Stock market recommendations: According to Motelle Oswal Financial Services Limited, the top stock pics for the week (starting from March 17, 2025) are HPCL and Varun Beverages. let’s take a look:
HPCL:
3QFY25 of HPCL defeats income estimates, which is powered by strong refinement margin and strong marketing versions. The major catalysts include LPG under-riches compensation, commission of Rajasthan refinery and lower upgrade unit in 4QFY25. Despite the possible headwind from low dandruff raw raw use, GRM of HPCL remains flexible.
The marketing marks are strong, and the Capex cycle is tapering, improving 1.1X from ND/E by FY26. Trading, valuations at 1.3x fy26e p/b with Roe of 17.3%are attractive. Repeat the reiterate, operating improvement and potential value unlocking.
Varun Drinks:
Varun Beverez posted 38% YOY revenue growth in Q4, with strong volume contribution from South Africa and Congo. Organic volume increased by 5% yoy, and operated by high sales and stable margin, 40% yoy increased to INR12.5B. Mgmt. Directed to increase the amount of double digits in DOM. Very high in market and international MKT. The Indian beverage market remains largely unused and despite the increasing competition, VBL does not indicate a recession in the growth trajectory.
VBL is ready to maintain its earnings, enlarged penetration in new African markets, stable domestic development, continuous expansion and distribution (10% annual additions in outlets), and inspired by increasing refrigeration in rural areas. We expect 12%/17% CAGR in more than CY24-26 revenue/PAT.
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