Whalesbook
Motilal Oswal is recommending select stocks based on improving business visibility and clear growth opportunities.
ICICI Prudential AMC
Motilal Oswal is positive on ICICI Prudential Asset Management Company (AMC), expecting steady growth in the mutual fund sector. The firm set a target price of ₹3,850, pointing to a 15% potential gain. Motilal Oswal highlighted the company's strong position due to its diverse product range and extensive distribution network. They forecast Assets Under Management (AUM), revenue, and Profit After Tax (PAT) to grow at a Compound Annual Growth Rate (CAGR) of 17%, 15%, and 16% respectively between FY26 and FY28.
Hero MotoCorp
For the automotive sector, Hero MotoCorp received a 'Buy' rating and a target price of ₹6,205, suggesting an 18% upside. The brokerage anticipates an average annual growth rate (CAGR) of around 7% for volumes from FY25 to FY28. This growth is expected to be fueled by recovering rural demand, expansion in the scooter segment, and increased exports. These factors should lead to an 11% CAGR for revenue, EBITDA, and net profit. However, rising input costs pose a short-term challenge that could affect profit margins.
Indostar Capital Finance
Motilal Oswal maintained its 'Buy' rating on Indostar Capital Finance with a target price of ₹270, indicating a substantial 24% potential upside. The company is seen as entering a stable growth period as it shifts towards a retail-focused, more diversified Non-Banking Financial Company (NBFC) model. The brokerage projects Assets Under Management (AUM) and Pre-Provision Operating Profit (PPOP) to grow at CAGRs of 23% and 36% respectively between FY26 and FY28, suggesting a more predictable path forward.
ICICI Prudential Life Insurance
ICICI Prudential Life Insurance is another favored pick, earning a 'Buy' rating and a target of ₹650, implying a 19% upside. The insurer's strategy of emphasizing a better product mix and expanding its retail protection business is enhancing profitability. This is evident in the year-on-year increase in Value of New Business (VNB) margins. The brokerage expects long-term profitability to be supported by higher volumes, benefits from GST exemption, and improved product margins.