Motilal Oswal has given three stocks with strong upside potential, placing Buy ratings on Petronet LNG, VA Tech Wabag, and Prince Pipes and Fittings. According to the brokerage house, these companies offer as much as 40% potential upside from current levels due to strong fundamentals, steady earnings visibility, and favourable sector outlooks.
Let’s take a look at why the brokerage remains positive on these three stocks.
Motilal Oswal on Petronet LNG
Motilal Oswal has given a ‘Buy’ rating on Petronet LNG with a target price of Rs 390. This translates to an upside of nearly 40% from current levels. According to the brokerage report, “At 8.9x FY27E P/E and a around 4.3% dividend yield, we believe valuations are inexpensive.”
The firm highlighted that its Discounted Cash Flow (DCF) analysis, based on a Weighted Average Cost of Capital (WACC) of 10.5%, shows that the current market price reflects an unrealistic assumption of a 20% decline in tariffs at both Dahej and Kochi terminals by FY28 with no growth thereafter.
“Dahej utilisation was in line with our estimates, while Kochi utilization stood 12% above,” the report added.
PLNG’s board also declared an interim dividend of Rs 7 per share. According to Motilal Oswal, “Our DCF-based target price of Rs 390 assumes a 10% tariff cut in FY28, followed by a 4% rise for both terminals.”
Motilal Oswal on VA Tech Wabag
The brokerage has also reiterated its ‘Buy’ call on VA Tech Wabag. It has set a target price of Rs 1,900. This translates to about 40% potential upside from current market levels.
According to Motilal Oswal, the water treatment firm continues to deliver strong performance, backed by a healthy order book and a strong growth pipeline. “We broadly maintain our earnings estimates after decent Q2FY26 results,” the report said.
After achieving a CAGR (compound annual growth rate) of 4% in revenue, 18% in EBITDA, and 28% in PAT over FY21–25, the brokerage expects 17%/22%/23% CAGR in revenue/EBITDA/PAT over FY25–28.
VA Tech Wabag’s current order book stands at Rs 16,000 crore, nearly 4.9 times its FY25 revenue, with additional orders worth Rs 3,000 crore where it is the preferred bidder. The company also has a bid pipeline of Rs 15,000–20,000 crore.
“Its greater focus on executing large-scale projects in high-margin segments such as Engineering Procurement (EP), Industrial, and Operations & Maintenance (O&M) augurs well for margins,” the brokerage noted. It also added that the company’s strong free cash flow (FCF) generation, net cash position, and improving return ratios make the stock attractive at around 19x FY27E EPS.
“We reiterate our BUY rating and a target price of Rs 1,900, based on 26x FY27E P/E,” the report added.
Motilal Oswal on Prince Pipes and Fittings
The third pick on Motilal Oswal’s list is Prince Pipes and Fittings, which the brokerage also rates a ‘Buy’, with a target price of Rs 430. This indicates a 37% upside from current market price.
According to the brokerage report, the management expects a healthy recovery in demand in the second half of FY26, leading to high single-digit volume growth for the year. “October 2025 was subdued due to festivals and anti-dumping duty (ADD)-related uncertainties, while November 2025 is seeing a healthy pickup,” the report added.
As per the brokerage, “With the stabilization of PVC prices, an improving demand outlook, the ramp-up of the new Begusarai plant, and geographical expansion of the bathware segment into the Southern and Eastern markets, the company is well-positioned for renewed growth.”
Motilal Oswal expects the company to record 13% revenue growth annually and 37% profit growth every year between FY25–FY28 and values the stock at 25x September 2027E EPS to arrive at the Rs 430 target price.