The domestic brokerage Motilal Oswal has retained its ‘Buy’ call on three stocks – Gokaldas Exports, Laxmi Dental and VIP Industries. The brokerage sees upside potential ranging from 39% to 46% in these counters.
The reasons, however, are not the same. One is benefiting from a diversified manufacturing footprint. Another is seeing stronger international demand. The third is trying to rebuild growth through premium products and a sharper brand strategy.
Let’s take a look at the key reasons why the brokerage house is bullish on these stocks –
Motilal Oswal has given a ‘Buy’ rating to Gokaldas Exports.The brokerage has set a target price of Rs 1,110, implying around 46% upside from the current market price.
The company reported a strong start to FY27. Revenue rose 20.7% year-on-year to Rs 1,150 crore in the first quarter, driven by growth in its Africa and India businesses.
Earnings were affected by higher wages and transportation costs. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin stood at 9.8%.
According to the Motilal Oswal report, “Management is confident to reach $110-112 million by FY27.”
Gokaldas expects revenue growth of more than 15% in FY27 and aims to keep its EBITDA margin above 10%.
Motilal Oswal expects margin improvement as the integration of businesses stabilises. It estimates around 215 basis points of margin expansion over FY26-28.
The brokerage therefore said, “We tweak our earnings due to better visibility and reiterate our BUY rating.”
Laxmi Dental comes next, with a target price of Rs 280 and ‘Buy’ rating. That represents around 40% upside.
The dental products company reported a 14% year-on-year rise in revenue to Rs 74.7 crore during the first quarter of FY27.
More importantly, profitability was better than expected.
EBITDA rose 20.6% to Rs 14.4 crore, while adjusted Profit After Tax (PAT) increased 23% to Rs 10.3 crore.
The international business remains an important growth driver. The company is also seeing a revival in its aligner business and expanding its network of dentists in India.
Motilal Oswal noted, “Strong traction in the international market and revival in growth of the aligner business led to an improved overall performance.”
The brokerage expects revenue, EBITDA and PAT to grow at compound annual growth rates of 18%, 34% and 35%, respectively, between FY26-28.
Motilal Oswal sees 39% potential upside on this stock and has given a ‘Buy’ rating.
The brokerage has assigned a target price of Rs 430.
The first-quarter numbers were weak. Consolidated revenue increased only 3% year-on-year to Rs 580 crore, while the company reported losses at the EBITDA and PAT levels.
But the brokerage believes several changes could support a recovery.
VIP Industries has revamped its websites, stepped up influencer and outdoor advertising, rationalised inventory and closed low-return exclusive brand outlets.
June also showed a stronger recovery after a weak April and May.
The report noted, “Management expects stronger growth in Q2, with margins also expected to improve and turn around going forward.”
Motilal Oswal believes premiumisation, new products and stronger brand-building could help VIP regain market share.
The three recommendations come with very different triggers.
Gokaldas Exports is largely a margin recovery story. Laxmi Dental is being supported by international growth and improving aligner demand. VIP Industries is a turnaround bet.