Motilal Oswal Highlights 3 Stocks with Up to 17% Potential Upside

Brokerage house Motilal Oswal has released a report recommending 'Buy' on three prominent Indian stocks: Larsen & Toubro (L&T), Coal India, and Varun Beverages. The brokerage highlights strong growth potential and a possible upside of up to 17% from their current market prices.

For Larsen & Toubro (L&T), Motilal Oswal maintains a 'Buy' rating with a target price of Rs 4,500, suggesting a 14% upside. Key positives include robust EBITDA growth, a significant jump in order inflows, and a growing core engineering and construction order book. The brokerage sees improving domestic prospects in sectors like thermal power, renewable energy, transportation, and defence, alongside a strategic focus on new-age areas like electronics manufacturing, semiconductors, green ammonia, and green hydrogen.

Coal India also receives a reiterated 'Buy' rating with a target price of Rs 440, indicating a 15% upside. Despite a recent muted quarter, Motilal Oswal anticipates a recovery in volumes and premiums in the coming quarters, supported by demand. The brokerage expects steady annual volume and revenue growth, along with an increase in EBITDA.

Varun Beverages, the bottling partner of PepsiCo, is assigned a 'Buy' rating with a target price of Rs 580, implying a 17% upside. Although recent performance was affected by weather, improved momentum is expected, driven by the scale-up in international markets like South Africa and Zimbabwe, and stronger domestic execution. Diversification into the snacking business and new product launches are also noted as growth drivers.

Impact: This news is significant for investors tracking these specific companies and the broader market sentiment towards infrastructure, energy, and consumer staples sectors. The detailed analysis from a reputable brokerage house provides actionable insights for investment decisions, potentially influencing stock prices. Rating: 8/10

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It measures a company's operating performance. CAGR: Compound Annual Growth Rate. The average annual growth rate of an investment over a period. e-auction: Electronic auction, a method of selling goods online. Here, it refers to selling coal outside long-term contracts. FSA: Fuel Supply Agreement. A contract for fuel supply. CY: Calendar Year. January 1 to December 31. FY: Fiscal Year. A 12-month accounting period, typically April 1 to March 31 in India. YoY: Year-on-Year. A comparison of a value from one year to the same value from the previous year. MoU: Memorandum of Understanding. A preliminary agreement between parties.