5 ‘Buy’ recommendations by Motilal Oswal, with up to 54% upside potential

Motilal Oswal has released detailed company and sector notes covering technology, cement, oil marketing and city gas distribution. Based on quarterly results, management commentary and sector data, the brokerage has reiterated ‘Buy’ ratings on TCS, HCL Technologies, Grasim Industries, HPCL and Mahanagar Gas. In some of these picks, Motilal Oswal sees as much as 36% upside potential.

Here is a detailed analysis of Motilal Oswal’s investment rationale for each of these counters- 

Motilal Oswal on TCS: ‘Buy’

Motilal Oswal has reiterated a ‘Buy’ rating on TCS with a target price of Rs 4,400, implying an upside of 36%. The brokerage noted that TCS delivered a steady quarter despite uneven demand conditions. According to the report, “TCS reported revenue of $7.5 billion in Q3FY26, rising 0.8% QoQ in CC terms, above our estimate of 0.5%.” Growth was supported by specific verticals and regions, with Motilal Oswal stating that “growth was led by regional market and others (up 4.6% QoQ CC).”

On profitability, Motilal Oswal said margins remained stable, with “EBIT margin at 25.2% (flat QoQ), above our estimate of 24.9%.” The brokerage also highlighted earnings growth, noting that “adjusted PAT rose 6.4% QoQ and 13.4% YoY to Rs 14,100 crore.” This figure excluded restructuring and statutory labour law costs, as clarified in the report.

Deal activity remained supportive, with Motilal Oswal stating, “TCS reported a deal TCV of $$9.3 billion and the book-to-bill ratio was stable at 1.2x.” While the brokerage acknowledged that demand signals remain uneven, it said deal momentum supports near-term visibility. Based on this, Motilal Oswal said it “reiterates ‘Buy’ with a target price of Rs 4,400, implying a 36% potential upside.”

Motilal Oswal on HCL Technologies: ‘Buy’

Motilal Oswal has maintained a ‘Buy’ rating on HCL Technologies with a target price of Rs 2,200, indicating a 32% upside. The brokerage highlighted that HCL Technologies delivered a stronger-than-expected quarter. As per the report, “HCL Technologies reported Q3FY263 ppp poplar pppQ3FY26 revenue of $3.8 billion, up 4.2% QoQ CC, above our estimate of 2.3%.”

Margin performance also exceeded expectations. Motilal Oswal said, “EBIT margin came in at 18.6% vs our estimate of 18.1%.” The brokerage pointed out that deal activity improved meaningfully, stating, “new deal TCV stood at $3.0 billion, up 43.5% YoY.”

On outlook, Motilal Oswal highlighted guidance upgrades, noting, “For FY26, revenue growth guidance was changed to 4–4.5% YoY in CC,” while services revenue growth was guided at 4.75% to 5.25%. The brokerage also stated that “HCLT remains the fastest-growing large-cap company.” Based on this combination of growth, margins and bookings, Motilal Oswal said it “reiterates ‘Buy’ with a target price of Rs 2,200, implying a 32% potential upside.”

Motilal Oswal on Grasim Industries: ‘Buy’

Motilal Oswal has reiterated a ‘Buy’ call on Grasim Industries with a target price of Rs 3,600, which implies an upside of 28%. The brokerage said its positive view is driven by multiple businesses contributing to growth. According to the report, “We believe Grasim has a compelling long-term case underpinned by an improving VSF earnings cycle.”

On viscose staple fibre, Motilal Oswal said, “The VSF business is entering a margin recovery phase in 2H2FY26, supported by a modest rebound in China pricing, stable pulp costs, and consistently high utilisation levels.” The brokerage expects this to support improvement in EBITDA per kg over the coming periods, as detailed in the report.

Motilal Oswal Financial Services Ltd. also discussed the chemicals segment, stating that Grasim’s focus on speciality chemicals supports stable performance despite pricing pressure in caustic soda. On paints, the brokerage said, “The paints business (Birla Opus), while currently in an investment-led phase, provides a scalable growth optionality in a large and under-penetrated market.” Based on its sum-of-the-parts valuation, Motilal Oswal said it “reiterates ‘Buy’ with a target price of Rs 3,600.”

Motilal Oswal on HPCL: ‘Buy’

Motilal Oswal has reiterated a ‘Buy’ view on Hindustan Petroleum Corporation and named it among its preferred picks within oil marketing companies. In its sector note, the brokerage said, “We continue to prefer HPCL among OMCs, given its high leverage towards marketing.” Motilal Oswal added that marketing remains its preferred sub-segment within oil and gas.

The brokerage also highlighted support from LPG compensation, stating that HPCL will receive “Rs 660 crore per month in LPG compensation over Nov’25 to Oct’26.” It further noted that “the sharp decline in LPG under-recovery to Rs 30–40 per cylinder improves blended marketing margins.” Motilal Oswal also pointed to refining support from capacity additions and diesel cracks, as detailed in the report. While the brokerage reiterated ‘Buy’ on HPCL, it has not disclosed a target price or upside percentage in this report.

Motilal Oswal on Mahanagar Gas: ‘Buy’

Motilal Oswal has reiterated a ‘Buy’ rating on Mahanagar Gas with a target price of Rs 1,645, indicating an upside of upto 54% The brokerage outlined its volume and margin assumptions clearly in the report, stating, “We model MAHGL’s volumes to clock an 11% CAGR over FY25–28.” On operating performance, Motilal Oswal added, “We estimate an EBITDA margin of Rs 8.7–8.9 per scm during the period.”

The brokerage acknowledged near-term pressure from gas prices and currency movement but said, “We believe this has already been factored into the current stock price.” On valuation, Motilal Oswal stated, “MAHGL currently trades at 10.1x FY28E SA P/E.” 

Conclusion

Motilal Oswal Financial Services has reiterated ‘Buy’ calls on five stocks after reviewing Q3 results and sector trends. The brokerage remains positive on Tata Consultancy Services, HCL Technologies, Grasim Industries, HPCL and Mahanagar Gas, supported by reported earnings, margins, deal activity and sector-specific drivers outlined in its research. 

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.