Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting August 11, 2025) are AU Small Finance Bank, and Bharti Airtel. Let’s take a look:
AU Small Finance Bank:RBI’s approval for AU SFB’s universal bank transition validates its governance and boosts brand positioning. It narrows deposit rate gaps, lowers funding costs, and strengthens CASA mobilization, supporting more efficient and competitive growth. Universal banking license removes lending limits, allowing AUBANK to expand into larger retail, SME & mid-corporate seg.This enhances portfolio diversification; capital efficiency & supports sustainable growth across a broader customer base. With earnings recovery expected in 2H, strong loan growth, potential capital raise, and CEO term renewal, the RBI approval acts as a significant catalyst. These factors increase growth visibility, improve investor appeal, and reinforce confidence in AUBANK’s operational capabilities and long-term prospects.Bharti Airtel:Bharti reported a healthy 1QFY26, with a 5% beat in Airtel Africa. India wireless revenue and EBITDA rose ~3% QoQ, driven by higher ARPU and improved margins, offsetting softer subscriber additions. Adj. PAT grew 14% QoQ (+103% YoY) to INR59.5b. Consol. EBITDA rose 21% YoY (2% beat), led by strong growth in Home Broadband & Airtel Africa (both up 8% QoQ). With capex normalizing post 4Q, robust FCF of ~INR143b enabled a sharp ~INR130b reduction in net debt. We model a 14%/17% CAGR in Bharti’s consolidated revenue/EBITDA over FY25–28E, led by the anticipated ~15% tariff hike in India wireless from Dec ’25, accelerating net additions in Home Broadband, and sustained double-digit growth in Africa.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
