Motilal Oswal has a positive recommendation on select set of stocks across jewellery, finance, consumer durables, water infrastructure and electronics manufacturing sectors. According to the brokerage house, these companies are at different stages of their business cycles, but each offers a clear earnings or balance sheet trigger, for upside, over the next few years.
Motilal Oswal sees potential of up to 58% rally in select names.
Let’s take a look at the 5 stocks Motilal Oswal is bullish on and the reasons behind each call.
Motilal Oswal on Kalyan Jewellers: ‘Buy’
Motilal Oswal has maintained a ‘Buy’ rating on Kalyan Jewellers with a target price of Rs 600. This implies an upside of up to 58% from current levels.
According to the brokerage report, the company’s business model has undergone a steady shift. This is driven by the rapid expansion of its franchise network and stronger performance outside southern India.
“With the successful scale-up of franchise businesses (>50% revenue contribution) and stable success in non-Southern markets, the company has established itself as a leading brand in the industry,” the brokerage said.
It also pointed out that customer additions, improving operating margins and a gradual reduction in debt remain key monitorables.
Motilal Oswal expects revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), and profit after tax (PAT) to grow at a compounded annual growth rate (CAGR) of 21%, 18% and 22%, respectively, between FY26-28.
Motilal Oswal on IIFL Finance: ‘Buy’
IIFL Finance is another stock where Motilal Oswal sees meaningful upside. The brokerage has assigned a target price of Rs 720, indicating an upside potential of around 40%.
According to the brokerage report, IIFL has made a conscious move away from high-risk, unsecured lending towards a more stable, secured retail lending platform.
“IIFL has undertaken a fundamental repositioning of its business, consciously moving away from a high-beta, unsecured, and fintech-led lending franchise,” Motilal Oswal noted.
The company is now focusing on gold loans, affordable housing finance and a stabilising microfinance portfolio.
The brokerage highlighted that management is prioritising balance sheet strength and predictable earnings rather than chasing aggressive growth.
Motilal Oswal on Crompton Greaves Consumer Electricals: ‘Buy’
In the consumer durables space, Motilal Oswal has initiated coverage on Crompton Greaves Consumer Electricals with a ‘Buy’ rating and a target price of Rs 350. This suggests an upside potential of about 43%.
According to the brokerage report, Crompton’s recent quarterly performance exceeded expectations, supported by better execution in its electric consumer durables segment and a gradual improvement in margins.
“Crompton’s Q3FY26 performance exceeded our estimates, driven by better-than-expected performance in the ECD segment,” the brokerage said.
Motilal Oswal also noted the company’s entry into the cooling and ventilation segment as a key development, though execution will be closely tracked.
It expects revenue, EBITDA and PAT to grow at a CAGR of 8%, 14% and 17%, respectively, over FY26-28.
Motilal Oswal on VA Tech Wabag: ‘Buy’
VA Tech Wabag, which operates in water and wastewater treatment projects, is another preferred pick for Motilal Oswal. The brokerage has set a target price of Rs 1,900. This translates to an upside of nearly 56%.
According to the brokerage report, the company’s strong order book provides clear revenue visibility over the next few years.
The brokerage also believes that a greater focus on large-scale and higher-margin projects will support profitability. It highlighted strong free cash flow generation and a net cash position as key positives.
Motilal Oswal on Kaynes Technology: ‘Buy’
Motilal Oswal has retained a ‘Buy’ rating on Kaynes Technology with a target price of Rs 5,000. This indicates an upside potential of about 35%. According to the brokerage report, recent earnings were impacted by project deferrals, but the longer-term growth outlook remains intact.
“Kaynes Technology growth momentum slowed down in Q3FY26 due to deferrals,” the brokerage said, while adding that a strong order book of around Rs 9,100 crore positions the company for recovery.
Conclusion
Overall, Motilal Oswal’s recommendations are based on expectations of business stability, earnings growth and balance sheet improvements across different sectors.
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.