HDFC Bank, Delhivery; why Motilal Oswal is bullish on these 6 stocks?

Stocks to buy: Motilal Oswal's research desk recommends HDFC Bank, Delhivery, Tata Consumer Products and others; check full list here

LargeCap

HDFC Bank– Target price:₹2,300

HDFC Bank is well-positioned to deliver a strong earnings rebound, supported by improving loan growth across commercial and rural banking (CRB), SME and retail segments. With normalisation of the CD ratio and a granular liability profile, the bank is poised to accelerate credit growth, guided to be in line with the system in FY26 and ahead in FY27.  Robust asset quality (GNPA/NNPA at 1.4 per cent/0.5 per cent in 1QFY26) and provisioning buffers (₹36,600 crore) provide comfort, while margin recovery is expected as high-cost borrowings are replaced by deposits. We estimate HDFC Bank to deliver FY27E RoA/RoE of 1.9 per cent/14.9 per cent.

 

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Tata Consumer– Target price:₹1,270

Tata Consumer Products reported 10 per cent year-on-year (Y-o-Y) revenue growth in 1QFY26 to ₹4,780 crore, led by 11 per cent growth in the India branded business. Margin contracted due to higher input costs, but moderating tea prices are expected to drive improvement from Q2. Management expects more than 30 per cent Y-o-Y growth in growth businesses from Q2 onwards, aided by normalisation in Capital Foods and Organic India.  Tea price correction, stable monsoon and premiumisation are seen supporting margin and volume recovery. FY26/27 earnings before interest, taxes, depreciation and amortisation (Ebitda) estimates have been raised by 7 per cent/3 per cent on improving margin trajectory. We expect 10 per cent/12 per cent/13 per cent compound annual growth rate (CAGR) in revenue/Ebitda/ profit after tax (PAT) over FY25–27. Guidance remains positive across core and growth portfolios.

MidCap

Delhivery– Target price: ₹480

Delhivery, India’s leading 3PL logistics player, has a market share of more than 20 per cent in the express logistics space and has rapidly increased presence in the Part-TruckLoad (PTL) segment after the acquisition of Spoton Logistics in 2021. It has clocked a 32 per cent revenue CAGR from FY19-25, and turned ebitda positive (₹370 crore in FY25) during the period. This turnaround was driven by economies of scale in the express business and stabilization of the PTL business post-acquisition. Delhivery is well positioned to benefit from growth in the express logistics sector, driven by a rising user base, new category launches, and expanding e-commerce. We project a 36 per cent Ebitda and 52 per cent APAT CAGR by FY28E.

INOX Winds– Target price: ₹210

INOX Wind Ltd. (IWL), a leading integrated wind original equipment manufacturer (OEM) in India, offers end-to-end solutions from turbine manufacturing to project execution and O&M. Backed by 2.5GW capacity & a robust 3.2GW order book, it is well-positioned to benefit from India’s plan to double its wind capacity to 100GW by 2030. Wind Turbine Generators (WTG) ramp-up and O&M scale-up are underway, supported by a 1,500MW turnkey order and growing repeat business.  Its subsidiaries IGESL (O&M, 5.1GW portfolio) and IRSL (EPC, now diversifying into solar/hybrid/crane services) enhance group synergies. Backed by policy tailwinds and a new 4MW turbine pipeline, we estimate 48 per cent revenue and 38 per cent Ebitda CAGR over FY25–28. Strong visibility, clean balance sheet and execution momentum support a long-term structural growth story. We initiate coverage with a target price of ₹210.

SmallCap

Laurus Labs– Target price: ₹970

Laurus Labs delivered strong 1QFY26 revenue/Ebitda/PAT growth of 31 per cent/123 per cent/12.6x Y-o-Y (5 per cent/23 per cent/30 per cent beat) for 3rd consecutive quarter, driven by robust execution in CDMO - up 2.3x YoY (31 per cent of sales). Formulation (FDF) segment too grew 50 per cent Y-o-Y (26 per cent of sales) led by newer contracts and some benefits from US launches. Laurus expects 38 per cent CAGR over FY25-27E in its CDMO segment, driven by the commissioning of the Vizag plant, enabling access to higher-margin opportunities.  In FDF, it filed one product dossier and received three approvals (including tentative) in developed markets, driving a 15 per cent sales CAGR over FY25-27E. We raise FY26/FY27 earnings estimates by 16 per cent/7 per cent, driven by strong CDMO growth with 110+ active projects, ramp-up of new facilities, additional generic FDF contracts, and margin expansion from scale. We estimate 63 per cent earnings CAGR over FY25-27.

LT Foods– Target price: ₹600

LT Foods posted a strong 1QFY26 with 19 per cent revenue growth, led by 18 per cent growth in basmati & specialty Rice (branded volumes +22 per cent Y-o-Y) and 32 per cent growth in organic foods. Growth was broad-based with India business up 10 per cent and International (ex-Golden Star) up 15 per cent Y-o-Y. Organic Foods gained traction in Europe and the US, while the UK business is scaling with a new plant and retailer tie-ups.  Management guided for a 12.5–13 per cent Ebitda margin and RoCE above 23 per cent, supported by India’s 80 per cent global export share and rising shift to organised players. LT Foods is well-positioned to sustain double-digit volume growth, supported by strong global basmati demand, market share gains from unorganized players, and stable input costs. Expansion in key international markets further strengthens long-term growth visibility. We expect adjusted PAT CAGR of 28 per cent over FY25–27.

(Disclaimer: This article is by Motilal Oswal Financial Services Research desk. Views expressed are its own.)