Motilal Oswal, a brokerage house, has zeroed in on five very different businesses and put a ‘Buy’ recommendation on them.
These stocks range from air‑conditioner maker Amber Enterprises to Burger King operator Restaurant Brands Asia. Here’s the kicker. Motilal Oswal expects double‑digit returns from each of these stocks from current levels.
Let’s take a look at these stocks and know why the brokerage has given a buy rating to them-
Amber Enterprises
Motilal Oswal continues to remain optimistic about Amber Enterprises, despite some recent hiccups in earnings. The brokerage has given a buy rating to the stock with a revised target price of Rs 7,600, projecting a potential upside of 22%.
According to Motilal Oswal, the company posted better-than-expected revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in Q4FY25, although net profits were hit by higher losses from its joint ventures and an unexpected tax rate hike.
“Revenue outperformance was driven by strong growth in consumer durables, particularly RAC and electronics divisions,” the report noted. However, it also pointed out that the railways division was impacted by offtake delays.
“We expect a CAGR of 20% / 27% / 49% in revenue / EBITDA / Net Profit over FY25-27 for Amber,” the brokerage said, while valuing the stock at 47x P/E on Mar’27E earnings.
Happy Forgings
Auto component manufacturer Happy Forgings (HFL) has also earned a buy rating, with a price target of Rs 984, indicating an upside of 20% from current levels.
As per the brokerage, PAT for Q4FY25 came in line with estimates and the company generated free cash flow of Rs 119 crore after capex of Rs 280 crore in FY25. Motilal Oswal sees a strong future backed by a recovery in domestic commercial vehicle (CV) demand, a positive tractor outlook, and steady order wins in industrials and passenger vehicles (PVs).
“We expect HFL to post a CAGR of 14%/16%/16% in revenue/EBITDA/PAT during FY25-27E,” the brokerage report said.
“HFL’s superior financial track record compared to its peers serves as a testament to its inherent operational efficiencies,” the report added.
Kalpataru Projects
The brokerage house has maintained its buy rating with a new target price of Rs 1,300, reflecting an upside of 16%.
The company reported steady revenue, EBITDA, and PAT in Q4FY25, while its balance sheet strength, improved working capital, and debt reduction impressed analysts.
“We expect Kalpataru Projects to report a CAGR of 19%/25%/37% in revenue/EBITDA/PAT over FY25-27,” the brokerage said.
The brokerage firm has slightly increased FY26/FY27 estimates by 2% each, based on improved order inflows and lower debt levels. The brokerage values the core business at 18x FY27E P/E in its SoTP-based valuation.
Galaxy Surfactants
Motilal Oswal sees an upside in specialty chemical player Galaxy Surfactants, assigning it a buy rating with a target price of Rs 2,650, pointing to a 16% upside.
The company posted a strong beat in Q4, prompting analysts to raise EBITDA and PAT estimates by 8% and 9% for FY26, respectively.
“We estimate a volume CAGR of 6% over FY25-27, with volumes picking up in the Specialty Care segment in the developed markets,” Motilal Oswal noted.
The brokerage also sees expanding margins driven by premium products, customer additions, and focused R&D spending of Rs 40-50 crore annually.
Restaurant Brands Asia
Topping the list in terms of potential upside is Restaurant Brands Asia (RBA) – the master franchisee for Burger King India. Motilal Oswal has given a buy rating with a target of Rs 135, implying a sharp upside of 65% from current levels.
According to the brokerage, India operations have been strong, with 1% same-store sales growth in FY25 and 9% increase in dine-in traffic. RBA also managed to outperform most dine-in peers, barring Jubilant FoodWorks.
“Unlike most QSR peers (barring JUBI), RBA delivered positive SSSG (same store sales growth) during the year,” the report said.
The brokerage believes BK Cafe and improving dine-in trends will be margin drivers, alongside cost efficiencies and expansion.
“We reiterate our BUY rating with a TP of INR135. We value the India business at 30x FY27E EV/EBITDA (pre-IND-AS) and Indonesia’s EV at INR5b,” added the brokerage.