The Indian stock market is going through a phase where index-level movement is limited, but individual companies are creating their own growth stories. While the benchmark, Nifty 50 is hovering around the 26,000 mark, Motilal Oswal Financial Services believes several stocks are sitting on strong business triggers that are not fully priced in yet. According to the brokerage, these companies are expanding into new markets, buying strategic businesses, or fixing weak segments, which could drive returns well above the broader market over the next few years.
Here is a detailed investment rationale for each of the picks by Motilal Oswal-
Motilal Oswal on Coforge: ‘Buy’
Motilal Oswal has maintained a target price of Rs 2,500 on Coforge, implying a potential upside of nearly 49%. The key reason behind this call is Coforge’s acquisition of Encora, a US-based engineering and AI-focused services firm, in a deal valued at $2.35 billion.
The brokerage believes this acquisition will lift Coforge’s revenue base by about 26% by FY26 and strengthen its presence in high-growth segments like technology and healthcare. Encora also operates with better margins and higher revenue per employee, which makes the deal earnings-positive from the start. While the acquisition is large, Motilal Oswal is comfortable due to Coforge’s past success in integrating earlier deals such as SLK Global and Cigniti. Over the longer term, the brokerage sees Coforge as well placed to benefit from global clients cutting down vendor numbers and spending more on digital work.
Motilal Oswal on Brigade Enterprises: ‘Buy’
Motilal Oswal has given Brigade Enterprises a revised target price of Rs 1,338, which means an upside of around 52% from current levels. The brokerage’s positive view is mainly based on Brigade’s large residential project pipeline of nearly 11 million square feet across cities like Bengaluru, Chennai, Hyderabad, and Mysuru.
On top of that, the company is entering Kerala in a big way, with a planned investment of Rs 1,500 crore across housing, offices, and hotels. Motilal Oswal expects customer collections to grow at about 32% per year between FY25 and FY28, leading to strong cash generation. The hotel business is also expected to expand to around 3,300 rooms by FY30, adding another steady income stream. With presales already growing at a healthy pace and expansion beyond Bengaluru gaining traction, the brokerage finds current valuations reasonable given the growth visibility from FY26 onward.
Motilal Oswal on Apollo Tyres: ‘Buy’
Motilal Oswal has reiterated its Buy rating on Apollo Tyres with a target price of Rs 600, which indicates an upside of around 19%. The brokerage points to steady demand in India across passenger vehicles and two-wheelers, along with strong export growth.
A major driver for future profitability is the improvement expected in Apollo’s European operations after restructuring its Enschede facility. By moving some production activities to India, the company aims to lower costs and improve margins overseas. While near-term margins in India may see some pressure due to sponsorship expenses linked to Indian cricket, Motilal Oswal believes the longer-term earnings picture remains solid. The brokerage expects profits to grow at about 22% annually between FY25 and FY28 and finds the stock attractively valued compared to peers.
Motilal Oswal on Midwest: ‘Buy’
Motilal Oswal has started coverage on Midwest with a target price of Rs 2,000, which suggests an upside of about 23%. Midwest is the largest producer and exporter of Black Galaxy Granite in India and controls nearly two-thirds of the export market.
According to the brokerage, the company is using strong cash flows from its granite business to invest in new areas such as high-purity quartz and heavy mineral beach sands. These new segments are expected to reduce the company’s dependence on granite over the next few years and drive sharp profit growth. Motilal Oswal estimates adjusted profits could grow at a rate of over 50% annually up to FY28. With healthy margins, disciplined mine acquisitions, and growing exposure to critical minerals, the brokerage believes Midwest offers a rare combination of stability and growth, with free cash flows improving meaningfully by FY27–28.
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.