Motilal Oswal Recommends Buy on Ambuja Cements, Blue Dart Express with High Return Potential

Leading domestic brokerage Motilal Oswal has identified three stocks for investors, maintaining a bullish outlook.

**Ambuja Cements** received a 'Buy' rating with a target price of Rs 740, indicating a potential 28% upside. The brokerage raised EBITDA estimates for FY26 and beyond, citing improved realisations, lower costs, and successful integration of recent acquisitions like Orient Cement and Penna Cement. Ambuja Cements is expanding its capacity to 155 million tonnes per annum by FY28. Motilal Oswal forecasts a Compound Annual Growth Rate (CAGR) of 14% for revenue, 29% for EBITDA, and 30% for profit after tax between FY25 and FY28.

**Blue Dart Express** also has a 'Buy' rating, with a target of Rs 7,900, suggesting a 24% potential gain. The company reported a significant 31% year-on-year increase in Adjusted Profit After Tax (APAT) in Q2 FY26. Management expects strong EBITDA margins due to yield improvement, cost optimization, and network efficiencies, driven by healthy traction in the e-commerce segment.

**Niva Bupa Health Insurance** earned a 'Buy' rating and a target of Rs 94, representing a 24% upside. The brokerage notes a shift in customer behavior towards higher coverage post-GST exemption on health insurance, leading to larger policy ticket sizes. While Niva Bupa passed on the GST impact to distributors, its RoE guidance remains strong. Profit estimates were slightly revised downwards due to pressures in group health business and higher operating expenses from a new product launch, but the company is well-positioned for growth.

**Impact** This news directly impacts the Indian stock market by providing specific investment recommendations and price targets from a reputable brokerage. Investors may consider these insights for their portfolio decisions, potentially influencing the trading volumes and prices of the mentioned stocks. Rating: 8/10

**Difficult Terms:** * **EBITDA**: Earnings Before Interest, Tax, Depreciation, and Amortization. It's a measure of a company's operating performance before considering non-operating expenses like interest and taxes, and non-cash expenses like depreciation and amortization. * **APAT**: Adjusted Profit After Tax. This is the net profit after tax, adjusted for any extraordinary or non-recurring items to provide a clearer picture of ongoing operational profitability. * **CAGR**: Compound Annual Growth Rate. It represents the average annual growth rate of an investment over a specified period longer than one year, assuming profits were reinvested. * **RoE**: Return on Equity. A profitability ratio that measures how effectively a company uses shareholder investments to generate profits. * **GST**: Goods and Services Tax. A comprehensive indirect tax levied on the supply of goods and services in India.