The market is in the midst of scaling fresh highs but what are the key stocks to focus on? Motilal Oswal’s latest report has identified three stocks with upside potential stretching all the way to 49%..
Some companies are pushing through capacity expansions, some are digging themselves out of operating cost swings, and a few are in the midst of monetising new businesses.
Motilal Oswal on Petronet LNG: ‘Buy’
Petronet LNG has been rated a Buy with a target price of Rs 410, implying an upside of 49%. Under the brokerage’s DCF assumptions, Petronet LNG valuation is based on tariff expectations at both Dahej and Kochi.
Motilal Oswal’s model builds in only a 10% tariff cut, followed by 4% annual increases, and incorporates the full capex for the under-construction petrochemical complex. That project, a Rs 21,000 crore investment, installs an integrated heat exchanger system expected to save roughly Rs 100–150 crore in annual operating expenditure while unlocking synergy with the existing regasification setup.
The third jetty, built for Rs 2,000 crore, is designed to handle LNG, propane, and ethane. This gives the company a way to diversify revenue without reinventing the entire business model. The brownfield expansion at Dahej, priced at Rs 650 crore, adds low-cost capacity and stretches asset life at a fraction of greenfield costs.
Motilal Oswal believes that the market is discounting a collapse the company does not deserve, and the upside is sitting in plain sight if the operational cycle holds steady.
Motilal Oswal on Max Healthcare: ‘Buy’
Max Healthcare is also rated Buy, with a target price of Rs 1,360, implying an upside of 21%. The brokerage’s tone here is more measured compared to the LNG segment, but still rooted in the view that a fairly predictable delivery cycle is unfolding.
The company’s revenue grew more than 20% year-on-year, while annualised EBITDA per bed rose to Rs 73 lakh, which the analysts read as evidence of case-mix improvement and the heft of operating leverage finally showing up in the numbers. For existing units, revenue growth of 14.4% paired with EBITDA growth of 18.6% keeps the momentum intact, and a 26% pre-tax ROCE for this cluster is a number most hospital chains would happily defend.
Capacity expansion remains the centrepiece. Max Healthcare plans to add 1,300 beds in FY26 and another 500 in FY27, using brownfield pockets that give the company nearly seven years of visibility. However, the regulatory delays, commissioning holdups, or tighter procurement environments can always disrupt the timeline, but barring such intrusions, the outlook remains steady, the brokerage noted.
Motilal Oswal’s stance is that when a hospital chain delivers this level of repeatable performance and still trades at valuations that have not completely priced in the expansion, the case for upside looks rational, not hopeful.
Motilal Oswal on PB Fintech: ‘Neutral’
Motilal Oswal has turned more optimistic on Macrotech Developers after a stronger-than-expected demand outlook and improving balance sheet visibility. The brokerage set a target price of Rs 1,888, implying about 58% upside. It said the company is positioned to benefit from a multi-year upcycle in branded housing, led by higher affordability in key cities and a faster shift toward large developers.
Motilal Oswal said Lodha’s ability to sustain strong bookings, launch a deeper project pipeline, and accelerate debt reduction gives the stock a clearer medium-term growth path. It added that project additions across Mumbai Metropolitan Region and Pune have strengthened the development portfolio to more than Rs 3.7 lakh crore of potential gross development value.