Investors tracking stock market opportunities may want to watch five stocks recommended by Motilal Oswal. potential upside of 25% to 37%, based on the brokerage’s target prices. The recommendations span companies with varied growth drivers, from rising earnings and business expansion to improving operating performance.
Vedanta Aluminium leads the list with the highest potential upside, while the other picks offer opportunities across different sectors. Here’s a closer look at the brokerage’s top recommendations, target prices and key reasons behind its positive view on each stock.
Motilal Oswal has assigned R R Kabel a ‘Buy’ rating with a target price of Rs 2,900, against a market price of Rs 2,123. This implies an upside potential of 37%. In its October 29, 2026, report, the brokerage noted that the company’s revenue increased 52% year on year to Rs 3,280 crore in the second quarter of the financial year 2027.
Earnings before interest, taxes, depreciation and amortisation rose 61% to Rs 280 crore, while profit after tax increased 55% to Rs 180 crore. The operating margin expanded by 50 basis points year on year to 8.6%.
The brokerage also noted that exports accounted for 32% of revenue during the quarter, compared with 27% in the corresponding quarter of the previous financial year. However, management lowered its expected cable and wire volume growth for the financial year 2027 to around 14% to 15%, from its earlier estimate of approximately 18%. It retained its operating margin guidance of around 9.5% for the financial year 2027 and 10.5% for the financial year 2028.
Motilal Oswal maintained its earnings estimates for FY27 and FY28 and valued the stock at 35 times estimated earnings per share for the financial year 2028. The brokerage’s assessment takes into account the company’s growth prospects and expected improvement in operating performance.
The report stated, “We largely maintain our earnings estimates for FY27-28.”
Motilal Oswal’s reported target price for Vedanta Aluminium Metal is Rs 480, compared with a market price of Rs 360, implying an upside potential of 34%. The brokerage’s assessment is based on the company’s production performance, revenue growth and profitability.
In the second quarter of the financial year 2027, revenue reportedly increased 40% year-on-year to Rs 22,300 crore and 4% sequentially. Aluminium production reached 6.49 lakh tonnes, up 5% year on year and 3% sequentially. Alumina production at the company’s Lanjigarh facility increased 37% year on year to 8.95 lakh tonnes.
Earnings before interest, taxes, depreciation and amortisation rose 82% year on year to Rs 10,100 crore, while profit after tax increased 138% to Rs 5,650 crore. The reported figures point to strong earnings growth during the quarter, supported by higher production and operating performance.
Motilal Oswal has assigned Maruti Suzuki India a ‘Buy’ rating with a target price of Rs 14,800, compared with a market price of Rs 11,450. This implies an upside potential of 29%. The brokerage’s assessment considers the company’s operating performance, demand outlook, product launches and capacity expansion.
In the second quarter of the financial year 2027, the company’s profit after tax fell short of the brokerage’s estimate, partly because of mark-to-market losses that affected other income. However, the earnings before interest, taxes, depreciation and amortisation margin reached 8.9%, exceeding the brokerage’s estimate of 8.1%.
Motilal Oswal expects domestic passenger vehicle demand, new product launches and increased production capacity to support the company’s performance. The brokerage also sees scope for market share gains as the company expands production at its new facilities. At the same time, commodity inflation, export mix and limited scope for further price increases could affect margins.
The brokerage reduced its earnings estimate for the financial year 2027 by 7% but expects margins to improve gradually as raw material costs moderate and production volumes increase. It expects earnings to grow at a compound annual growth rate of 11% between the financial years 2026 and 2028 and values the stock at 26 times estimated earnings per share for the financial year 2028.
Motilal Oswal has assigned SBI Life Insurance Company Ltd. a ‘Buy’ rating with a target price of Rs 2,100, against a market price of Rs 1,633. This indicates an upside potential of 29%. The brokerage’s assessment considers new business growth and profitability.
The insurer’s annualised premium equivalent, a measure of the annualised value of new insurance premiums, reportedly reached Rs 6,370 crore in the second quarter of the financial year 2027, an increase of 7% year on year. For the first half of the financial year 2027, annualised premium equivalent growth stood at 18% year on year.
The value of new business increased 12% year on year to Rs 1,860 crore during the second quarter, while the value-of-new-business margin stood at 29.2%. These measures help assess the profitability of new insurance policies and the company’s ability to generate business.
Motilal Oswal has assigned Home First Finance Company India Ltd. a ‘Buy’ rating with a target price of Rs 1,270, compared with a market price of Rs 1,014. This implies an upside potential of 25%. The brokerage’s assessment considers the housing finance company’s earnings growth, lending performance and asset quality.
The company’s profit after tax reportedly increased 29% year on year to Rs 170 crore in the second quarter of the financial year 2027. Net interest income rose 29% to Rs 270 crore, while operating profit before provisions and taxes increased approximately 26% to Rs 240 crore.
Credit costs stood at Rs 15.4 crore during the quarter, equivalent to annualised credit costs of approximately 43 basis points. The company’s lending spreads and ability to maintain asset quality remain important to its profitability. Its floating-rate loan portfolio and calibrated pricing strategy are expected to support spreads of around 5% to 5.2%.
With potential upside of 25% to 37%, these five stocks feature among Motilal Oswal’s ‘Buy’ recommendations. However, the potential upside will depend on how these companies perform against expectations and how their share prices respond. Investors should weigh the brokerage’s target prices against their own risk appetite and investment horizon before making a decision.