The Indian domestic market has been moving in a volatile range in recent few sessions as global tension keep investors cautious.Amid the ongoing conflict involving the US, Israel and Iran, it has created an uncertainty across global markets. Moreover, the benchmark indices have been fluctuating between gains and losses for the past few sessions.

However, even during such uncertain phases,brokerage houses continue to identify select opportunities across sectors where they see potential upside in the coming years. The brokerage firm Motilal Oswal in its latest report highlighted a few stocks where it believes the long-term outlook remains strong. It has maintained ‘Buy’ recommendations on Crompton Greaves Consumer Electricals, Delhivery and Jain Resource Recycling, with potential gains ranging from around 29% to as much as 40%.

Let’s take a look at the stocks the brokerage is bullish on and the rationale behind it –

Motilal Oswal on Crompton Greaves Consumer Electricals

The brokerage house has maintained a positive view on Crompton Greaves Consumer Electricals. This is a company known for products such as fans, lighting equipment, pumps and domestic appliances.

The brokerage has set a target price of Rs 350 for the stock, which implies an upside potential of nearly 40% from the current market price.

ALSO READ

The report also noted that the company’s Operating Profit Margin (OPM) could improve over the next few years. According to the brokerage report, “We estimate its OPM to expand to approx. 11% by FY28 from approx. 10% in FY26.”

According to the brokerage report, the company holds around 25% market share in the fan segment and nearly 30% in the residential pumps segment, while also ranking among the top players in lighting and consumer appliances.

The acquisition of Butterfly Gandhimathi Appliances has also helped strengthen its small domestic appliance portfolio.

According to the brokerage report, “We expect Crompton to report ~8% revenue CAGR over FY26-28.” The brokerage also believes that better pricing strategies, product premiumisation and cost-efficiency initiatives could help expand margins in the coming years.

Motilal Oswal on Delhivery

Motilal Oswal has also maintained a ‘Buy’ rating on logistics company Delhivery, with a target price of Rs 580. This implies an upside potential of around 35%.

The brokerage believes that the company’s growth will continue to be supported by increasing e-commerce volumes and expansion in logistics services.

According to Motilal Oswal, “Looking ahead, we estimate the Express segment revenue to clock a 16% CAGR over FY25-28, aided by healthy e-commerce volumes and industry consolidation.”

The brokerage also expects operating leverage and a favourable mix of services to support margin improvement over the next few years.

Another important segment for the company is Part Truck Load (PTL) logistics, which involves transporting smaller shipments that do not fill an entire truck. According to the brokerage report, “The PTL segment offers significant headroom, with organized players handling less than 25% of industry volumes.”

The brokerage also highlighted that the integration of Ecom Express could help improve network efficiency. According to the brokerage report, “The integration of Ecom Express is set to enhance network efficiency and reduce capital intensity.”

Motilal Oswal expects strong earnings growth from the company. According to the brokerage report, “We expect the company to report a sales/EBITDA/APAT CAGR of 14%/44%/54% over FY25-28,” the brokerage added.

Motilal Oswal on Jain Resource Recycling

Motilal Oswal has also initiated coverage on Jain Resource Recycling with a ‘Buy’ recommendation and a target price of Rs 520. The indicates an upside potential of around 29%.

The company operates in the metal recycling business and focuses mainly on lead and copper recycling.

According to the brokerage report, “We expect Jain Resource Recycling to deliver a CAGR of 36%/48%/56% in revenue/EBITDA/PAT over FY25-28.”

The brokerage believes that rising demand for recycled metals, expansion in production capacity and growth in value-added products could support the company’s future performance.

According to the brokerage report, the company is also expanding its global sourcing network. “Jain Resource Recycling has built a strong global sourcing network spanning over 120 countries,” the brokerage added.

The company is also increasing its production capacity significantly. According to the brokerage report, “With total capacity set to increase from 184K MT to 300K MT by FY28, the company is well placed to capitalize on structural industry tailwinds.”

Conclusion

Overall, the brokerage house believes these companies have business models and growth strategies that could support earnings growth in the coming years.

Disclaimer: This article provides factual analysis only and is not, and 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.