5 ‘Buy’ recommendations by Motilal Oswal, with 20% upside potential

The five stocks are HCL Technologies, Grasim Industries, ICICI Prudential Asset Management Company, Indian Hotels Company and L&T Finance.

Motilal Oswal on HCL Technologies: ‘Buy’

Motilal Oswal has retained its ‘Buy’ rating on HCL Technologies with a target price of Rs 1,450 per share, implying an upside of about 19%.

The company’s artificial intelligence strategy is also becoming a more prominent part of the investment case. HCL Technologies announced plans to invest up to Rs 3,500 crore to build a full-stack AI data centre business that can be scaled to 50 megawatts of capacity. The move follows its earlier $150 million investment in Sarvam, an Indian sovereign large language model venture.

The combination of a better-than-expected revenue performance, healthy deal wins, retained guidance and investments in AI infrastructure underpins Motilal Oswal’s positive view on the stock.

Motilal Oswal on Grasim Industries: ‘Buy’

Motilal Oswal has maintained its ‘Buy’ rating on Grasim Industries with a target price of Rs 3,770 per share, implying an upside of about 20%, the highest among the five stocks.

The brokerage’s latest view follows Grasim’s announcement that its renewable energy arm, Aditya Birla Renewables, will acquire a 100% stake in Solenergi Power for an enterprise value of Rs 17,200 crore.

Solenergi Power brings a combined renewable energy capacity of 5 gigawatt peak, including 1.7 gigawatt peak of capacity under construction. The company reported turnover of Rs 1,250 crore in financial year 2025.

The acquisition is expected to be completed by the end of calendar year 2026. Once completed, it will increase Aditya Birla Renewables’ renewable energy portfolio to 9.4 gigawatt peak, significantly expanding the scale of the business.

“The acquisition will increase ABREN’s RE portfolio to 9.4GWp by adding SPPL’s 5.0GWp capacity, accelerating capacity expansion through an established platform while supporting the group’s long-term energy transition strategy,” Motilal Oswal said.

Motilal Oswal estimates Grasim’s equity contribution towards the acquisition at about Rs 2,430 crore, assuming around 80% of the transaction is funded through debt.

The funding structure, however, is expected to have a near-term impact on Grasim’s standalone earnings because of higher interest costs. Motilal Oswal estimates that the additional financing burden could reduce the company’s standalone financial year 2028 earnings per share by about 8%.

The brokerage nevertheless believes the impact can be offset in valuation terms by assigning a higher value to the expanded renewable energy business under its sum-of-the-parts framework.

Motilal Oswal on ICICI Prudential AMC: ‘Buy’

Motilal Oswal has retained its ‘Buy’ rating on ICICI Prudential Asset Management Company with a target price of Rs 3,800 per share, implying an upside of about 19%.

The asset manager reported operating revenue of Rs 1,560 crore in the June 2026 quarter, up 18% from a year earlier and broadly in line with the brokerage’s estimate.

The company’s mutual fund quarterly average assets under management grew 18% year-on-year to Rs 11.1 lakh crore, reflecting the continued expansion of the underlying asset base.

A key issue for the asset management industry has been the impact of changes to total expense ratio regulations. According to the management commentary cited by Motilal Oswal, the recent changes are not expected to hurt the company’s earnings because the reduction is passed on to distributors.

That removes one of the potential regulatory concerns around near-term profitability and allows the investment case to remain focused on growth in assets under management, the contribution from alternative products and operating efficiency.

The company has also launched its first inbound offering under the Gujarat International Finance Tec-City framework, the ICICI Prudential Smart Navigation Fund, adding another avenue for product expansion.

The brokerage’s positive view is supported by the combination of asset growth, high operating profitability, diversification into alternatives and new product launches.

“The absence of any material earnings impact from TER revisions, coupled with improving contribution from alternatives, AI-led operating efficiencies, and new product launches, strengthens confidence in the company’s long-term growth trajectory and valuation,” Motilal Oswal said.

Motilal Oswal on Indian Hotels: ‘Buy’

Motilal Oswal has retained its ‘Buy’ rating on Indian Hotels Company with a target price of Rs 870 per share, implying an upside of about 18%.

Room income grew 6% from a year earlier. Average occupancy stood at 78%, while the average room rate increased 7% year-on-year to Rs 18,506.

The company’s expansion strategy remains a key part of Motilal Oswal’s investment case. Indian Hotels added three new brands and signed 250 hotels during the year, taking its total portfolio to 645 hotels under its Accelerate 2030 plan.

The brokerage expects the company’s growth to continue over financial years 2026 to 2028.

“Going ahead we expect IHCL to post a CAGR of 15%/17%/21% in revenue/EBITDA/ adj. PAT over FY26-28, with ROIC improving to 22.5% by FY28 from 17.5% in FY26,” the brokerage added.

The forecast points to adjusted profit after tax growing faster than both revenue and EBITDA over the period, while the expected improvement in return on invested capital reflects the brokerage’s view that the company’s growth can become increasingly capital efficient.

The combination of strong domestic demand, expansion of the hotel network, a greater contribution from capital-light arrangements and a stronger balance sheet underpins Motilal Oswal’s positive view.

Motilal Oswal on L&T Finance: ‘Buy’

Motilal Oswal has maintained its ‘Buy’ rating on L&T Finance with a target price of Rs 380 per share, implying an upside of about 17%.

Net interest income increased to Rs 2,920 crore from Rs 2,280 crore a year earlier, a rise of about 28%.

Retail assets accounted for 98% of the loan mix, reflecting the transformation of L&T Finance into a predominantly retail-focused lender.

Rural business finance, gold loans and personal loans are expected to remain among the company’s key growth engines. The company also plans to add 500 gold loan branches in financial year 2027, expanding its distribution network in a segment identified as an important growth opportunity.

The brokerage’s positive view also rests on the company’s execution of its Lakshya 2031 strategy and the increasing use of technology and artificial intelligence in its lending platform.

“We remain constructive on LTF, as the company continues to execute well on its Lakshya 2031 strategy while differentiating itself through a technology and AI-led lending platform,” the brokerage added.

Conclusion

Motilal Oswal’s five ‘Buy’ calls span companies with very different business models, but the brokerage’s investment cases are tied to identifiable company-specific growth and earnings drivers.

Taken together, the five recommendations represent Motilal Oswal’s positive calls across technology, diversified businesses, asset management, hospitality and retail lending, with each stock carrying a ‘Buy’ rating and double-digit potential upside based on the brokerage’s target prices.

Disclaimer

The information provided in the summary above is for informational and educational purposes only and does not constitute financial, investment, or legal advice.

• Not an Endorsement: The stock ratings, target prices, and financial projections are entirely those of the third-party brokerage firm (Motilal Oswal) as cited in the provided text. They do not represent the views or recommendations of this AI.
• Market Risk: Equity investments are subject to market risks. Past performance or brokerage projections are not indicators of future results.
• Due Diligence: Investors should conduct their own independent research, assess their risk appetite, or consult a certified financial advisor before making any investment decisions.