The brokerage house Motilal Oswal has released its latest report highlighting three stocks that it believes have strong upside potential. These include Larsen & Toubro (L&T), Coal India, and Varun Beverages.
As per the brokerage report, these companies from various sectors show strong growth prospects, with a possible upside of up to 17% from current levels.
Let’s take a look at what is driving the brokerage’s optimism in each of these stocks –
Motilal Oswal of Larsen and Toubro (L&T)
Motilal Oswal has maintained a ‘Buy’ call on L&T. The brokerage has set a target price of Rs 4,500, implying nearly 14% upside from the current market price. They see the Hyderabad Metro stake divetsment as a key positive.
According to the brokerage report, L&T’s EBITDA, a measure of operating profit grew 16% year-on-year, while margins expanded slightly to 7.8%. The company also reported a sharp 45% jump in total order inflows to Rs 1.2 lakh crore. The core engineering and construction (E&C) order book grew 30% YoY to Rs 6.7 lakh crore, with nearly half coming from international operations.
The brokerage believes that L&T’s domestic outlook is improving, especially in thermal power, renewable energy, transportation, and defence sectors.
“Over the next 2–3 years, the company is eyeing opportunities worth 10–15 GW of thermal power projects, along with opportunities from nuclear and hydro power,” said Motilal Oswal.
The company is also betting on new-age sectors under its ‘Lakshya 2031’ roadmap. “Under Lakshya 2031, L&T has identified electronics manufacturing, renewable energy, and semiconductors as key growth pillars,” the report added.
L&T’s push into green ammonia and semiconductor technology also reflects this shift. “In renewables, LT signed an MoU with Itochu Corporation of Japan for a 300 kilotonnes per annum green ammonia project at Kandla, Gujarat, marking its entry into large-scale green hydrogen and ammonia production,” it added.
The brokerage expects revenue, EBITDA, and net profit in the core business to grow at a CAGR (Compound Annual Growth Rate) of 16%, 18%, and 22%, respectively. “We maintain ‘Buy’ with a revised target price of Rs 4,500 (Rs 4,300 earlier),” the report noted.
Motilal Oswal on Coal India
Motilal Oswal has also reiterated a ‘Buy’ rating on Coal India with a target price of Rs 440. This indicates about 15% upside from current levels.
According to the brokerage, Coal India’s recent quarterly performance was “muted due to weak volumes,” as e-auction sales where coal is sold outside long-term contracts accounted for only around 10% of total volumes. Premiums also stood lower at 55% during the second quarter of FY26.
Despite this, the brokerage remains optimistic about recovery in the coming quarters. “We expect e-auction volume and premium to recover in H2FY26, supported by demand recovery from the non-FSA sector,” Motilal Oswal said in its report.
The brokerage expects the company’s volumes to grow by 3% annually between FY25 and FY28, translating into 5% revenue growth and 7% EBITDA growth over the same period. It also noted Coal India’s focus on expanding coal washing capacity, which will help improve the quality of coal supplied and increase market share.
Motilal Oswal on Varun Beverages
Motilal Oswal also turned positive on Varun Beverages, the bottling partner of PepsiCo, assigning a ‘Buy’ rating with a target price of Rs 580. This implies a 17% upside from current levels.
According to the brokerage, the January–September 2025 was a “subdued period” for the company due to an early and extended monsoon that affected beverage sales. However, it expects the company’s growth momentum to improve in the coming quarters.
The report highlighted that international markets such as South Africa and Zimbabwe are expected to drive earnings recovery, while domestic operations are likely to benefit from stronger distribution and execution.
The brokerage added, “We expect Varun Beverages to improve its earnings momentum, aided by scale-up in international markets, recovery in the Zimbabwe market, and strengthening of on-ground execution in India.”
Motilal Oswal also pointed out the company’s efforts to diversify into new segments. “The snacking business is expected to scale up from CY26 onwards, backed by the operationalisation of the Morocco and Zimbabwe markets in H2CY25,” the report said.
VBL is also broadening its product portfolio like “recently launched an energy drink called ‘Adrenaline Rush’,” the brokerage noted.
