LT Foods, NMDC, SRF among top 5 stocks in Quant Watchlist by Motilal Oswal

Blue Jet Healthcare stock: Strong in quality and earnings surprise, this stock indicates analyst optimism about its future performance.

Quant Multi-Factor Watchlist - August 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 - August 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:

 

SRF: A consistent performer combining robust quality and solid earnings surprise. While its momentum score is at the top, value and institutional interest remain moderate, making it a dependable pick for those prioritising stability with sustained profitability.

 

L T Foods: Excelling in institutional interest, with strong scores in quality and earnings surprise. This stock is favoured for its attractive valuation and increased investor attention, supported by recent positive earnings trends and solid fundamentals.

 

Blue Jet Healthcare: Strong in quality and earnings surprise, this stock indicates analyst optimism about its future performance. While momentum is modest and value score is lower, its consistent performance in quality signals financial resilience.

 

NMDC: A top pick with maximum scores in multi-factor, quality, and institutional interest. High value and a reliable earnings surprise position NMDC as a best-in-class choice for investors seeking well-rounded fundamental strength, backed by growing profitability and analyst upgrades.

 

Samvardhana Motherson: Stands out with exceptional quality and value scores, reflecting financial strength and an attractive valuation. Momentum is currently subdued, but its strong fundamentals and prior earnings surprise set the stage for potential re-rating as market sentiment shifts.  These stocks represent the top-ranked opportunities within the MOFSL universe, leveraging our multi-factor approach to deliver consistent, high-potential investment ideas for August 2025.  Views expressed by Neil Jha, Head of Quant Products, Wealth Management, Motilal Oswal Financial Services.   

(Disclaimer: This article is by Motilal Oswal Financial Services Research desk. Views expressed are its own.)