We estimate 29% PAT CAGR over FY24-FY27, with RoA/RoE of 2.3%/16% by FY27E.

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