33% upside! Motilal Oswal adds 10 stocks to model portfolio as markets gear up for Q1
1/11
Stock Watch
As the June quarter earnings season gets underway with TCS set to report its Q1FY27 results on Thursday, domestic brokerage Motilal Oswal expects revenue growth to remain healthy across segments, with large-, mid and smallcap companies likely to report sales growth of 17%, 15% and 16% YoY, respectively. Here are 10 stocks that the brokerage added to its model portfolio.
2/11
RBL Bank
Target price - Rs 400 (11% upside)
Motilal Oswal expects RBL Bank to report healthy loan growth of 23% year-on-year and 1.6% quarter-on-quarter, driven by growth in the wholesale, commercial, loan against property (LAP) and gold loan segments. Deposits, however, are expected to decline 1.2% sequentially.
Motilal Oswal expects RBL Bank to report healthy loan growth of 23% year-on-year and 1.6% quarter-on-quarter, driven by growth in the wholesale, commercial, loan against property (LAP) and gold loan segments. Deposits, however, are expected to decline 1.2% sequentially.
3/11
HDFC AMC
Target price - Rs 3,250 (17% upside)
Motilal Oswal expects quarterly average assets under management (QAAUM) and yields to remain largely stable on a sequential basis in Q1FY27. Revenue growth is likely to be muted, reflecting largely flat QAAUM during the quarter. The brokerage expects EBITDA margin to remain around the 80% mark.
Motilal Oswal expects quarterly average assets under management (QAAUM) and yields to remain largely stable on a sequential basis in Q1FY27. Revenue growth is likely to be muted, reflecting largely flat QAAUM during the quarter. The brokerage expects EBITDA margin to remain around the 80% mark.
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4/11
BSE
Target price - Rs 4,350 (18% upside)
Motilal Oswal expects strong growth in transaction revenue in Q1FY27, driven by higher cash and derivatives trading volumes. Motilal Oswal expects EBITDA margin to expand on a sequential basis, aided by improved operating efficiency.
Motilal Oswal expects strong growth in transaction revenue in Q1FY27, driven by higher cash and derivatives trading volumes. Motilal Oswal expects EBITDA margin to expand on a sequential basis, aided by improved operating efficiency.
5/11
L&T Finance
Target price - Rs 370 (18% upside)
Motilal Oswal noted that LTF reported retail loan growth of around 28% year-on-year. The brokerage expects net interest margins (NIMs) to decline by about 30 basis points sequentially to around 10%. It also expects credit costs to ease by 10 basis points quarter-on-quarter to 2.45% on an annualised basis. According to the brokerage, the outlook on margins and credit costs will remain the key monitorables.
Motilal Oswal noted that LTF reported retail loan growth of around 28% year-on-year. The brokerage expects net interest margins (NIMs) to decline by about 30 basis points sequentially to around 10%. It also expects credit costs to ease by 10 basis points quarter-on-quarter to 2.45% on an annualised basis. According to the brokerage, the outlook on margins and credit costs will remain the key monitorables.
6/11
GE Vernova T&D India
Targe price - Rs 5,200 (6% upside)
Motilal Oswal expects GE Vernova T&D to report 25% year-on-year revenue growth, driven by healthy execution of its opening order book of Rs 21,500 crore. The brokerage said key monitorables will include order inflows from domestic and export markets, capacity expansion, price hikes and the company's working capital cycle.
Motilal Oswal expects GE Vernova T&D to report 25% year-on-year revenue growth, driven by healthy execution of its opening order book of Rs 21,500 crore. The brokerage said key monitorables will include order inflows from domestic and export markets, capacity expansion, price hikes and the company's working capital cycle.
7/11
Kirloskar Oil Engines
Target price - Rs 2,750 (17% upside)
Motilal expects the firm to report 19% year-on-year revenue growth in Q1FY27, driven by strong performance across all business segments, except exports. The brokerage expects export demand to begin recovering over the coming quarters. Key monitorables for the quarter include demand for gensets, the pricing environment, growth in the high horsepower (HHP) segment and progress on the company's ongoing capacity expansion plans.
Motilal expects the firm to report 19% year-on-year revenue growth in Q1FY27, driven by strong performance across all business segments, except exports. The brokerage expects export demand to begin recovering over the coming quarters. Key monitorables for the quarter include demand for gensets, the pricing environment, growth in the high horsepower (HHP) segment and progress on the company's ongoing capacity expansion plans.
8/11
Hindalco
Target price - Rs 1,170 (19% upside)
Motilal Oswal expects Hindalco to report earnings supported by strong London Metal Exchange (LME) prices and robust performance from its India operations, aided by steady volumes and favourable aluminium prices. The brokerage, however, expects Novelis' earnings to remain muted due to the shutdown at its Oswego facility following the fire incident.
Motilal Oswal expects Hindalco to report earnings supported by strong London Metal Exchange (LME) prices and robust performance from its India operations, aided by steady volumes and favourable aluminium prices. The brokerage, however, expects Novelis' earnings to remain muted due to the shutdown at its Oswego facility following the fire incident.
9/11
Apollo Hospitals
Target price - Rs 10,120 (17% upside)
Motilal Oswal expects Apollo Hospitals to report 18% year-on-year growth in sales and 21% growth in EBITDA to Rs 6,920 crore and Rs 1,030 crore, respectively, supported by steady growth across its business segments. The brokerage also expects the company's HealthCo EBITDA to strengthen further during the first quarter of FY27. Brokerage Expect hospital EBITDA margin to increase marginally by 30bp due to losses from new hospitals.
Motilal Oswal expects Apollo Hospitals to report 18% year-on-year growth in sales and 21% growth in EBITDA to Rs 6,920 crore and Rs 1,030 crore, respectively, supported by steady growth across its business segments. The brokerage also expects the company's HealthCo EBITDA to strengthen further during the first quarter of FY27. Brokerage Expect hospital EBITDA margin to increase marginally by 30bp due to losses from new hospitals.
10/11
Gabriel India
Target price - Rs 1,447 (16% upside)
Motilal Oswal expects Gabriel India to report 33% year-on-year revenue growth, driven by strong OEM production and the consolidation of Anchemco and Myutec. The brokerage expects the company's base business to grow 16% year-on-year. It, however, expects margins to come under pressure across business verticals due to the sharp increase in input costs.
Motilal Oswal expects Gabriel India to report 33% year-on-year revenue growth, driven by strong OEM production and the consolidation of Anchemco and Myutec. The brokerage expects the company's base business to grow 16% year-on-year. It, however, expects margins to come under pressure across business verticals due to the sharp increase in input costs.
11/11
Arvind Fashions
Target price - Rs 620 (33% upside)
The brokerage expects the firm to report 14% year-on-year revenue growth in Q1FY27, supported primarily by mid- to high-single-digit same-store sales growth (SSSG). The brokerage expects gross margin to improve by around 50 basis points year-on-year, while operating margin is likely to expand by approximately 35 basis points during the quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The brokerage expects the firm to report 14% year-on-year revenue growth in Q1FY27, supported primarily by mid- to high-single-digit same-store sales growth (SSSG). The brokerage expects gross margin to improve by around 50 basis points year-on-year, while operating margin is likely to expand by approximately 35 basis points during the quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)