Dixon Tech, Coforge, 8 other stocks among Motilal’s non-Nifty ideas ahead of Q1 results
1/10
Solid bets
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 non-Nifty stocks that the brokerage is bullish on ahead of Q1 results.
2/10
TVS Motor
Target price - Rs 4,267 (22% upside)
Motilal Oswal expects TVS Motor to continue outperforming its two-wheeler peers in Q1FY27 after reporting 28% year-on-year volume growth during the quarter. The growth was driven by a 36% increase in scooter sales, a 19% rise in motorcycle volumes and a 48% jump in three-wheeler sales. Exports also remained strong, rising 47% year-on-year.
Motilal Oswal expects TVS Motor to continue outperforming its two-wheeler peers in Q1FY27 after reporting 28% year-on-year volume growth during the quarter. The growth was driven by a 36% increase in scooter sales, a 19% rise in motorcycle volumes and a 48% jump in three-wheeler sales. Exports also remained strong, rising 47% year-on-year.
3/10
Radico Khaitan
Target price - Rs 4,550 (15% upside)
Motilal Oswal expects Radico Khaitan to report 15% revenue growth in Q1FY27, driven by continued momentum in its premium and above (P&A) portfolio. The brokerage forecasts P&A volumes to rise 20% and revenue to grow 24%, while the popular segment is expected to post 2% volume growth and 4% value growth.
Motilal Oswal expects Radico Khaitan to report 15% revenue growth in Q1FY27, driven by continued momentum in its premium and above (P&A) portfolio. The brokerage forecasts P&A volumes to rise 20% and revenue to grow 24%, while the popular segment is expected to post 2% volume growth and 4% value growth.
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4/10
Indian Hotels Company
Target price - Rs 840 (17% upside)
Revenue is expected to grow 13% YoY, while EBITDA margin is expected to be 28.4% in. Key domestic markets, such as Mumbai, Delhi, Hyderabad, and Bangalore, are expected to continue witnessing strong traction, the brokerage said.
Revenue is expected to grow 13% YoY, while EBITDA margin is expected to be 28.4% in. Key domestic markets, such as Mumbai, Delhi, Hyderabad, and Bangalore, are expected to continue witnessing strong traction, the brokerage said.
5/10
RBL Bank
Target price - Rs 400 (11% upside)
RBL Bank's loan book could grow 23% year-on-year and 1.6% quarter-on-quarter in Q1FY27, driven by healthy growth in wholesale, commercial banking, loan against property (LAP) and gold loans. The brokerage expects net interest margin (NIM) to soften to 4.24% due to a change in the product mix, although lower deposit requirements could help reverse the trend over FY27.
RBL Bank's loan book could grow 23% year-on-year and 1.6% quarter-on-quarter in Q1FY27, driven by healthy growth in wholesale, commercial banking, loan against property (LAP) and gold loans. The brokerage expects net interest margin (NIM) to soften to 4.24% due to a change in the product mix, although lower deposit requirements could help reverse the trend over FY27.
6/10
Dixon Technologies
Target price - Rs 14,600 (22% upside)
Motilal Oswal expects Dixon Technologies to report 19% year-on-year revenue growth in Q1FY27, supported by strong volume growth of over 30% quarter-on-quarter in the mobile segment and an improvement in demand across IT hardware, telecom equipment, televisions and washing machines. Price hikes by mobile OEMs and across other product categories are also expected to support revenue growth.
Motilal Oswal expects Dixon Technologies to report 19% year-on-year revenue growth in Q1FY27, supported by strong volume growth of over 30% quarter-on-quarter in the mobile segment and an improvement in demand across IT hardware, telecom equipment, televisions and washing machines. Price hikes by mobile OEMs and across other product categories are also expected to support revenue growth.
7/10
Coforge
Target price - Rs 1,860 (27% upside)
Motilal Oswal expects Coforge to report flat quarter-on-quarter constant currency (CC) revenue growth in Q1FY27, as the exit from its India pass-through business, which has an annualised impact of 2-3% and is largely reflected in the June quarter, is expected to weigh on organic growth. Motilal Oswal believes the company's executable order book of around $1.75 billion, along with healthy large deal wins, will support growth beyond the one-time impact in the June quarter.
Motilal Oswal expects Coforge to report flat quarter-on-quarter constant currency (CC) revenue growth in Q1FY27, as the exit from its India pass-through business, which has an annualised impact of 2-3% and is largely reflected in the June quarter, is expected to weigh on organic growth. Motilal Oswal believes the company's executable order book of around $1.75 billion, along with healthy large deal wins, will support growth beyond the one-time impact in the June quarter.
8/10
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.
9/10
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.
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.
10/10
Delhivery
Target price - Rs 590 (16% upside)
Motilal expects the firm to report 25% year-on-year revenue growth to Rs 2,890 crore in Q1FY27, driven by healthy shipment volumes and the consolidation of Ecom Express. The brokerage estimates EBITDA at around Rs 195 crore, with EBITDA margin moderating to 6.8% due to higher fuel and employee costs. Key monitorables for the quarter include volume growth and improvement in realisations.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Motilal expects the firm to report 25% year-on-year revenue growth to Rs 2,890 crore in Q1FY27, driven by healthy shipment volumes and the consolidation of Ecom Express. The brokerage estimates EBITDA at around Rs 195 crore, with EBITDA margin moderating to 6.8% due to higher fuel and employee costs. Key monitorables for the quarter include volume growth and improvement in realisations.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)