The brokerage firm Motilal Oswal in its latest report has given ‘Buy’ rating to three stocks. The brokerage believes that these stocks could deliver healthy returns, with potential upsides of up to 24% from current levels.
According to the brokerage report, the three stocks – Cholamandalam Investment & Finance Company, ICICI Lombard General Insurance, and ICICI Prudential Life Insurance remain well positioned to benefit from strong business fundamentals and supportive industry trends.
Let’s take a look at the brokerage’s investment rationale on these stocks –
Motilal Oswal on Cholamandalam Investment & Finance
Motilal Oswal has maintained a bullish stance on Cholamandalam Investment & Finance Company, assigning a ‘Buy’ rating with a target price of Rs 1,920. This implies a 17% upside from current market levels.
According to the brokerage report, Cholamandalam Investment & Finance Company is evolving into a stronger and more diversified non-banking financial company (NBFC).
The firm noted that “Cholamandalam Investment & Finance Company is gradually evolving into a more robust and resilient NBFC – one that is less cyclical, more diversified, and increasingly anchored in stable, secured retail and SME income streams.”
The brokerage highlighted the company’s focus on improving efficiency while expanding into newer business segments such as consumer durable and gold loans. It added that Cholamandalam Investment & Finance Company’s premium valuation is justified by its consistent performance and ability to navigate challenges effectively.
Motilal Oswal further stated, “Cholamandalam Investment & Finance Company trades at 3.8x FY27E P/BV, a premium that we believe is well-deserved and likely to sustain.”
The brokerage expects the company to deliver a PAT CAGR of around 25% over FY25-28, with a return on assets (RoA) of 2.7% and return on equity (RoE) of 20% by FY28.
Motilal Oswal on ICICI Lombard
Motilal Oswal has also reiterated a ‘Buy’ rating on ICICI Lombard General Insurance Company, setting a target price of Rs 2,300. This translates to an upside potential of 24% from current market levels.
According to the brokerage report, ICICI Lombard is expected to benefit from favourable regulatory changes and GST-related reforms.
The brokerage noted that ICICI Lombard’s retail health business continues to see steady momentum, backed by new customer acquisitions and the growing popularity of its ‘Elevate’ product. It also revised its growth projections upward.
Motilal Oswal added, “We have raised our FY26/FY27/FY28 NEP estimates by 6%/7%/7%, driven by GST benefit-led growth in the motor segment. However, we have raised EPS estimates by only 1%/2%/3% for FY26/FY27/FY28 due to a higher combined ratio in the motor segment. Reiterate BUY with a TP of Rs 2,300 (based on 30x Sep’27E EPS).”
Motilal Oswal on ICICI Prudential Life Insurance
The brokerage has also maintained a ‘Buy’ recommendation on ICICI Prudential Life Insurance, with a target price of Rs 720. This indicates a potential upside of 20%.
According to the brokerage report, the life insurer continues to see steady business growth, though near-term profitability may be affected by higher costs due to GST-related changes.
“We have maintained our APE growth estimates for FY26/FY27. However, we have raised our cost assumptions for H2FY26 due to the loss of input tax credit, reducing our FY26 VNB margin estimates by 20bp while keeping FY27/28 estimates intact,” the report stated.
Motilal Oswal said the company’s cost optimisation efforts and improving product mix have supported steady margin expansion. It added that while GST adjustments could weigh on short-term earnings, the long-term growth story remains intact.