Synopsis : Motilal Oswal has a Buy call on Adani Enterprises, Lenskart and Coforge, with target prices indicating up to 25% upside. Airport expansion, faster store additions and continued earnings growth are the key triggers. Motilal Oswal has identified three stocks where it sees room for further gains, but the reasons behind each call are very different.
Adani Enterprises, Lenskart and Coforge are all rated ‘Buy’, with target prices pointing to potential upside of 16% to 25%.
The key factors range from fresh capital entering Adani Enterprises’ airport business to faster store additions at Lenskart and continued earnings growth at Coforge.
Here is a detailed look at the investment rationale behind each stock recommendation.
Motilal Oswal on Adani Enterprises: Fresh capital for airports
Motilal Oswal has a ‘Buy’ rating on Adani Enterprises with a target price of Rs 3,880. This implies around 25% upside from the current market price.
Adani Airport Holdings has signed agreements to raise around Rs 9,800 crore from a group of investors including Alpha Wave Global, Premji Invest, Temasek and funds managed by BlackRock. The investors are expected to acquire a combined stake of around 5.54% in the airport business through multiple tranches.
The fresh capital is expected to be used for airport expansion, development of around 22 million square feet of mixed-use projects and growth in ground-handling and other non-aeronautical businesses.
The brokerage said, “The portfolio is moving from capital deployment to value creation, with airports, new energy, and data centers entering the scale-up phase and mature businesses generating cash.”
Motilal Oswal expects Adani Enterprises’ revenue, EBITDA and profit after tax to grow at around 22%, 29% and 82% CAGR, respectively, between FY26 and FY29.
Motilal Oswal on Lenskart: Faster store expansion could lift earnings
For Lenskart, Motilal Oswal has retained its ‘Buy’ rating and raised its target price to Rs 800 from Rs 705. The revised target implies around 16% upside.
The brokerage has raised its estimates for FY27 and FY28, citing faster store additions in India and improving operating leverage across both domestic and international operations.
Motilal Oswal expects revenue to grow at 27% CAGR between FY26 and FY29. Pre-Ind AS EBITDA is expected to grow at around 46% CAGR, while adjusted profit after tax could rise at around 59% CAGR.
The brokerage expects pre-Ind AS EBITDA margins in India to reach around 19.4% by FY29, while the international business could reach around 13.5%.
The key trigger for Lenskart will therefore be whether faster store expansion can translate into sustained revenue growth while operating costs grow at a slower pace.
Motilal Oswal on Coforge: Leadership change, but business outlook unchanged
Motilal Oswal has also retained its ‘Buy’ rating on Coforge with a Rs 2,200 target price, implying around 19% upside.
The stock has been in focus after O. P. Bhatt resigned as Non-Executive Independent Director and Chairman following observations from an internal review of the board evaluation process.
The company has appointed Vivek Sharma as interim chairperson until January 31, 2027.
Motilal Oswal said, “We see limited implications for the underlying business as of now and await more clarity on the permanent appointment of the new chair.”
The brokerage has therefore kept its financial estimates unchanged. It continues to expect Coforge to remain a strong growth performer, supported by deal wins, execution, improved cash conversion and margin benefits from the Encora integration.
It said, “We continue to value Coforge at 29x FY28E EPS with a target price of Rs 2,200, implying 19% upside.”
What investors need to watch
Motilal Oswal’s recommendations are being driven by individual growth triggers for each stock.
For Adani Enterprises, the focus is on fresh capital for its airport business and the scaling up of new infrastructure and growth businesses.
For Lenskart, faster store additions and improving operating leverage are expected to drive earnings growth.
For Coforge, the brokerage is looking beyond the recent board-level development and focusing on deal wins, execution, cash conversion and the benefits of the Encora integration.
However, target prices and upside estimates are based on brokerage assumptions and can change as earnings, valuations and market conditions evolve. Investors should not base an investment decision solely on a brokerage recommendation.
Conclusion
Motilal Oswal’s latest Buy calls cover three businesses with very different growth stories. Adani Enterprises is entering a new phase of capital deployment and scale-up, Lenskart is accelerating its retail expansion, while Coforge continues to focus on strong earnings growth despite a recent leadership development.
The key question for investors will be whether these companies can deliver the growth expected by the brokerage. Execution, margins, capital allocation and valuations will ultimately determine whether the projected upside materialises.
Disclaimer : This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices and recommendations expressed in this article are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.
