3 weeks ago
Motilal Oswal retains Buy on three stocks with 43% upside
A company called Motilal Oswal studies other companies and tells people which shares to buy.
It just gave a big 'thumbs up' to three companies: Gopal Snacks, Cello World, and Lemon Tree Hotels.
Motilal Oswal thinks their shares could go up by 30% to 43% in the future.
Gopal Snacks makes tasty snacks like wafers and gathiya, and its sales grew a lot.
That happened because it opened a new factory in Rajkot and added 54 new distributors.
Cello World makes bottles and household goods, and it is waiting for people to start buying more again.
Lemon Tree Hotels runs many hotels and is building around 3,300 more rooms to welcome more guests.
Each company has a different reason to grow, and Motilal Oswal explains them all.
But buying shares is always a little risky, so people should think carefully and talk to a financial expert first.
Motilal Oswal retained 'Buy' ratings on Gopal Snacks, Cello World and Lemon Tree Hotels, citing potential upside of 30% to 43%.
Gopal Snacks (target Rs 390, 43% upside) posted 31.1% YoY revenue growth to Rs 420 crore, aided by its new Rajkot plant and 54 new distributors.
Cello World (target Rs 480, 33% upside) saw EBITDA fall 9% YoY, though gross margins improved to around 52%, with demand recovery expected from Q2 FY27.
Lemon Tree Hotels (target Rs 140, ~30% upside) reported 9% revenue growth, management fees up 42%, and occupancy at 75.7%.
Motilal Oswal forecasts the strongest profit momentum at Gopal Snacks, with adjusted PAT expected to grow at an 87% CAGR between FY26 and FY28.
- Who
- Motilal Oswal, a brokerage firm, issued 'Buy' calls on Gopal Snacks, Cello World and Lemon Tree Hotels.
- What
- The brokerage retained 'Buy' ratings on the three stocks, seeing 30% to 43% upside based on different growth triggers.
- Where
- India, covering Indian-listed companies.
- When
- The calls are based on the companies' June-quarter results and FY26-FY28 forecasts.
- Why
- Gopal Snacks is growing via distribution expansion, Cello World is expected to benefit from demand recovery, and Lemon Tree Hotels is banking on expansion and higher management-fee income.
Key facts
- Brokerage
- Motilal Oswal
- Gopal Snacks target price
- Rs 390 (43% upside)
- Gopal Snacks Q1 revenue
- Rs 420 crore (+31.1% YoY)
- Cello World target price
- Rs 480 (33% upside)
- Lemon Tree Hotels target price
- Rs 140 (~30% upside)
- Lemon Tree occupancy
- 75.7% (up 320 basis points)
- Gopal Snacks retail reach
- 5.2-5.5 lakh outlets, target 6 lakh by FY27
- Lemon Tree expansion
- Around 3,300 rooms through Fleur by FY30
Quotes
Motilal Oswal
Brokerage analyst from Motilal Oswal
“We expect GSL to benefit from distribution expansion in non-core markets and commissioning of its Rajkot manufacturing facility, offering multi-quarter revenue growth visibility with strong underlying demand.”
financialexpress.com
“We expect Lemon Tree Hotels to show healthy growth, primarily led by aggressive expansion through Fleur.”
financialexpress.com
