Reliance Ind, HCL Tech, BEL among Motilal Oswal's top growth bets; Check TP

Motilal Oswal Financial Services recommends Reliance Industries and HCL Tech from the large-cap basket, while BEL and M&M Financial are top bets from mid-cap

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Large Cap

Reliance Industries – TP: ₹1,765

RIL reported an operationally in-line Q2FY26, with consolidated Ebitda up 5 per cent Q-o-Q to ₹459 billion, led by a strong recovery in Retail and steady performance in RJio. Retail revenue grew 19 per cent Y-o-Y, driven by festive demand, GST rationalisation, and strong traction in quick commerce, while RJio added 8.3 million subscribers with rising 5G engagement. O2C earnings improved 3 per cent Q-o-Q, supported by stronger fuel cracks and higher throughput. Management remains confident of sustained growth in Retail and RJio, supported by digital adoption, premiumisation, and efficient execution. We estimate RIL’s consolidated Ebitda and PAT to grow at a CAGR of 10–11 per cent over FY25–28, driven by continued strength in consumer businesses and improving FCF generation. We maintain BUY.

HCL Tech – TP: ₹2,150

HCL Technologies delivered an all-round strong performance in the September quarter, with revenue rising 2.4 per cent Q-o-Q in CC & Ebit margins expanding to 17.4 per cent. Robust deal wins of USD2.6 billion reinforced a healthy demand environment, prompting an upgrade in Services growth guidance to 4–5 per cent for FY26. Momentum was broad-based across IT services and ER&D, supported by firm execution and sustained client spending on modernisation programs. A key highlight was the rapid scale-up of advanced AI offerings, which now contribute 3 per cent of overall revenue. The company’s AI platform deployment across 47 clients, alongside new capabilities such as the AI Factory and AI Advisory, underscores rising traction across technology, manufacturing and BFSI. While wage hikes and restructuring expenses may create short-term margin pressure, the company enters the second half with strong visibility, aided by large transformation deals, easing attrition and sustained productivity gains. HCLT remains the fastest-growing large-cap IT services firm, and we like its all-weather portfolio.

Mid Cap 

Bharat Electronics (BEL) -TP: ₹500

The Indian Army’s ₹300 billion tender for the DRDO-developed QRSAM ‘Anant Shastra’ project, with BEL as lead integrator, boosts its order book beyond ₹1 trillion and underscores its leadership in strategic defence programs. Positioned strongly under the TPCR 2025 roadmap, BEL is set to benefit from sustained opportunities across the Army, Navy, and Air Force, spanning radars, EW systems, communication networks, and drone-defence solutions. Additional growth levers include orders for next-gen corvettes, Tejas Mk1A electronics, loitering munitions, and exports. With sales/Ebitda/PAT CAGR of 18 per cent/17 per cent/17 per cent expected over FY25–28, BEL offers robust long-term growth visibility, making it a compelling investment in India’s defence modernisation journey.

M&M Financial – TP: ₹400

MMFS, with a deep rural presence across 500k villages and a 12m customer base, is positioning itself for a high-growth, disciplined expansion phase. Management reaffirmed strong asset-quality progress with GS3 consistently below 4 per cent, supporting confidence in execution. The company targets 18–20 per cent AUM CAGR, structurally lower credit costs of 1.3–1.7 per cent, and RoA improvement toward 2.2–2.5 per cent, supported by continued leadership in vehicle finance and scaled adjacencies in housing finance, LAP, insurance, and investment distribution. With a loan book aspiration of ₹3 trillion by 2030, opex maintained within 2.5–2.7 per cent, and PAT CAGR of 19 per cent over FY25–28E, MMFS offers durable long-term value creation. We maintain a Buy rating driven by a credible transformation in underwriting, AI-led collections, and a materially stronger balance sheet.

Small cap

Rubicon Research – TP: ₹780

Rubicon Research is a fast-growing, R&D-driven pharma mfg., focused on regulated markets, scaling its revenue at 60 per cent/42 per cent CAGR over the last 3/10 years with RoE of 29 per cent. Commercial portfolio expanded from 18 (in FY22) to 70 products by Jun’25 with 86 per cent approval-to-launch conversion rate, across oral solids, liquids, topicals & nasal sprays. Four of 25 nasal spray ANDA approvals since CY23 & innovations in nasal drug delivery technologies, position Rubicon to benefit from the fastest-growing US formulation category, projected to clock 9.5 per cent CAGR over CY25-30. While proprietary CNS brands - Equetro, Raldesy, and Lopressor OS- strengthen its niche positioning and enhance commercial growth momentum. Key growth drivers include new launches in generics/nasal sprays/CNS therapies, sustained R&D productivity, and disciplined compliance. From an opex loss of ₹392 million in FY22, it has achieved Ebitda of ₹2.5 billion in FY25, supported by consistent execution & operational strength. We estimate revenue/Ebitda/PAT to grow at a CAGR of 29 per cent/32 per cent/43 per cent over FY25–28.

Lemon Tree Hotels – TP: ₹200

Lemon Tree Hotels continues to demonstrate resilient performance amid macro headwinds, driven by strong ARR growth and strategic renovations. In Q2FY26, revenue grew 8 per cent Y-o-Y to ₹3.1 billion, Ebitda remained stable at ₹1.3 billion, and PAT increased 17 per cent Y-o-Y to ₹346 million. Operational momentum was supported by higher occupancy (69.8 per cent, +140 bp Y-o-Y) and ARR growth (₹6,247, +6 per cent Y-o-Y), with 15 new management and franchise contracts adding 1,138 rooms. Aurika Mumbai and other flagship properties are expected to drive double-digit RevPAR growth in H2FY26. Management is focused on completing ongoing renovations, scaling the premium portfolio, and leveraging strategic tie-ups with RJ Corp. The rating is maintained at BUY, given a robust asset-light growth strategy and accelerated pipeline expansion. Revenue/Ebitda/PAT are projected to grow at 11 per cent/13 per cent/35 per cent CAGR over FY25–28.