Stock market watch; Know the best stocks to buy this week starting May 5, 2025

The best bets for the week (from May 5, 2025) are Varun Beverages and JSW Infrastructure, says Motilal Oswal Financial Services Ltd.

Stock Market news, Stock market recommendation, Varun Beverages shares, JSW Infrastructure shares, best bet shares, best stocks to buy in 2025- True Scoop

Varun Beverages Ltd. recorded good 1QCY24 performance with 29% YoY revenue expansion, led by strong 30% volume growth (15.5% organic). Although margins were flat YoY at 22.7% on account of lower-margin South Africa consolidation, domestic demand was healthy with double-digit growth. Management is optimistic about long-term double-digit volume growth, driven by distribution growth (visi-coolers) and transition to healthier drinks (nimbooz +100% YoY). International markets, while margin-dilutive, have scale-up potential. We reiterate BUY (55x CY26E EPS), expecting 18%/16%/26% revenue/EBITDA/PAT CAGRs over CY25-26. As PepsiCo's flagship franchisee, VBL is well-positioned to benefit from India's underpenetrated beverage market and rural refrigeration growth.

JSW Infrastructure finished FY25 with robust growth in cargo volumes of 117 Mn tons (+9% YoY). Topline increased by 19% YoY to ₹44.8Bn, while APAT increased ~22% YoY, which indicates consistent advancement towards its goal of achieving port capacity of 400 MTPA by FY30. Led by the Navkar acquisition, the logistics segment aims at ₹80b revenue by FY30. With a resilient balance sheet and optimistic tone, the company is well-positioned to leverage India's infrastructure expansion and growing third-party cargo demand in the face of headwinds globally. We foresee JSWINFRA to consolidate its market leadership, resulting in 13% volume CAGR between FY25-27. Coupled with a dramatic increase in logistics revenues, we forecast revenue/EBITDA/APAT CAGR of 22%/23%/18% between FY25-27.

The views, analysis, and suggestions made here are those of a brokerage and do not carry the views of Truescoop. Always seek advice from a professional investment advisor or financial planner before investing.


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