Leading financial services firm Motilal Oswal has unveiled its latest high-conviction stock recommendations following the conclusion of the second quarter earnings season, identifying compelling opportunities across multiple sectors including infrastructure, retail, defence, metals and financial services.
Brokerage Bullish on Multiple Sectors
The brokerage anticipates significant upside potential ranging between 12% to 30% across its top stock selections, driven by strong fundamental performance, improving sectoral trends and favorable long-term growth drivers. The carefully curated list combines structural compounders, sector leaders and valuation-driven opportunities specifically tailored for long-term investors.
Fundamental Stock Ideas with Strong Growth Potential
IRB Infrastructure has received an upgraded Buy rating from Motilal Oswal with a target price of ₹52, suggesting 20% upside potential. The brokerage highlighted IRB's decent Q2 performance, supported by successful asset monetization and stable cash flows from its InvIT portfolio. With a robust order book of ₹320 billion, including ₹305 billion in O&M contracts, the company demonstrates strong long-term growth visibility. Motilal Oswal projects a 20% revenue CAGR over FY25-28, backed by marquee projects like the Ganga Expressway and expected order inflow acceleration in second half of FY26.
Vishal Mega Mart remains a top retail pick with a Buy rating and target price of ₹180, indicating 30% potential upside. The company reported impressive 22% year-on-year revenue growth in Q2, fueled by early festive demand, consistent store expansion and robust same-store sales performance. The brokerage emphasized VMM's unique business model, characterized by its strong presence in Tier-II cities and beyond, diverse product portfolio, significant private label contribution and one of the leanest cost structures in value retail, providing substantial competitive advantage.
Focus Investment Opportunities Across Sectors
TVS Motor Company maintains its Buy rating with a target price of ₹4,159, representing 23% upside potential. The brokerage expects the automaker's strong product pipeline, growing international business and expanding electric vehicle portfolio to drive sustained earnings momentum.
Bharat Electronics (BEL) continues to receive bullish outlook from Motilal Oswal, citing consistent order inflows, Make-in-India benefits and leadership position in defence electronics. With current stock price at ₹426 and target of ₹490, the brokerage projects 17% appreciation potential.
Tata Steel is poised for profitability recovery according to the brokerage, driven by stronger domestic demand, cost efficiency measures and stable steel prices. MOFSL set a target price of ₹210, implying 16% upside from current levels.
Aditya Birla Capital demonstrates broad-based growth across lending, insurance and asset management segments. Strong Q2 disbursement trends showing 14% growth in NBFC loans and 44% growth in housing finance underline improving financial momentum. The brokerage sees 15% upside to ₹380 target price.
Radico Khaitan maintains positive stance from Motilal Oswal with a target price of ₹3,600, signaling 10% potential gains for the liquor company.
Technical Breakout Candidates
From a technical perspective, Motilal Oswal has identified Axis Bank, GRSE and BEL as stocks showing promising breakout patterns. Axis Bank has formed a strong bullish candle with significant volume surge, rebounding convincingly from its 20-day exponential moving average. The brokerage recommends buying with stop loss at ₹1,200 and target of ₹1,310.
Garden Reach Shipbuilders & Engineers has demonstrated clear consolidation breakout with higher-than-average volumes and steadily rising RSI, indicating strong upward momentum. The stock has firm support around ₹2,740 level.
Bharat Electronics is approaching significant technical breakout above the ₹430 mark, having established strong base near its 50-day exponential moving average with crucial support at ₹408.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
