MOFSL Buy Calls 2026: 8 Stocks With Up to 34% Upside

Motilal Oswal Financial Services (MOFSL) has published research updates across multiple companies and reiterated a ‘Buy’ rating on eight names, with target prices implying up to 34% upside. The list spans a PSU lender, real estate retail, cement, insurance, packaged foods, auto ancillaries, quick-service restaurants, and housing finance. The brokerage’s notes highlight a mix of quarterly performance commentary, near-term risks, and medium-term growth levers.

The reports place sharp focus on loan growth and margins in financials, input-cost volatility in manufacturing and cement, and demand recovery signals in consumption-linked businesses. Several calls also reference company-specific execution items such as capacity additions, ramp-up of new assets, and regulatory timelines.

Quick snapshot of MOFSL targets and upside

MOFSL’s stated target prices and upside potential for the eight ‘Buy’-rated stocks are summarised below.

REC Ltd: Weak loan growth, stable spreads

MOFSL said REC reported a subdued quarter, with the loan book showing modest growth of 3% year-on-year. Disbursements remained weak at flat year-on-year, while repayments moderated sequentially in 4QFY26. The brokerage noted that a decline in yields was offset by lower funding costs, helping spreads remain stable. It also pointed to improving asset quality.

On valuation, MOFSL said REC trades at 1x FY27E P/ABV, which it called attractive. At the same time, it flagged weak loan growth and margin pressure as key monitorables. MOFSL cut PAT estimates by 9% for FY27 and 11% for FY28 to account for lower margins and higher credit costs. It expects REC to deliver RoA/RoE of 2.4%/18% in FY28E, and reiterated a ‘Buy’ with a target price of Rs 440.

Phoenix Mills: Retail traction and asset additions in focus

MOFSL said Phoenix Mills delivered a strong Q4 performance driven by the retail segment. It added that growth visibility remains strong, supporting its ‘Buy’ stance. In the retail portfolio, the brokerage noted that new malls are ramping up well, while the company is also implementing measures to accelerate consumption at mature malls.

MOFSL said these initiatives, along with a further increase in trading occupancy, should help Phoenix Mills sustain healthy consumption traction. It expects new asset additions over the coming years to support medium-term rental income growth. The note also said the office portfolio has ramped up well and that the hospitality segment remained resilient. MOFSL maintained its ‘Buy’ rating with a target price of Rs 2,030, valued on a sum-of-the-parts basis.

Dalmia Bharat: Costs, clinker disruption, and FY27 volume support

MOFSL said near-term cost pressure remains for Dalmia Bharat, as the company is targeting above-industry growth in FY27. In the March quarter, volume growth was muted, but lower opex per tonne supported profitability. The brokerage highlighted near-term challenges from rising costs of key inputs and their availability.

It also said volume growth in Q4 was partially impacted by an unexpected breakdown at the company’s clinker plant in the East. Looking ahead, MOFSL cited the company’s expectations that newly commissioned capacity in the northeast and an expected new line in Belgaum during the year will support volume growth in FY27E. On valuation, it said the stock trades at 12x/10x FY27E/FY28E EV/EBITDA, with EV/t of $10/$17. MOFSL valued the stock at 12x FY28E EV/EBITDA and raised its target price to Rs 2,230 (from Rs 2,110), citing lower-than-expected cash outflow towards capex.

Canara HSBC Life: Growth and VNB margin expansion

MOFSL said Canara HSBC Life Insurance continued to deliver industry-leading growth in Q4, accompanied by “stellar” VNB (Value of New Business) margin expansion. It attributed the margin performance to a pickup in the contribution of the traditional segment and improving product-level profitability.

The brokerage described the company as offering a multi-year compounding opportunity, linked to a structurally improving banca engine, rising contribution from premiumised HSBC flows, and disciplined agency expansion. MOFSL also flagged an under-penetrated PSU-bank funnel and said it sees visibility on branch activation, product mix upgrades, and operating leverage. It expects 18-19% operating RoEV going forward and set a target price of Rs 180, implying 32% upside.

Prataap Snacks: Volume-led Q4, dividend proposal, and CAGR estimates

MOFSL said Prataap Snacks reported volume-led revenue growth in Q4. It noted that the company has seen a period of underperformance despite favourable industry conditions, but added that it expects stronger performance ahead. During Q4, the board proposed a dividend of 10% on a face value of Rs 5 each, translating to Rs 0.50 per share.

MOFSL estimated a revenue CAGR of 13% and an EBITDA CAGR of 42% over FY26-28, driven by volume growth and significant margin expansion. It reiterated a ‘Buy’ rating with a DCF-based target price of Rs 1,350, implying 34% upside.

Motherson Sumi Wiring India: Copper cost shock hits Q4 PAT

MOFSL said Motherson Sumi Wiring’s Q4 PAT came below its estimates, primarily due to an 18% sequential jump in copper prices. While copper prices are typically a pass-through with a lag of one quarter, the brokerage said the sustained rise in copper prices over the past few quarters has been hurting margins.

MOFSL’s estimates for FY26-28 include 11% revenue growth, 18% EBITDA growth, and 18% PAT growth. It also cited a pickup in auto demand following GST rate cuts and the ramp-up of new greenfield plants. The brokerage added that it believes the company “deserves rich valuations” due to competitive positioning, top-decile capital efficiency, and expected benefits from EVs and broader auto megatrends. MOFSL maintained a ‘Buy’ with a target price of Rs 46.

Sapphire Foods: KFC steady, Pizza Hut weak, merger timeline in view

MOFSL said Sapphire Foods reported 11% year-on-year revenue growth in 4QFY26, in line with its estimates. KFC sales grew 15% year-on-year, with same-store sales growth of 4%. Pizza Hut remained weak, with revenue down 6% year-on-year and same-store sales down 7%. In Sri Lanka, the company posted healthy revenue growth of 16% year-on-year.

The brokerage said the ongoing LPG shortage and inflationary pressures have had a limited impact on Sapphire. It estimated that a 25-40% increase in LPG prices translates into a 30-50 bps impact on EBITDA margins. MOFSL said there were no store closures for KFC, while Pizza Hut saw temporary closures in a small portion of stores. It also noted a 2% price hike across both KFC and Pizza Hut.

On the corporate action, MOFSL said the Devyani–Sapphire merger is expected to unlock scale benefits and strengthen execution across brands and geographies. Sapphire expects the merger to be completed by FY27, with CCI approval likely within the next 35-40 days. MOFSL reiterated a ‘Buy’ with a target price of Rs 220.

Home First: Disbursement recovery signs and steady NIM assumptions

MOFSL said Home First remains well placed to navigate near-term headwinds, supported by a resilient business model, a granular loan book, and disciplined execution. It pointed to early signs of recovery in disbursements, easing competitive intensity, and stabilising asset quality, which it said should allow growth to gradually normalise.

MOFSL also cited structural drivers including branch expansion, deeper segment penetration, and co-lending. It estimates the company will deliver 23% AUM CAGR over FY26-FY28E. The brokerage expects stable NIM (as a percentage of average AUM) of 6.1% in FY27 and 5.9% in FY28E. It reiterated a ‘Buy’ with a target price of Rs 1,350, premised on 2.5x FY28E P/BV.

Market impact: What MOFSL is emphasising across sectors

Across the eight calls, MOFSL’s commentary clusters around a few recurring themes. For lenders, the key variables remain loan growth, margin stability, and credit costs, reflected in REC’s subdued disbursements and revised PAT estimates. For consumer-facing companies, the discussion leans on demand traction, pricing actions, and format-level execution, seen in Phoenix Mills’ trading occupancy push and Sapphire’s limited margin impact despite LPG inflation.

For manufacturing and cement, MOFSL highlights input-cost volatility and operational execution. Motherson Wiring’s Q4 miss was attributed to copper price moves and lagged pass-through, while Dalmia Bharat’s Q4 volumes were affected by an unexpected clinker plant breakdown and near-term input cost pressure. In insurance, the focus is on growth and profitability metrics like VNB margin, with Canara HSBC Life positioned as a compounding story linked to distribution and product mix.

Conclusion

MOFSL’s latest set of ‘Buy’ ratings spans eight stocks with stated upside potential ranging from 15% to 34%, led by Prataap Snacks and Canara HSBC Life Insurance. The brokerage’s notes underline specific operational and financial drivers, while also flagging monitorables such as loan growth, margins, input costs, and segment-level demand. Near-term milestones to track include Sapphire’s stated expectation of CCI approval for the Devyani–Sapphire merger within 35-40 days and the broader pace of volume and margin normalisation highlighted across several companies.