Two stocks have caught the attention of leading financial firms Morgan Stanley and Motilal Oswal, both projecting significant upside potential. These recommendations highlight strong growth prospects, making them attractive investment options for investors looking to capitalize on promising market opportunities.
Stock Recommendations
During Wednesday’s trading session, the shares of Page Industries Ltd’s share price reached an intra-day high of Rs.48,060.00 per share, rising 1.5 percent from its previous close of Rs.47,365.00 apiece. The shares retreated slightly from the peak and are trading at Rs.47,885.00 apiece. Over the past year, the shares have delivered over 35 percent returns.
Reputed brokerage, Morgan Stanley raised its price target for Page Industries to Rs.52,064 from Rs.46,444, suggesting a potential upside of 9 percent from current levels. Meanwhile, Motilal Oswal initiated a buy rating with a target price of Rs.57,500, indicating an upside of 20 percent from the current price.
Morgan Stanley noted that Page Industries’ management targets high-single-digit volume growth for fiscal year 2026. The Q4 gross margin improvement reflects stable raw material costs and enhanced production efficiencies, with the company maintaining an EBITDA margin guidance of 19-21 percent.
The brokerage expects marketing expenses to rise to 4-5 percent of total sales, alongside increased investments in technology. Page Industries’ e-commerce segment grew by 41 percent in FY25, accounting for over 10 percent of total sales, with similar EBITDA margins across all channels, Morgan Stanley added.
Similarly, during Wednesday’s trading session, the shares of Sobha Ltd‘s share price reached an intra-day high of Rs.1,372.10 per share, rising 1.6 percent from its previous close of Rs.1,350.60 apiece. The shares retreated slightly from the peak and are trading at Rs.1,354.00 apiece. Over the past five years, the shares have delivered over 600 percent returns.
Reputed brokerage, Motilal Oswal has initiated a buy rating on Sobha Ltd with a target price of Rs.1,803 per share, indicating an upside of 33 percent from the current price.
Sobha ended FY25 with presales declining 6 percent year-on-year, mainly due to approval delays. The company has a project pipeline supported by a large land bank and is expected to post a 39 percent compound annual growth rate in presales over FY25-27E, aided by its entry into the Mumbai Metropolitan Region. A recent rights issue helped reduce debt levels, allowing a focus on business development in new regions.
The updated launch pipeline and projects acquired during the year include ongoing and upcoming projects valued at Rs.75 billion, after adjusting for future land acquisitions and incremental business development. Sobha’s land reserve is estimated at 165 million square feet, valued at Rs.87 billion over a 25-75 year monetization period. The stock carries a BUY rating with a revised target price of Rs.1,803, up from Rs.1,714, reflecting a 37 percent upside.
Written by – Siddesh S Raskar
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