Motilal Oswal has reiterated its positive stance on select stocks across sectors. They believe that despite the overall cautious sentiment in the market, these picks have upside potential of up to 34% in select cases.. According to the brokerage report, the common thread across these recommendations is a mix of improving fundamentals, sector-specific triggers and medium-term growth visibility.
From retail and information technology to power and hospitality, these companies are positioned at different points of their business cycles, which, according to the brokerage, could shape their stock performance over the coming years.
Let’s take a look at the four stocks where Motilal Oswal has maintained a ‘Buy’ view, along with the key reasons highlighted in its report.
Motilal Oswal on Avenue Supermarts
Motilal Oswal has given a ‘Buy’ rating on Avenue Supermarts, the company that operates the DMart retail chain, with a target price of Rs 4,600. This implies an upside potential of around 21% from current levels.
According to the brokerage report, Avenue Supermarts delivered a notable improvement in profitability in the third quarter of financial year 2026.
“Avenue Supermarts (DMART) delivered a strong beat on profitability in 3QFY26, driven primarily by gross margin (GM) expansion,” the report said. Gross margins expanded by 50 basis points year-on-year to 14.6%, which the brokerage attributed to benefits from Goods and Services Tax (GST) reductions, lower discounting and a favourable product mix.
The brokerage also pointed out that after several quarters of elevated cost pressures, the cost of retailing per square foot stabilised during the quarter. This helped operating margins improve, with earnings before interest, tax, depreciation and amortisation (EBITDA) margins expanding to 8.4%. However, revenue growth moderated to about 13% year-on-year, largely tracking store area expansion, while like-to-like growth slowed to 5.6%.
Looking ahead, Motilal Oswal said, “We raise our FY26-28 EBITDA and PAT by approx. 3-5%, primarily driven by higher GM.” The brokerage expects consolidated revenue, EBITDA and profit after tax to grow at a compounded annual growth rate of 16%, 16% and 12% respectively between financial years 2025-2028. At the same time, it cautioned that rising competition from quick commerce platforms could remain a near-term monitorable.
Motilal Oswal on Infosys
Infosys is another stock where Motilal Oswal has reiterated a ‘Buy’ call, assigning a target price of Rs 2,150. This suggests an upside potential of about 33%.
According to the brokerage report, the information technology services major is well placed to benefit from enterprise-level spending on artificial intelligence. “We believe AI-native enterprise apps such as Cognition will greatly benefit from the deeply entrenched client relationships that legacy service vendors have,” the report noted.
Motilal Oswal believes the current phase could mark the bottom of the growth cycle for Infosys. “We believe CY26 should represent the bottoming of the growth cycle, setting the stage for a more meaningful acceleration in H2FY27 and FY28,” it said. At current valuations, the brokerage feels the risk-reward balance is favourable.
The report added, “Infosys is well placed to benefit from enterprise-wide AI spending, given its discretionary-heavy mix.” Based on its assessment, Motilal Oswal values Infosys at 26 times estimated earnings per share for financial year 2028 and continues to see it as a preferred pick among large-cap information technology companies.
Motilal Oswal on JSW Energy
Motilal Oswal has also maintained a ‘Buy’ rating on JSW Energy. The brokerage has set a target price of Rs 657, indicating an upside potential of around 34%.
According to the brokerage report, JSW Energy has significantly scaled up its operational capacity in a short span.
“JSW Energy has nearly doubled its operational installed capacity from 7.2GW in FY24 end to 13.2GW as of Q2FY26,” the report said, highlighting the company’s execution capabilities. It also noted that merchant power exposure has been reduced to about 5% of total capacity, which improves the stability of cash flows.
The brokerage pointed to a strong project pipeline, with a large portion secured under long-term power purchase agreements. It expects the company to reach its targeted generation capacity of 30 gigawatts by financial year 2030, alongside a significant push into energy storage.
Motilal Oswal further in its report noted, “Driven by a strong, PPA-backed renewable pipeline, we build in EBITDA and PAT CAGR of 49% and 31%, respectively, over FY25-28E.” The target price is derived using a sum-of-the-parts valuation, factoring in thermal, renewable, hydro, green hydrogen and listed equity investments.
Motilal Oswal on Lemon Tree
Lemon Tree Hotels is another stock where Motilal Oswal has reiterated a ‘Buy’ recommendation. It has set a target price of Rs 200. This implies an upside of around 33%.
According to the brokerage report, Lemon Tree operates a mixed business model, combining asset-light hotel management with hotel ownership and development. “Lemon Tree currently operates an asset-light hotel management business alongside hotel ownership and development,” the report noted. The company has a large pipeline of managed and franchised properties, which provides visibility on future growth without heavy capital expenditure.
A key development highlighted by the brokerage is the planned corporate reorganisation involving Fleur Hotels. “This arrangement will create two focused platforms Lemon Tree as a pure-play, asset-light hotel management business and Fleur Hotels as a hotel ownership and leasing entity,” the report noted. The restructuring is expected to simplify the business structure and support focused growth.
Motilal Oswal expects Lemon Tree to deliver steady growth across financial metrics. “We expect Lemon Tree to report an average annual growth of 11% in revenue, 13% in EBITDA, and 26% in profit after tax between FY25 and FY28,” the brokerage said, reiterating its positive view based on the company’s portfolio expansion and operating model.
Overall, Motilal Oswal sees a mix of earnings driven growth drivers coupled with strong project pipeline helping these stocks maintain a steady upmove, in the face of a relatively cautious investor sentiment and uncertain global headwinds.
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.