Stocks to buy in March 2026: Motilal Oswal stock recommendations
Large-cap stock picks
SBI Life Insurance | Target price: ₹2,570
SBI Life Insurance reported a strong Q3FY26 with Annualized Premium Equivalent (APE) growth of 24 per cent Y-o-Y and Value of New Business (VNB) growth of 22 per cent Y-o-Y, while margins were marginally lower due to GST impact. However, PAT exceeded estimates, reflecting resilient underlying operating performance.
Business performance remains strong, with protection and annuity segments showing strong traction, par products gaining share, and broad-based channel growth across agency, bancassurance and partners. The mamagement has retained APE growth guidance of 13-14 per cent with momentum sustaining into FY27. GST impact is expected to be offset by product mix and efficiency, limiting net impact to ~30-40bp. We expect FY25-28 APE/VNB CAGR at 15 per cent/16 per cent, with operating RoEV above 18 per cent.
Polycab | Share price target: ₹9,600
Polycab continues to gain market share in the Cables & Wires segment, supported by strong distribution reach, premium product portfolio, and favourable demand from real estate, infrastructure, and urbanization trends. Project Spring targets growth at ~1.5x industry levels, strengthening long-term visibility.
Temporary margin pressure from commodity inflation and elevated channel inventory has reversed quickly, with inventory normalising and full cost pass-through implemented. Stabilising raw material prices and strong underlying demand are expected to drive sequential margin improvement and earnings recovery.
Premiumisation, rising brand investments, and deeper distribution penetration are accelerating growth across wires and FMEG categories. We expect ~16 per cent/19 per cent/18 per cent revenue/Ebitda/PAT CAGR over FY26-28, supported by strong cash flows, disciplined capex, and improving operating leverage.
Mid-cap stocks to buy
Siemens Energy | Target price: ₹3,600
Siemens Energy is well positioned to benefit from the domestic and global T&D capex cycle, supported by energy transition tailwinds and rising transformer demand. Incremental capacity expansion to 60,000 MVA reflects confidence in long-term demand visibility and export opportunities.
Siemens Energy's revenue grew 26 per cent Y-o-Y, broadly in-line, while Ebitda margin expanded 200bp Y-o-Y to 24.1 per cent, aided by lower other expenses. Strong margins, higher other income, and a lower tax rate led to 57 per cent Y-o-Y PAT growth. Order backlog rose 38 per cent Y-o-Y, providing healthy revenue visibility.
We model 27 per cent, 31 per cent, and 32 per cent revenue, Ebitda, and PAT CAGR, respectively, over FY25–28E, led by robust transmission growth and steady generation recovery. We marginally tweak our estimates by 4 per cent, 1 per cent, and 1 per cent for FY26, FY27, and FY28 and arrive at a revised target price of ₹3,600 (earlier ₹3,400), based on 55x Mar’28E EPS.
Lenskart Solutions | Taget price: ₹600
Lenskart combines in-house manufacturing, centralised automation, and technology-led operations to deliver lower costs, better quality and superior store economics (33 per cent store-level Ebitda, ~10-month payback). This scalable, tech-enabled model sets it apart from traditional optical retailers. The Indian eyewear market, valued at ~₹79,000 crore, remains significantly underpenetrated with only ~35 per cent prescription usage despite over half the population needing vision correction.
With over 2,400 stores and strong repeat buying trends, Lenskart is well placed to steadily gain market share. We expect 25 per cent revenue CAGR and 53 per cent Ebitda CAGR over FY25–28, supported by store expansion and margin improvement. Free cash flow should materially improve post FY28. We maintain 'Buy' with a target price of ₹600, backed by strong earnings visibility.
Small-cap stocks to buy in March 2026
Northern Arc | Share price target: ₹360
Northern Arc has facilitated ~₹2 trillion of financing and built a pan-India platform with 368 branches, 55 digital partners, 357 originator partners and ~₹15,100 crore lending AUM, creating an integrated retail credit ecosystem. The company is shifting from partner-led lending toward higher-yield D2C segments. Rising D2C mix (~56 per cent as of Dec’25; ~70 per cent targeted FY28E) structurally improves spreads, strengthens underwriting control & supports sustainable margin and return improvement.
We model lending AUM and PAT CAGR of ~20 per cent and ~34 per cent, respectively, over FY26-28E, driven by D2C scale-up, stable IR lending, and rising fee income from fund management and placements. RoA/RoE will expand to ~3.2 per cent/15 per cent by FY28E.
Kirloskar Oil Engines | Stock target price: ₹1,600
Kirloskar Oil Engines Limited delivered a robust Q3FY26 performance, with restated revenue rising 35 per cent year-on-year to ₹1,380 crore following the transfer of its B2C business to a subsidiary, sharpening its B2B focus. Growth was led by power generation and industrial segments, while Ebitda margin improved 190 basis points year-on-year to 12.2 per cent, despite sequential moderation.
The powergen business surged 44 per cent, significantly outpacing industry growth, aided by strong traction in both low and high horsepower segments and rising demand from infrastructure, real estate and data centres. Industrial revenues grew 41 per cent, supported by defence and nuclear orders, positioning the segment for sustained ramp-up.
Exports and aftermarket revenues continue to scale steadily, supported by a widening installed base and expanding international presence. With an improving revenue mix and operating leverage benefits, margins are expected to strengthen over the medium term, reinforcing earnings visibility.
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Disclaimer: This article is by Motilal Oswal Financial Services Research desk. Views expressed are its own.
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