Stock market recommendations: Poonawalla Fincorp, and Lenskart – these are the top two stocks to buy recommended by Motilal Oswal Wealth Management Research Desk for the week starting August 17, 2026:
| NAME | CMP (Rs) | TP (Rs) | Upside (%) |
| Poonawalla Fincorp | 497 | 570 | 15% |
| Lenskart | 612 | 705 | 15% |
Poonawalla FincorpPoonawalla Fincorp is steadily transforming into a diversified retail lender, with businesses such as gold loans, consumer durable finance, Prime Personal Loans and education loans gaining scale. Management remains focused on profitable growth, while AI-led efficiencies and a wider distribution network should support operating leverage and improve earnings quality. In 1QFY27, new businesses accounted for 26% of disbursements and 17% of AUM, highlighting the progress on diversification.Disbursement yields improved 50bp QoQ to 16.4%, while credit costs declined to 2.4% from 2.6% YoY. Collection efficiency remained strong at 99.6%, pointing to improving asset quality and portfolio seasoning. We estimate 43% AUM and 117% PAT CAGR over FY26-28E, with NIMs at 7.6%/7.7% in FY27E/FY28E and RoA/RoE improving to 2.4%/17% by FY28E. Operating leverage should also bring the C/I ratio down to 43% by FY28E from 52% in FY26, supporting profitable scaling.LenskartLenskart delivered a strong 1QFY27, with EBITDA growth ahead of revenue, supported by healthy volumes and continued premiumization. Better manufacturing capabilities, supply-chain integration and an expanding omnichannel presence should help drive growth while maintaining healthy unit economics. The company continues to see strong same-store sales growth despite increasing store density, with significant room for expansion across India.The international business is also moving towards an acceleration phase as technology and supply-chain integration improve, creating further scope for network expansion. We model 25%/41%/50% revenue/pre-Ind AS EBITDA/adjusted PAT CAGR over FY26-28E, with revenue growth of around 25% in both India and international markets. Pre-IND AS EBITDA margins are expected to reach 18.5% in India and 12.5% in international markets by FY29.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)
