The brokerage firm Motilal Oswal has released its latest stock recommendations. The brokerage has given a “Buy” call to 5 stocks which it sees to have strong fundamentals and growth potential. According to the brokerage report, these picks span across sectors like real estate, infrastructure, FMCG, pharma, and energy – offering upside potential of up to 55%.
Let’s take a look at the brokerage’s top 5 “Buy” calls and the key reasons behind their bullish stance –
Lodha Developers
Motilal Oswal has given a Buy rating on Lodha Developers, with a target price of Rs 1,870, implying a 55% upside from the current market price.
According to the brokerage, the company reported 10% YoY growth in presales to Rs 4,450 crore in Q1FY26, while operating cash flow jumped 44% to Rs 950 crore. Despite some shortfall versus estimates, Lodha’s consistent execution, scale, and potential at its Palava township support a bullish view.
“We value 250 million square feet of residential land to be monetized at Rs 63,700 crore over the next three decades,” the report noted. A DCF-based valuation excluding Palava yields a fair value of Rs 1,870. The brokerage expects the operational strength to continue and maintains its Buy rating.
Larsen & Toubro
Motilal Oswal has reiterated a Buy on Larsen & Toubro (L&T), with a target price of Rs 4,200, translating to a 20% upside from current levels.
The company beat estimates in Q1FY26, with revenue and PAT coming in 3% and 8% above expectations, respectively. Particularly strong was its core Engineering & Construction (E&C) segment, where order inflows hit Rs 76,600 crore, significantly above estimates.
Motilal sees long-term value in the stock, especially given the 65% YoY growth in the order pipeline and continued strength in execution. “We continue to value the company at 28x P/E two-year forward earnings for core business,” it said while maintaining the Buy call.
Varun Beverages
The brokerage has maintained a Buy call on Varun Beverages, with a target price of Rs 620, implying an upside of 21% from current levels.
Despite unseasonal rains impacting volumes, the beverage maker delivered a resilient performance in Q2. According to the brokerage report, the company is well-positioned for continued growth through backward integration, ramp-up of new facilities, and product mix improvements.
“Going ahead, we expect VBL to maintain its earnings momentum, aided by scale-up in international markets and stronger on-ground execution,” Motilal said. It expects a CAGR of 19% in PAT through CY27, valuing the stock at 54x CY26 EPS.
GAIL
Motilal Oswal has assigned a Buy rating to GAIL, with a target price of Rs 210, suggesting a 15% upside.
While the brokerage noted that valuations are no longer inexpensive, it still sees upside driven by potential tariff hikes and healthy trading segment profitability. “Every Rs 5/mmbtu increase in tariff implies a 6-7% increase in FY26/27 PAT,” it noted.
The report projects a 2% PAT CAGR during FY25-27, along with an improvement in RoE to 12.3% by FY27. It also sees free cash flow rising to Rs 5,530 crore, a sharp recovery from losses in FY23. As such, the SoTP-based target remains at Rs 210.
Piramal Pharma
Motilal Oswal continues to recommend a Buy on Piramal Pharma, with a target price of Rs 240, implying a 17% upside from the current market price.
The pharma player’s Q1FY26 performance was weaker than expected due to lower CDMO and complex generics sales, resulting in an EBITDA miss of 48%. However, management has retained its full-year guidance, indicating Q1 may have been an outlier.
“Piramal Pharma is well-placed in the CDMO segment and is investing in high-end development and manufacturing of peptides/injectables/ADCs,” the brokerage highlighted. Operating leverage from increased capacity and improved execution is expected to aid recovery.