For the trading week starting April 27, 2026, Motilal Oswal Wealth Management Research Desk has identified Tata Steel and Cyient DLM as top stock picks. The recommendations come with specific target prices and upside potential.
Tata Steel
Tata Steel is currently trading at Rs 210, with a target price of Rs 240, offering an upside of 14%. India's steel demand is projected to grow 8–10% over FY26-30, supported by policy tailwinds and improving industry fundamentals. The company is scaling domestic capacity from 26.5 million tonnes per annum (mtpa) in FY25 to 40 mtpa by FY31, including expansions at Kalinganagar and NINL. This positions Tata Steel to capture volume-led earnings growth during the upcycle.
Safeguard duty-led protection, rising HRC prices (from Rs 47,500 per tonne to Rs 53,500 per tonne), lower imports, and China's production curbs are stabilizing domestic spreads. In Europe, the Carbon Border Adjustment Mechanism (CBAM) implementation and tighter quotas are expected to improve pricing discipline and support realizations. European losses have narrowed sharply, with UK breakeven targeted in the coming quarters. Analysts are constructive on Tata Steel, given strong domestic demand, safeguard duty-led price support, ongoing capacity expansions, and a gradual turnaround in the EU business.
Cyient DLM
Cyient DLM is trading at Rs 373, with a target price of Rs 470, offering an upside of 26%. The company's Q4FY26 consolidated revenue and EBITDA declined due to a higher base of BEL orders and geopolitical disruptions in West Asia. However, Q4FY26 is expected to be the last quarter of earnings decline. Cyient DLM closed with a 10-quarter high order book of Rs 24.2 billion and a healthy book-to-bill ratio of 2x, providing strong revenue visibility and supporting expectations of broad-based growth across FY27.
The company is expanding beyond aerospace and defence into automotive, semiconductor equipment, AI infrastructure, and domestic defence opportunities, creating multiple long-term growth drivers and reducing dependence on any single segment. With an improving product mix, rising contribution from higher-value box-build and build-to-spec programs, and better operating leverage, the company is well-positioned for margin expansion going ahead. Analysts estimate a CAGR of 24%, 36%, and 61% in revenue, EBITDA, and adjusted PAT, respectively, over FY26-28.
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