Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting April 1, 2025) are DLF and HDFC AMC. Let’s take a look:
DLF
DLF has a strong portfolio of luxury residential projects that have received an extraordinary response at launches like Privana South, Privana West, and Dhalias. Gurugram is emerging as a destination for uber-luxury residences, where DLF holds an absolute monopoly. Over the past 10-15 years, DLF’s projects have delivered strong returns, with Super-Luxury/Luxury/Premium categories achieving 18%/12%/10% CAGR. It has maintained dividends for 17 years, with recent increases highlighting its focus on shareholder value. With pre-sales projected to grow at 20% CAGR over FY24-27, strong collections visibility, robust land bank for long-term growth, a cash-positive balance sheet, increasing rental income, and declining debt, our confidence in DLF remains strong. We estimate Adj. PAT to grow at a 26% CAGR over FY24-26.
HDFC AMC
HDFC AMC is India’s third-largest mutual fund house, with QAAUM of ₹7.9t. It holds overall mkt. share of 12% and 13% share in actively managed equity QAAUM, underpinned by strong reputation, consistent fund performance & an extensive distribution network. As of Dec’24, HDFC AMC’s high-margin equity segment makes up 65% of QAAUM, above the ind. avg of 57%. Its total AUM constitutes 27% of HDFC Bank’s mutual fund AUM, compared to ICICI MF’s 60% and SBI MF’s 98%. This suggests significant potential for deeper penetration through HDFC Bank’s branch network. With an improved market position, a well-diversified product portfolio, and digital expansion efforts, HDFC AMC is well-positioned to sustain growth and deliver value to its stakeholders. We expect equity AUM growth of 55%/12% over FY25/26. We estimate an earnings CAGR of 14% over FY25-27.
Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.
