Domestic brokerage house Motilal Oswal has turned bullish on a set of select stocks across banking, insurance, energy, IT, and financial services. The firm has issued ‘Buy’ ratings on six companies, projecting potential upside returns of up to 36% from current market levels.
Let’s take a look at the six stocks Motilal Oswal is betting on and the reasons behind its optimism.
Motilal Oswal on Kotak Mahindra Bank
Motilal Oswal has maintained a ‘Buy’ rating on Kotak Mahindra Bank with a target price of Rs 2,500. This translates to a 14% upside. The brokerage believes the private lender is well-positioned for a recovery in growth and profitability, supported by a healthy balance sheet and strong CASA franchise.
The report noted that the bank’s September quarter performance was largely in line with expectations. “Slippages declined QoQ, while PCR stood largely flat at 77%. NIMs were largely in-line and are expected to witness a rebound amid deposits repricing and benefit from the CRR cut,” it said.
According to the brokerage, overall loan growth is expected to track 1.5–2x nominal GDP. “We maintain our earnings and estimate RoA/RoE at 2%/12.7% by FY27. Reiterate ‘Buy’ with a revised target price of Rs 2,500 (2.5x FY27E ABV),” Motilal Oswal added.
Motilal Oswal on SBI Life Insurance
Next on the list is SBI Life Insurance, where the brokerage sees a 22% upside with a target price of Rs 2,240. According to Motilal Oswal, the insurer’s focus on non-linked and protection products continues to drive its Value of New Business (VNB) margin expansion.
“SBI Life continued to report VNB margin expansion in Q2FY26, aided by a strong traction towards protection products, rising rider attachment rates, and a shift in the product mix towards non-par savings,” the report stated.
The brokerage further said, “We expect SBI Life to clock a CAGR of 14%/15% in APE/VNB over FY25–28, while RoEV is likely to remain at ~18%.”
However, it also acknowledged the impact of the GST rate change, adding, “We have cut down our VNB margin estimates by 50bp for FY26/27 (considering GST impact).”
Motilal Oswal on Tata Power
Motilal Oswal continues to see Tata Power as a key beneficiary of policy reforms in India’s energy sector. It has set a target price of Rs 480, implying a 21% upside from current levels.
According to the brokerage report, the government’s push to liberalise the electricity distribution sector could open new opportunities for private players like Tata Power.
“The recent draft Electricity Bill proposes allowing multiple licenses on a common network, potentially enhancing competition, reducing costs, and improving service quality,” the brokerage noted.
Motilal Oswal also highlighted Tata Power’s participation in Uttar Pradesh’s power distribution tenders, along with its diversified business model spanning renewables, coal, and regulated utilities.
Motilal Oswal on Coforge
Among IT stocks, Coforge stands out as Motilal Oswal’s top pick, with the brokerage projecting the highest upside of 36% and a target price of Rs 2,400.
“Coforge reported strong Q2FY26 revenue growth of 5.9% QoQ in CC terms, in line with our estimate of 6.0% QoQ CC,” the report said.
Motilal Oswal added, “We expect revenue/EBIT/adj. PAT to grow 32%/48%/59% YoY in H2FY26. Coforge’s strong executable order book and resilient client spending across verticals bode well for its organic business.” The brokerage valued the company at 38x Jun’27E EPS, reaffirming its Buy call, saying, “
Motilal Oswal on Federal Bank
Motilal Oswal has reiterated its ‘Buy’ call on Federal Bank, setting a target price of Rs 260, reflecting a 14% upside. The brokerage believes the bank’s fundamentals are strengthening, aided by enhanced capital strength and improved profitability visibility.
The report said, “Federal Bank’s pivot toward margin-accretive growth, strengthening liability profile and improving fee intensity is now further strengthened by the proposed around Rs 6,200 crore preferential capital infusion from Blackstone.”
Motilal Oswal on Aditya Birla Sun Life AMC
The brokerage has also retained a ‘Buy’ rating on Aditya Birla Sun Life AMC, with a target price of Rs 1,100, implying significant upside potential.
According to the brokerage report, the company’s mutual fund business is seeing strong and broad-based growth, supported by improved fund performance across equity and fixed income categories.
Motilal Oswal said, “We raise our EPS estimates by 3%, 5%, and 5% for FY26E, FY27E, and FY28E, respectively, factoring in improved fund performance, higher yields, and better-than-expected operating efficiency.”
