Motilal Oswal Wealth Management Research Desk has picked State Bank of India (SBI) and Bharat Electronics as the top stocks to buy for the week starting June 22, 2026, according to a report by the Times of India.
SBI: Strong Fundamentals and Growth Trajectory
State Bank of India is well-positioned to sustain market share gains, backed by its leadership across deposits and lending, strong retail franchise, improving corporate credit demand, and deep digital penetration through the YONO platform, the report said. Granular deposits, prudent underwriting, and low borrower concentration continue to support earnings resilience and balance sheet strength.
FY26 witnessed healthy business momentum, with the loan book growing 17% led by retail, SME, and corporate segments, particularly across renewables, data centres, metals, and infrastructure. Asset quality improved further with low slippages, strong recoveries, and reduced stressed asset concentration, while margin moderation was largely driven by rate transmission.
The research desk expects growth to remain supported by a strong credit pipeline, favourable credit-deposit ratio, and operating leverage from digital initiatives. They estimate the loan book to deliver a 13.6% CAGR over FY26-28, alongside stable asset quality, controlled credit costs, and an earnings CAGR of 8%, supporting RoA/RoE of ~1.0%/15.5%.
Bharat Electronics: Defense-Electronics Play
Bharat Electronics operates as India’s dominant indigenous defense-electronics platform across radars, missile systems, avionics, communication equipment, and strategic programs. Strong order-book visibility, rising indigenization, operating leverage, and a debt-free balance sheet support earnings durability, while exports and localization trends expand its long-term opportunity set.
4QFY26 performance was driven primarily by execution against the ₹730 billion opening order book, lifting revenue 12% YoY despite a high base. Gross-margin expansion reflected improving localization and favorable mix, although EBITDA margin contracted due to higher operating expenses. Cash-flow generation improved materially despite elevated receivables.
The research desk expects FY27 growth to be supported by the Quick Reaction Surface-to-Air Missile program, naval electronics, electronic warfare systems, and strategic defense projects, alongside projected FY26-28 revenue and PAT CAGR of 17% each. Margins are expected to remain above 28%, aided by indigenization-driven operating leverage.
Market Outlook: Key Drivers This Week
Markets will closely track developments in the US-Iran dialogue, trends in crude oil prices, and the trading behaviour of foreign investors during the holiday-shortened week ahead, according to analysts. Domestic equity markets will remain shut on Friday in observance of Muharram.
Investor focus is likely to remain firmly centred on the progress of the US-Iran peace process. Crude oil prices will continue to play a critical role, with stable prices supporting India's economic outlook, while any setback in Middle East relations could trigger fresh volatility in financial markets.
Analysts also expect market participants to monitor the progress of the monsoon season, given its importance for the broader economy.
Indian equities extended their rebound during the week, aided by easing geopolitical worries, softer crude oil prices, and improving risk appetite across global markets. Benchmark equity indices closed lower on Friday, ending a five-session winning streak, as intense selling in information technology stocks weighed on sentiment following a reduction in full-year revenue growth guidance by global technology major Accenture. However, for the week, the BSE Sensex advanced 1,274.95 points, registering a gain of 1.68%.
Key Estimates at a Glance
| Metric | SBI | Bharat Electronics |
|---|---|---|
| Loan Book CAGR (FY26-28) | 13.6% | — |
| Earnings CAGR (FY26-28) | 8% | — |
| RoA/RoE (projected) | ~1.0%/15.5% | — |
| Revenue CAGR (FY26-28) | — | 17% |
| PAT CAGR (FY26-28) | — | 17% |
| EBITDA Margin (expected) | — | >28% |
(Disclaimer: The recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of the Times of India.)
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