Motilal Oswal has identified three stocks where it sees room for further gains, but the reasons behind each call are very different. 

Adani Enterprises, Lenskart and Coforge are all rated ‘Buy’, with target prices pointing to potential upside of 16% to 25%.

The key factors range from fresh capital entering Adani Enterprises’ airport business to faster store additions at Lenskart and continued earnings growth at Coforge. 

Here is a detailed look at the investment rationale driving each stock recommendation – 

Motilal Oswal on Adani Enterprises: Fresh capital for airports

Motilal Oswal has a ‘Buy’ rating on Adani Enterprises with a target price of Rs 3,880. This implies around 25% upside from the current market price.

Adani Airport Holdings has signed agreements to raise around Rs 9,800 crore from a group of investors including Alpha Wave Global, Premji Invest, Temasek and funds managed by BlackRock. The investors are expected to acquire a combined stake of around 5.54% in the airport business through multiple tranches.

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The fresh capital is expected to be used for airport expansion, development of around 22 million square feet of mixed-use projects and growth in ground-handling and other non-aeronautical businesses.

The brokerage said, “The portfolio is moving from capital deployment to value creation, with airports, new energy, and data centers entering the scale-up phase and mature businesses generating cash.”

Motilal Oswal expects Adani Enterprises’ revenue, EBITDA and profit after tax to grow at around 22%, 29% and 82% CAGR, respectively, between FY26 and FY29.

Motilal Oswal on Lenskart: Faster store expansion could lift earnings

For Lenskart, Motilal Oswal has retained its ‘Buy’ rating and raised its target price to Rs 800 from Rs 705. The revised target implies around 16% upside.

The brokerage has raised its estimates for FY27 and FY28, citing faster store additions in India and improving operating leverage across both domestic and international operations.

Motilal Oswal expects revenue to grow at 27% CAGR between FY26 and FY29. Pre-Indian Accounting Standards (Ind AS) EBITDA is expected to grow at around 46% CAGR, while adjusted profit after tax could rise at around 59% CAGR.

The brokerage expects pre-Ind AS EBITDA margins in India to reach around 19.4% by FY29, while the international business could reach around 13.5%.

Motilal Oswal on Coforge: Leadership change, but business outlook unchanged

Motilal Oswal has also retained its ‘Buy’ rating on Coforge with a Rs 2,200 target price, implying around 19% upside.

The stock has been in focus after O. P. Bhatt resigned as Non-Executive Independent Director and Chairman following observations from an internal review of the board evaluation process.

The company has appointed Vivek Sharma as interim chairperson until January 31, 2027.

Motilal Oswal said, “We see limited implications for the underlying business as of now and await more clarity on the permanent appointment of the new chair.”

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The brokerage has therefore kept its financial estimates unchanged. It continues to expect Coforge to remain a strong growth performer, supported by deal wins, execution, improved cash conversion and margin benefits from the Encora integration.

It said, “We continue to value Coforge at 29x FY28E EPS with a target price of Rs 2,200, implying 19% upside.”

What investors need to watch

Motilal Oswal’s recommendation is being driven by individual drivers for each stock. Adani Enterprises’ growth is being driven by fresh airport capital and the scaling up of new infrastructure businesses. Lenskart is relying on faster store growth and operating leverage. Coforge, meanwhile, is being viewed through its earnings growth despite the recent board-level development.

Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.