Motilal Oswal Top Stock Picks: Brokerage suggests 5 stocks that may deliver up to 32% returns

According to the brokerage, the small-cap microfinance institution is nearing profitability, supported by improving business momentum. The GS3 ratio is expected to improve by around 80 basis points quarter-on-quarter, while credit costs have shown a steady sequential decline. Fusion Finance has implemented several strategic measures to strengthen its operating model. The management believes these initiatives will help the company return to profitability by the third quarter of FY26. The brokerage has set a target price of Rs 215 per share, implying an upside potential of over 25 per cent from the current market price of Rs 171.40.

Small-cap NBFC MAS Financial Services has received a ‘Buy’ rating from the brokerage. According to the report, MASFIN’s Q2FY26 earnings were in line with expectations, leading to an 18 per cent year-on-year growth in assets under management (AUM). Asset quality remained largely stable, while credit costs continued to decline sequentially. Going forward, improvement in the organic retail mix is expected to boost yields and support margin expansion. However, operating expenses are likely to stay elevated due to continued investments in distribution and technology. The brokerage has set a target price of Rs 380 per share, implying an upside potential of around 25 per cent from the current market price of Rs 303.35.

The brokerage has expressed confidence in small-cap defence stock MTAR Technologies, maintaining a ‘Buy’ rating. Although the second quarter performance was subdued, the brokerage expects a strong recovery in the second half of FY26. As of September 2025, MTAR Technologies had a robust order book of around Rs 1,300 crore, supported by a healthy pipeline across clean energy, aerospace & defence, and nuclear energy segments. The company’s execution strength in these areas, along with ramp-up in new products, is expected to drive sustained growth and margin expansion over the coming years. The brokerage projects 35 per cent, 50 per cent, and 71 per cent CAGR in revenue, EBITDA, and adjusted PAT respectively during FY25–FY28. With a target price of Rs 2,900, the stock offers an upside potential of nearly 29 per cent from the current market price of Rs 2,252.80.

According to the brokerage, Avalon Technologies delivered a stronger-than-expected performance in the second quarter of FY26, with revenue surging 39 per cent year-on-year, beating analyst estimates. The company’s order book rose 25.5 per cent YoY to Rs 1,860 crore, reflecting healthy demand momentum across key verticals. Building on its robust order pipeline and solid first-half performance, Avalon has revised its FY26 revenue growth guidance to 28–30 per cent. The brokerage noted that Avalon’s operational efficiency and expanding revenue base position it well for sustained long-term growth. Maintaining its ‘Buy’ rating, the brokerage set a target price of Rs 1,330 per share, valuing the stock at 45x September 2027E EPS. From the current market price of Rs 1,020.90, the stock offers an upside potential of over 30 per cent.

The brokerage firm has reiterated its ‘Buy’ rating on Godrej Properties Ltd (GPL), expressing strong confidence in the company’s long-term growth outlook. According to the report, GPL’s robust project pipeline and healthy realizations are expected to continue driving growth, cash flow, and margin expansion, keeping it ahead of peers. The company’s strong portfolio ensures a solid sales trajectory in the coming quarters. The brokerage has set a target price of Rs 2,843 per share, implying an upside potential of over 32 per cent from the current market price of Rs 2,152.00.