As 2025 draws to a close and markets head into a holiday-shortened week, Motilal Oswal has issued ‘Buy’ ratings on three stocks – Cholamandalam Investment and Finance Company, Hero MotoCorp, and Kajaria Ceramics seeing upside potential of up to 19% from current levels.
Here is how Motilal Oswal is looking at each of these companies –
Motilal Oswal on Cholamandalam Investment and Finance
Motilal Oswal has maintained a Buy rating on Cholamandalam Investment and Finance Company, setting a target price of Rs 2,000. This implies an upside potential of about 19%.
The stock recently came under pressure after an investigative report alleged governance and compliance-related issues. Addressing this, the brokerage noted that, “On 22nd Dec’25, an agency named Cobrapost released an investigative report alleging large-scale related-party transactions, cash handling irregularities, governance lapses, and regulatory non-compliance at Cholamandalam Investment and Finance .”
According to Motilal Oswal, “Cholamandalam Investment and Finance management responded promptly, categorically refuting the claims and stating that the allegations are malicious, distorted, and motivated.” The management also held an investor call and clarified that there is no change in business strategy, performance, or guidance.
The brokerage added that capital strength remains comfortable. It highlighted that net worth is expected to rise, supported by ongoing compulsorily convertible debenture conversions. On operations, the report noted that “the current quarter has been strong in terms of disbursements across both vehicle finance and home loans.”
Motilal Oswal continues to believe the company’s growth trajectory remains steady and reiterated, “Reiterate our Buy rating with a target price of Rs 2,000.”
Motilal Oswal on Hero MotoCorp
Motilal Oswal has also reiterated its Buy rating on Hero MotoCorp, with a target price of Rs 6,782. This indicates an upside of around 18%.
The brokerage expects steady volume growth driven by new launches and exports. It estimates that Hero MotoCorp will deliver a volume compound annual growth rate of around 6% between financial year 2025-2028.
The brokerage noted that improving rural sentiment, supported by a good monsoon and better farm economics, could benefit the company.
The report also pointed out that exports to emerging markets remain a large opportunity and noted that the company recorded strong year-on-year growth in overseas sales in financial year 2025. The brokerage expects exports to remain a steady growth driver in the coming years.
Motilal Oswal on Kajaria Ceramics
Kajaria Ceramics is another stock on Motilal Oswal’s Buy list, with a target price of Rs 1,252, implying an upside potential of about 19%.
The company recently disclosed a financial fraud at a step-down subsidiary. According to the brokerage report, “Kajaria Ceramics (KJC) in an exchange filing disclosed a financial fraud conducted by Mr. Dilip Maliwal, CFO of Kerovit Global.” The management stated that the estimated loss is around Rs 200 million, with about half expected to be recoverable.
Motilal Oswal noted that the company has reviewed other subsidiaries and found no further issues. On the business outlook, the brokerage expects moderate growth and stated that sustaining high margins could be challenging in the near term due to competition and soft demand.
Despite this, it retained its stance, saying, “We retain Buy rating on Kajaria Ceramics with an unchanged target price of Rs 1,252.” The brokerage added that recovery in volumes and margin stability will be key factors to track.