26-05-2025
Top stocks to buy: Stock recommendations for the week starting May 26, 2025
Top stocks to buy (AI image)
Stock market recommendations:
According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting May 26, 2025) are Kaynes Technology and Marico. Let's take a look:
Stock Name
CMP (Rs)
Target (Rs)
Upside (%)
Kaynes Technology
6025
7300
21%
Marico
702
800
14%
Kaynes Technology
KAYNES is poised for strong FY26 growth with a revenue target of INR45b, driven by higher-margin new orders, operating leverage, and expansion across key verticals such as automotive, aerospace, industrial, and medical.
HDI PCB & OSAT commercialization is planned for 4QFY26. Chennai PCB facility targets ~30% margin (global clients) while OSAT is expected to deliver ~20%.
Combined revenue target is ₹25B in FY27, doubling to ₹50B by FY28. KAYNES targets USD 1B revenue by FY28. Recent acquisitions have enhanced its global presence & opened new growth opportunities, with future focus on high-margin ODMs & expansion in South Asia & Europe.
We estimate a CAGR of 57%/61%/70% in revenue/EBITDA/adj. PAT over FY25-FY27.
Marico
Marico (MRCO) reported 4QFY25 revenue growth of 20% YoY, with domestic revenue up 23% driven by strong core category performance and new growth drivers. International revenue grew 11%. Ad spends rose 35%, leading to a 260bp YoY contraction in EBITDA margin to 16.8%, while EBITDA grew 4% (vs. 7% estimate).
Revenue growth is expected to remain in double digits in FY26, driven by pricing, expanded reach, and strong performance in Foods and Premium Personal Care.
Despite rising input costs, the margin outlook for 2HFY26 is positive. We forecast 11%/13% revenue and EBITDA CAGR over FY25-27, reiterating a BUY.
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