Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting August 25, 2025) are Dixon Tech, and Vishal Mega Mart. Let’s take a look:
Dixon TechDixon enjoys strong market leadership, supported by strategic JVs that ensure long-term volume sustainability and backward integration. Its early mover advantage and ability to scale across segments like telecom, IT hardware, and appliances provide a solid foundation for continued growth. Dixon’s first-mover advantage is evident with 19% smartphone volume share in FY25, expected to rise to 40% by FY27, alongside its plan to address 30–35% of BoM (Bill of materials) over 1–2 years and capitalize on export opportunities from key clients. We revise our estimates to factor in slightly better volumes for mobile and EMS along with higher minority interest for the JVs and inclusion of Aditya Infotech stake, projecting a revenue/EBITDA/PAT CAGR of 36%/41%/46% over FY25–28.Vishal Mega MartVishal Mega Mart (VMM) has established itself as India’s largest value retailer with a deep moat built on scale, private label dominance (~76% of revenues), and a lean cost structure. Its wide presence across Tier-2+ cities (717 stores across 472 cities as of Jun’25) provides structural growth visibility, supported by strong customer engagement and expansion into new states. Management highlighted that VMM continues to deliver double-digit SSSG across tiers and states, aided by higher footfalls and customer up-trading, while also guiding for stable gross margins and gradual EBITDA margin expansion driven by operating leverage. Quick commerce is scaling fast, covering ~670 stores across 454 cities with ~10m registered customers, adding incremental growth levers. We estimate VMM to deliver a robust ~20%/21%/27% CAGR in revenue/EBITDA/PAT over FY25–28E, underpinned by ~13% CAGR in store additions and sustained double-digit SSSG.(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)
