Domestic brokerage firm Motilal Oswal has released its latest list of stock recommendations and it includes a mix of mid-tier IT players, steel giants, and emerging consumer brands. The brokerage house sees value in select counters with strong fundamentals, execution track records, and growth potential.
Let’s take a look at these stocks that have received a ‘Buy’ rating, along with the rationale behind these calls.
Hexaware Technologies: Buy Rating with a 19% upside targeting Rs 950
Motilal Oswal has assigned a buy rating to Hexaware Technologies, setting a target price of Rs 950, which implies an upside of 19% from current levels.
According to the brokerage report, Hexaware’s strength lies in its consistent growth trajectory, partnerships, and diversified vertical presence.
The brokerage highlights that Hexaware is expected to deliver a USD revenue CAGR of approximately 12.2% between 2024 and 2026, outperforming Tier-1 industry averages. “With an EPS CAGR of 20.8% over CY24-CY26E, higher than the Tier-I/Tier-II average of 10.0%/13.5%, HEXT is in the top quadrant of performance within the industry,” the report notes.
Margin improvement is another positive, with EBIT margins projected to rise steadily from 14.6% in 2025 to 15.3% by 2027. However, challenges such as trade tensions and a slower Fed rate cut cycle may keep discretionary IT spending cautious in the near term.
JSW Steel: Buy with Rs 1,190 target and 19% upside
JSW Steel is another top pick by Motilal Oswal, with a buy rating and a target price of Rs 1,190, offering a 19% upside. The brokerage in its report noted JSW Steel’s strong performance in the fourth quarter of FY25, driven by positive volumes and reduced costs, which helped offset lower realisations.
Motilal Oswal expects JSW Steel to continue delivering healthy revenue, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and profit growth, generating over Rs 600 billion in cash flow during FY26-27. At current prices, JSW Steel trades at a reasonable valuation of 7x EV/EBITDA for FY27, added the brokerage in its report.
Grasim Industries: Buy with Rs 3,170 target and 19% upside
Motilal Oswal has reaffirmed its buy rating on Grasim Industries with a target price of Rs 3,170, suggesting a 19% upside. The brokerage has trimmed EPS estimates for FY26 and FY27 due to margin pressures in the core businesses and increased spending on branding and distribution in the Paints and B2B e-commerce segments.
According to the report, “Management has reaffirmed its guidance of USD1 billion revenue for the B2B e-commerce business by FY27 and INR100 billion revenue for the paints business by FY28.”
Ashok Leyland: Buy with Rs 275 target and 15% upside
Ashok Leyland, with a buy rating and a target price of Rs 275, offers a 15% upside. As per the brokerage, the company has reduced its business cyclicality by expanding beyond the traditional MHCV segment, focusing on non-MHCV vehicles which provide steadier revenue streams.
The report notes that Ashok Leyland’s net cash position equips it to invest in growth opportunities. “Its focus on improving margins should bode well for returns in the long run,” Motilal Oswal states.
With an expected recovery in commercial vehicle demand in FY26 and strategic investments underway, Ashok Leyland is positioned for sustainable growth. The brokerage’s valuation is based on 11x FY27 EV/EBITDA plus an additional value for its NBFC business.
Container Corporation: Buy with Rs 850 target and 18% upside
Motilal Oswal recommends a buy on Container Corporation with a target price of Rs 850, implying an 18% upside. The brokerage has lowered revenue and profit estimates slightly due to delays in certain project commissions and weaker domestic volumes.
According to the report, “CCRI remains focused on scaling up its rail freight services and infrastructure, with increased capex for new terminals and fleet expansion.”
Metro Brands: Buy with Rs 1,400 target and 16% upside
Motilal Oswal maintains a buy rating on Metro Brands, with a revised target price of Rs 1,400, representing a 16% upside. The brokerage views the company’s recovery from past challenges, such as FILA’s liquidation and BIS-related issues, as a positive.
“MBL focus is on ramping up FILA and Foot Locker, and we remain positive about the long-term outlook,” the report states, citing the brand’s superior store economics, strong cost control, and impressive return on invested capital (RoIC) of around 30%.
The brokerage expects a revenue, EBITDA, and PAT CAGR of 15%, 18%, and 20%, respectively, over FY25-27, driven by growth across its store formats and brand partnerships.
MTAR Technologies: Buy with Rs 1,950 target and 17% upside
MTAR Technologies carries a buy rating with a target price of Rs 1,950, offering a 17% upside. Despite revising down EPS estimates following a weaker fourth quarter and guidance, Motilal Oswal remains optimistic.
The brokerage forecasts a strong CAGR of 30% in revenue and even higher growth in profits over FY25-27.
With ongoing product ramp-ups and margin expansion, MTAR is poised for significant value creation in the coming years.
DreamFolks: Buy with Rs 350 target and 24% upside
DreamFolks is rated a buy with a target price of Rs 350, an upside of 24%. According to Motilal Oswal, DreamFolks continues to benefit from the growing airport lounge market, which is still in its early stages but expected to expand rapidly.
“DFS will be the direct beneficiary of the growth in the lounge market going ahead,” the report says, highlighting the company’s investments in diversifying its offerings beyond lounges to ensure stable revenue streams.