The Indian stock market traded with strong gains on Wednesday amid optimism over a trade deal between India and the United States, after President Donald Trump said the two countries are “continuing negotiations to address the trade barriers.”
The BSE Sensex rallied over 450 points to trade above 81,500, while the Nifty 50 was up 0.57% above the crucial 25,000 level. Market gains were led by across the board buying, with the Nifty Midcap 100 and the Nifty Smallcap 100 indices rallying 1% each.
Brokerage firm Motilal Oswal Wealth Management has released its focus investment ideas, wherein it recommends five largecap stocks and five midcap and smallcap stocks to buy.
The midcap and smallcap stock picks includes Vishal Mega Mart, Radico Khaitan, Lemon Tree Hotels, Time Technoplast and Ellenbarrie Industrial Gases shares.
Here are the top midcap and smallcap stock picks by Motilal Oswal:
Vishal Mega Mart | Target Price: ₹170
With 50% RoCE, and double-digit SSSG, Vishal Mega Mart enjoys strong store-level profitability and self-funded expansion through disciplined, asset-light ops. GST cut on apparel from 12% to 5% and footwear from 12%-18% to 5% below mid-premium ranges should drive stronger value retail demand for Vishal Mega Mart, Motilal Oswal said.
It estimates the company’s revenue and PAT CAGR of 19% and 24% over FY25–28, driven by steady store additions & margin gains. It has Vishal Mega Mart share price target of ₹170 apiece.
Radico Khaitan | Target Price: ₹3,250
Radico Khaitan is well positioned for long-term growth through aggressive expansion in the premium and luxury spirits segment, leveraging strong brand equity with leading products like 8PM, Magic Moments, and Rampur Single Malt, said the brokerage firm. It estimates revenue, EBITDA and APAT CAGR of 16%, 22% and 30% over FY25-FY28, supported by margin expansion due to premiumization & operating leverage.
Motilal Oswal has Radico Khaitan share price target of ₹3,250 apiece.
Lemon Tree Hotels | Target Price: ₹200
GST cut on hotel rooms of less than ₹7,500 from 12% to 5% will improve affordability and boost occupancy in Lemon Tree Hotels’ mid-market portfolio. Revenue, EBITDA and adj. PAT projected to grow at a 13%, 16% and 34% CAGR over FY25–27. The brokerage has Lemon Tree Hotels share price target of ₹200.
Time Technoplast | Target Price: ₹578
Time Technoplast is the world’s largest manufacturer of large size plastic drums, holding a 55%+ market share in India and strong presence in 10 countries. Motilal Oswal estimates a CAGR of 15%, 16% and 23% over FY25–28E, driven by robust growth in the value-added products (VAP) segment and strong cash flows. It has a Time Technoplast share price target of ₹578.
Ellenbarrie Industrial Gases | Target Price: ₹680
Motilla Oswal expects Ellenbarrie Industrial Gases’ FY25-28 revenue, EBITDA and PAT CAGR of 39%, 49% and 52%, driven by higher contributions from argon gas (capacity expansion), green energy initiatives, capacity ramp-up, and lower power consumption in new plants.
It recently initiated coverage on Ellenbarrie Industrial Gases shares with a ‘Buy’ rating and a target price of ₹680 apiece, based on ~40x FY27E EPS.
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.
