Motilal Oswal Recommends 3 Stocks for Upside Potential of Up to 50%

Motilal Oswal, a leading domestic brokerage firm, has recently published a report recommending three stocks for significant upside potential. The report suggests buying Godrej Consumer Products, Petronet LNG, and Star Health, citing strong growth prospects and undervalued stock prices. The brokerage firm has assigned a "Buy" rating to these stocks, with target prices of Rs 1,450 for Godrej Consumer, Rs 410 for Petronet LNG, and Rs 520 for Star Health.

Key Takeaways:

• Godrej Consumer Products (GCPL) has been assigned a "Buy" rating with a target price of Rs 1,450, implying a 19% upside potential.
• The brokerage expects GCPL to deliver a sales/EBITDA/Adj. PAT CAGR of 12%/13%/19% over FY25-28.
• Petronet LNG (PLNG) was upgraded to a "Buy" with a target price of Rs 410, indicating an upside potential of 50%.
• India's LNG imports are expected to grow at a 6% CAGR over FY25-30, creating opportunities for Petronet's expanded terminals.
• Star Health was given a "Buy" recommendation with a target price of Rs 520, offering around 17% upside potential from the current market price.
• The brokerage noted that Star Health is seeing a pickup in fresh premium growth and expects the company to deliver a CAGR of 14%/8% in GWP/PAT over FY25-27E.

Statistics:

• Godrej Consumer Products (GCPL) target price: Rs 1,450
• Petronet LNG (PLNG) target price: Rs 410
• Star Health target price: Rs 520
• Godrej Consumer Products CAGR:

* Sales: 12%

* EBITDA: 13%

* Adj. PAT: 19%

• Petronet LNG market share in India's LNG imports: 69% in FY25
• India's LNG imports CAGR over FY25-30: 6%

Sources:

• Motilal Oswal report
• Godrej Consumer Products
• Petronet LNG
• Star Health
• IE Online Media Services Pvt. Ltd.
• Contify.com
• India's LNG imports growth rate