The brokerage firm Motilal Oswal had a ‘Buy call on three stocks on March 11. It has picked Sun Pharma after Checkpoint Therapeutics’ deal and Sapphire Foods because of tax relief to the middle-class by the government in the recent budget, raising disposable income. It initiated coverage on Bharti Hexacom with a Buy.
Top 3 Buy recommendations by Motilal Oswal
Motilal Oswal on Sapphire Foods
The brokerage firm upgraded its view on the quick service restaurant universe from cautious to positive mainly on the back of the government’s push for more consumption. The Indian government in the Union Budget 2025-26 gave a big tax relief to middle class families, leaving more disposable income in their hands. The analysts met the company’s CEO and CFO and came to the conclusion that the long-term QSR drivers remain strong, with KFC and Pizza Hut as key verticals. Motilal Oswal maintained its Buy call on the stock with a target price of Rs 425. However, near-term ADS pressure and weak margins are expected for two more quarters, impacting performance.
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Coming to the second pick, the brokerage firm retained its ‘Buy’ rating on the stock of Sun Pharm, with a target price of Rs 1,970. This came after the pharma company acquired a Nasdaq listed company, Checkpoint Therapeutics. Sun Pharma made the deal for $355 million. According to Motilal Oswal, this acquisition expands Sun Pharma’s onco-derma offerings and marks its entry into PD-L1 (Programmed Death Ligand-1) inhibitors. These inhibitors are effective against multiple cancers with fewer side effects. “We believe this acquisition will provide robust commercial benefits going forward,” said Motilal Oswal.
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The brokerage house has initiated coverage on Bharti Hexacom with a Buy rating and a target price of Rs 1,625. “Our preference for Hexacom over Airtel is largely driven by lower capital misallocation concerns,” reason Motilal Oswal gave as the reason behind initiating coverage on the stock. Moreover, given lower teledensity and lower internet penetration in Hexacom circles (Vs pan-India), Hexacom can potentially grow a few percentage points faster than Airtel on both subscribers and average revenue per user,
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