As Indian stock markets enter 2026 after a year of consolidation, brokerage house Motilal Oswal Financial Services (MOSL) said the coming year is likely to be defined by earnings recovery and steady growth rather than euphoric rallies.
The brokerage noted that the Nifty ended 2025 with gains of nearly 10%, despite global trade uncertainties, persistent FII selling and muted earnings momentum. It expects corporate earnings growth to rebound to 9% in FY26, improving further to about 15% in FY27 and FY28, supported by domestic policy stability, RBI rate cuts and a revival in private capex.
Against this backdrop, the brokerage has identified 10 high-conviction stock ideas for 2026, each backed by clear earnings visibility and valuation comfort.
Here are MOSL’s stock picks for new year 2026
Bharti Airtel | Target: ₹2,365 | Upside: 12%
MOSL noted Bharti Airtel continues to deliver strong execution across mobility and digital infrastructure, aided by premiumisation, ARPU expansion and steady broadband growth. It further stated that moderated capex and operating efficiencies are helping strengthen free cash flow generation, even as investments in 5G and digital platforms continue. MOSL expects consolidated revenue and EBITDA to grow at a CAGR of 15% and 18%, respectively, over FY25–FY28.
As per MOSL, SBI remains one of its preferred large-cap banking plays, backed by its diversified franchise, strong balance sheet and improving asset quality. Credit growth remains healthy at about 13% year-on-year, with management guiding for 12–14% loan growth and NIMs above 3%. Structural initiatives such as Project Saral and a corporate credit pipeline of nearly ₹7 lakh crore provide additional comfort. MOSL expects FY27 RoA and RoE of around 1.1% and 15.5%, supporting a target price of ₹1,100.
HCL Technologies | Target: ₹2,150 | Upside: 29%
HCL Technologies continues to stand out among large-cap IT peers, with growth driven by IT services and engineering R&D, said MOSL. Early traction in AI-led solutions, now contributing roughly 3 percent of revenue, is improving productivity and enabling non-linear growth. MOSL expects USD revenue CAGR of 5.3% and INR PAT CAGR of 7.2% over FY25–FY27, supported by large-deal ramp-ups and AI adoption. Strong free cash flow generation and an all-weather portfolio underpin its target price of ₹2,150.
Eternal | Target: ₹410 | Upside: 46%
Zomato-parent Eternal is witnessing strong revenue momentum as it transitions to an inventory-led model, leading to improved net revenue recognition and gross margins, believes MOSL. The brokerage highlighted the rapid scaling of quick-commerce platform Blinkit, supported by store expansion and operational execution. Franchise and e-commerce segments are also increasing their contribution, improving business diversification. While investments continue, MOSL noted that contribution and EBITDA margins are gradually improving, reflecting early operating leverage.
TVS Motor | Target: ₹4,159 | Upside: 14%
Motilal Oswal said TVS Motor continues to outperform the broader auto industry, supported by strong festive demand, GST-led recovery and rising market share across two-wheelers and EVs. Export performance remains robust, with broad-based growth across Africa and Latin America. Operating leverage, improved product mix and a healthy launch pipeline underpin upgraded earnings estimates. MOSL expects revenue, EBITDA and PAT to grow at a CAGR of 21%, 25% and 29%, respectively, over FY25–FY28, supporting a target price of ₹4,159.
As per MOSL, Max Financial continues to deliver better-than-industry APE growth, supported by rising contribution from protection, non-par and annuity products. Growth remains strong across proprietary and bancassurance channels, while persistency trends have improved across long-term cohorts. MOSL expects value of new business margins to improve steadily to 25% in FY26, 26% in FY27 and 26.5% in FY28. The brokerage believes improving growth quality and margins justify a target price of ₹2,100.
Biocon | Target: ₹460 | Upside: 16%
Biocon is well positioned for a biologics-led earnings revival following the acquisition of Viatris’ biosimilar business, stated MOSL. The expanded commercial footprint complements Biocon’s development and manufacturing capabilities. MOSL expects a broad-based scale-up across biologics, generics and CDMO businesses over FY26–FY28. Product launches such as insulin aspart, scaling of the generics portfolio and operating leverage at Syngene are expected to drive growth, supporting a target price of ₹460.
JK Cement | Target: ₹7,000 | Upside: 23%
JK Cement continues to show operational resilience despite near-term pricing pressures. Strong volume traction in central and southern markets, effective cost control and gradual premiumisation remain key positives, noted MOSL. Capacity additions, including the Jaisalmer integrated plant and the Buxar grinding unit, are progressing as planned. MOSL expects green energy adoption to rise to about 75% by FY30, supporting margin expansion and earnings compounding, with a target price of ₹7,000.
MOSL said Poonawalla Fincorp is executing its strategy to build a digitally enabled, multi-product retail lending platform. New growth engines such as personal loans, gold loans, CV finance and education loans are scaling rapidly, supporting AUM CAGR of about 50 percent over FY25–FY28. Investments in AI and machine learning are expected to reduce the cost-to-income ratio from 51% in FY25 to around 42% by FY28. MOSL has set a target price of ₹600.
According to MOSL, Privi is well positioned to benefit from the global aroma chemicals market, expected to reach $9.2 billion by 2030. Planned capacity expansion from 48,000 MT to 66,000 MT by March 2028 supports sustained growth. The proposed merger with Privi Fine Sciences will add high-margin bio-based products and strengthen the company’s green chemistry portfolio. MOSL expects revenue and EBITDA CAGR of 27 percent and 34 percent, respectively, over FY25–FY28, supporting a target of ₹3,960.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
