The Nifty 50 has finally managed to close above the 26,000 level after a 12-day gap. Given the positive sentiment, what are the key stocks that investors could bet on? Motilal Oswal picked a set of stocks and rated them Buy. The domestic brokerage house sees as much as 30% upside in some of these over the next 12 months.
Here is a detailed analysis of the key growth drivers for this stock-
Motilal Oswal on Hero MotoCorp: Attractively valued
Motilal Oswal reiterated its ‘Buy’ call on Hero MotoCorp. The brokerage sees a target price of Rs 6,503 on the stock, implying an upside of 17% from the current market price. The brokerage expects the automobile giant to deliver a volume CAGR of 6% over FY26-28. This momentum is likely to be driven by new launches and a ramp-up in exports. Hero MotoCorp will also benefit from a gradual rural recovery, given its strong brand equity in the economy and executive segments.
Hero MotoCorp’s festive season performance (August-November 2025) was strong, with 16.2% growth in ICE Vahan registrations, outpacing industry growth of 14.7% and leading to a 40 basis points market share gain. Growth was driven by entry, deluxe, and scooter segments.
Motilal Oswal on LG Electronics: Margins to improve FY27 onwards
The brokerage house maintained its ‘Buy’ call on LG Electronics with a target price of Rs 1,890. This implies an upside of 17% from the current market price. The domestic broker anticipates a recovery in operating profit margin in FY27 and FY28, driven by increased domestic sourcing of components, a focus on B2B and export markets, and growth in AMC revenue.
Further, the company expects growth to be driven by premiumisation, deeper penetration through the newly launched LG essential series, expansion of premium appliances and TVs, and a stronger push in B2B segments, such as HVAC, and in information displays.
“We cut our EPS estimates by 13% for FY26 to factor in margin pressure in Q2 and 7% for FY26 and FY27, each,” said Motilal Oswal.
Motilal Oswal on Vishal Mega Mart: Unique business model a big positive
Motilal Oswal lifted the target price on Vishal Mega Mart to Rs 180, implying an upside of 30% over the next 12 months. The brokerage maintained its ‘Buy’ rating on the stock. The brokerage expects that the company’s unique business model provides it with strong moats against competition.
These business models are characterised by their wide presence in Tier 2+ cities (742 stores in 493 cities), well-diversified exposure to key consumption baskets, a strong and affordable own brands portfolio (75% revenue share), and one of the lowest cost structures.
“We raise our FY26-28 EBITDA and net profit by 1-4%, driven by higher operating leverage,” said the brokerage firm.
