Motilal Oswal Wealth Management Research Desk has named Poonawalla Fincorp and Lenskart as the top two stock buys for the week starting August 17, 2026, according to Business Today. Both stocks carry a target price implying a potential upside of 15% from their current market prices.
The Recommendations at a Glance
The table below summarises the two recommended stocks, their current market prices, target prices and implied upside, as reported by Business Today.
| Stock | CMP (Rs) | Target Price (Rs) | Upside (%) |
|---|---|---|---|
| Poonawalla Fincorp | 497 | 570 | 15 |
| Lenskart | 612 | 705 | 15 |
Poonawalla Fincorp is recommended with a current market price of Rs 497 and a target price of Rs 570, while Lenskart is recommended at Rs 612 with a target of Rs 705.
Poonawalla Fincorp: Diversified Lending Model Gains Scale
According to Business Today, Poonawalla Fincorp is steadily transforming into a diversified retail lender. Businesses such as gold loans, consumer durable finance, Prime Personal Loans and education loans are gaining scale, the report said. 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 diversification progress, as per the report. Disbursement yields improved 50 basis points quarter-on-quarter to 16.4%, and credit costs declined to 2.4% from 2.6% year-on-year. Collection efficiency remained strong at 99.6%, pointing to improving asset quality and portfolio seasoning, Business Today noted.
The research desk estimates a 43% AUM CAGR and 117% PAT CAGR over FY26-28E, with net interest margins at 7.6% and 7.7% in FY27E and FY28E respectively. Return on assets and return on equity are projected to improve to 2.4% and 17% by FY28E. Operating leverage is expected to bring the cost-to-income ratio down to 43% by FY28E from 52% in FY26, supporting profitable scaling.
Lenskart: Premiumization and Omnichannel Expansion
Lenskart delivered a strong 1QFY27, with EBITDA growth ahead of revenue, supported by healthy volumes and continued premiumization, according to Business Today. Better manufacturing capabilities, supply-chain integration and an expanding omnichannel presence should help drive growth while maintaining healthy unit economics, the report said.
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.
Business Today reported that the research desk models a 25% revenue CAGR, 41% pre-Ind AS EBITDA CAGR and 50% 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.
What the Picks Signal
These recommendations place two distinct growth stories in focus: a diversified non-bank lender scaling new product lines, and an omnichannel eyewear retailer expanding margins through premiumization. For equity analysts and portfolio managers, the target prices imply a 15% upside for both names from their respective current market prices, according to the Motilal Oswal Wealth Management Research Desk.
Business Today's report carries a disclaimer stating that recommendations and views given by experts and analysts are their own and do not represent the views of The Times of India.
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