Synopsis : Motilal Oswal has identified four Buy-rated stocks across manufacturing, food, hospitality and consumer sectors with potential upside ranging from 30% to 60%. The brokerage believes strong earnings growth, expansion plans and improving business fundamentals could drive long-term value creation.
Brokerage firm Motilal Oswal has highlighted four stocks that it believes offer attractive risk-reward opportunities for investors. The recommendations span diverse sectors, including industrial manufacturing, packaged foods, hospitality and consumer products, providing exposure to multiple growth themes within the Indian economy.
The brokerage has maintained a Buy rating on Time Technoplast, Mrs. Bectors Food Specialities, Lemon Tree Hotels and Cello World, with projected upside potential ranging between 30% and 60% from current market levels.
Here's a closer look at what is driving Motilal Oswal's bullish outlook on these four companies.
- Time Technoplast: The Highest Upside Bet
Among the four recommendations, Time Technoplast offers the highest upside potential according to Motilal Oswal. The brokerage has assigned a target price of Rs 280, implying an upside of nearly 60%.
The company has benefited from its increasing focus on value-added products, operational efficiency improvements and strategic capacity expansion initiatives.
According to the brokerage, Time Technoplast delivered strong growth between FY21 and FY26, recording a compound annual growth rate (CAGR) of 15% in revenue, 18% in EBITDA and 35% in profit after tax. Looking ahead, Motilal Oswal expects the company to continue growing steadily through FY28, driven primarily by its value-added products segment.
Management is targeting revenue growth of over 15%, supported by stronger demand in composite products and polyethylene pipes. The company is also expanding manufacturing capabilities in compressed natural gas cylinders, recycling operations and international facilities.
The brokerage believes attractive valuations combined with a robust growth outlook could lead to a potential re-rating of the stock.
- Mrs. Bectors Food: Premiumisation Driving Growth
Motilal Oswal remains optimistic on Mrs. Bectors Food Specialities and has assigned a target price of Rs 235, indicating a potential upside of approximately 37%.
The brokerage expects future growth to be driven by premium product offerings, healthier food categories and increasing export opportunities.
While domestic biscuit demand and quick service restaurant (QSR) segments have remained relatively soft, the company continues to strengthen its distribution network and expand its export presence.
Motilal Oswal estimates that Mrs. Bectors could deliver a revenue CAGR of around 13% between FY26 and FY28. The company also plans calibrated price increases to offset raw material inflation and protect profitability.
Management is targeting EBITDA margins in the range of 13% to 13.5% by FY27, supported by pricing actions and operational efficiencies.
- Lemon Tree Hotels: Hospitality Growth Story Intact
Lemon Tree Hotels remains one of Motilal Oswal's preferred picks within the hospitality sector. The brokerage has maintained a Buy rating with a target price of Rs 150, implying an upside potential of roughly 32%.
The company's growth strategy is centered around expanding its management contract model, increasing room inventory and strengthening premium hospitality offerings.
One of the key positives highlighted by the brokerage is Lemon Tree's strong pipeline of nearly 13,300 rooms. Expansion of its premium Aurika brand and the addition of new owned properties are expected to support growth in the coming years.
The company has also completed renovations across multiple properties, which could further improve occupancy rates and profitability.
Motilal Oswal expects Lemon Tree Hotels to deliver strong earnings growth between FY26 and FY28, supported by improving operational performance and better return on capital employed.
- Cello World: Consumer Demand Recovery Play
Motilal Oswal has also maintained a Buy rating on consumer products manufacturer Cello World, assigning a target price of Rs 480 and indicating an upside potential of around 30%.
The company faced a challenging environment during the recent quarter due to weak consumer demand, supply-chain disruptions and higher costs associated with new manufacturing facilities.
Despite these headwinds, the brokerage remains confident about the company's long-term prospects.
A major growth driver is expected to be the writing instruments segment, which continues to perform strongly. The addition of the Cello brand to the portfolio is anticipated to further strengthen market positioning and support future revenue growth.
Although Motilal Oswal has lowered its earnings estimates for FY27 and FY28 due to near-term macroeconomic challenges, it still expects healthy growth in revenue, EBITDA and adjusted profit over the medium term.
- What Investors Should Watch
The four stocks highlighted by Motilal Oswal operate in sectors with very different growth drivers, reducing dependence on any single economic theme.
Time Technoplast is benefiting from industrial expansion and value-added manufacturing, Mrs. Bectors is leveraging premiumisation and exports, Lemon Tree Hotels is capitalising on India's growing hospitality market, while Cello World offers exposure to consumer spending and brand-driven growth.
While near-term challenges such as inflation, demand fluctuations and economic uncertainty remain, the brokerage believes these companies are well-positioned to deliver stronger earnings growth over the coming years.
- The Bottom Line
Investors often look for businesses where earnings growth can outpace market expectations. According to Motilal Oswal, Time Technoplast, Mrs. Bectors Food Specialities, Lemon Tree Hotels and Cello World fit that profile due to their expansion strategies, improving operational efficiency and sector-specific opportunities.
With projected upside potential ranging from 30% to 60%, these stocks are likely to remain on investors' watchlists as they execute their next phase of growth.
Disclaimer : This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult a qualified financial advisor before making any investment decisions.
