Whalesbook
Motilal Oswal Flags Growth Stocks
Motilal Oswal Financial Services has zeroed in on three key stocks—Billionbrains Garage Ventures (Groww), GAIL (India) Ltd., and Mahanagar Gas Ltd.—tagging them with 'Buy' ratings and projecting substantial upside potential.
The brokerage firm highlighted companies demonstrating strong operational execution and the capacity to develop new revenue avenues. This focus aligns with a positive outlook for domestic demand, even as specific industries navigate temporary pricing obstacles.
Groww's Digital Frontier
Motilal Oswal initiated coverage on the newly public capital markets firm, Billionbrains Garage Ventures, known widely as Groww. A price target of ₹185 was set, indicating a nearly 20% potential gain from current trading levels. Groww has rapidly ascended to become India's largest retail broking platform by active NSE clients within just four years, evolving from a mutual fund portal to a comprehensive investment ecosystem.
Analysts foresee earnings growth driven by leveraging its user base and introducing services like credit products and margin funding. The company's lean operating model, with approximately 80% of customers acquired organically, supports its efficiency. Motilal Oswal projects EBITDA margins could climb to around 66% by fiscal year 2028 as credit and wealth management arms expand.
GAIL's Energy Momentum
For GAIL (India) Ltd., the report maintained a ₹215 price target, suggesting a 23% upside. The investment thesis rests on GAIL's market valuation returning to historical averages, coupled with a favorable outlook for its cash flow and dividend payouts. The upcoming transmission tariff update in early 2026 is identified as a key catalyst, potentially boosting profits by approximately 7% the following year.
Gas volumes are expected to recover as past technical disruptions subside and demand from the fertilizer and power sectors rebounds. Analysts also anticipate potential government actions to streamline gas taxation could offer long-term advantages. Despite possible one-off complexities in FY26, sustained volume growth is seen as reliable.
Mahanagar Gas: Driving CNG Adoption
Motilal Oswal assigned a price target of ₹1,700 to Mahanagar Gas, implying a significant 49% upside. The brokerage expects the company to achieve 11% annual volume growth through 2028, largely propelled by the increasing adoption of CNG vehicles in its core operational regions.
While elevated global gas prices currently pressure margins, Motilal Oswal contends that the stock price already factors in these challenges. The company is valued at 15 times its estimated late-2027 earnings, a valuation considered low relative to future projections. Mahanagar Gas has maintained steady margins despite market volatility, and anticipated tax reforms, alongside rising demand for cleaner fuels, position it favorably.
Broader Economic Support
The recommendations underscore Motilal Oswal's strategy of favoring companies with sustained high margins and expanding business models. The financial sector coverage includes a key digital player, while the energy sector focus targets infrastructure and utility firms poised to benefit from regulatory changes and India's transition to natural gas.