The domestic brokerage firm Motilal Oswal Financial Services has a ‘Buy’ rating on three stocks: Astra Microwave Products, Vishal Mega Mart, and Lodha Developers. The brokerage house sees as much as 77% upside in one of these stocks. Here’s a detailed analysis of their investment rationale.
Motilal Oswal on Astra Microwave Products
The brokerage house initiated coverage on Astra Microwave Products with a ‘Buy’ rating, while expecting the stock to reach Rs 1,100, an upside of 24% from the current market price. Also, this valuation reflects a 15% discount compared to the target multiple of larger defence PSUs owing to its smaller size.
“We consider AMPL a long-term investment opportunity in defence electronics, anticipating its revenue growth to accelerate between FY27 and FY30 as larger orders are awarded by the Ministry of Defence (MoD) and defence PSUs,” said Motilal Oswal.
The company’s order book stood at Rs 2,200 crore as of September 2025. Astra Microwave posted a 13% revenue CAGR over FY21-25. This was driven by a changing business mix. Adding to that, the company was able to improve its EBITDA margin notably to 25.6% in FY25 from 12.3% in FY21.
Motilal Oswal on Vishal Mega Mart
Motilal Oswal retained its ‘Buy’ call on Vishal Mega Mart, while revising the target price to Rs 170, looking at an upside potential of 25% in the stock. The brokerage remained positive on the company’s consistent growth trajectory, along with potential for margin expansion.
Vishal Mega Mart’s management remained optimistic about sustaining double-digit SSSG (same store sales growth) on an annual basis (quarterly deviations might happen due to a change in the festive season, etc.) for a fairly long period, driven by a differentiated own-brand portfolio (75% of the revenue mix).
The company has focused on premiumisation over the last few years to match the rising aspirations of its customer base while remaining competitive in the opening price points by investing the gains from better buying efficiencies to improve the product quality.
Motilal Oswal on Lodha Developers
The brokerage house kept the ‘Buy’ rating unchanged on Lodha Developers, with a target price of Rs 1,888. This implies an upside potential of over 77% in the stock. The company has delivered steady performance across its key parameters, and as it prepares to capitalise on strong growth and consolidation opportunities, expectations are that this consistent operational performance will continue.
“At Palava, Lodha has a development potential of 600 msf. However, a portion of this would be monetised through industrial land sales. We value 250 msf of residential land to be monetised at Rs 63,700 crore over the next three decades,” said Motilal Oswal.
Lodha Developers’ presales are expected to clock a 22% CAGR, supported by healthy collections and debt at comfortable levels of 0.25x by the end of the first half of FY26, despite aggressive BD additions of Rs 25,000 crore.