The brokerage house Motilal Oswal has turned positive on three large companies across steel, pharmaceuticals and ports. The brokerage has projected an upside of up to 18% in select stocks. According to the brokerage report, each of these firms are entering a phase where restructuring, new growth avenues or improving demand trends could support healthier financial performance over the next two to three years.
Let’s take a look at the stocks the brokerage expects to do well and the reasoning behind its views –
Motilal Oswal on JSW Steel
The brokerage house has given a ‘Buy’ rating with a target price of Rs 1,350 to JSW Steel. This implyies an upside potential of around 18% from current levels. The brokerage believes that the ongoing restructuring, including the joint venture related to Bhushan Power & Steel (BPSL), could unlock significant value for the company.
Motilal Oswal noted that this restructuring will help JSW Steel “monetize a significant portion of the value created through the turnaround of BPSL” and also strengthen the balance sheet by reducing debt.
The brokerage also pointed out that Japanese steelmaker JFE Steel Corporation already owns around 15% in JSW Steel, and the promoter shareholding is set to increase slightly after the planned changes.
The report also highlighted the improving fundamentals, with expectations of double-digit revenue growth in financial years 2026-2027 due to new capacity ramp-up and a recovery in steel prices.
Furthermore, the brokerage house added that the company’s net debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) ratio could fall sharply to 1.7 times by FY27.
Motilal Oswal on Aurobindo Pharma
The brokerage has also issued a ‘Buy’ call on Aurobindo Pharma with a target price of Rs 1,430. This suggests an upside potential of around 18%. According to the brokerage report, the company’s diversification strategy across Europe, biosimilars and contract manufacturing is creating new revenue streams. It added that European sales are rising, capacity expansion in China is ongoing, and the company’s biologics business continues to scale through its partnership with Merck Sharp & Dohme (MSD).
Motilal Oswal expects steady growth in injectables, new product filings and acquisitions, while the integration of Lannett is also seen as a positive contributor. The report retained the company’s quote that its growth outlook is supported by “accelerated scale-up of the Pen-G/6-APA complex toward full utilization” and an expanding biosimilars pipeline across Europe and the United States.
The brokerage has projected a compounded annual growth rate (CAGR) of 9% in revenue, 14% in EBITDA, and 21% in profit after tax for the financial years 2026 to 2028.
Motilal Oswal on Adani Ports and Special Economic Zone
Motilal Oswal has also maintained a ‘Buy’ rating on Adani Ports and Special Economic Zone (APSEZ) with a target price of Rs 1,770. This translates to a potential upside of around 16%. According to the brokerage report, the company’s cargo profile is becoming more diversified as coal volumes gradually shrink while container and coastal cargo rise.
The report highlighted that the logistics arm, Adani Logistics, is expanding rapidly, backed by container trains, inland container depots, warehouses and grain silos. The brokerage reiterated APSEZ’s quote that the company aims to offer “shore-to-door solutions” through an integrated logistics model.
It added that strong cash flows, planned port expansions and overseas acquisitions provide visibility for steady growth in the coming years. Motilal Oswal expects cargo volumes to grow around 8% over financial years 2025 to 2028, supporting a double-digit rise in revenue, EBITDA and profit.