Whalesbook
Motilal Oswal Financial Services has identified three Indian stocks—Mahindra & Mahindra, APL Apollo Tubes, and PN Gadgil Jewellers—as prime 'Buy' opportunities, projecting potential upside of up to 31% despite prevailing market selling pressure. The brokerage's latest recommendations are anchored in recent corporate performance, management outlooks, and observed demand trends across key economic sectors.
Brokerage Identifies Key Upside Potential
The equity research firm has reiterated 'Buy' ratings for the selected companies, offering investors clear price targets and earnings projections. This advice comes as broader market indices face headwinds, suggesting a focus on specific companies demonstrating resilience and growth potential.
Mahindra & Mahindra: New Models Drive Auto Sector Hopes
Motilal Oswal maintained a 'Buy' on Mahindra & Mahindra (M&M), setting a target price of ₹4,521, an estimated 21% increase from current levels. The firm recently evaluated the new XUV7XO and XEV 9S, noting the XUV7XO's upgrades could add significantly to monthly sales. While the electric XEV 9S offers advanced features, its premium pricing may cap volume contributions. The brokerage forecasts a 14% compound annual growth rate in utility vehicle volumes for M&M between FY25 and FY28, with revenue, EBITDA, and profit after tax expected to grow by approximately 19%, 18%, and 21%, respectively, over the same period.
APL Apollo Tubes: Capacity Expansion Supports Targets
APL Apollo Tubes also received a 'Buy' recommendation with a ₹2,260 target price, implying an 18% upside. The company has demonstrated steady volume growth, achieving record sales in the December quarter despite industry softness. Motilal Oswal highlights APL Apollo's guidance for 10-15% volume growth in FY26, supported by capacity additions, including its Dubai plant, and robust demand from infrastructure, solar, and manufacturing sectors. A significant ₹1.5 lakh crore capital expenditure plan aims to increase capacity from 4.5 million tonnes to 10 million tonnes by FY30. Over FY25-FY28, revenue, EBITDA, and profit after tax are projected to grow at compound annual rates of 14%, 29%, and 33%, respectively.
PN Gadgil Jewellers: Festive Sales Boost Retail Performance
For PN Gadgil Jewellers, the 'Buy' rating comes with a target price of ₹825, representing a potential 31% gain. The company's pre-quarter update indicated strong December quarter performance, driven by peak festive and wedding season demand. Total revenue surged 36% year-on-year, with the retail segment contributing over 80% of sales. Strong festive sales during Dhanteras and Diwali, coupled with solid same-store growth and increasing online channel contributions, were noted. The company is actively expanding its retail footprint, planning 12-14 new outlets in the March quarter, on track to reach 78-80 stores by FY26.
Strategic Outlook and Rationale
Motilal Oswal's strategy relies on these companies' visible demand drivers, planned capacity additions, and clear execution paths. These factors underpin the brokerage's conviction in their respective price targets and ratings for the medium term.