Finding a stock that fits your budget is one thing. Finding one that also offers meaningful upside potential is another.
Many retail investors often look for companies trading within a certain price range like Rs 500 levels but offering reasonable growth potential to maximise gains. But with hundreds of stocks available in this price range, choosing the right one can become difficult.
Therefore, let’s take a look at the stocks that have made it to Motilal Oswal’s latest ‘Buy’ list?
According to the brokerage’s recent report, four stocks priced below Rs 500 stand out. They belong to different sectors, including infrastructure, financial services, healthcare outsourcing and renewable energy.
These stocks offer upside potential ranging from 16% to 36% from their current market prices.
Let’s take a look at why these companies are on the brokerage’s radar –
JSW Infrastructure: Expansion plans remain in focus
Motilal Oswal has maintained a ‘Buy’ rating on JSW Infrastructure, with a target price of Rs 400. This implies an upside of around 16% from the current market price of Rs 345.
The brokerage house in its report noted that the company is executing expansion projects across ports and logistics while planning capital expenditure of Rs 16,500 crore during FY27 and FY28. It aims to increase port capacity to 400 million tonnes per annum (MTPA) by FY30 and expand its logistics business.
It also expects the company to report healthy growth in cargo volumes, revenue and earnings as expansion projects become operational over the next few years.
It also highlighted that revenue growth could remain supported as new projects become operational.
According to the report, “We estimate a volume/revenue/EBITDA/APAT CAGR of 19%/39%/34%/31% over FY26-28.”
Mahindra & Mahindra Financial: Asset quality remains a key strength
Another stock on the list is Mahindra & Mahindra Financial Services, where Motilal Oswal has retained a ‘Buy’ rating with a target price of Rs 405, indicating an upside of around 16%.
According to the brokerage report, lower credit costs and better control over operating expenses supported the company’s recent quarterly performance.
The brokerage said, “Asset quality remains a key strength.”
It has also raised its earnings estimates after factoring in lower credit costs and expects steady growth in assets under management and profitability over FY26 to FY28.
The report also noted that management’s earlier provisioning provides comfort against unexpected risks.
Motilal Oswal said, “Management overlays created in 2HFY26 provide a buffer against unforeseen risks, underpinning its ~1.3-1.7% credit cost guidance.”
It further added, “We estimate an AUM/PAT CAGR of ~14%/~23% over FY26-FY28.”
As per the report, improving business mix, stable asset quality and gradual normalisation of liquidity are expected to support earnings over the medium term.
Sagility: What’s behind the 36% upside estimate?
The brokerage has maintained a ‘Buy’ rating to Sagility with a target price of Rs 57, compared with the current market price of Rs 42, implying a potential upside of nearly 36%.
The company has retained its FY27 guidance despite reporting strong first-quarter growth, added the brokerage house in its report.
The brokerage expects new client additions, cross-selling opportunities and benefits from acquisitions to support growth over the next few years.
The report noted that the healthcare-focused business process management company continues to report healthy revenue growth while maintaining its profitability guidance.
The brokerage noted, “Management reiterated its FY27 guidance of low double-digit organic CC revenue growth and 24–25% adjusted EBITDA margins.”
Despite a strong first quarter, the company has retained its annual guidance because of expected seasonality during the remaining quarters.
The report added, “We believe FY27 will mark a year of growth normalization.”
Motilal Oswal expects acquisitions, cross-selling opportunities and new client additions to support earnings growth over the coming years and therefore retained its positive recommendation.
Fujiyama Power Systems: Riding the solar opportunity
Another stock is Fujiyama Power Systems, where Motilal Oswal has assigned a ‘Buy’ rating with a target price of Rs 470, indicating an upside of around 25% from the current market price of Rs 376.
The company is expected to benefit from rising demand for residential rooftop solar systems under the PM Surya Ghar Muft Bijli Yojana (PMSGMBY).
The report also highlighted that the company’s captive solar cell manufacturing capacity and expansion into new states could support future growth.
According to Motilal Oswal, these factors are expected to support revenue, earnings before interest, taxes, depreciation and amortisation (EBITDA), and profit growth over FY26 to FY28.
The brokerage believes the implementation of government policies and the growing adoption of residential solar systems could support the company’s future growth.
Motilal Oswal said, “UTLSOLAR is well-positioned to benefit through its captive 1GW Mono PERC DCR cell facility.”
The report also stated, “We expect UTLSOLAR to clock a CAGR of 49%/53%/53% in revenue/EBITDA/adj PAT during FY26-28.”
Motilal Oswal noted that the expansion into states such as Assam, Karnataka, Telangana and West Bengal, along with increasing demand under the PM Surya Ghar Muft Bijli Yojana, could provide a longer growth runway.
What ties these four stocks together?
Although these companies operate in different industries, Motilal Oswal believes each has business-specific growth drivers.
As per the brokerage report, expansion plans, improving profitability, stronger order visibility and sectoral opportunities remain the key reasons behind its positive outlook.
Based on its target prices, the brokerage sees upside potential ranging from 16% to 36% across these four stocks.
Disclaimer: The financial news and market analysis provided above, including stock ratings, target prices, and growth estimates from brokerage reports, are for informational and educational purposes only and do not constitute direct investment advice, a buy or sell recommendation, or an offer to transact in any security. Investing in equities involves market risks, potential loss of principal, and price volatility; readers should evaluate their risk tolerance and consult a SEBI-registered financial advisor or qualified professional before making any financial decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.