Stocks to Watch: 4 Motilal Oswal Picks With Up to 29% Gains
Stocks to Buy: Motilal Oswal Predicts Up to 29% Returns from These 4 Stocks
In a fresh equity research report, leading brokerage firm Motilal Oswal Financial Services has identified four stocks that, in its view, offer attractive investment opportunities with potential returns of up to 29%. The selected companies — VRL Logistics, Titan Company, Mahindra & Mahindra (M&M), and Gland Pharma — have all received a ‘Buy’ rating from the brokerage.
Motilal Oswal believes that these companies are well-positioned to deliver strong earnings growth over the next few quarters despite ongoing challenges in their respective industries. According to the brokerage, the combination of robust fundamentals, improving margins, and favorable industry trends could make these stocks outperform broader market indices.
1. VRL Logistics: Riding the Recovery in Freight Movement
Motilal Oswal has reaffirmed its ‘Buy’ rating on VRL Logistics, setting a target price of ₹350, implying a potential upside of around 29.3% from current market levels.
The brokerage noted that VRL Logistics’ performance for the September quarter (Q2 FY26) was largely in line with expectations. The company maintained stable margins, reflecting cost discipline and efficiency in operations, even as the transport and logistics sector navigates challenges such as fluctuating diesel prices and subdued freight demand.
According to Motilal Oswal, the second half of the fiscal year is likely to see volume recovery, supported by festive season demand, improved industrial activity, and increased economic movement. Additionally, with government emphasis on infrastructure development and the expansion of the logistics network, VRL is expected to benefit from higher freight volumes and improved utilization of its fleet.
The brokerage also highlighted VRL’s strong balance sheet, extensive presence across India, and focus on expanding its high-margin goods transportation segment. As the logistics sector becomes more organized and consolidated, VRL is expected to be one of the primary beneficiaries.
2. Titan Company: Consistent Performer in the Consumer Luxury Space
Titan Company, part of the Tata Group, continues to be one of Motilal Oswal’s top picks in the consumer discretionary space. The brokerage has given the stock a ‘Buy’ rating with a target price of ₹4,500, implying an upside potential of about 18% from current levels.
Titan, which operates in the jewellery, watches, and eyewear segments, reported consolidated sales growth of 29% year-on-year in the second quarter of FY2026. While operating margins were slightly below Motilal Oswal’s estimates, the overall growth trajectory remains strong.
The brokerage pointed out that Titan’s jewellery division, particularly its flagship brand Tanishq, continues to outperform peers, supported by rising consumer demand, expanding store network, and strong brand recall. The wedding jewellery segment and festive demand have provided additional tailwinds in recent quarters.
Motilal Oswal also noted that Titan’s watch and wearables segment is showing healthy double-digit growth, benefiting from increased adoption of smartwatches and premium timepieces. The company’s eyewear business is gradually recovering, and the recent expansion into international markets may further strengthen its growth profile.
Overall, the brokerage remains confident in Titan’s long-term prospects, given its premium positioning, robust execution, and ability to navigate inflationary pressures through pricing power and efficient cost management.
3. Mahindra & Mahindra: Strong Earnings and Margin Expansion
Mahindra & Mahindra (M&M), one of India’s leading automotive and farm equipment manufacturers, has also earned a ‘Buy’ rating from Motilal Oswal, with a target price of ₹4,122. This suggests a potential upside of approximately 15.1% from current market levels.
For the second quarter of FY2025-26, M&M reported a net profit (PAT) of ₹4,500 crore, which exceeded the brokerage’s expectations. The outperformance was primarily driven by strong margins in both the automotive and Farm Equipment Segment (FES), along with higher other income.
Motilal Oswal emphasized that the company’s SUV portfolio continues to be a key growth driver, with models such as XUV700, Scorpio-N, and Thar witnessing strong demand. The upcoming launches in the electric vehicle (EV) space, including models under the Born Electric (BE) series, are expected to further enhance M&M’s market position in the coming years.
On the agricultural side, the brokerage noted that while the monsoon impact and rural sentiment will play a crucial role, the company’s new tractor launches and export growth are likely to support stable performance.
Motilal Oswal believes M&M’s diversified business portfolio, focus on innovation, and ongoing cost optimization efforts make it a compelling investment option in the Indian auto space.
4. Gland Pharma: Positioned for Recovery and Long-Term Growth
The fourth stock on Motilal Oswal’s list is Gland Pharma, which has also been assigned a ‘Buy’ rating with a target price of ₹2,310, implying a potential upside of about 20.8% from current levels.
According to the brokerage, Gland Pharma’s Q2 FY2025-26 results were largely in line with revenue expectations, although EBITDA and PAT came in 9% and 11% below estimates, respectively. Despite this short-term softness, Motilal Oswal remains optimistic about the company’s medium- to long-term growth prospects.
The brokerage highlighted Gland’s robust product pipeline, which includes several complex injectables and biosimilars with limited competition. These products are expected to drive growth in both regulated and emerging markets from FY26 onwards.
Additionally, Gland Pharma’s focus on expanding its manufacturing capacity, strengthening its R&D capabilities, and improving its global supply chain efficiency are expected to enhance margins over time.
Motilal Oswal expects earnings to rebound in the second half of FY26 and accelerate further in FY27 as new product launches start contributing meaningfully to revenue.
Final Thoughts: Balanced Opportunities Across Sectors
Motilal Oswal’s latest recommendations cover a diverse mix of sectors — logistics, consumer discretionary, automotive, and pharmaceuticals — offering investors a balanced approach to portfolio diversification.
While each company faces its own set of industry-specific challenges, the brokerage’s analysis suggests that all four possess strong fundamentals, clear growth catalysts, and resilient management strategies to navigate market volatility.
With potential returns ranging from 15% to nearly 30%, these stocks represent attractive medium-term investment opportunities for investors looking to capitalize on India’s economic resilience and sectoral growth themes.
As always, investors are advised to evaluate their risk appetite, investment horizon, and financial goals before making any investment decisions, even when following reputable brokerage recommendations.
