Top stocks to purchase: Stock recommendations for the week starting April 21, 2025 – Hindustan Aeronautics and Castrol

Top stocks to purchase (AI picture)

Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the prime inventory picks for the week (starting April 21, 2025) are Hindustan Aeronautics and Castrol. Let’s have a look:

Hindustan Aeronautics
Hindustan Aeronautics (HAL) is a market chief in aerospace defence. It boasts a robust order ebook of ₹1.8t as of Mar ’25, together with a promising prospect pipeline of ₹6t, which is probably going to be awarded over subsequent few years.HAL is transitioning from conventional licensed mannequin to indigenized mannequin and is at present engaged on marque tasks equivalent to Tejas Mk1, Tejas Mk1a, Su-30 improve, Dornier-25, and LUH, et al. These tasks are anticipated to gasoline manufacturing income progress for HAL. Near-term catalysts will emerge with plane deliveries as GE engine provides resumes for Tejas Mk1A from FY26, whereas medium to long run triggers hinge on order finalizations for 97 Tejas Mk1A, Tejas Mk-II, LUH, AMCA and others. We provoke protection on HAL with BUY ranking & TP ₹5,100. We estimate 29%/33%/29% income/EBITDA/PAT CAGR over FY25-27.
Castrol
Brent Crude has fallen to its 4-12 months low amid US-China commerce tensions and rising provide. This is helpful for lubricant corporations like Castrol, doubtlessly main to improved revenue margins. As a part of its future plans for superior EV and knowledge middle testing, Castrol opened a expertise middle in Patalganga, outfitted with mixing & testing capabilities. For its lubricant enterprise, it’s concentrating on above business common progress price of 4-5%.Management is optimistic about India’s lubricant demand potential, pushed by low automobile penetration. Castrol’s deal with model constructing, distribution, and new merchandise helps its market management. We estimate ~23% EBITDA margin for CY25 and CY26, reflecting confidence in profitability and progress.
Disclaimer: The opinions, analyses and recommendations expressed herein are these of brokerage and don’t mirror the views of The Times of India. Always seek the advice of with a certified funding advisor or monetary planner earlier than making any funding selections.