The veteran brokerage firm Motilal Oswal has added three new stocks and three to the Motilal Oswal of August 2025 to the Most Signature Model Portfolio update. Brokerage has removed PNB, CAMS and Trent, including HDFC Bank, Paytm and Vishal Mega Mart. It is a 20 stock’s high-caption model portfolio.
Reason for including new stocks
The decision to include HDFC Bank shows confidence in the bank’s post-merger consolidation. FY26 is expected to grow strong loan growth from the bank. It will get the support of concrete provisioning buffers and recently declared 1: 1 bonus issue. Brokerage estimates that by FY27, the bank’s return on assets (ROA) will reach 1.9% and Return on Equity (ROE) 14.9%.
At the same time, Paytm has found a place in the portfolio after a return to the June quarter (Q1Fy26) due to a stable stance towards financial services, disciplined cost management and record merchant subscription base.
Vishal Mega Mart has been included due to its asset-light expansion model and strong focus on Tier-2 and Tier-3 cities. The company has about 700 stores and plans to open more than 100 new outlets every year.
Which stocks were excluded?
Motilal Oswal removed the Punjab National Bank (PNB) due to weak loan and deposit growth. CAMS was out due to weak revenue visibility and margin pressure. At the same time, Tata Group’s Trent was removed due to the decrease in the speed of June quarter growth despite the brand recall. However, Trent’s store editions increased in the last quarter.
Portfolio’s performance so far
The Most Signature Portfolio, launched in March 2025, has given 17.1% Absolute Return so far. This Nifty is 500 basis points higher than the 12.1% return of the 200 index. Top gainers include JK Cement (51%), Eternal (46%) and Kaynes Technology (45%).
Portfolio has 50% of large-cap, 40% of mid-cap and 10% of small-cap. This Nifty benchmarks 200 index and prioritizes capital goods, healthcare and congestion-oriented stocks. At the same time, staples, metals and utilities are underweight.