The markets have started Christmas week on a positive note, and the domestic brokerage house Motilal Oswal has picked three stocks with strong upside potential – Shriram Finance, InterGlobe Aviation, and Aditya Birla Real Estate. The brokerage firm has a Buy rating on all three stocks and sees as much as 33% upside.
Here’s a detailed analysis of the investment rationale driving these stock picks
Motilal Oswal on Shriram Finance
The brokerage house has retained its Buy rating on Shriram Finance, with a target price of Rs 1,100, implying an upside of 22% from the current market price. Motilal Oswal believes that MUFG’s entry represents a meaningful strategic upgrade for Shriram Finance, with positive implications for both market positioning and long-term profitability. The identity and balance sheet strength of a global strategic partner can play a decisive role in shaping a lender’s competitive advantage, particularly in a tightening regulatory and funding environment.
MUFG’s entry will create multiple structural advantages, like strengthening the company’s credit profile, enabling a structural reduction in cost of funds (CoF), and many others.
Motilal Oswal on InterGlobe Aviation
Motilal Oswal retained its Buy rating on InterGlobe Aviation, with a price target of Rs 6,300. This implies an upside of 22% from the current market price. The brokerage remained confident of the company’s long-term growth strategy despite near-term challenges from operational disruptions and rupee depreciation.
IndiGo’s domestic network remains the backbone of its operations, supporting India’s travel and tourism evolution, while expanding international connectivity provides a natural hedge and enhances margins, said the brokerage house. The low-cost carrier will remain the market leader (at the current share) over the long term, supported by its fleet expansion pipeline, addition of new destinations (domestic and international), efficient OTP, and competitive pricing.
Motilal Oswal on Aditya Birla Real Estate
Motilal Oswal initiated coverage on Aditya Birla Real Estate with a Buy rating. The target price on the stock was set at Rs 2,275 per equity share, implying an upside of over 33%. The brokerage started tracking the company on the back of its robust presales. The company reported a strong 90% CAGR in presales over FY21-25, driven by an increase in projects under execution, geographic diversification, and premium realisations.
With a strong launch pipeline of upcoming premium projects, the company is expected to sustain momentum and post a 26% CAGR in bookings over FY25-28. Strong presales growth will drive the rapid scaling of operations across key parameters, such as cash flows, revenue, and profitability, boosting confidence in the company’s execution capabilities and future growth prospects.
