7 Stocks To Buy For Long Term: Motilal Oswal shares top picks for 2026 with up to 45% upside; Godrej, CEAT, JSW Energy on list

Godrej Consumer Products is rated Buy by Motilal Oswal. The stock is trading at a current market price (CMP) of Rs 1,178, while the brokerage has set a target price of Rs 1,450. This implies an upside potential of around 23.1 per cent. Motilal Oswal remains constructive on Godrej Consumer, citing a steady improvement in its India business and early signs of stabilisation in Indonesia. In the December quarter, consolidated revenue rose 9 per cent year-on-year to Rs 40.8 billion, with volume growth of 7 per cent. India revenues increased 11 per cent, supported by 9 per cent volume growth, while EBITDA grew 16.5 per cent year-on-year, aided by margin recovery and lower advertising spends. The brokerage expects volume growth of 7–8 per cent over the next 18–24 months and sees margins staying within the guided 24–26 per cent range, strengthening earnings visibility over FY26–28.

JSW Energy is also rated Buy by Motilal Oswal. The stock is currently trading at Rs 442, against a target price of Rs 590. Based on this, the upside works out to around 33.5 per cent. While JSW Energy’s December quarter performance was weaker than expected due to lower generation at a few plants, the brokerage remains positive on the company’s medium-term outlook. Power demand rebounded by around 6 per cent year-on-year in December and early January, and recent PPAs signed for thermal projects are expected to reduce merchant exposure. With organic capacity additions, stabilisation of hydro assets and improving demand conditions, Motilal Oswal believes earnings should normalise beyond FY27, supporting the stock’s re-rating over the long term.

Shriram Finance has been assigned a Buy rating by Motilal Oswal. The stock is trading at a CMP of Rs 1,001.70, while the target price is Rs 1,200, implying an upside of about 19.8 per cent. The brokerage highlighted Shriram Finance’s healthy operating performance in the December quarter, driven by net interest margin expansion and lower credit costs. Profit after tax rose around 21 per cent year-on-year to Rs 25.2 billion, while asset quality showed signs of improvement. With diversified asset mix, falling cost of funds and growth opportunities in CV, MSME, gold loans and tractor financing, Motilal Oswal expects Shriram Finance to deliver strong AUM and PAT growth over FY26–28.

APL Apollo Tubes is rated Buy with a target price of Rs 2,350. The stock is currently trading at Rs 2,069.20, which translates into an upside of around 13.6 per cent. Motilal Oswal remains positive on APL Apollo’s margin expansion and volume-led growth strategy. In the December quarter, EBITDA rose 37 per cent year-on-year, supported by 11 per cent volume growth and a sharp improvement in EBITDA per tonne. The company has guided for strong volume growth in the coming quarters and higher EBITDA per tonne, backed by brand strength across premium and value segments. This, according to the brokerage, should sustain earnings momentum into FY27.

AU Small Finance Bank is Motilal Oswal’s top pick among mid-size private banks and carries a Buy rating. The stock is trading at Rs 960.95, while the target price is Rs 1,250, implying an upside of roughly 30.1 per cent. The brokerage highlighted AU Bank’s all-round performance in the December quarter, with profit after tax rising 26 per cent year-on-year to Rs 6.7 billion. Strong business growth, expanding net interest margins and a sharp decline in credit costs have improved earnings visibility. With asset quality stabilising and management guiding for healthy growth over the next few years, Motilal Oswal expects the bank to deliver robust PAT growth over FY27–28.

CEAT has been rated Buy by Motilal Oswal. The stock is trading at Rs 3,729, while the brokerage’s target price stands at Rs 4,579. This suggests an upside potential of around 22.8 per cent. Motilal Oswal noted that CEAT’s December quarter performance benefited from healthy volume growth and stable raw material prices, leading to a margin beat. Recovery in tyre demand after GST rate cuts and benign input costs are expected to support profitability. While the Camso acquisition may take time to fully normalise, the brokerage remains positive on CEAT’s long-term growth prospects and margin trajectory.

Cyient DLM is rated Buy with a target price of Rs 510. The stock is currently trading at Rs 352, implying a potential upside of about 44.9 per cent, the highest among Motilal Oswal’s picks. Although Cyient DLM reported a weak December quarter due to a high base and lower domestic defence orders, the brokerage believes the medium-term outlook remains intact. EBITDA margins expanded year-on-year, supported by a favourable business mix, while the order book grew to Rs 23.5 billion. With expectations of a stronger FY27 driven by new client additions and higher-margin orders, Motilal Oswal sees meaningful upside from current levels.

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