Top stocks to buy: Stock recommendations for the week starting January 5, 2026 – check list
Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting January 5, 2026) are Max Financials, and Kotak Mahindra Bank. Let’s take a look:
Max FinancialsMAXF is witnessing early signs of sustained demand in protection and credit life post-GST exemption. MAXF delivered a healthy 2QFY26 performance, with APE/VNB rising 16%/25% YoY to, driving margin expansion of 150bp YoY to 25.5%. The improvement was led by a favorable product mix, with higher contributions from protection (18%) and non-par savings (35%) segments.The solvency ratio improved to 208%, and AUM grew 9% YoY to INR1.85t. Management maintained its FY26 VNB margin guidance of 24–25%, supported by operating efficiency and steady growth across proprietary and bancassurance channels. We estimate VNB margins of 25%/26%/26.5% in FY26/FY27/FY28, as persistence trends strengthened across long-term cohorts, reinforcing quality growth.Kotak Mahindra BankKotak Mahindra Bank reported an in-line 2QFY26 performance, with NII, PPoP, and PAT broadly meeting expectations. PAT stood at ~INR32.5b, while NII grew 4.1% YoY/0.7% QoQ to INR73.1b. Advances rose 15.8% YoY/4% QoQ to INR4.63t, supported by strong growth in business banking, SME, home loans, and corporate segments. Deposits grew 14.6% YoY/3.1% QoQ, aided by healthy CASA growth of 6.7% QoQ (11.2% YoY), improving the CASA ratio to 42.3%. Lower treasury income was offset by tight cost control and lower provisions.Asset quality remained stable with declining slippages and a PCR of 77%. NIMs were steady and are expected to improve with deposit repricing and CRR benefits. The unsecured book is likely to recover as lending conditions improve. We estimate RoA/RoE at 2%/12.7% by FY27.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
