India’s equity markets are sitting on a peculiar mix of global uncertainty and domestic caution. Foreign institutional investors’ outflows have exceeded Rs 70,000 crore so far this year, and the Nifty has shed about 7% since January.
Against this backdrop, domestic brokerage house Motilal Oswal has put out detailed research notes on three companies spanning financial services, steel, and packaged foods, assigning each a ‘Buy’ rating with meaningful upside potential.
Here is what the brokerage is saying about each one.
Motilal Oswal on Jio Financial Services: ‘Buy’
Motilal Oswal has initiated coverage on Jio Financial Services, with a ‘Buy’ rating and a target price of Rs 320 per share based on a sum-of-the-parts valuation pegged to March 2028 estimates. The brokerage sees a 36% upside from current levels and is modelling a consolidated profit after tax compound annual growth rate of 48% between FY26 and FY28.
The central argument Motilal Oswal makes for Jio Financial is the reach. Unlike traditional non-banking financial companies, which spend heavily to acquire customers. The brokerage expects Jio Credit’s assets under management to grow at a compound annual rate of 90% and its profit after tax to grow at 152% between FY26 and FY28.
In addition to the lending, Jio Financial is building a payments bank, a mutual fund joint venture with BlackRock, and an insurance broking arm. The BlackRock joint venture, Jio BlackRock Asset Management Company, crossed 10 lakh investors in its first year, of whom about 18% were first-time investors.
The insurance broking arm is moving away from being a captive intra-group broker toward serving external corporate, small and medium enterprise, and retail clients.
The stock currently trades at one times FY27 estimated price-to-book value, a multiple the brokerage believes does not fully price in the scale opportunity across lending, asset management, insurance, and digital financial services.
“Jio Financial is a structural play on the financialisation of India’s digital economy. By successfully shifting its revenue mix, where core business income now accounts for over 55% of total earnings, Jio Financial has proven its ability to pivot to an operational powerhouse,” the firm noted.
Motilal Oswal on JSW Steel: ‘Buy’
Motilal Oswal has reiterated its ‘Buy’ rating on JSW Steel with a target price of Rs 1,400 per share, indicating an upside of 15%, premised on nine times enterprise value to earnings before interest, taxes, depreciation, and amortisation on September 2027 estimates.
JSW Steel is in the middle of one of the most ambitious capacity expansion programmes in Indian steel history. The company has shared a roadmap to reach approximately 56 million tonnes per annum of crude steel capacity by FY31. The cornerstone of this is a 5-million-tonne-per-annum integrated steel plant at Jagatsinghpur in Odisha, built on a coastal location with port connectivity and a slurry pipeline for logistics efficiency.
On coking coal, the company has secured domestic blocks in Jharkhand with 22 lakh tonne per annum capacity, expected to ramp up over two to three years. The company has also increased its stake to 30% in Illawarra Metallurgical Coal, providing approximately 12 lakh tonnes of offtake of premium low-volatile coking coal. A 302-kilometre slurry pipeline linking the Nuagaon mines to the Jagatsinghpur plant is expected to be ready by FY27.
In terms of product mix, value-added and special products already contributed approximately 67% of volumes at the Vijayanagar facility in the third quarter of FY26.
“We believe JSTL is well-placed with new capacities coming on-stream, strong domestic demand, and a rising share of value-added proportion in the sales mix. Its focus on increasing the captive share of iron ore and improving coal linkages will support earnings,” as per the report.
Motilal Oswal on Bikaji Foods International: ‘Buy’
Motilal Oswal has reiterated its ‘Buy’ rating on Bikaji Foods International with a discounted cash flow-based target price of Rs 900, implying an upside of 46% from current levels. The target is based on an implied price-to-earnings multiple of 55 times on FY28 estimated earnings. The brokerage is projecting revenue, earnings before interest, taxes, depreciation, and amortisation, and profit after tax compound annual growth rates of 15%, 29%, and 39% respectively over FY25 to FY28, excluding production-linked incentive benefits.
The brokerage notes that management expects core states to grow at over 12% and focus states at approximately 17% to 18%, supported by advertising and promotion campaigns such as “Bhujia Ho To Bikaji” and “Kya Baat Hai Ji” featuring Pankaj Tripathi for the Uttar Pradesh market. Marketing spends are expected to stay around 2% to 2.5% of revenue with an additional 4% to 6% allocated to below-the-line activities.
On the product side, bhujia remains Bikaji’s strongest category and a staple in Rajasthan and Assam, while namkeen is emerging as one of the fastest-growing segments with mid-teen growth aspirations. Western snacks, currently at about 8% of total sales, are expected to grow at 18% to 20% and increase their contribution to approximately 10% to 11% of total sales within three years. The company has a total production capacity of 3,25,320 metric tonnes and is currently operating at 46% to 48% utilisation, which management expects to improve to approximately 70% over the next three to four years.
Motilal Oswal also points to a distinct “House of Brands” strategy through which Bikaji is building out an acquisition-led growth layer. The company has bought stakes in The Hazelnut Factory, Ariba Foods, and Bhujialalji, entered a joint venture with Mr. Khaleel Brand, and formed a 50-50 joint venture with Nepal’s Chaudhary Group to localise production for that market. Collectively, these acquisitions currently contribute 5% to 6% of total sales and are expected to grow at over 20% compound annually over the next two to three years. The brokerage flagged geographical concentration in core markets and the potential entry of new competitors in Rajasthan as the two key risks to watch.
“We expect BFL to benefit from accelerating demand for branded snacks, shifting consumer preferences, and increasing traction within modern trade and e-commerce channels,” the report added.
Conclusion
All three ‘Buy’ calls from Motilal Oswal share a common principle. Each company sits at a point where near-term numbers are either recovering or yet to fully reflect medium-term potential, which is precisely the kind of entry point a long-term thesis is built on. Jio Financial is being valued on what it will earn in FY28 and beyond, not on its current return ratios.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.