The brokerage firm Motilal Oswal has given a ‘Buy’ rating to 7 key stocks across banking, energy, retail, metals, and manufacturing sectors. The brokerage sees strong upside potential in these stocks backed by healthy fundamentals, consistent earnings growth, and improving margins.
Let’s take a closer look at the stocks that the brokerage has given a “Buy” rating to, and understand why they are considered worth betting on.
HDFC Bank
Motilal Oswal is also bullish on HDFC Bank, assigning it a target price of Rs 2,300, an estimated upside of 18%.
According to the brokerage, HDFC Bank reported a steady Q1, slightly beating earnings estimates due to tax reversals. Although NIM contracted 11 basis points sequentially, it was expected due to the impact of the RBI’s rate cut cycle.
The brokerage also highlights the bank’s provisioning strategy, noting “HDFCB has prudently utilized the stake sale gains in its subsidiary HDB Financial and made floating provisions of INR90b and contingency provisions of INR17b…taking the total stock of such provisions to INR366b (1.4% of loans).”
The report pegs the bank’s FY27 Return on Assets (RoA) at 1.9% and Return on Equity (RoE) at 14.9%.
Reliance Industries
Reliance Industries also finds a spot in the brokerage’s top picks, with Motilal Oswal reiterating a ‘Buy’ rating and a revised target price of Rs 1,700, implying a 15% upside.
“While 1Q was soft, we remain sanguine on RIL’s growth prospects across segments,” the report noted.
The brokerage uses a sum-of-the-parts (SoTP) valuation approach, assigning values to key verticals like its O2C (Oil to Chemicals), E&P (Exploration & Production), Jio Platforms, Retail Ventures, and New Energy initiatives. Moreover, RIL’s stake in Jio and Reliance Retail is valued at Rs 585 and Rs 605 per share respectively.
Motilal Oswal sees Reliance Jio as the main driver of future growth, projecting 19% EBITDA CAGR between FY25 and FY28, backed by likely tariff hikes and expansion in home and enterprise offerings. It also expects retail business revenues to recover sharply, thanks to the scale-up of JioMart and Ajio. The report projects a healthy Free Cash Flow (FCF) generation of around Rs 1 lakh crore over FY25–28.
ICICI Bank
Motilal Oswal has set a target price of Rs 1,670 on ICICI Bank, hinting at a potential upside of around 17% from current levels.
“ICICIBC remains our preferred BUY in the sector with a revised TP of INR1,670 (2.7x FY27E ABV),” the report stated.
As per the brokerage, the bank’s Q1 performance beat estimates, with net profit growing 15.5% year-on-year, driven by resilient margins, healthy treasury gains, and well-contained operating expenses. Its Net Interest Income (NII) rose 11% YoY, while Net Interest Margin (NIM) stood at 4.34% despite some compression.
Asset quality remains under control, and the lender continues to carry a contingency provisioning buffer of Rs 13,100 crore which is equivalent to 1% of total loans.
Titan Company
Motilal Oswal has maintained a bullish stance on Titan, giving it a target price of Rs 4,250, which suggests a potential upside of 25% from current levels.
According to the brokerage report, Titan’s strength lies in its brand recall, competitive positioning, and strategic reinvestments. Its flagship jewellery brand Tanishq continues to stand out in the organised jewellery space – “youth-centric focus, studded mix strategy and sourcing advantages.”
“The brand recall and business moat are not easily replicable; therefore, Tanishq’s competitive edge will remain strong in the category,” the report noted.
The brokerage also pointed out that Titan’s non-jewellery segments, such as eyewear and watches, are scaling up steadily and now account for 12% of revenue and 10% of EBIT. The brokerage projects a 16% CAGR in revenue, 18% in EBITDA, and 22% in PAT between FY25 and FY27.
JSW Steel
Steel major JSW Steel is another pick from Motilal Oswal’s recommendation list, with the brokerage assigning a target price of Rs 1,200, implying a 16% potential upside.
According to the brokerage report, the company reported a decent Q1 performance. The brokerage expects double-digit revenue growth in FY26 and FY27. The focus on increasing captive iron ore usage and improving coal linkages is likely to support margins.
“EBITDA margin will rebound to 18-19% in FY26/FY27…on account of domestic steel price recovery led by safeguard duty,” said the brokerage report. At the current price, the stock trades at 7.6x FY27 EV/EBITDA, which the brokerage considers attractive, especially with margins expected to recover.
Polycab India
Polycab India, a leading manufacturer of wires, cables, and FMEG (Fast Moving Electrical Goods), is another strong bet in Motilal’s view. The brokerage has given the stock a target price of Rs 8,130, which indicates a 17% upside from the current market price.
As per the brokerage report, Polycab delivered better-than-expected earnings in the latest quarter.
The report also noted that in the FMEG segment, despite weak consumer sentiment, a move towards premium products has helped improve margins. Management aims to grow 1.5–2x the industry average and achieve EBITDA margins of 8-10% by FY30. The brokerage house projects a revenue CAGR of 18%, EBITDA of 21%, and PAT of 20% over FY25-FY28. It expects operating profit margins to expand to 14.3% by FY28 and sees cumulative free cash flows of Rs 4,240 crore.
AU Small Finance Bank
Motilal Oswal has given the stock a ‘Buy’ rating with a target price of Rs 875, indicating a 10% upside.
“Margin pressures are likely to continue in the near term, with 2H recouping some of this loss,” according to the brokerage. The brokerage believes AU Bank is still well-positioned to grow. In fact, it sees the bank as a “promising franchise over the medium term, especially after it secures the Universal Bank license.”
The brokerage has trimmed its FY26/FY27 earnings estimates slightly but still projects RoA of 1.7% and RoE of 18.3% by FY27.