Tension between India and Pakistan continues to grow in the aftermath of Operation Sindoor. However, the markets have shown a significantly mature reaction to the uncertainties across the border. The indices are in wait and watch mode but that doesn’t mean that the market is short of bargain buys. Leading brokerage house, Motilal Oswal has issued a Buy recommendation on these 10 stocks, indicating long-term potential despite short-term jitters.
From mining to FMCG to banking, here is a look at the 10 stocks Motilal Oswal recommends ‘Buy’ and the reasons behind it.
Coal India: Buy with a target price of Rs 480
The brokerage firm Motilal Oswal has maintained a Buy rating on Coal India, setting a target price of Rs 480, which suggests a 25% upside from current levels.
The brokerage sees value in this public sector heavyweight. After a sluggish start to FY25, Coal India bounced back in Q4 with a solid performance. The report notes, “The company’s focus on increasing coal-washer capacity will improve its market share in domestic coking/non-coking coal.”
As per the brokerage report, volumes are expected to grow at an 8% CAGR between FY25-27, with stable e-auction premiums and improving earnings.
“We reiterate our BUY rating with a TP of Rs 480, premised on 4.5x FY27E EV/EBITDA,” added the brokerage in its report.
Godrej Consumer: Buy with a target price of Rs 1,450
The brokerage has given Godrej Consumer a Buy rating with a target price of Rs 1,450, implying a 16% upside.
The brokerage highlights, “Various products are repositioned at a value price point to drive the customer base.” Even though earnings estimates have been trimmed slightly due to urban demand challenges, the stock remains a buy thanks to the company’s product innovation and expansion into new categories.
Motilal Oswal states, “We remain constructive on GCPL and reiterate our BUY rating with a TP of Rs 1,450 (based on 50x FY27E EPS).”
Punjab National Bank: Buy with a target price of Rs 125
The brokerage house has reiterated a Buy rating on Punjab National Bank with a target price of Rs 125, indicating a 33% upside potential.
The brokerage firm notes, “SMA book (with loans over Rs 50 million) improved to 0.02% of domestic loans.” With profitability metrics on the rise and better recovery trends, Motilal Oswal sees value in the PSU bank.
“We expect RoA/RoE at 1.05%/15.5% in FY27E. We reiterate BUY rating on the stock with a TP of Rs 125,” the report says.
Polycab India: Buy with a target price of Rs 7,250
Polycab India received a Buy rating from Motilal Oswal with a price target of Rs 7,250, offering an upside of 23%.
Motilal Oswal forecasts a healthy growth rate, noting, “We estimate a CAGR of 16%/17%/16% in Polycab’s revenue/EBITDA/PAT over FY25-27E.” With strong cash flows and improving liquidity, Polycab is well-placed to deliver.
The report noted, “We reiterate our BUY rating on Polycab with a TP of Rs 7,250 (based on 40x FY27E EPS).”
HPCL: Target Price: Buy with a target price of Rs 455
The brokerage has maintained a Buy rating for HPCL with a target price of Rs 455, indicating an upside potential of 15%.
According to the brokerage report, the company continues to be a preferred pick among oil marketing companies) due to its higher leverage toward the marketing segment and strong dividend yield.
“We expect the start-up of multiple mega-projects in the next 12 months to provide a significant push to earnings,” Motilal Oswal noted.
“We expect a marketing margin of INR3.3/lit for both MS and HSD in FY26/27,” the report added. HPCL is valued at a reasonable 1.5x FY26E P/B, a solid margin of safety, with a projected FY26E RoE of 17.3%.
APL Apollo Tubes: Buy with a target price of Rs 1,920
The brokerage has issued a Buy recommendation for APL Apollo Tubes with a target price of Rs 1,920, a 15% upside from current levels. According to the brokerage, the company is poised for continued growth, driven by a recovery in demand and margin improvements, backed by strategic capacity expansion. “We expect a 20% volume CAGR over the next two years, with an EBITDA/MT of INR5,000 in FY26,” the report stated.
“We expect a 19%/27%/43% CAGR in revenue/EBITDA/PAT over FY25-27E,” the brokerage added.
Mahanagar Gas: Buy rating with a target price of Rs 1,760
The brokerage firm Motilal Oswal has reiterated its Buy rating for Mahanagar Gas, setting a target price of Rs 1,760, implying an upside of 25%. The brokerage expects the company to deliver a 10% volume CAGR over FY25-27, supported by various strategic initiatives such as CNG conversions for commercial vehicles and price discounts for new customers.
“MAHGL is well-positioned to benefit from multiple initiatives, including collaborations with OEMs and its expanding customer base,” the report noted.
The stock is currently trading at 12.6x FY26E SA P/E, which Motilal Oswal believes offers reasonable value, considering the company’s steady earnings growth and healthy margins. “We value the stock at 15x FY27E EPS to arrive at our target price of Rs 1,760,” the brokerage added.
Niva Bupa: Buy with a target price of Rs 100
Motilal Oswal has upgraded Niva Bupa to a Buy rating with a target price of Rs 100, offering an upside of 23%. The brokerage cited a strong 4QFY25 performance, driven by a better expense ratio and slightly higher growth forecasts. “We have upgraded our estimates under IGAAP, mainly due to an improved expense ratio,” the brokerage mentioned.
“Operational efficiency improvements will lead to better scalability and a continued positive trend in its loss ratios,” the report added. The stock is valued at 40x FY27E IFRS PAT, which supports its target price.
Sapphire Foods: Buy with a target price of Rs 400
The brokerage has given a Buy rating to Sapphire Foods with a target price of Rs 400, indicating an upside of 29%.
The brokerage in its report noted that “KFC’s store additions are expected to continue, and product innovation will drive engagement.”
The stock trades at a reasonable multiple of 28x and 22x pre-Ind-AS EV/EBITDA on FY26E and FY27E, respectively. “Improvement in ADS and SSSG will be crucial for restoring unit-level profitability,” the report stated.
Avalon Technologies: Buy with a target price of Rs 1,030
The brokerage has reiterated its Buy rating on Avalon Technologies with a target price of Rs 1,030, implying a 17% upside from current levels. According to the brokerage report, “we broadly maintain our EPS estimates for FY26/FY27” and remain optimistic about the company’s growth momentum across both Indian and US markets.
The brokerage expects a healthy improvement in revenue and profitability driven by strategic expansion and order inflows from high-growth, high-margin industries like clean energy, mobility, and industrials. It notes that the company is “venturing into advanced technology segments” and forming strategic collaborations that are likely to boost both competence and margins.
Motilal Oswal further estimates Avalon to clock a robust CAGR of 28% in revenue, 40% in EBITDA, and 58% in adjusted PAT over FY25–FY27. “Reiterate BUY with a TP of INR1,030 (premised on 43x FY27E EPS),” the brokerage said.