Adani Ports and other stocks to buy now for an upside of up to 18%; Recommended by Motilal Oswal

Motilal Oswal is a prominent Indian financial services firm, known for its expertise in equity broking, wealth management, asset management, and investment banking. The company offers research-backed investment strategies and personalised financial solutions to both retail and institutional investors.

One of the leading Indian broker, Motilal Oswal, has identified two high-conviction stocks and assigned a “Buy” rating, highlighting strong upside potential based on their analysis. In this article, let’s see the two Adani & JSW Group stocks that are in the spotlight.

Adani Ports & Special Economic Zone Ltd

Adani Ports and Special Economic Zone Ltd (APSEZ) is India’s largest private port operator and an integrated logistics provider, operating a network of 15 ports and terminals across India. The company provides a wide range of services, including port operations for various cargo types, dredging, and the development of special economic zones (SEZ). 

With a market capitalization of Rs. 3,25,079.31 crore, the shares of the company closed at Rs. 1504.90 per equity share, rising nearly 0.5 percent from its previous day’s close price of Rs. 1500.20. 

The stock is in focus after a leading indian brokerage firm, Motilal Oswal, initiated a Buy Target of Rs. 1770 on it with an upto 18 percent Upside Potential from the previous day’s close.

The company’s revenue rose by 29.72 percent from Rs. 7,067 crores to Rs. 9,167 crores in Q2FY25-26. Meanwhile, Net profit rose from Rs. 2,413 crores to Rs. 3,120 crores during the same period.

Strong and diversified volume momentum: Container-led growth (+24% YoY) and a diversified cargo mix provide steady visibility, while APSEZ continues to outperform the port sector with a 28% domestic market share and rising container share.

Integrated logistics platform driving stickiness: Rapid scale-up in logistics (ICDs, trains, warehouses, trucking) enables end-to-end “shore-to-door” solutions, boosting customer wallet share and long-term volume stability.

High-growth marine business: Marine services scaling rapidly with 237% YoY revenue growth, 52% margins, and improving RoCE adding a new high-margin engine alongside ports and logistics.

Strong financials & attractive valuation: Healthy balance sheet (net-debt/EBITDA 1.8x), solid volume report (8% CAGR), and robust earnings trajectory (14–18% CAGR in FY25–28E) support the BUY rating with a TP of Rs. 1,770.

JSW Steel Ltd

JSW Steel Ltd. is India’s leading integrated steel manufacturer and the flagship company of the diversified JSW Group. Headquartered in Mumbai, the company was founded in 1994 and is known for its high-strength and value-added steel products. JSW Steel operates multiple plants across India, has a significant global presence, and is a key player in the country’s infrastructure development. 

With a market capitalization of Rs. 2,81,349.48 crore, the shares of the company closed at Rs. 1150.50 per equity share, rising nearly 1.5 percent from its previous day’s close price of Rs. 1147.50. 

The stock is in focus after a leading indian brokerage firm, Motilal Oswal, initiated a Buy Target of Rs. 1350 on it with an upto 18 percent Upside Potential from the previous day’s close.

The company’s revenue rose by 13.78 percent from Rs. 39,684 crores to Rs. 45,152 crores in Q2FY25-26. Meanwhile, Net profit rose from Rs. 404 crores to Rs. 1,646 crores during the same period.

Rationale for the Buy Target

Large value unlocking & deleveraging: JV monetization brings in Rs. 320b cash and reduces debt by ~Rs.  350b, sharply strengthening the balance sheet.

Stronger growth visibility: JSTL can now focus on its 50 MTPA capacity expansion by FY31, supported by JFE’s technology and cleaner corporate structure.

Improving financial performance: Expect double-digit revenue growth and EBITDA margin recovery to 18–19% in FY26–27 as steel prices improve and input costs stay soft. Attractive valuation: Stock trades at 8.4× FY27E EV/EBITDA, below the fair value multiple of 9×, supporting a BUY with a target price of Rs.  1,350.

Written by Sridhar J 

Disclaimer

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