From Escorts Kubota To L&T: Top 3 Stocks To Buy This Week As Recommended By HDFC Securities

This week's top choices from HDFC Securities include guidance to buy three stocks. The firm is bullish on the shares of Larsen & Toubro Ltd., Kalpataru Projects International, and Escorts Kubota for the week.

Escorts Kubota

Recommendation: Buy in Rs band 3350- 3450 and add on dips in Rs 3150-3200 band, Base Case Fair Value: Rs 3700, Bull Case Fair Value: Rs 3850, Duration: 2-3 quarters

"The macroeconomic factors for the tractor industry remain positive with the GoI focus on increasing rural income. The increase in MSP for both the Kharif as well as Rabi crops and rise in retail finance penetration would drive higher demand for tractors. Sales to the global Kubota network are also gradually increasing. The tractor industry recorded 9.3% volume growth in the first quarter of FY26, and with forecasts of above-average monsoons, this trend could continue. Pre-buying activity ahead of TREM V emission norms, scheduled to take effect from April 1, 2026, may provide additional volume support in the near term. Lower dependence on tractors augurs well for the long term growth of the company," said HDFC Securities in a note.

As per the brokerage, tractor manufacturers have benefited from easing commodity costs as global demand has slowed and Chinese steel prices have corrected downward. The company continues to be net debt-free with sufficient available liquidity for growth. Increase in steel prices and loss of market share would be key monitorables for the company.

Escorts Kubota Technical Outlook

Buying Range: Rs 3350-3450, Add on Dips: Rs 3150-3200, Red Flag Level: Rs 3085, Target: Rs 3700,3850, Duration: 2-3 quarters

• Symmetrical Triangle Breakout on the weekly line chart
• Price rise is accompanied by jump in volumes
• Stock is placed above 50 and 200 DEMA, indicating bullish trend on medium to long term time frame
• In the month of July 2025, 50 DEMA surpassed 200 DEMA which indicates golden crossover.
• Weekly RSI Indicator is placed above 50, indicating sustainable uptrend.
• Weekly MACD is placed above equilibrium and signal line.
• Auto sector has been outperforming and that is expected to continue.

Kalpataru Projects International

Recommendation: Buy in Rs 1214-1250 band and add on dips in Rs 1098-1120 band, Base Case Fair Value: Rs 1318, Bull Case Fair Value: Rs Rs 1404, Time Horizon: 2-3 quarters

"The order-book of the company is well diversified in various segments like Transmission, Railways, Building & Factory construction, Urban Infrastructure and Water segments, currently standing at Rs. 65,475 cr as on June 30th 2025, significantly increasing by 14% compared to the same period in FY25. Orders worth Rs. 9,899 cr were secured by the company in Q1FY26. The order-book indicates a robust visibility of 3.5x of FY25 revenue. Company also posted healthy Q1 results with Revenue/EBITDA/PAT growth of 35%/37%/72% YoY. KPIL has consistently highlighted that margin expansion remains a major focus area for the company on back of strategic bidding, diversified business mix and operational efficiencies. KPIL expects to continue further diversification into renewables, railways, water and expand to new markets and improve market position in the current business with expected order inflow in the range of Rs. 26,000 cr to Rs. 28,000 cr for FY26," said HDFC Securities.

"Moreover, the order inflows for FY26 are expected to have better margins as compared to the orders in the past helping the company improve its profitability in the long run. On the back of a strong order book and execution momentum, company expects to target ~ 25% plus revenue growth with an EBITDA margin band of 8.5% - 8.7% and PBT margins band of 5.2% to 5.5%. Company also aims to keep the net working capital below 100 days by prudent debt management. KPIL is actively pursuing monetization of non-core assets like Indore real estate, Vindhyachal & logistics warehouses, expecting to be completed by this year. Company has also initiated a strategic review on its Swedish subsidiary (LMG) for a possibility of an IPO," the brokerage further added.

"KPIL's robust order book, strong financial profile, increased overseas expansion, strong domestic demand in T&D segment, expertise in diverse EPC sectors, divesting non-core assets for RoCE improvement and capacity to handle large-scale projects, positions it well to capitalize on significant infrastructure investments, particularly in sectors like power transmission, urban mobility, oil & gas, water in India and international markets," as per HDFC Sec.

"We believe investors can buy the stock in the price band of Rs 1214-1250 (18.1x FY27E EPS) and add on dips in Rs 1098-1120 band (16.3x FY27E EPS) for a base case fair value of Rs 1318 (19.4x FY27E EPS) and bull case fair value of Rs 1404 (20.6x FY27E EPS) in the next 2-3 quarters," the brokerage stated.

Kalpataru Projects International Technical Outlook

Buying Range: Rs 1214-1250, Add on Dips: Rs 1098-1120, Red Flag Level: Rs 1075, Targets: Rs 1318 - 1404, Time Horizon: 2-3 quarters

• Stock price has broken out from bullish inverted head and shoulder pattern on the weekly line chart.
• Price rise is accompanied by jump in volumes
• Stock is placed above all key moving averages, indicating bullish trend on all time frames.
• In the month of August, stock price found support on 200 DEMA multiple times and reversed its trend towards north.
• Weekly RSI Indicator is placed above 50, indicating sustainable uptrend.
• Weekly MACD is placed above equilibrium and signal line.
• Power and Transmission sector has been outperforming and that is expected to continue.

Larsen & Toubro

Recommendation: Rs Buy in Rs 3644-3690 band and add on dipsto Rs 3483-3460, Base Case Fair Value: Rs 3938, Bull Case Fair Value: Rs 4082, Time Horizon: 2-3 quarters

"L&T has a dominant position and market share in most operating verticals. The business mix across domestic and international businesses has shifted over last few years. Driven by a robust ramp-up in international ordering, particularly in the last three years, Strong inflows and a healthy prospect pipeline should result in higher mid-teens growth in core EPC revenue over the next five years vs. 11% revenue CAGR in the past five years. In domestic markets, L&T is optimistic about ordering from segments like transmission and distribution, nuclear, thermal power projects, defense, buildings and factories," HDFC Sec said.

"We expect a CAGR of 10% in core EPC order inflows over FY25-27E. With a strong track record of execution, we expect a ~14% CAGR in core EPC revenue over the same period, with steady core EPC margin in the medium term. We estimate a CAGR of 22.5%/22% in consolidated EBITDA/PAT over FY25-27E. We remain positive on the company considering its ability to benefit from a large prospect pipeline and maintain healthy NWC and RoE. At CMP, the stock trades at 22.5x FY27E EPS and 13.7x FY27E EV/EBITDA," the brokerage stated.

Larsen & Toubro Technical Outlook

Buying Range: Rs 3644-3690, Add on Dips: Rs 3483, Red Flag Level: Rs 3400, Targets: Rs 3938-4082, Time Horizon: 2-3 quarters

• Stock price has broken out from downward sloping trend line on the weekly line chart.
• Stock price has recently broken out from symmetrical triangle on the daily chart.
• Price rise is accompanied by jump in volumes.
• Stock is placed above all key moving averages, indicating bullish trend on all time frames.
• Weekly RSI Indicator is placed above 50, indicating sustainable uptrend.
• Weekly MACD is placed above equilibrium and signal line.
• Nifty Infra index has broken six week losing streak and closed with a gain of 1.27%. Considering the primary uptrend, infra index is likely to resume its uptrend.

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