Motilal Oswal Wealth Management Research Desk has recommended Astra Microwave and Shaily Engineering Plastics as the top stocks to buy for the week starting June 1, 2026. The recommendations come with a 'Buy' rating and target prices indicating an upside of approximately 14% for both stocks.
Astra Microwave
Astra Microwave (ASTRA) delivered a strong performance in FY26, with results surpassing estimates due to better margins and a 29% year-on-year increase in inflows to INR 16.6 billion. Export momentum strengthened in the fourth quarter of FY26, supported by higher-value RF systems and SDR-related opportunities. Key growth drivers for ASTRA include Uttam radar, QRSAM, Su-30 upgrades, EW systems, weather radars, and strategic space programs.
The company targets FY27 revenue of INR 13-14 billion, implying 15-20% year-on-year growth through stronger execution and higher production order contributions. It aims to nearly triple revenue by FY30-31, backed by strategic defense programs, improving operating leverage, and better cash-flow generation. Motilal Oswal has upgraded FY27 and FY28 estimates to reflect stronger inflows and margins, with revenue, EBITDA, and PAT expected to grow at a CAGR of 20%, 17%, and 30% respectively over FY26-28.
Shaily Engineering Plastics
Shaily Engineering Plastics has built nearly four decades of expertise in precision plastics manufacturing, serving global leaders across healthcare, consumer, personal care, appliances, automotive, and lighting industries. Its strong innovation capabilities and diversified customer base include IKEA, Unilever, Gillette, P&G, GE, and Garrett. The company's healthcare business is witnessing strong momentum from rising GLP-1 and insulin pen demand after semaglutide patent expiries in key emerging markets. Backed by robust order visibility and sole-supplier engagements, the company plans a fivefold expansion in pen manufacturing capacity to over 150 million units by FY28.
Motilal Oswal expects the strong growth momentum to continue, supported by volume commitments from key healthcare customers. The research desk expects Shaily Engineering Plastics to clock a CAGR of 29%, 38%, and 43% in revenue, EBITDA, and PAT over FY26-28, with EBITDA margin sustaining at 32% or higher. Return on equity and return on capital employed are expected to expand to approximately 28% and 36% respectively in FY28E.
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