The brokerage firm Motilal Oswal is bullish on three heavyweights – Larsen & Toubro, Gland Pharma, and Kotak Mahindra Bank. According to the brokerage house, some of these stocks could deliver as much as 18% returns.
Let’s take a look at what is the brokerage take on these stocks and the rationale behind it –
Motilal Oswal on Larsen & Toubro
Engineering giant Larsen & Toubro has received a firm ‘Buy’ call from Motilal Oswal, which sees the stock climbing to Rs 4,300. That is nearly a 17% upside from current levels.
According to the brokerage report, L&T’s order book of Rs 6.1 trillion as of Q1FY26 gives strong revenue visibility, especially as international projects are driving growth.
“Core E&C revenue growth over the last three years and in Q1FY26 was largely driven by international projects, and we expect a similar trend to continue in the future too,” the report noted.
Execution in mega projects across the Middle East is expected to fuel momentum, more than offsetting slower domestic growth. “We expect that strong execution growth in international projects will more than compensate for weaker growth in domestic revenue,” Motilal Oswal said.
However, the brokerage flagged risks such as “a slowdown in order inflows, geopolitical issues, delays in the completion of mega and ultra-mega projects, a sharp rise in commodity prices, an increase in working capital, and increased competition.”
Motilal Oswal on Gland Pharma
Pharma major Gland Pharma is another stock where Motilal Oswal sees significant upside. With a target price of Rs 2,340, the brokerage expects an 18% gain from current levels.
The company has faced challenges in recent years, with profits shrinking. As the report highlighted, “Gland Pharma witnessed a significant deterioration in its financial performance, with PAT posting a 17% compounded decline over FY22-FY25.” The brokerage attributed this to rising competition and inventory pressures.
But now, the tide seems to be turning. “Gland has been working to revive its performance across the segment by focusing on all growth factors,” Motilal Oswal said. Investments in niche US approvals and higher-value offerings from its Cenexi facilities are expected to improve margins.
Capacity expansion is another lever. The company is ramping up from 40 million to 140 million units to capitalize on GLP-1 demand, which could be a game-changer post patent expiry in FY26. According to the report, “After three years of decline, we expect a CAGR of 14%/20%/27% in revenue/EBITDA/PAT over FY25-FY27.”
Motilal Oswal on Kotak Mahindra Bank
Banking bellwether Kotak Mahindra Bank also finds a place in Motilal Oswal’s top picks, with a target price of Rs 2,400. This translates to an upside potential of 18%.
According to the brokerage report, the bank is sharpening its focus on retail and SME segments while keeping loan growth disciplined at 1.5–2.0x. At the same time, initiatives like SA repricing and the ActivMoney sweep facility are expected to limit margin pressures. “We estimate NII to clock a 19% CAGR over FY26-28, with NIMs stabilising and beginning to recover from Q3FY26 onwards,” Motilal Oswal said.
The brokerage also expects credit costs to ease. “Full-year credit costs are likely to sustain at 70 bps (93bp in Q1FY26),” it added.
The bank is adding 150–200 branches annually without increasing headcount, helping strengthen its retail franchise and diversify income streams.