The brokerage firm Motilal Oswal in its latest report has identified key stocks that could offer significant upside. From defence to energy and infrastructure, the brokerage has identified select companies poised for growth, with target gains ranging up to 37%.
Let’s take a look at the 4 key ‘Buy’ recommendations and why Motilal Oswal believes they are worth watching –
Motilal Oswal on Bharat Electronics
Motilal Oswal has given a ‘Buy’ rating to Bharat Electronics. The brokerage house has assigned a target price of Rs 490. This translates to an upside potential of 24% from current levels.
This buy rating is supported by the award of the QRSAM project by the Indian Army which is valued at nearly Rs 30,000 crore. This mobile air defence system can track and engage targets on the move with a firing range of 30 km.
Bharat Electronics will act as the lead integrator for the project, with execution expected to begin primarily from FY27 onward.
Motilal Oswal further noted that “from the recently announced technology and capability roadmap, TPCR 2025, we expect Bharat Electronics can target wide-ranging opportunities across all three services, with the Army focusing on EW systems, radios, radar modules, and drone-countering solutions; the Navy seeking advanced radars, sonar suites, ESM systems, integrated masts, maritime communication networks, and tactical 4G/5G systems; and the Air Force requiring secure communication networks, surveillance radars, EW suites, IFF systems, and AI/ML-based data fusion.”
With a healthy cash surplus of Rs 9,400 crore as of FY25, the company is well-positioned to expand capacity and manage working capital effectively.
Motilal Oswal on Mahanagar Gas
Mahanagar Gas also features on Motilal Oswal’s ‘Buy’ list with a target price of Rs 1,700. This represents a 37% upside. According to the brokerage, “Mahanagar Gas is set to deliver robust earnings growth, driven by aggressive CNG network expansion, improving throughput at existing stations, and strategic land tie-ups that strengthen long-term visibility.”
The report highlighted that the company benefits from limited EV risk, regulatory tailwinds, and favorable gas sourcing dynamics.
“We highlight that the three-wheeler segment, which contributes ~34% of volumes, faces minimal near-term EV risk in Mumbai. Further, policy initiatives such as the High Court’s review of phasing out petrol/diesel vehicles in favor of CNG/EVs…could provide incremental upside,” added the brokerage report.
With volume growth projected at a 9% CAGR over FY25-27, and EBITDA margins expected at Rs 9.5–10 per standard cubic meter, Mahanagar Gas is positioned for steady medium-term expansion.
Motilal Oswal on Cables and Wires
The brokerage has also upgraded its ratings on key players in the cables and wires sector, including Polycab, KEI Industries.
“We reiterate our Buy rating on Polycab,” the report noted. Furthermore, KEI Industries has been upgraded from Neutral to Buy, supported by continued growth momentum, controlled competitive intensity, and reasonable valuations.
Motilal Oswal pointed out that “sustained raw material (RM) price increases, which are largely passed through to consumers, have supported revenue growth for C&W companies – a trend reflected in the sectoral performance over the past few years.”
Rising copper and aluminum prices are expected to translate into price hikes for wires and cables in the near term, supporting healthy revenue growth through FY26.