For the week commencing August 17, 2026, the Motilal Oswal Wealth Management Research Desk has pinpointed two promising stocks to buy: Poonawalla Fincorp and Lenskart. These recommendations come with specific target prices and an anticipated upside of 15% for both companies. Poonawalla Fincorp, currently trading at ₹497, is projected to reach ₹570, while Lenskart, at ₹612, is expected to climb to ₹705.
Poonawalla Fincorp is undergoing a strategic transformation, evolving into a more diversified retail lender. This diversification includes expanding into gold loans, consumer durable financing, prime personal loans, and education loans, all of which are gaining substantial traction. The management’s clear focus on achieving profitable growth is underpinned by the implementation of AI-driven efficiencies and an expanded distribution network. These initiatives are designed to foster operating leverage and enhance the overall quality of earnings. In the first quarter of fiscal year 2027 (1QFY27), these new business segments remarkably contributed 26% of total disbursements and 17% of the Assets Under Management (AUM), underscoring the success of their diversification strategy. Furthermore, disbursement yields saw a notable improvement, increasing by 50 basis points quarter-over-quarter to 16.4%, while credit costs decreased from 2.6% year-over-year to 2.4%. The company also maintained a robust collection efficiency of 99.6%, indicating strengthening asset quality and a maturing portfolio. Analysts project a significant 43% AUM compound annual growth rate (CAGR) and an impressive 117% PAT CAGR between FY26 and FY28. Net Interest Margins (NIMs) are anticipated to be around 7.6% in FY27 and 7.7% in FY28, with Return on Assets (RoA) and Return on Equity (RoE) expected to improve to 2.4% and 17% respectively by FY28. Operational leverage is also forecast to reduce the Cost-to-Income (C/I) ratio from 52% in FY26 to 43% by FY28, thereby supporting sustained profitable scaling.
Lenskart also demonstrated a strong performance in 1QFY27, with its EBITDA growth surpassing revenue growth. This positive trend is attributed to healthy sales volumes and a continued focus on premiumization. The company’s enhanced manufacturing capabilities, integrated supply chain, and expanding omnichannel presence are key drivers for future growth, while simultaneously ensuring healthy unit economics. Lenskart continues to achieve strong same-store sales growth despite increasing its store density, indicating substantial room for further expansion across India. The international segment of the business is entering an accelerated growth phase, propelled by advancements in technology and improved supply chain integration, which will further facilitate network expansion. Analysts project a CAGR of 25% for revenue, 41% for pre-Ind AS EBITDA, and 50% for adjusted PAT over the FY26-28 period. Revenue growth is expected to hover around 25% in both Indian and international markets. Furthermore, pre-IND AS EBITDA margins are anticipated to reach 18.5% in India and 12.5% in international markets by FY29.
