The domestic brokerage house Motilal Oswal has identified three stocks across the defence, apparel and electronics manufacturing sectors that it believes could offer meaningful upside over the medium term.
The brokerage house, in its latest report, has maintained ‘Buy’ ratings on MTAR Technologies, Go Fashion (India) and Syrma SGS Technology, with expected upside ranging from 28% to 38%.
Let’s take a look at the three stocks and the key reasons behind Motilal Oswal’s positive outlook.
MTAR Technologies: Strong order book
For MTAR Technologies, Motilal Oswal has set a target price of Rs 7,550, implying an upside potential of around 38%.
The company’s June quarter performance exceeded expectations, prompting it to raise its earnings estimates for the next two financial years.
The brokerage said, “Factoring in strong 1QFY27 results, we raise our FY27/FY28 earnings estimates by 9%/2%.”
According to the brokerage report, MTAR Technologies benefited from strong growth in its fuel cell and products businesses. It also highlighted that the company’s order book has expanded sharply, supported by demand from clean energy, aerospace and defence, nuclear energy and industrial products.
The report further noted, “MTAR Tech has a strong order book of ~Rs 5,140 crore as of Jun’26, driven by a healthy pipeline across the clean energy (fuel cells), A&D, nuclear sectors, and products & others.”
The brokerage expects this order pipeline, along with new product launches and client additions, to support revenue growth and margin expansion over the coming years.
Go Fashion: Can margins improve after a difficult year?
Motilal Oswal has also retained a ‘Buy’ rating on Go Fashion (India) with a target price of Rs 450, indicating an upside potential of about 31%.
The company went through a challenging financial year, with revenue and operating profit under pressure. However, management is now focused on improving store productivity, customer acquisition and operating efficiency.
The brokerage said, “Accordingly, we tweak our revenue/EBITDA estimates marginally and now model a revenue/Pre-IND AS EBITDA/PAT CAGR of 9%/20%/21% over FY26–29E on a low base.”
It also believes the company’s valuation remains attractive despite near-term challenges.
According to the report, “Despite limited near-term visibility, valuations remain attractive at ~14x TTM Pre-Ind AS EV/EBITDA, and the company maintains a strong balance sheet.”
Syrma SGS Technology: Exports and new businesses drive growth
Another stock in Motilal Oswal’s list is Syrma SGS Technology, for which the brokerage has maintained a ‘Buy’ rating with a target price of Rs 1,770, implying an upside potential of around 28%.
The brokerage said, “Factoring in the strong operating performance and management guidance, we raise our EPS by 6%/9% for FY27/FY28.”
The company continues to benefit from strong demand in high-margin businesses such as automotive, industrial electronics and medical technology. Export growth and expanding original design manufacturing operations have also strengthened its outlook.
The report also highlighted the company’s strategic joint venture with Japan’s Kaga Electronics, which is expected to strengthen its manufacturing capabilities and expand its presence in Japanese original equipment manufacturer markets.
Motilal Oswal in its report also noted that Syrma SGS Technology’s long-term growth is likely to be supported by rising exports, increasing contribution from higher-margin businesses, expansion into defence and medical technology, and continued customer additions.
The brokerage added, “We estimate a revenue/EBITDA/adj. PAT CAGR of 38%/41%/46% over FY26-28, driven by strong revenue growth and margin expansion.”
What investors need to watch
Although the three companies operate in different sectors, Motilal Oswal’s latest reports indicate that improving earnings visibility, expanding order books, operational efficiencies and long-term growth opportunities are the common factors supporting its positive stance.
Disclaimer: The stock recommendations, target prices, and analyst views mentioned above are sourced from brokerage research and do not constitute direct financial advice, an offer, or a solicitation to buy or sell securities. Equity investments carry inherent market risks, and projected price targets or earnings returns are subject to volatility and changing market conditions. Readers are strongly advised to perform independent research and consult a SEBI-registered financial advisor before making any investment decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.