Stock market recommendations:
According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting April 21, 2025) are Hindustan Aeronautics and Castrol. Let’s take a look:Stock Name
| CMP (Rs)
| Target (Rs)
| Upside (%)
|
Hindustan Aeronautics
| 4220
| 5100
| 21%
|
Castrol
| 202
| 260
| 29%
|
Hindustan Aeronautics (HAL) is a market leader in aerospace defence. It boasts a strong order book of ₹1.8t as of Mar '25, along with a promising prospect pipeline of ₹6t, which is likely to be awarded over next few years. HAL is transitioning from traditional licensed model to indigenized model and is currently working on marque projects such as Tejas Mk1, Tejas Mk1a, Su-30 upgrade, Dornier-25, and LUH, et al. These projects are anticipated to fuel manufacturing revenue growth for HAL. Near-term catalysts will emerge with aircraft deliveries as GE engine supplies resumes for Tejas Mk1A from FY26, while medium to long term triggers hinge on order finalizations for 97 Tejas Mk1A, Tejas Mk-II, LUH, AMCA and others. We initiate coverage on HAL with BUY rating & TP ₹5,100. We estimate 29%/33%/29% revenue/EBITDA/PAT CAGR over FY25-27.
CastrolBrent Crude has fallen to its 4-year low amid US-China trade tensions and rising supply. This is beneficial for lubricant companies like Castrol, potentially leading to improved profit margins. As part of its future plans for advanced EV and data center testing, Castrol opened a technology center in Patalganga, equipped with blending & testing capabilities. For its lubricant business, it is targeting above industry average growth rate of 4-5%. Management is optimistic about India’s lubricant demand potential, driven by low car penetration. Castrol's focus on brand building, distribution, and new products supports its market leadership. We estimate ~23% EBITDA margin for CY25 and CY26, reflecting confidence in profitability and growth.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
Stay informed with the latest business news, updates on bank holidays and public holidays.
Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
The TOI Business Desk is a vigilant and dedicated team of journal...
Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read Less
Start a Conversation
Post comment