Top stocks to purchase: Stock recommendations for the week starting March 17, 2025

Top stocks to purchase (AI picture)

Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the high inventory picks for the week (starting March 17, 2025) are HPCL and Varun Beverages. Let’s have a look:

HPCL:
HPCL’s 3QFY25 earnings beat estimates, pushed by sturdy refining margins and sturdy advertising and marketing volumes. Key catalysts embrace LPG under-recovery compensation, the commissioning of the Rajasthan refinery, and the backside improve unit in 4QFY25. Despite potential headwinds from lowered Russian crude utilization, HPCL’s GRM stays resilient.
Marketing margins are sturdy, and the capex cycle is tapering, bettering ND/E to 1.1x by FY26. Trading at 1.3x FY26E P/B with an RoE of 17.3%, valuations are engaging. Reiterate BUY, reflecting upside from operational enhancements and potential worth unlocking.
Varun Beverages:
Varun Beverages posted a 38% YoY income progress in This autumn, with sturdy quantity contributions from South Africa and Congo. Organic quantity grew 5% YoY, and PAT elevated 40% YoY to INR12.5b, pushed by greater gross sales and steady margins. Mgmt. guided for continued double-digit quantity progress in dom. market & a lot greater in worldwide mkt. Indian beverage market stays largely untapped & proceed to develop with no indicators of slowdown in VBL progress trajectory regardless of rising competitors.
VBL is poised to maintain its earnings progress, pushed by elevated penetration in new African markets, steady home progress, continued enlargement & distribution (10% annual addition in shops), and rising refrigeration in rural areas. We anticipate a CAGR of 12%/17% in income/PAT over CY24-26.
Disclaimer: The opinions, analyses and recommendations expressed herein are these of brokerage and don’t replicate the views of The Times of India. Always seek the advice of with a professional funding advisor or monetary planner earlier than making any funding selections.