4 days ago
Top stocks to buy: Stock recommendations for the week starting August 18, 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 August 18, 2025) are HDFC Life, and Hindustan Aeronautics (HAL). Let's take a look:
Stock Name
CMP (Rs)
Target (Rs)
Upside (%)
HDFC Life
788
910
15%
HAL
4544
5800
28%
HDFC Life
HDFC Life delivered a healthy performance in 1QFY26 with APE up 13% YoY to INR32.3b and VNB also rising 13% YoY to INR8.1b.
Margins stood at a resilient 25.1%, reflecting product mix changes. Shareholders' PAT grew 14% YoY, driven by steady growth in existing business books. Gross premium increased 16% YoY with ULIP share steady at 33% & PAR share improving to 27% from 14% last year.
Non‑PAR share saw a temporary dip but is guided to recover towards the mid‑20% range in FY26. AUM expanded 15% YoY to INR3.6t, while EV rose 18% YoY to INR584b with RoEV at a robust 17.6% and solvency ratio at 192%.
Management expects growth momentum to strengthen in 2HFY26, aided by product mix normalization, strong banca partnerships, & expanding agency channels.
Hindustan Aeronautics
Hindustan Aeronautics (HAL) delivered a decent quarter with a slight revenue miss, offset by strong margins and higher other income, resulting in a PAT beat. EBITDA margin stood at 26.6%, supported by improved gross margins and lower provisions.
With GE engine supplies ramping up for the Tejas Mk1A, aircraft deliveries are expected to accelerate.
A strong manufacturing order book underpins execution growth, with revenue projected to grow at a 24% CAGR and PAT at 17% CAGR over FY25–28. RoE/RoCE are expected to reach 22.2%/22.6% by FY28. The stock has corrected from recent highs and trades at attractive valuations. Tejas deliveries and order finalization for 97 Mk1A jets remain key growth drivers.
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