MOFSL recommends top multi-factor stock picks for September 2025; details

Hindalco share price: With steady quality, value, and momentum, Hindalco share presents a consistent and resilient investment choice.

Quant Multi-factor watchlist - September 2025

 

Navigating the dynamic stock market demands a robust strategy. Multi-factor investing combines multiple proven metrics to identify stocks with strong potential, filtering out short-term volatility and focusing on consistent return drivers for the long term. This multi-factor ranking approach helps us shortlist the best tactical bets within the MOFSL universe with a Buy rating.

 

What is Multi-factor investing?

Multi-factor investing integrates several investment styles into a single strategy, selecting stocks that excel in:

 

-- Value: Stocks trading below their intrinsic worth.

 

-- Quality: Companies with strong financial fundamentals. 

  -- Momentum: Stocks with positive price trends. 

-- Earnings Surprise: Stocks with recent upward revisions in earnings estimates.

 

This approach enhances consistency and reduces the risk of chasing fleeting trends. Motilal Oswal Financial Services Ltd. (MOFSL) employs an in-house Quant model to rank stocks within its research universe, selecting only those with a Buy rating.

 

Top 5 stocks in Quant Watchlist - September 2025: 

The following stocks, all carrying a 'Buy' rating from MOFSL analysts, rank highest in our Quant model, balancing value, quality, momentum, and earnings surprise:

 

-- Indian Bank: Balanced with solid value, momentum, and earnings surprise, Indian Bank stands out as a reliable growth candidate with moderate institutional interest. 

  -- Hindalco: With steady quality, value, and momentum, Hindalco presents a consistent and resilient investment choice.

 

-- NMDC: Excels in institutional interest, value, and earnings surprise, making NMDC a fundamentally strong stock with sustained market confidence.

 

-- Coromandel International: Leads in quality, momentum, and holds a decent earnings surprise, Coromandel International ideal for investors seeking broad-based strength and tactical upside. 

  -- Canara Bank: Strong in value, and earnings surprise, Canara Bank offers an attractive valuation along with recent positive earnings momentum.

 

These stocks represent the top-ranked opportunities within the MOFSL universe, leveraging our multi-factor approach to deliver consistent, high-potential investment ideas for September 2025. 

(Disclaimer: Neil Jha is head of quant products, wealth management at Motilal Oswal Financial Services. Views expressed are his own.)