Motilal Oswal Unveils Top Stock Recommendations for Trading Week
Motilal Oswal Financial Services Ltd. has identified Delhivery and Britannia Industries as its premier stock picks for the trading week commencing February 16, 2026. This strategic selection is based on comprehensive analysis of recent financial results, market positioning, and future growth trajectories, offering investors potential upside opportunities in a dynamic market environment.
Delhivery: Logistics Leader Poised for Profitability Surge
Delhivery stands out with a current market price (CMP) of Rs 420 and a target price (TP) of Rs 570, indicating a substantial 36% upside potential. The company's acquisition of Ecom Express has been a transformative move, significantly enhancing its network reach and accelerating consolidation within the competitive logistics sector. This strategic integration allows Delhivery to capture market share as smaller competitors grapple with margin pressures, solidifying its dominance.
In the third quarter of fiscal year 2026 (3QFY26), Delhivery demonstrated robust performance, with EBITDA margins expanding to an impressive 7.4%. This improvement was driven by strong volume traction in key segments such as Express Parcel and Part Truck Load, where segment-level margins rose to 18.1% and 11%, respectively. These gains highlight the benefits of operating leverage and improved realizations, underscoring the company's efficient scaling.
With the heavy investment phase largely behind it and capital intensity moderating, Delhivery is poised for enhanced free cash flow generation. Management continues to target steady-state margins of 16–18% in core transportation, with additional upside expected from Supply Chain Services and innovative offerings like Delhivery Direct and Rapid. This positions the company for structurally stronger profitability in the coming years, making it a compelling choice for investors seeking growth in the logistics space.
Britannia Industries: Resilient Performance with Sustained Momentum
Britannia Industries presents a CMP of Rs 5,971 and a TP of Rs 7,150, offering a 20% upside potential. The company delivered a resilient performance in 3QFY26, achieving revenue growth of 9.5% year-over-year (YoY). While October faced disruptions due to GST-led trade issues, normalization followed with approximately 12% growth in November–December, driven by healthy volumes across biscuits and adjacent categories.
Profitability emerged as a key highlight, with gross margin expanding by 450 basis points YoY to 43.3%, supported by stable commodity prices. This led to an EBITDA margin of 20.7% and adjusted profit after tax (APAT) growth of 23% YoY. Although dual price points in low-unit-price (LUP) packs caused temporary trade distortions, these are expected to stabilize soon.
Britannia's strategic advantages include a large portfolio share in INR 5 and INR 10 packs, improving e-commerce salience, brand investments under new leadership, and a focus on distribution expansion and premium adjacencies. These factors position the company well to drive sustained earnings momentum, supporting a constructive long-term view for investors.
Investment Outlook and Disclaimer
Motilal Oswal's recommendations underscore the potential for significant returns in these stocks, backed by solid fundamentals and strategic initiatives. However, it is crucial for investors to conduct their own research and consider market risks. Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India or other entities.
