2 hrs ago
Motilal Oswal Names Three Stocks With Up To 37% Upside
Motilal Oswal, a brokerage firm, has said that three different companies could perform well.
The companies are SPR Auto Technologies, Niva Bupa Health Insurance, and Indegene.
SPR Auto makes vehicle components and is buying other businesses to reduce its reliance on pistons.
Niva Bupa sells health insurance and may face short-term uncertainty because insurance rules could change.
However, the brokerage thinks those rule changes may help the insurer over time.
Indegene helps pharmaceutical companies with technology and services.
More drug research and complicated regulations may encourage pharmaceutical companies to outsource more work.
The targets are estimates, not guarantees, so investors need to do their own research before investing.
Motilal Oswal rated SPR Auto Technologies ‘Buy’ with a Rs 6,150 target price and about 37% potential upside.
The brokerage expects SPR Auto’s acquisitions and diversification beyond pistons to support 21% annual profit growth from FY26 to FY29.
Niva Bupa retained a ‘Buy’ rating and received a Rs 100 target, implying roughly 31% upside despite possible short-term regulatory pressure.
Motilal Oswal upgraded Indegene to ‘Buy’ with a Rs 708 target and about 19% potential upside as pharmaceutical outsourcing expands.
The recommendations are based on company-specific drivers, while investors should independently assess risks and consult a SEBI-registered financial adviser.
- Who
- Motilal Oswal issued or maintained ‘Buy’ recommendations for SPR Auto Technologies, Niva Bupa Health Insurance, and Indegene.
- What
- The brokerage gave target prices implying approximately 19% to 37% upside from the cited market prices.
- Where
- The recommendations concern companies operating in India and serving automotive, health-insurance, and global life-sciences markets.
- When
- The article does not specify the date of the brokerage reports; the targets include a one-year target for Niva Bupa.
- Why
- Motilal Oswal cited SPR Auto’s acquisitions, potential insurance-sector cost improvements, and rising pharmaceutical outsourcing demand.
Brokerage’s Positive Case
Risks and Counterpoints
SPR Auto diversification
Brokerage’s Positive Case
Acquisitions could transform SPR Auto from a traditional piston manufacturer into a broader, technology-driven mobility business and support earnings growth.
Risks and Counterpoints
The strategy depends on successfully integrating acquisitions and deploying proceeds from the planned Rs 1,000-crore qualified institutional placement.
Niva Bupa regulation
Brokerage’s Positive Case
Motilal Oswal believes proposed distribution-regulation changes could benefit Niva Bupa and help reduce its expense of management over the medium term.
Risks and Counterpoints
The insurance industry may face near-term pressure as insurers reassess products, pricing, and distribution models, which could weigh on growth.
Indegene outsourcing demand
Brokerage’s Positive Case
Expanding drug pipelines, higher clinical-trial activity, and new disease areas could increase demand for Indegene’s services.
Risks and Counterpoints
Pharmaceutical companies are also facing regulatory and affordability pressures that are tightening budgets and timelines.
Key facts
- SPR Auto rating
- Buy; target price of Rs 6,150; about 37% potential upside.
- SPR Auto growth estimate
- Motilal Oswal estimates a 21% compound annual growth rate in profit after tax between FY26 and FY29.
- SPR Auto expansion
- The company is diversifying beyond pistons through acquisitions including Antolin, Takahata, TGPEL, and EMFi.
- Niva Bupa rating
- Buy retained; one-year target price of Rs 100; about 31% potential upside.
- Niva Bupa cost outlook
- The insurer expects its expense of management to decline from 25% of gross written premium within two years to about 20% over five years.
- Indegene rating
- Upgraded to Buy from Neutral; target price of Rs 708; about 19% potential upside.
- Indegene business driver
- Growing pharmaceutical outsourcing in medical content, regulatory work, and commercial operations is expected to support growth.
Quotes
Motilal Oswal
Brokerage firm issuing the stock recommendations
“We believe expanding drug pipelines, increasing clinical trial activity, and new disease areas are increasing complexity for life sciences companies, while regulatory and affordability pressures are tightening budgets and timelines.”
financialexpress.com
“We concur with the view that the measures are positive over the medium term, whereas in the shorter term, the industry will reassess product constructs and distribution architectures, which could weigh on growth.”
financialexpress.com
Sources
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