Stock market recommendations: According to Motelle Oswal Financial Services Limited, the top stock pics for the week (starting on May 19, 2025) are Bharti Airtel and Varun Beverages. let’s take a look:
Bharti AirtelBharti’s 4QFY25 performance was in-line. India wireless revenue/ebitda ~ 1%/2% Qoq increased, offset for less days. Console. Due to the redemption of USD1B perpetual bonds, the net debt increased by INR50B.We favor better execution of Bharti on premium.Q4/ FY25 should lead a significant FCF generation of INR1T in FY26-27E, with a strong FCF of ~ INR97B/ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ We models a 14%/17% CAGR in Bharati’s Integrated Revenue/Ebitda (FY25-28E), a required ~ 15% Bharat Wireless Tariff Hike (Dec’25), fast domestic broadband development, and strong double digits in Africa.Varun BeverageVarun Beverage gave a strong 1QCY24 performance with 29% yoy revenue growth, operated by 30% increase (15.5% organic). While the margin remained flat yo at 22.7% due to low-margins South Africa consolidation, domestic demand was healthy with double digits growth. VBL maintained its quantity in the domestic market and maintained its expansion in international markets. The management industry is confident of the development of its double digits behind the tailwind and expands to the new markets. We project more than CY25-26 18%/16%/26%Revenue/Ebitda/PAT CAGRS. As a major franchise of PepsiCo, VBL is well placed to capitalize on India’s weak beverage market and rural refrigeration growth.Disclaimer: The opinion, analysis and recommendations expressed here are of brokerage and do not reflect the views of the Times of India. Always consult a qualified investment advisor or financial planner before taking any investment decision.
