Motilal Oswal's 3 Key Stock Picks with Up to 13% Upside Potential

Motilal Oswal has released recommendations on three stocks, with an upside potential of up to 13% in Larsen & Toubro. The brokerage firm expects L&T to benefit from a strong international project pipeline, improved return on equity profile, and better capital allocation. Piramal Enterprises has a 'Neutral' rating with an 11% upside, while Alkyl Amines Chemicals has a 'Neutral' rating with a slight downside.

Motilal Oswal has recently released stock recommendations for the week starting June 23, 2025, highlighting Larsen & Toubro (L&T), Trent, Piramal Enterprises, and Alkyl Amines Chemicals. The brokerage firm's analysis provides insights into the potential growth and performance of these companies.

Larsen & Toubro (L&T)
L&T is recommended as a top stock pick with an upside potential of up to 13%. The company is expected to benefit from a strong international project pipeline, improved return on equity (RoE) profile, and better capital allocation. L&T's business mix has shifted, led by strong international order growth, with FY25 inflows up 2x and core EPC revenue up 1.7x vs. FY22. The company anticipates mid-teens EPC revenue growth over the next five years, driven by a healthy order pipeline and diversification into new growth areas like renewables and hi-tech manufacturing [1].

Trent
Trent is also recommended as a top stock pick, with an expected upside of up to 16%. The company anticipates substantial growth, capitalizing on India's expanding retail market and its unique market position. Trent aims to grow at a CAGR of 25%+ annually over the long term, driven by robust area additions in its Zudio segment and the growth of its fashion and lifestyle segment [1].

Piramal Enterprises
Piramal Enterprises has been given a 'Neutral' rating by Motilal Oswal, with an expected upside of up to 11%. The company is confident about its retail business strategy and plans to reduce its legacy wholesale loan book from INR70b to INR35-40b over the next year. Piramal Enterprises expects to receive USD120m from the sale of Piramal Imaging, which will improve its ability to accelerate the run-down of the legacy AUM. However, the company's return metrics remain modest, with RoA and RoE estimated at 1.9% and 8%, respectively, for FY27E [2][3].

Alkyl Amines Chemicals
Alkyl Amines Chemicals has also been given a 'Neutral' rating by Motilal Oswal, with a slight downside. The company's management remains cautiously optimistic, leveraging strong domestic leadership and expanded capacities to drive scalable growth. AACL increased its R&D spend to INR89m in FY25, focusing on new product development and process efficiency. However, pricing pressure from imports and certain commoditized products pose risks [4].

Motilal Oswal's recommendations provide valuable insights into the potential growth and performance of these companies. Investors should consider these recommendations alongside their own research and consult with a qualified investment advisor before making any investment decisions.

References:
[1] https://timesofindia.indiatimes.com/business/india-business/top-stock-recommendations-for-june-23-2025-week-larsen-and-toubro-trent-stocks-to-buy-today/articleshow/122007949.cms
[2] https://www.moneycontrol.com/news/business/stocks/neutral-piramal-enterprises-target-of-rs-1250-motilal-oswal-13168176.html/amp
[3] https://www.tradingview.com/news/moneycontrol:592ef90cd094b:0-neutral-piramal-enterprises-target-of-rs-1250-motilal-oswal/
[4] https://www.moneycontrol.com/news/business/stocks/neutral-alkyl-amines-chemicals-target-of-rs-2110-motilal-oswal-13168299.html