In the midst of fluctuating market dynamics fueled by geopolitical tensions and numerous corporate earnings reports, Motilal Oswal has spotlighted several stocks poised for significant growth. These selections have garnered a ‘Buy’ rating, suggesting that investors should keep a close eye on these opportunities.
Jindal Stainless: A Promising Investment
Motilal Oswal has recently initiated coverage on Jindal Stainless, assigning it a Buy recommendation with a target price of Rs 770 per share, indicating a potential upside of about 26% from its current trading levels. The brokerage highlights that Jindal Stainless is currently valued at 8.4x EV/EBITDA based on FY27 projections.
The firm appreciates Jindal’s strategic growth initiatives and commitment to vertical integration. “The company’s focus on strategic acquisitions and securing raw materials will bolster its growth trajectory,” noted Motilal Oswal.
- Revenue Growth: Impressive 12% CAGR from FY22-25 driven by increasing volumes.
- Deleveraging Success: Net debt reduced from Rs 103 billion in FY16 to Rs 40 billion by FY25.
- Healthy Returns: Anticipated return on equity (RoE) remains strong at around 16% by FY27.
The brokerage values Jindal at 10x FY27E EV/EBITDA, leading to the target price of Rs 770.
ABB India: Positioned for Growth
ABB India has also made the brokerage’s list, rated as a Buy with a target price of Rs 6,400, suggesting a potential upside of 15%. Although ABB’s earnings multiples are on the higher side, currently trading at 59x/53.8x for CY25/CY26, the company is well-positioned to capitalize on India’s infrastructure development and increased private sector capital expenditure.
Despite a downturn in its process automation segment, ABB’s outlook remains optimistic. “We have adjusted our earnings estimates down by 3% to 5% for CY25/26/27 to reflect lower ordering and margin expectations,” the report stated.
- Revenue Forecast: Projected growth of 10-14% from CY25 to CY27.
- Profitability: Anticipated margins between 17.1% to 18.3%.
- PAT Growth: Expected increase of 7-10% during the same period.
Key risks include pricing pressures and geopolitical uncertainties, yet the long-term narrative for ABB remains strong. Motilal Oswal maintains a BUY rating with a revised discounted cash flow (DCF) target price of Rs 6,400, equating to a 60x P/E ratio based on forecasted Mar’27 EPS.
Triveni Turbine: A Buy Opportunity
Triveni Turbine has also earned a Buy rating, with a target price of Rs 700 per share, representing a 25% upside. Although recent estimates have been adjusted due to subdued domestic orders, the brokerage holds a positive medium-term outlook.
Triveni’s results for 4QFY25 met expectations, and management is optimistic about pending order pickups in the latter half of FY26. “We foresee an increase in order inflows by 2HFY26, despite some expected fluctuations in the first half,” the report mentioned.
- Revised Estimates: Adjustments of 9-10% downward for FY26 and FY27.
- Revenue Growth: Projected 19% CAGR in revenue, EBITDA, and PAT between FY25-27.
- Strong Cash Flows: Low capital expenditure requirements support this valuation.
Risks include delays in domestic orders and potential weaknesses in export performance, but the long-term fundamentals for Triveni Turbine remain robust.
Conclusion
As investors navigate a complex landscape filled with geopolitical tensions and earnings reports, these stock selections from Motilal Oswal offer promising growth potential. Keeping an eye on these companies could present valuable investment opportunities in the coming months.
