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3 Buy Recommendations By Motilal Oswal With Up to 22% Gains

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3 Buy Recommendations By Motilal Oswal With Up to 22% Gains

In its latest report, the brokerage firm Motilal Oswal has suggested three stocks and given each of them a "Buy" rating. These three buy calls are Jindal Steel, Samvardhana Motherson and Spandana Sphoorty. The report also states that these recommendations hold upside potential of up to 22% according to the brokerage house, as sectoral trends, expansion plans and long-term growth visibility back it.

Let us check out why the brokerage house Motilal Oswal has placed its bets on these stocks:

Motilal Oswal on Jindal Steel

According to the report, " Jindal Steel is in the process of an Angul Expansion and with its completion, the crude steel capacity of JSP will rise by 65% to 15.9 mtpa and finished steel capacity will increase by 90% to 13.8mtpa, proving that the stocks of JSP offer a big chance for earning growth."

Motilal Oswal, the brokerage firm, has suggested an upside of nearly 18% with a target price of Rs 1,180 for the stocks of Jindal Steel. The firm also said in the report that the JSP showed strong performance despite muted volumes in the June quarter, with cost control and strong realizations driving margins.

In the second half of FY 2026, it is expected that the earnings will improve, supported by higher volumes and a likely recovery in steel prices. While debt levels edged up to 1.5x in Q1, as the working capital pressure reduces, the company expects a reduction in the debt level.

Also Read: New NFO Alert: Motilal Oswal Special Opportunities Fund Review

Motilal Oswal on Samvardhana Motherson

According to the report, " SAMIL is expected to continue outperforming global automobile sales sustained by increasing premiumization and EV transition, a powerful order backlog and successful integration of recent acquisitions."

Motilal Oswal has given a "Buy" rating to the Samvardhana Motherson, with a target price of Rs 114 and a potential of 22% upside. The company faced cost pressures and weakness in key markets in the Q1 earnings. Still, the firm believes that these challenges are temporary and that the company's performance is expected to improve from Q3 as supply chain issues normalise.

Motilal Oswal believes that the company is well-placed to navigate them with its diversified operations, despite the short-term risks from global tariff issues. The firm has also laid out long-term plans, aiming to scale revenues to USD 108 billion in the next five years.

Must Read: Motilal Oswal Large and Midcap Fund Review 2025: Is It a Smart Investment Choice?

Motilal Oswal on Spandana Sphoorty

The brokerage House report notes, " The financial year 2026 will be a year of rebuilding for the company, as it is undergoing a restructuring phase with a focus on strengthening processes aimed at improving efficiency and reducing operating costs".

Motilal Oswal has determined a target price of Rs 280 for Spandana Sphoorty with an upside of 17%. Based on the microfinance lender report, the Q1 earnings were weak due to the stress in asset quality and lower disbursements, but the brokerage expects improvement from the second half of 2026.

The report by the brokerage house also states that profitability may remain under pressure in the near term, but a gradual recovery is anticipated from FY27. The stock has been attractive for long-term investors with its current valuations of 0.9x Mar' 27E P/BV.

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