The domestic brokerage house Motilal Oswal has outlined four stock ideas across sectors, where it sees strong earnings visibility and growth potential. The brokerage picks span across real estate, renewable energy, financial services, and retail.
According to the brokerage report, these stocks could deliver up to 48% upside.
Let’s take a look at the stocks that the brokerage house is bullish on, and what is the rationale driving it –
Motilal Oswal on Trent: What is driving the outlook for this Tata Group stocks?
Trent, a Tata group has been assigned a ‘Buy’ rating by the brokerage house Motial Oswal. The brokerage has set a target price of Rs 5,250, indicating an upside potential of about 18% from current levels.
According to the Motilal Oswal report, earnings upgrades are largely driven by improving margins rather than aggressive revenue growth.
The brokerage has increased its profit estimates for the next two years by about 4-6%, mainly because it expects the company to earn better margins.
The company has seen some moderation in growth due to expansion into new markets.
“Trent’s revenue growth decelerated to ~18% YoY in FY26 due to cannibalization of sales in existing stores,” the report noted.
However, the brokerage believes that this impact is stabilising. It also highlighted that new store additions, especially under brands like Westside and Zudio, continue to support long-term growth.
“We continue to like Trent for its strong footprint additions, retail formats with robust store economics, and long runway for growth,” the report noted.
Motilal Oswal on Sunteck Realty: A high-growth real estate bet
Motilal Oswal has given a ‘Buy’ rating to Sunteck Realty with an upside potential of nearly 48% from current levels. The brokerage has set a target price of Rs 530.
The brokerage believes the company is entering a strong growth phase driven by new project launches and an expanding portfolio.
As per the brokerage report, “Given the favourable base and healthy launch pipeline, we expect Sunteck Realty to deliver a 23% pre-sales CAGR (Compound Annual Growth Rate) over FY26-FY28.”
The report also highlighted that the company has significantly increased its business development spending, which is expected to translate into future revenue visibility.
In FY26, Sunteck added projects with a Gross Development Value (GDV) of around Rs 5,000 crore, while its launch pipeline is estimated at Rs 6,000-7,000 crore.
“Growth in collections and healthy cash flows would support business development vis-à-vis keeping leverage at healthy levels,” added Motilal Oswal in its report.
Another key trigger is its potential Dubai project, which is ready for launch.
According to the brokerage, the timing of this international expansion will depend on global conditions, but it could provide an additional boost to pre-sales growth.
Motilal Oswal on Fujiyama Power Systems: Renewables riding the solar boom?
In the renewable energy segment, Motilal Oswal has given it a ‘Buy’ rating on Fujiyama Power Systems, with a target price of Rs 340, implying an upside of about 31% from current levels.
According to the brokerage report, the company is expected to see rapid growth across key financial metrics.
“We expect Fujiyama Power Systems to deliver strong growth (56%65% CAGR in revenue/PAT over FY25–FY28),” Motilal Oswal noted.
The company is also focusing on backward integration, which means manufacturing key components in-house to reduce costs and improve margins.
“Overall, the superior economics of Domestic Content Requirement solar cells have driven rapid capacity build-up,” the brokerage noted.
It further added, “Fujiyama Power Systems growth is driven by the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY) scheme and its in-house DCR plant, supporting demand capture.”
The company is also expanding into lithium-ion batteries and solar inverters.
Motilal Oswal on SBI Life Insurance: Long-term opportunity in financials
Motilal Oswal has a ‘Buy’ on SBI Life Insurance Company with a target price set at Rs 2,350. This suggests an upside of around 25% from current levels.
The brokerage has slightly revised its growth estimates but remains positive on long-term fundamentals.
“We have slightly cut our (Annualised Premium Equivalent) estimates and expect ~14% CAGR over FY26-28E,” the report stated.
Despite some pressure on margins due to changes in the Goods and Services Tax (GST) structure, the company’s profitability is expected to remain stable.
As per Motilal Oswal report, “Operating RoEV is expected to remain stable at 18%.”
The brokerage house in its report also noted that the company is seeing a shift towards non-linked products, which typically offer better margins compared to market-linked insurance products.
“Continued investments in agency and digital channels are expected to drive overall growth,” added Motilal Oswal in its report.
What investors need to watch
According to the brokerage report, while the upside potential in these stocks looks attractive, the actual performance will depend on execution, demand conditions, and macroeconomic factors.
Disclaimer: The investment ideas and target prices mentioned above are based on a report by Motilal Oswal and are intended for informational purposes only. These do not constitute an offer or solicitation to buy or sell any securities. Given the specific nature of these stock recommendations and the associated market risks, readers are strongly advised to consult with a SEBI-registered investment advisor before making any financial decisions.
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