Motilal Oswal top 4 ‘Buy’ recommendations with 30% to 60% upside potential

The brokerage house has given a ‘Buy’ rating to Time Technoplast, Mrs. Bectors Food Specialities, Lemon Tree Hotels and Cello World, with projected upside ranging from 30% to 60% from current levels.

Let’s take a look at what is driving the brokerage’s outlook on these four stocks –

Motilal Oswal on Time Technoplast

Motilal Oswal has maintained its ‘Buy’ rating on Time Technoplast and assigned a target price of Rs 280, implying a potential upside of around 60%.

According to the brokerage report, the company continues to benefit from its focus on value-added products and improving operational efficiency.

“After clocking a 15%/18%/35% CAGR in revenue/EBITDA/PAT over FY21-26, we estimate a 15%/16%/21% CAGR over FY26-28, led by the VAP segment,” the report stated.

The brokerage believes margins could improve further through manufacturing consolidation, automation-led cost savings and greater use of solar energy across plants.

Management has also guided for overall revenue growth of more than 15%, with stronger growth expected in composite products and polyethylene pipe businesses.

According to the brokerage report, the company is also expanding capacity in compressed natural gas cylinder products, recycling operations and international manufacturing facilities.

“The robust outlook and attractive valuation (~12.5x FY28E P/E) warrant a rerating, in our view,” Motilal Oswal said.

Motilal Oswal on Mrs. Bectors Food

Motilal Oswal remains constructive on Mrs. Bectors Food Specialities and has assigned a target price of Rs 235, indicating an upside potential of around 37%.

According to the brokerage report, future growth is likely to be supported by premiumisation, healthier product offerings and export opportunities.

“We expect Mrs. Bectors to deliver a 13% revenue CAGR over FY26-28,” the report noted.

While domestic biscuit sales and quick service restaurant (QSR) demand remain relatively soft, the brokerage expects distribution expansion and export growth to support revenue over the medium term.

The company reported stable profitability during the March quarter despite higher employee and operating expenses.

According to the Motilal Oswal report, “With ~3% raw material inflation, the company plans calibrated price hikes to protect margins, targeting EBITDA margins of ~13–13.5% by FY27.”

Motilal Oswal on Lemon Tree Hotels

In the hospitality segment, Lemon Tree Hotels remains one of the brokerage’s preferred picks. Motilal Oswal has maintained its ‘Buy’ rating with a target price of Rs 150, suggesting an upside potential of around 32%.

The brokerage report added that the hotel chain’s growth strategy is centered around expanding its management contract business, increasing room inventory and strengthening premium offerings.

“Lemon Tree Hotels is expected to maintain a healthy growth momentum going forward,” the report said.

The brokerage highlighted a pipeline of nearly 13,300 rooms, expansion of the Aurika brand portfolio and the addition of new owned properties as important growth drivers. It also expects benefits from renovations completed across multiple hotel brands.

According to the brokerage report, “We expect Lemon Tree Hotels to post a CAGR of 11%/14%/22% in revenue/EBITDA/adj. PAT over FY26-28.” Return on capital employed is also expected to improve over the next two years.

Motilal Oswal on Cello World

Motilal Oswal has given a ‘Buy’ rating to consumer products company Cello World. The brokerage has set a target price of Rs 480, implying an upside potential of around 30%.

According to the brokerage report, the company faced a challenging quarter due to weak consumer demand, supply-chain disruptions and higher costs linked to new manufacturing facilities. Even so, Motilal Oswal believes long-term growth drivers remain intact.

“Factoring in the weak macro environment, subdued demand, and management guidance, we cut our FY27E/FY28E earnings by 9%/6%,” the brokerage said.

According to the brokerage report, “The writing instruments segment is expected to continue its strong momentum, supported by the addition of the Cello brand to its portfolio.”

The brokerage expects revenue, earnings before interest, taxes, depreciation and amortisation, and adjusted profit after tax to grow at a healthy pace over FY26-28 despite current challenges.

What investors need to watch

According to Motilal Oswal, these stocks operate in sectors with different growth drivers, ranging from industrial manufacturing and food products to hotels and consumer goods.

While near-term challenges remain in some businesses, the brokerage believes expansion plans, operational improvements and sector-specific opportunities could support earnings growth over the next few years.

Disclaimer: Investment recommendations, target prices, and stock ratings provided by third-party brokerages are shared for informational purposes only and do not constitute an offer, solicitation, or personal investment advice. Investing in equity markets involves significant risk, and returns are not guaranteed. Readers are strongly advised to consult a SEBI-registered investment advisor before making any financial decisions based on these projections.

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