5 Stocks To Buy For Long Term: Motilal Oswal bullish on strong fundamentals, sees up to 34% upside — See list

Motilal Oswal remains positive on Avenue Supermarts, the company behind the DMart retail chain, citing steady profitability and strong execution even in a challenging consumption environment. The brokerage has maintained a Buy rating with a target price of Rs 4,600, compared with a current market price of Rs 3,801, implying an upside of about 21 per cent. According to the brokerage, Avenue Supermarts’ value-focused business model and improving store-level economics continue to provide long-term competitive strength, while profit sustainability remains intact.

The brokerage believes aggressive store expansion will remain the key growth trigger. Around 60 new stores are expected to be added in FY26 alone, supporting revenue momentum. Motilal Oswal has raised its FY26–FY28 EBITDA and PAT estimates by 3 to 5 per cent, reflecting stronger operating leverage. Over FY25–FY28, DMart’s consolidated revenue, EBITDA and PAT are projected to grow at a CAGR of 16 per cent, 16 per cent and 12 per cent, respectively, reinforcing its long-term retail story.

Motilal Oswal is also constructive on IT major Infosys, even as the sector grapples with near-term uncertainty. The brokerage has recommended Buy with a target price of Rs 2,150. At the current price of around Rs 1,614, the stock offers an upside potential of nearly 33 per cent. The brokerage expects increasing AI-native collaborations and large-scale adoption of digital transformation projects to drive medium-term growth.

According to Motilal Oswal, calendar year 2026 is likely to mark the bottom of the current growth cycle, with momentum picking up meaningfully in the second half of FY27 and strengthening further in FY28. The brokerage expects scaled deployment of AI services to begin during this phase, translating into better deal wins and revenue visibility. A clear improvement in Infosys’ growth trajectory is anticipated in FY27 and FY28 as discretionary tech spending gradually recovers.

JSW Energy is another stock where Motilal Oswal sees value emerging after the recent correction. The brokerage has issued a Buy call with a target price of Rs 657. With the stock trading near Rs 490, the implied upside stands at around 34 per cent. The recommendation follows a recent plant visit at Vijayanagar, which, according to the brokerage, highlighted multiple growth levers coming into play.

Motilal Oswal values JSW Energy’s thermal business at 9 times December FY27 EBITDA, while its renewable energy segment is valued at 12 times FY28 EBITDA. The hydro business is valued at two times December FY27 book value, and the green hydrogen equity is assigned a similar premium multiple. Additionally, the company’s stake in JSW Steel is valued at a 25 per cent discount to the current market price, adding further comfort to the valuation. The brokerage believes this sum-of-the-parts approach underlines the stock’s attractive risk-reward profile.

Motilal Oswal is also bullish on Lemon Tree Hotels, highlighting its turnaround and asset-light expansion strategy. The brokerage has maintained a Buy rating with a target price of Rs 200. With the stock currently trading near Rs 150, the potential upside is close to 33 per cent. According to the brokerage, business restructuring efforts are beginning to unlock value.

The brokerage expects Lemon Tree to sustain strong growth through the expansion of its managed and franchise portfolio, strategic restructuring and tighter operational focus. The company’s asset-light model and improving financial flexibility are seen as key positives. Over FY25–FY28, revenue, EBITDA and PAT are expected to grow at a CAGR of 11 per cent, 13 per cent and 26 per cent, respectively, reflecting a steady recovery in the hospitality cycle.

Motilal Oswal has also recommended APL Apollo Tubes as a long-term buy, assigning a target price of Rs 2,260 per share. The brokerage believes the company’s leadership position in structural steel tubes, coupled with capacity expansion and improving product mix, positions it well to benefit from infrastructure and construction-led demand over the coming years.

The views, suggestions and recommendations expressed in this article are solely those of investment experts. Zee Business advises readers to consult their financial advisers before taking any investment decision.