When investment opportunities knock, savvy investors listen. In a market where fortunes can swing either way, finding stocks with solid growth potential becomes crucial
The brokerage house Motilal Oswal, in its latest report, has identified companies across sectors showing potential upside of up to 36% in select counters. This is backed by improving fundamentals and future growth triggers.
Let’s take a look at what is driving the brokerage’s stance.
Motilal Oswal on Waaree Energies
Waaree Energies remains a strong play in the renewable energy space.
Motilal Oswal has assigned a target price of Rs 3,850, indicating an upside potential of about 23%.
The brokerage house in its report noted that, “We have revised our FY27/FY28 revenue estimates upward by 8%/14% and EBITDA estimates by 3%/9%, resulting in a 7% increase in our target price.”
The report also pointed to operational momentum, adding, “management guidance of Rs 7,000-7,700 crore operating EBITDA for FY27 (implying ~25% EBITDA growth YoY)”.
Growth in the retail segment has also been strong, with the brokerage noting, “strong traction in the retail segment.”
Expansion plans, especially in the United States market and domestic manufacturing, are expected to support future earnings.
However, as per the Motilal Oswal report, some of the key risks also remain. These include rising input costs such as silver and copper, higher logistics expenses, and delays in project execution timelines.
Working capital requirements have also increased, which could impact cash flows in the near term.
Motilal Oswal on Kotak Mahindra Bank
In the banking space, Kotak Mahindra Bank is another stock where the brokerage sees steady upside potential. The stock has been given a ‘Buy’ rating with a target price of Rs 470, implying around 23% upside.
According to the brokerage report, the bank’s performance has been supported by stable asset quality and controlled credit costs.
The brokerage has also marginally increased our profit estimates by about 2% for FY27-28. Furthermore, the brokerage also expect the company to deliver a return on assets of 1.96% and return on equity of 12.1% by FY27.
The brokerage also noted that, “Kotak Mahindra Bank reported a strong quarter, marked by controlled slippages and credit costs, along with an uptick in NIMs.”
Going ahead, the bank expects margins to remain stable, though slightly lower, as it focuses on longer-term deposits.
Growth is expected to be driven by retail and unsecured lending, while corporate lending remains selective due to pricing challenges.
Motilal Oswal on Mphasis
In the information technology space, Mphasis has been highlighted for its improving growth outlook.
The brokerage has set a target price of Rs 3,100, indicating a potential upside of up to 36%.
According to the brokerage report, the company’s performance has been supported by strong deal wins and expanding pipeline.
It noted, “Deal momentum remains the key positive – net new TCV at USD 407 million in Q4 and USD 2.1 billion in FY26 (+68% YoY)”.
The report further added that, “Management guides for high single-digit to low double-digit growth.”
The banking, financial services, and insurance (BFSI) segment continues to drive growth, while other sectors are still recovering gradually.
Margins have remained stable within the guided range, even as the company continues to invest in artificial intelligence-led capabilities and large deals.
At the same time, the brokerage flagged that cash conversion has moderated due to upfront investments in long-term contracts. Despite this, growth visibility remains intact over the next few years.
What should investors watch?
The three stocks come from different sectors such as renewable energy, banking, and information technology but the common theme is earnings visibility supported by sector-specific triggers.
As per the brokerage report, factors such as execution, demand trends, and cost pressures will remain key to tracking performance.
Disclaimer: The information provided is based on third-party brokerage reports and is for informational purposes only. It does not constitute a recommendation, offer, or solicitation to buy or sell any securities. Investing in equities involves market risks, including the potential loss of principal; readers are advised to consult a SEBI-registered investment advisor before making any financial decisions.
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