Motilal Oswal Picks 7 Stocks with 14-23% Upside Post-Q1FY27

Motilal Oswal has identified seven stocks with ‘buy’ ratings across finance, technology, and other sectors, following their Q1FY27 earnings reports. These companies demonstrated strong performance, exceeding analyst expectations with robust growth and expanding margins.

The collective recommendations indicate considerable upside potential, with projections ranging from 14% to 23% based on their strong first-quarter showings.

Financial Sector Picks Lead the Way

In the finance sector, Motilal Oswal highlighted Bajaj Finserv, Aditya Birla Capital, and Nuvama Wealth for their impressive Q1 performance.

• Bajaj Finserv received an upgrade to ‘Buy’ with a target price of INR 2,490, suggesting a 23% upside, driven by a 20% consolidated revenue jump. Its life insurance new business value surged by 87%.
• Aditya Birla Capital holds a ‘Buy’ rating with a target of INR 480, indicating a 19% upside, after reporting a 40% profit increase. The company’s loan book expanded by 32%.
• Nuvama Wealth secured a ‘Buy’ rating with a target of INR 2,100, projecting a 16% upside, on the back of 18% operating revenue growth. This growth was primarily fueled by its capital markets business.

Technology and Manufacturing Show Strong Momentum

Dixon Technologies and GAIL also received ‘Buy’ ratings, reflecting solid performances in the technology and manufacturing segments.

• Dixon Technologies maintains its ‘Buy’ rating with a target of INR 16,100, offering a 15% upside, attributed to a 25% increase in mobile phone volumes. Regulatory approvals and government policies are creating new growth avenues.
• GAIL delivered a significant earnings beat, earning a ‘Buy’ rating and a target of INR 206, with a 14% upside. Its robust gas trading business and a plant returning to full production were key drivers.

Healthcare Sector Poised for Growth

The healthcare sector also features prominently, with Global Health and Sun Pharma receiving favorable recommendations.

• Global Health, operating the Medanta hospital chain, received a ‘Buy’ rating with a target of INR 1,670, implying a 19% upside. This was driven by strong patient volumes and rapid expansion of its hospital network.
• Sun Pharma, rated ‘Buy’ with a target of INR 2,310, suggests a 16% upside, after posting profits ahead of expectations. Its global specialty medicine portfolio grew by 13% annually.

These seven companies consistently surpassed Q1 expectations, leading Motilal Oswal to issue or maintain ‘Buy’ calls with projected upsides between 14% and 23%.