The brokerage firm, Motilal Oswal has highlighted three stocks in its latest report. As per the analysis by the brokerage house, these counters offer significant upside potential of as much as 29%.
Motilal Oswal expects these companies to see steady growth over the next couple of years, driven by operational efficiency, margin expansion, and sectoral tailwinds.
Let’s take a look at each of the recommended stocks and the rationale behind their buy ratings –
Motilal Oswal on Persistent Systems
The brokerage firm has given a Buy rating to Persistent Systems, setting a target price of Rs 6,550. This translates to an upside potential of 23% from the current market price.
Motilal Oswal also mentioned that they expect Persistent Systems revenue will grow at 19% per year from FY25 to FY27, in dollar terms. With improving profit margins, this could lead to about 26% annual growth in earnings per share (EPS) over the same period, they added.
The brokerage also added, “Owing to its superior earnings growth trajectory, on a PEG basis, we believe the valuation still has room for upside.”
Motilal Oswal on Tech Mahindra
Tech Mahindra has also got a ‘Buy’ recommendation, with a target price of Rs 1,900. This implies a 29% upside from the current market price.
According to the brokerage report, they “expect revenue, profit to grow by 8.3% and 39% YoY in the second half of FY26. “We reiterate a Buy on Tech Mahindra with a target price of Rs 1,900, implying a 29% upside, based on 23 times June 2027 estimated EPS (Earning-per-share),” the brokerage added.
The report highlighted that revenue growth was led by strength in manufacturing, BFSI, and logistics, while telecom remained weak. EBIT margin improved to 12.1%, helped by better fixed-price delivery, lower SG&A, and some forex gains.
Motilal Oswal explained that, “We remain positive about the restructuring at Tech Mahindra under the new leadership. But we expect the impact from these steps to be visible gradually. With the continued strength in BFSI and improving operational efficiency, we see room for continued margin improvement ahead.”
Motilal Oswal on Cyient DLM
Another recommendation from Motilal Oswal is Cyient DLM, with a target price of Rs 550. This translates to an upside of 17% from current levels.
Motilal Oswal noted that the order book rose 16% YoY/7% QoQ to Rs 23 billion, with about a quarter of this new inflow executable in FY26.
The brokerage added, “The revenue decline in Q2 was offset by margin expansion. We expect margin expansion momentum to continue going ahead, driven by an improved product mix and increasing orders of box-build and build-to-spec.” They added that macro tailwinds such as the end of the Israel-Gaza conflict, opportunities in the EV space, and B2S customer additions will drive growth in the medium term.