Motilal Oswal Financial Services Unveils Top Stock Picks for February 2026 Trading Week
In its latest market analysis, Motilal Oswal Financial Services Ltd has identified two standout stocks for investors to consider during the trading week commencing February 2, 2026. The financial services firm has placed ICICI Bank and APL Apollo Tubes at the forefront of its recommendations, backed by detailed assessments of their performance metrics and future prospects.
Detailed Stock Analysis and Price Targets
The recommendations come with specific price targets and upside potential, as outlined in the table below:
- ICICI Bank: Current Market Price (CMP) of Rs 1,334 with a Target Price (TP) of Rs 1,750, indicating an upside of 31%.
- APL Apollo Tubes: CMP of Rs 2,047 with a TP of Rs 2,350, suggesting a 15% upside.
ICICI Bank: A Pillar of Stability and Growth
ICICI Bank continues to demonstrate resilience through its robust retail and corporate franchise, coupled with disciplined risk management and superior operating metrics. Under the steady leadership of Mr. Sandeep Bakhshi, the bank is well-positioned to sustain healthy loan growth momentum and deliver best-in-class profitability across economic cycles.
In the third quarter of FY26, the bank reported a Profit After Tax (PAT) of INR 113.2 billion, marking a 4% year-on-year decline. This was primarily due to one-off provisions of INR 12.8 billion related to agriculture. Despite this, core performance remained steady, with Net Interest Income (NII), Pre-Provision Operating Profit (PPoP), margins, and asset quality aligning with expectations. Notably, credit trends in unsecured portfolios showed improvement.
Motilal Oswal projects that ICICI Bank is on track to achieve a Return on Assets (RoA) of approximately 2.2% in FY26E, with an improvement to around 2.3% over FY27–28E. The firm has fine-tuned its estimates, modeling FY27E RoA and Return on Equity (RoE) at 2.3% and 16.1%, respectively, reinforcing its BUY recommendation.
APL Apollo Tubes: Leveraging Market Leadership for Expansion
APL Apollo Tubes investment appeal is rooted in its scalable manufacturing platform and entrenched market leadership. The company's dual-brand strategy effectively blends premium pricing with steady volume expansion, enhancing its competitive edge.
Key growth drivers include capacity expansion, wider geographic reach, and an increasing contribution from value-added products, all of which strengthen its structural growth trajectory. In Q3FY26, the company showcased meaningful operational improvement, driven by robust volume traction and a notable rise in profitability per tonne.
Margin expansion was attributed to a richer product mix, benefits from operating leverage, and tight cost controls. Additionally, effective pricing discipline allowed for smooth pass-through of raw material volatility without impacting demand. Management commentary highlights improving growth visibility, with confidence in sustained volume momentum, further enhancement in per-tonne profitability, and expansion plans being comfortably funded through internal accruals.
Overall, APL Apollo Tubes remains well-positioned to sustain healthy earnings growth through various market cycles, making it a compelling pick for investors.
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