Investors looking for potential market movers may want to take a closer look at three stocks that have recently caught the attention of the brokerage house Motilal Oswal. The brokerage has given ‘Buy’ recommendations with upside potential ranging up to 35%. But what makes these picks stand out?
According to the brokerage report, these companies are not just following trends; they are actively shaping their industries, making them worth watching closely in the coming months.
Let’s take a look at the stocks the brokerage is bullish on and the rationale behind it –
Motilal Oswal on Varun Beverages
Varun Beverages, a key player in the soft drinks space, has received a ‘Buy’ recommendation with a target price of Rs 550. This implies a potential gain of 35% from current levels.
According to the brokerage report, “We expect a 13% growth in revenue, 13% growth in Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA), and 16% growth in Profit After Tax (PAT) on a Compound Annual Growth Rate (CAGR) between 2025 -2027.”
The company is shifting from being a pure-play beverage bottler to a multi-category consumer distribution platform. Motilal Oswal noted, “VBL’s management strategy focuses on expanding its proven franchisee model – deepening its presence in India and extending its reach in Africa – while transforming the company from a single-category beverage bottler into a multi-category consumer goods distribution platform.”
Despite weaker consumption in 2025 due to heavy rainfall affecting demand, the brokerage expects the company to achieve double-digit growth. This is supported by capacity expansion, portfolio innovation, and backward integration.
International markets are also emerging as a key growth driver, contributing around 31% of volumes in 2025, up from 21% in 2020.
Motilal Oswal on SBI Life Insurance
SBI Life Insurance, another stock under the brokerage’s radar, comes with a target price of Rs 2,400. This suggests an upside of 24%.
The company has delivered consistent growth, with Annualised Premium Equivalent (APE) rising at a CAGR of 15% FY20-25, compared to 6% for the overall industry.
According to the brokerage report, “The gradual shift toward higher-margin products, robust operational efficiency, and rising rider attachments is expected to help in maintaining Value of New Business (VNB) margin in the range of 26-28%, despite temporary headwinds from the loss of input tax credit.”
The company is gradually focusing more on traditional insurance products while reducing Unit Linked Insurance Plans (ULIP) share from around 67% to 60%.
As per the brokerage report, protection products are growing faster than the overall business, targeting 9-9.5 percent of individual APE. The brokerage expects continued APE growth of around 15% through FY26-28.
Motilal Oswal on IPCA Laboratories
In the pharmaceutical space, Ipca Laboratories has also been recommended as a ‘Buy’, with a target price of Rs 1,820.
According to the brokerage report, “We expect IPCA to deliver a 13% revenue CAGR over FY26-28, led by robust performance in domestic formulations and healthy pick-up in exports.”
The brokerage report added, EBITDA and PAT are projected to grow at 17% and 16% CAGR over the same period, driven by better operating leverage.
The company is implementing multiple initiatives to strengthen its domestic formulation segment, such as revamping the cardiology portfolio and expanding into high end cosmo dermatology.
On exports, the brokerage expects growth to be supported by US relaunches, European tenders, and traction in established markets.
Conclusion
Overall, the brokerage report noted that for Varun Beverages, international expansion and diversification are key; for SBI Life, product mix and operational efficiency are critical; and for IPCA Laboratories, a mix of domestic growth and export expansion drives optimism.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.