The brokerage firm Motilal Oswal has maintained a bullish stance on a few select counters. As key indices trade in the red, the firm has reiterated “Buy” calls on Tata Consultancy Services (TCS), Suzlon Energy, and Glenmark Pharma.
Let’s take a look at what is driving their conviction on each stock, and the upside potential ahead.
Motilal Oswal on TCS: ‘Buy’ with a target price of Rs 3,850
Motilal Oswal continues to back India’s IT bellwether TCS, setting a price target of Rs 3,850 per share. This indicates a 14% potential upside from current levels.
According to the brokerage, “Growth for TCS remains elusive. That said, the headwind from the BSNL ramp-down is now manageable, and there is enough slack in the pyramid to drive margin gains through the year.”
The brokerage report further pointed out that revenue in Q1FY26 came in at USD 7.4 billion, down 0.6% sequentially, missing expectations. While key verticals like Hi-Tech and Manufacturing showed modest growth, other segments underperformed. The India business, in particular, saw a sharp decline of 31% in USD terms.
On the margin front, EBIT rose to 24.5%, aided by cost management, despite high employee costs and third-party revenue headwinds. As per the report, TCS has room to improve utilisation rates, which could lift margins in the coming quarters. Over FY25–27, the brokerage projects USD revenue CAGR of 3% and INR EPS CAGR of 6.6%.
Motilal Oswal on Suzlon Energy: Buy with a target price of Rs 82
Another stock, the brokerage has reiterated its positive outlook is on Suzlon Energy, giving a ‘Buy’ call with a target price of Rs 82. This implies an upside potential of 24%.
“We reiterate our BUY rating on Suzlon, driven by robust order prospects and favorable regulatory trends,” the brokerage said in its note.
Some of the key triggers include the expected implementation of the RLMM local content mandate, healthy pipeline of potential orders – notably 1.5GW from NTPC and a rising share of EPC projects in the company’s order book, which is likely to improve execution visibility. By FY26, Suzlon’s closing order book is projected to touch 6.5GW.
The brokerage values the stock at a P/E of 35x on FY27 EPS, slightly above the historical average. The gradual phase-out of ISTS waiver is also expected to reduce congestion in project-heavy states, boosting operational efficiency.
Glenmark Pharma: Buy with a target price of Rs 2,430
Among the pharma players, the brokerage house hasbuy placed a bullish bet on Glenmark Pharma. The brokerage has given a target price of Rs 2,430. This projects an upside potential of 28%.
According to the brokerage, the stock valuation includes “an NPV of Rs 470 per share from a recent deal, combined with earnings from the base business.” Over the past two years, Glenmark has focused on reducing leverage, enhancing its R&D pipeline, and reshaping its India formulation business.
The brokerage expects the company to report 11% revenue, 17% EBITDA, and 20% PAT CAGR over FY25-27. “Backed by its superior treatment profile and AbbVie’s robust commercial strength, ISB-2001 holds strong potential to emerge as a blockbuster drug in the RRMM space,” the report noted.
