The domestic brokerage firm Motilal Oswal, in its latest report has given ‘Buy’ rating to 3 stocks. The picks include Godrej Consumer, Petronet LNG, and Star Health, with one of the stocks offering an upside potential of as much as 50% from current levels.
Let’s take a closer look at why the brokerage remains bullish on these companies.
Motilal Oswal on Godrej Consumer
According to the Motilal Oswal report, Godrej Consumer Products (GCPL) has been assigned a buy rating with a target price of Rs 1,450. This translates to around 19% upside from its current market price.
The brokerage highlighted that GCPL’s FY25 strategy focuses on expanding product categories through innovation, streamlining operations, and prioritising sustainability alongside profitability.
“Going ahead, GCPL will continue focusing on premiumization, efficiency improvement, and affordability in rural markets,” the report noted.
The brokerage expects the company to deliver a sales/EBITDA/Adj. PAT CAGR of 12%/13%/19% over FY25-28, driven by new growth levers and execution across both domestic and international markets.
Motilal Oswal on Petronet LNG
Petronet LNG (PLNG) was also upgraded to a Buy, with a target price of Rs 410. This implies an upside potential of 50% as per the brokerage report.
Motilal Oswal cited inexpensive valuations and upcoming capacity growth as key drivers. “Petronet LNG market share in India’s LNG imports, which slipped to 69% in FY25, could start to rise as new Dahej capacity starts operations,” the report highlighted.
It further noted that India’s LNG imports are expected to grow at a 6% CAGR over FY25-30, creating opportunities for Petronet’s expanded terminals.
The brokerage added, “At CMP, PLNG is pricing in an unrealistic scenario of a 20% decline in tariffs…we believe valuations are at the rock bottom.”
Motilal Oswal on Star Health
Star Health was also given a Buy recommendation, with a target price of Rs 520. This offers around 17% upside potential from the current market price.
The brokerage noted that Star Health’s growth has lagged some peers, with market share falling to 11.4% YTD FY26 from 15.7% in FY21.
However, the company is now seeing a pickup in fresh premium growth. The brokerage report noted, “Multiple rounds of repricing done last year, along with annual price hikes expected this year, will help in managing the claims ratio.”
It also highlighted operational efficiencies and a diversified distribution mix as positive factors, predicting a CAGR of 14%/8% in GWP/PAT over FY25-27E, while maintaining a “Buy” rating with a target price of Rs 520.