🔥 Stock Picks for the Year: Motilal Oswal's Top Recommendations 📈
Advises purchasing these six stocks according to Motilal Oswal
Venture into the world of profitable investments with Motilal Oswal's top stock picks, bursting onto the scene with promising growth prospects! From titans in the FMCG sector to leading figures in defense, technology, and insurance, these stocks are the ones to watch. Brace yourself and delve into the key investments, including Hindustan Unilever, HAL, SBI Life, Tech Mahindra, Persistent Systems, and Dalmia Bharat.
Hindustan Unilever
Despite Q4FY25's mixed performance, Motilal Oswal remains optimist towards HUL's growth path. Revenue climbed 3% YoY to Rs 15,450 crore, yet urban demand remained subdued. Home Care demonstrated volume growth but faced a 2% dip in EBIT due to price reductions, while Beauty & Wellbeing delivered a 6% revenue hike and 15% EBIT growth, bolstered by a robust hair care portfolio [1].
What's sparking FII buying spree? Approximately Rs 30,000 crore inflow in just 10 days
Hindustan Aeronautics
As defense capex rises and supply chains normalize, Motilal Oswal remains bullish on HAL. The firm anticipates HAL's overall revenue to exhibit a staggering 29% CAGR through FY25-27, primarily due to a significant scale-up in manufacturing [2].
SBI Life Insurance
The brokerage remains upbeat on SBI Life after a strong Q4FY25 performance. New business APE expanded 2% YoY to Rs 5,450 crore, and VNB increased 10% to Rs 1,660 crore. The company's VNB margin swelled to 30.5%, far surpassing projections. FY25 PAT skyrocketed 27% YoY to Rs 2,400 crore [3].
Tech Mahindra
Motilal Oswal has issued a 'Buy' call for Tech Mahindra, setting a target price of Rs 1,950. This suggests a 35% increase from current levels. The company's Q4FY25 revenue stood at USD 1.5 billion, with key verticals such as BFSI and Communications expanding 2.4% and 1.0%, respectively. EBIT margin rose 40 basis points QoQ to 10.5%, surpassing predictions [4].
Persistent Systems
Motilal Oswal remains steadfast in its 'Buy' stance on Persistent Systems, setting a target price of Rs 6,450. The company's Q4FY25 revenue rose 4.2% QoQ in USD terms, ahead of estimates. EBIT margin expanded to 15.6%, with EBIT growing 10.9% QoQ [5].
Dalmia Bharat
Motilal Oswal encourages a 'Buy' on Dalmia Bharat, raising its target price to Rs 2,300 from Rs 2,150. As a low-cost producer, Dalmia Bharat boasts a higher blending ratio, green power share, and lower freight costs. The company's capacity expansion plans in Karnataka and Maharashtra address long-standing growth concerns, while rising cement prices in southern India are poised to boost profitability in FY26 [6].
❗️ [1] Motilal Oswal's Q4FY25 research report on HUL❗️ [2] Motilal Oswal's HUL outlook for FY26❗️ [3] Motilal Oswal's research report on SBI Life Insurance's Q4FY25 performance❗️ [4] Motilal Oswal's Q4FY25 analysis of Tech Mahindra's performance❗️ [5] Motilal Oswal's Q4FY25 analysis of Persistent Systems' performance❗️ [6] Motilal Oswal's research report on Dalmia Bharat's FY26 projections
- Motilal Oswal advises a gradual investment approach towards Hindustan Unilever, acknowledging its promising future despite Q4FY25's mixed performance.
- Investors should consider Hindustan Aeronautics as a stable long-term investment given Motilal Oswal's bullish outlook, fueled by rising defense capex and normalizing supply chains.
- SBI Life Insurance is a potentially lucrative investment, according to Motilal Oswal, following its strong Q4FY25 performance and optimistic FY25 projections.
- Tech Mahindra is a recommended stock by Motilal Oswal for those interested in the technology sector, with the brokerage setting a target price of Rs 1,950, signifying a 35% increase from current levels.
- Persistent Systems is another technology-focused stock that Motilal Oswal suggests buying, with a target price of Rs 6,450 set by the firm.
- Dalmia Bharat could be an excellent addition to any investment portfolio, as Motilal Oswal recommends buying this stock and raising its target price to Rs 2,300, given its efficient production methods and expansion plans in Karnataka and Maharashtra.
- Defi and other emerging financial technologies could also be worth investigating for those seeking to diversify their investment portfolios, as the industry is expected to grow significantly in the coming years.
