Motilal Oswal Wealth Management Research Desk has identified Syrma SGS Technology (Syrma SGS) and Max Financials as the top stock picks for the trading week commencing May 18, 2026. The recommendations come with detailed analysis and target prices, highlighting significant upside potential for both stocks.
Stock Ratings and Targets
The research desk has assigned a 'Buy' rating to Syrma SGS with a current market price (CMP) of Rs 1,016 and a target price of Rs 1,300, implying an upside of 28%. Similarly, Max Financials has been rated 'Buy' with a CMP of Rs 1,601 and a target of Rs 1,980, offering a 24% upside.
Syrma SGS Technology: Strong Quarterly Performance
Syrma SGS Technology delivered a robust performance in the fourth quarter of fiscal year 2026. Revenue surged 59% year-on-year, driven by strong traction in the Consumer and Auto segments. Operating leverage led to a 62% YoY increase in EBITDA and a 30 basis point expansion in EBITDA margin. The company closed FY26 with a healthy order book of Rs 66 billion. Continued customer additions, rising ODM contribution, growing export opportunities, and scale-up in newer verticals such as MedTech and Defense provide strong medium-term growth visibility.
Motilal Oswal remains positive on Syrma SGS's long-term outlook, driven by higher-margin businesses, rising exports, increasing industrial and automotive contribution, and expansion into newer verticals. The research desk expects revenue, EBITDA, and PAT compound annual growth rates of 32%, 35%, and 39% respectively over FY26-28.
Max Financials: Consistent Growth in Insurance Business
Axis Max Life Insurance (MAXLIFE), a subsidiary of Max Financials, reported an 18% YoY growth in annual premium equivalent (APE) to Rs 35.9 billion, which was in line with estimates. For the full fiscal year FY26, APE grew 20% YoY. The value of new business (VNB) increased 19% YoY to Rs 10.1 billion, exceeding estimates by 4%. This resulted in a VNB margin of 28.2%, compared to the estimated 27% and 28% in 4QFY25.
MAXLIFE continued to outperform industry APE growth, supported by strong traction in proprietary and non-Axis banca channels, improving persistence across cohorts, and a favorable shift toward traditional products. These factors aided continued VNB margin expansion despite the impact of labor code and GST. Motilal Oswal expects the VNB margin trajectory to remain stable, as the company is likely to reinvest incremental margin from product mix shifts into growth opportunities.
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.
