Motilal Oswal Initiates BUY Coverage On 4 Stocks: Find Nams, Target Price, Earnings Expectations And More

Motilal Oswal Financial Services (MOSL) has initiated coverage on four stocks, labelling them as potential game-changers with robust growth prospects. Investors take note of these picks that promise to outshine in their respective sectors.

Cello

Motilal Oswal has given a resounding 'BUY' rating to Cello, a company set to outpace industry growth. MOSL estimates a robust compound annual growth rate (CAGR) of 18% for revenue, 23% for EBITDA, and an impressive 25% for Adjusted PAT over the period from FY23 to FY26. This performance is anticipated to be driven by the expansion of both Stock Keeping Units (SKUs) and distribution reach. Notably, the glassware segment is expected to witness a substantial boost following the commissioning of a new plant in Rajasthan.

Currently trading at 35 times the FY26E Price-to-Earnings (P/E) ratio, Cello boasts an estimated Return on Equity (RoE) and Return on Capital Employed (RoCE) of 32% and 39%, respectively, in FY26E. Motilal Oswal has initiated coverage on the stock with a bullish rating and a Target Price (TP) of Rs 1,100 per share, premised on a 45 times FY26E P/E.

DreamFolks

DreamFolks (DFS) has caught the attention of MOSL for its promising medium-term earnings growth and ambitious expansion plans. With a 'BUY' rating assigned, Motilal Oswal envisions a Target Price of Rs 650 per share, indicating a substantial 34% upside potential. This optimistic outlook is based on a 30 times FY26 Price-to-Earnings (P/E) ratio and a 1.1 times FY24-26E Price/Earnings to Growth (PEG) ratio.

The visibility of good earnings growth and the added allure of expansion plans make DreamFolks an enticing option for investors looking for substantial returns.

JSW Infra

JSW Infra has received a bullish nod from Motilal Oswal, backed by stable growth levers at its existing ports and terminals. The brokerage firm anticipates a 19% Compound Annual Growth Rate (CAGR) in volume over FY23-26, leading to a commendable 21% CAGR in revenue and an impressive 25% CAGR in EBITDA. JSW Infra's focus on strategic acquisitions, coupled with a higher share of third-party customers, is expected to fortify its market dominance.

Despite potential acquisitions, MOSL foresees robust cash flow generation for JSW Infra. The 'BUY' rating comes with a Target Price of Rs 300 per share, premised on an 18 times FY26E Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization (EV/EBITDA).

Happy Forgings

Happy Forging Limited (HFL) has secured Motilal Oswal's confidence with a 'BUY' rating, highlighting the company's well-established position within its served industries and customer segments. Contributing significantly to the heavy commercial vehicles sector (41% of revenues), farm equipment (32%), off-highway vehicles (14%), and industrials (13%), HFL is poised for growth through increased capacities, product diversification, client acquisition, and tapping into emerging opportunities in industrials and exports.

Founded in 1979, HFL operates out of Ludhiana, Punjab, with three vertically integrated manufacturing facilities. MOSL predicts an impressive 21% CAGR in standalone revenues, 25% CAGR in EBITDA, and a substantial 30% CAGR in PAT over the period from FY24E to FY26E. The 'BUY' rating comes with a Target Price of Rs 1,125 per share, based on 26 times FY26E Earnings Per Share (EPS).

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The opinions and suggestions provided above represent the views of individual analysts and do not reflect those of GoodReturns or the author. We recommend investors consult with certified experts before making any investment decisions.