Motilal Oswal Financial Services has released its latest stock picks, recommending investors to consider seven strong companies that, according to their analysis, offer meaningful upside potential. These include large and mid-cap companies with consistent financials, strong fundamentals, and sectoral leadership. The highest projected upside among these picks is around 25 percent, and the report cuts across industries such as banking, metals, energy, consumer retail, and manufacturing.
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Leading the list is Titan Company, one of India’s most prominent consumer lifestyle businesses. The brokerage sees a 25 percent potential upside in Titan’s stock price, citing the strength of its flagship brand Tanishq. With its strategic focus on youth, a blend of studded and traditional offerings, and a distinct sourcing advantage, Tanishq holds a market edge that is difficult to replicate. Titan’s non-jewellery businesses like watches and eyewear are also scaling steadily and now contribute to a notable share of the company’s revenue and earnings. With robust projections for growth in revenue, EBITDA, and net profit, Titan remains one of the brokerage’s top long-term picks.
Next on the list is HDFC Bank, which has a target price of ₹2,300, indicating an 18 percent upside. Even though the bank saw a slight contraction in its net interest margin due to the changing interest rate cycle, it beat profit expectations through tax reversals and improved cost controls. What stands out, according to Motilal Oswal, is the bank’s prudent provisioning strategy. It has created a sizable buffer through floating and contingency provisions, using gains from subsidiary stake sales, which strengthens its balance sheet.
ICICI Bank also finds itself among the preferred picks, with a projected upside of 17 percent and a revised target of ₹1,670. The bank reported strong quarterly numbers, with net profit rising more than 15 percent year-on-year. Net interest income rose by 11 percent, and margins remained healthy. The bank’s asset quality remains stable, and it maintains a solid contingency reserve to handle unforeseen credit stress.
Reliance Industries has also earned a ‘Buy’ recommendation, with a target of ₹1,700 and an upside potential of 15 percent. Despite a relatively soft quarter, Motilal Oswal remains optimistic about the company’s growth across its core segments. The brokerage values different verticals like oil-to-chemicals, retail, digital platforms, and energy as individual parts of a broader growth engine. The company’s telecom and digital services arm, Reliance Jio, is expected to be a major contributor to future earnings. With anticipated tariff hikes and rising penetration in broadband and enterprise solutions, the telecom business is expected to grow rapidly. Retail revenues are also forecasted to rebound, especially through JioMart and fashion platform Ajio.
In the manufacturing and infrastructure space, JSW Steel has a projected upside of 16 percent, with a target price of ₹1,200. Motilal Oswal’s report points to recovering domestic steel prices and improved resource linkages, which are likely to support the company’s margins. With EBITDA margins expected to rebound to nearly 19 percent over the next two years, the stock appears attractive based on its current valuation.
Polycab India, a leader in wires, cables, and consumer electricals, is another recommended pick with a target price of ₹8,130 and a projected 17 percent upside. The company has shown impressive quarterly performance, with strong growth across both core cable operations and emerging segments like FMEG. The management aims to grow at nearly double the industry rate over the next few years and improve operating margins through a focus on premium products. The brokerage expects continued free cash flow generation and margin expansion driven by both product and channel expansion.
AU Small Finance Bank is the final stock in the list, recommended with a target price of ₹875, suggesting a 10 percent upside. Although the bank is currently facing short-term margin pressures, Motilal Oswal sees it as a promising long-term franchise, especially with the possibility of acquiring a Universal Bank license in the future. Despite some revisions to earnings projections, the bank is still expected to deliver robust returns on assets and equity over the coming years.
Motilal Oswal’s latest list of buy-rated stocks reflects the brokerage’s confidence in sectors that have shown resilience and growth potential even during volatile conditions. For retail investors, these picks serve as a helpful guide to understand where institutional confidence is currently being directed.
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