The brokerage firm Motilal Oswal latest report has picked key stocks with strong upside potential. It has a Bu rating on select capital goods companies, quick commerce plays and retail sector stocks . The brokerage sees upside potential of as much as 26% from the current market price for one stock.
Here’s a closer look at the investment rationale powering these recommendations –
Motilal Oswal on Avenue Supermarts (DMart)
The brokerage firm has reiterated a buy rating on Avenue Supermarts, setting a target price of Rs 5,000 per share. This implies an upside of around 16% from current levels.
According to the report, “With QC players potentially shifting their focus to profitable growth, we believe the peak of competitive intensity may be behind us.”
The brokerage also highlighted that increased competition from large online and offline retailers in quick commerce remains a key monitorable, which could affect near-term margins.
Motilal Oswal emphasised the long-term strength of Dmart’s model, noting, “DMART’s value-focused model and superior store economics will ensure its competitiveness and customer relevance over the longer term despite QC’s convenience-focused model.”
Motilal Oswal also noted that they have revised their valuation base to Dec’27 and assigned a 46x EV/EBITDA multiple, arriving at the updated target price of Rs 5,000.
Motilal Oswal on Swiggy
Swiggy has also received a buy recommendation, with a target price of Rs 550 per share. This offers a potential upside of 26%. The brokerage cited improved execution and rising average order value (AOV) in quick commerce as key drivers.
“We upgraded Swiggy to BUY, reflecting an inflection in growth of the food delivery (FD) business and improved unit economics in the quick commerce (QC) business,” the report said.
According to Motilal Oswal, the company’s focused approach, including selective dark store expansion and optimization of existing infrastructure, is helping improve margins.
The brokerage also highlighted strategic initiatives in the FD segment, noting, “The 10-minute food delivery service has emerged as a clear differentiator; Eternal’s decision to exit the 10-minute food delivery gives Swiggy a clear field to innovate and gain market share in the quick food delivery market.”
Motilal Oswal on Kirloskar Oil, Cummins
In the capital goods space, the brokerage has highlighted select players such as Kirloskar Oil Engines (KOEL) and Cummins India (KKC) with Buy rating.
The report explained that demand is normalising across the country, with volume growth expected between 10–20% YoY in Q2FY26. “Players have grown at different rates in volume terms, but pricing has broadly stabilized, and the industry is expecting a price hike of 3–5% in 1–2 quarters as commodity prices are inching up,” the report noted.
Motilal Oswal expects revenue growth in the power generation segment to be largely volume-driven, while the high horsepower (HHP) market continues to show healthy demand.
The brokerage values Cummins India at a target price of Rs 4,500 and Kirloskar Oil Engines at Rs 1,230. “We maintain our estimates and reiterate our Buy rating on both Cummins India (KKC) with target price of Rs 4,500 (implying an upside of 14%) and Kirloslar Oil (KOEL) with target price of Rs 1,230 per share (implying an upside of 40%),” the report noted.