6 ‘Buy’ recommendations by Motilal Oswal, with up to 35% upside potential

India’s Q4FY26 earnings season produced sharply different outcomes across sectors. Some companies delivered earnings ahead of estimates. Others announced transactions that changed their growth plans. A few absorbed near term pressure while continuing to build future growth drivers.

Motilal Oswal Financial Services maintains ‘Buy’ calls on six stocks this week across metals, information technology services, cement, real estate, auto components and pharmaceuticals. Each recommendation rests on a different operating story and valuation argument.

Let’s take a look at the stocks the brokerage house is bullish on and the rationale behind them –

Motilal Oswal on Hindalco Industries ‘Buy’

Motilal Oswal maintains a ‘Buy’ rating on Hindalco Industries Ltd. with a target price of Rs 1,280, implying an upside of 15%.

The brokerage reiterates its positive stance after a quarter that exceeded estimates across key operating metrics.

Consolidated revenue stood at Rs 78,130 crore in the fourth quarter of FY26, rising to that level from Rs 64,890 crore in the same quarter last year, a growth of 20% year on year and 18% quarter on quarter. Revenue came in 8% above Motilal Oswal’s estimate. Earnings before interest, taxes, depreciation and amortisation stood at Rs 10,020 crore against the brokerage estimate of Rs 8,640 crore. Adjusted profit after tax stood at Rs 5,800 crore against the estimate of Rs 4,200 crore.

Novelis also delivered ahead of expectations. Adjusted earnings before interest, taxes, depreciation and amortisation stood at $459 million against Motilal Oswal’s estimate of $380 million. This came despite a $54 million shipment impact and a $577 million cash flow loss related to the Oswego fire. The facility is expected to restart in June 2026. Motilal Oswal expects volume and earnings recovery beginning in the second or third quarter of FY27.

The domestic business remained a major support area. Blended aluminium earnings before interest, taxes, depreciation and amortisation per tonne increased to $1,789 in the fourth quarter of FY26 from $1,545 in the Q4FY25. Upstream revenue rose to Rs 11,400 crore from Rs 10,300 crore while downstream revenue increased to Rs 4,900 crore from Rs 3,600 crore.

Motilal Oswal raises revenue estimates by 9% to 10%, earnings estimates by 10% to 11%, and profit estimates by 14% to 12% for FY27 and FY28.

Motilal Oswal on LTM ‘Buy’

Motilal Oswal maintains a ‘Buy’ rating on LTM Ltd. with a target price of Rs 5,400, implying an upside of 35%.

The brokerage retains its recommendation after the company announced the acquisition of Randstad’s technology services business across Europe and Australia.

The acquired business generates annual revenue of around €469 million and employs nearly 2,900 billable professionals. LTM is acquiring the asset for about €160 million, implying roughly 0.3 times enterprise value to sales.

The transaction also includes a five year global capability centre and artificial intelligence transformation agreement for Randstad’s India operations. Total contract value is estimated at €50 million to €60 million.

After completion, LTM’s European revenue is expected to cross $1 billion while Australian revenue is expected to move above $100 million. Motilal Oswal says the acquisition is likely to remain earnings per share neutral and consume only 10% to 15% of available cash.

Motilal Oswal projects adjusted earnings per share at Rs 213 in FY27 and Rs 235.5 in FY28.

Motilal Oswal on Dalmia Bharat ‘Buy’

Motilal Oswal maintains a ‘Buy’ rating on Dalmia Bharat with a target price of Rs 2,230, implying an upside of 25%.

The brokerage continues to back the stock after Dalmia Bharat announced the acquisition of Jaiprakash Associates’ cement assets in Central India.

The transaction includes 3.3 million tonnes per annum of clinker capacity, 2.5 million tonnes per annum of grinding capacity, a 99 megawatt thermal plant and railway infrastructure. Enterprise value stands at Rs 2,850 crore or roughly $57 per tonne.

Total installed capacity is expected to increase to 54.7 million tonnes per annum from 49.5 million tonnes per annum immediately after completion. Expansion projects in Belgaum, Pune and Kadapa are expected to take capacity to 66.7 million tonnes per annum by the third quarter of FY28.

Motilal Oswal says the transaction strengthens Dalmia Bharat’s positioning in Central India where pricing remains stronger than southern markets.

The brokerage expects the acquisition to add around 3% to FY27 earnings estimates and 7% to FY28 estimates.

Motilal Oswal on Prestige Estates Projects ‘Buy’

Motilal Oswal maintains a ‘Buy’ rating on Prestige Estates Projects Ltd. with a target price of Rs 1,680, implying an upside of 21%.

The brokerage retains its positive view after Prestige Estates reported one of its strongest annual pre sales performances.

Pre sales reached Rs 30,000 crore in FY26, increasing from Rs 17,000 crore in FY25, a rise of 76% year on year. Around 63% came from new launches. Gross development value launched during the year stood at Rs 27,400 crore.

Bengaluru contributed 34% of bookings and the National Capital Region accounted for 33%. Mumbai contributed 20% while other markets contributed 13%.

TPC Indirapuram generated Rs 9,600 crore in pre sales. Prestige Nautilus contributed Rs 3,000 crore and Prestige Southern Star Phase 1 generated Rs 2,100 crore.

Collections increased to Rs 18,500 crore from Rs 12,100 crore in FY25. Operating cash flow rose to about Rs 7,000 crore from around Rs 4,500 crore.

“Prestige Estates Projects has showcased strong scale up in the residential segment on the back of regional diversification as well as continued launches,” the firm adds.

The company guides for 15% to 20% pre sales growth in FY27.

Motilal Oswal on Happy Forgings ‘Buy’

Motilal Oswal maintains a ‘Buy’ rating on Happy Forgings Ltd. with a target price of Rs 1,652, implying an upside of 20%.

The brokerage raises earnings estimates after the company reported results ahead of expectations.

Standalone profit after tax stood at Rs 83.6 crore in the fourth quarter of FY26 against Motilal Oswal’s estimate of Rs 79.7 crore. Revenue increased to Rs 420 crore from Rs 349 crore in the year ago quarter, a growth of 20.4%.

Earnings margin expanded by 240 basis points to 31.5%. Shipments reached 17,298 metric tonnes while realisation remained stable at Rs 245 per kilogram.

The company reported an order book of Rs 950 crore to be executed over the next two to three years. Around Rs 250 crore comes from heavy forgings linked to data centre applications.

Average realisation on the new order book stands at Rs 345 to Rs 350 per kilogram.

Management guides for late teens volume growth in FY27 and implemented a 3.5% to 4% price increase across most original equipment manufacturer customers.

Motilal Oswal on Sun Pharmaceutical Industries ‘Buy’

Motilal Oswal maintains a ‘Buy’ rating on Sun Pharmaceutical Industries Ltd. Industries with a target price of Rs 2,120, implying an upside of 15%.

The brokerage retains its recommendation despite reducing earnings estimates for FY27 and FY28.

Revenue increased to Rs 14,560 crore in the fourth quarter of FY26 from Rs 12,816 crore in the same quarter last year, a growth of 13.6%. Gross margin improved to 80.8%. Earnings margin narrowed to 23.9% due to higher marketing spending and lower milestone income.

Conclusion

The six recommendations are built on different operating triggers. Hindalco is tied to stronger domestic earnings and recovery at Novelis. LTM is adding scale through acquisition. Dalmia Bharat is expanding into a stronger pricing market. Prestige Estates continues to benefit from residential demand. Happy Forgings is moving into higher value products. Sun Pharma continues to build its speciality business despite near term margin pressure. Across all six names, Motilal Oswal maintains a ‘Buy’ recommendation.