Tension between India and Pakistan continues to grow in the aftermath of Operation Sindoor. However, the markets have shown a significantly mature reaction to the uncertainties across the border. The indices are in wait and watch mode but that doesn’t mean that the market is short of bargain buys. Leading brokerage house, Motilal Oswal has issued a Buy recommendation on these 10 stocks, indicating long-term potential despite short-term jitters.
From mining to FMCG to banking, here is a look at the 10 stocks Motilal Oswal recommends ‘Buy’ and the reasons behind it.
Coal India: Buy with a target price of Rs 480
The brokerage firm Motilal Oswal has maintained a Buy rating on Coal India, setting a target price of Rs 480, which suggests a 25% upside from current levels.
The brokerage sees value in this public sector heavyweight. After a sluggish start to FY25, Coal India bounced back in Q4 with a solid performance. The report notes, “The company’s focus on increasing coal-washer capacity will improve its market share in domestic coking/non-coking coal.”
As per the brokerage report, volumes are expected to grow at an 8% CAGR between FY25-27, with stable e-auction premiums and improving earnings.
“We reiterate our BUY rating with a TP of Rs 480, premised on 4.5x FY27E EV/EBITDA,” added the brokerage in its report.
Godrej Consumer: Buy with a target price of Rs 1,450
The brokerage has given Godrej Consumer a Buy rating with a target price of Rs 1,450, implying a 16% upside.
The brokerage highlights, “Various products are repositioned at a value price point to drive the customer base.” Even though earnings estimates have been trimmed slightly due to urban demand challenges, the stock remains a buy thanks to the company’s product innovation and expansion into new categories.
Motilal Oswal states, “We remain constructive on GCPL and reiterate our BUY rating with a TP of Rs 1,450 (based on 50x FY27E EPS).”
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