Synopsis: Motilal Oswal recommends high-growth stocks, Northern Arc, Mphasis, and ABB India, citing good fundamentals, sector trends, and earnings visibility, with upside potential up to 47% for medium- to long-term investors.
Motilal Oswal has identified a select list of stocks with strong fundamentals and robust earnings visibility that offer high growth potential of up to 47 percent. Supported by favorable sector trends, improving financial performance, and long-term structural opportunities, these recommendations highlight companies well-positioned to benefit from India’s economic growth and evolving market dynamics, making them attractive picks for investors seeking medium- to long-term capital appreciation. Here are a few stocks recommended by Motilal Oswal with a high growth potential of up to 47 percent:
Northern ARC Capital Ltd
Northern Arc Capital Ltd is a leading diversified financial services platform and non‑banking financial company (NBFC) in India focused on expanding access to credit for underserved households, small businesses, and originator partners across the country. Registered with the Reserve Bank of India (RBI), it provides financing, credit solutions, and fund management services across sectors such as MSME finance, microfinance, consumer and vehicle finance, affordable housing, and agriculture finance.
With a market capitalization of Rs 4,107.16, the share of this company closed at Rs 254.20 per share, it was up by 3.48 percent from its previous day’s close. Motilal Oswal, a prominent brokerage firm, has recommended a “Buy” call on Northern ARC with a target price of Rs. 360 per share, indicating an upside potential of 46.5 percent from its previous close price.
Rationale
Northern Arc Capital (NACL) has successfully pivoted from an IR-led model to a higher-yielding D2C lending franchise, with D2C AUM growing from ~Rs. 10b in FY21 to ~Rs. 85b by Dec’25, now ~56% of total AUM and targeting ~70% by FY28. This shift, combined with its fund management and placement businesses, enhances yields, profitability, and earnings stability while expanding customer reach.
Supported by proprietary technology platforms and a disciplined risk framework, NACL maintains strong asset quality and scalable operations. With improving margins, diversified revenue streams, and attractive valuation (~0.9x FY27E P/BV, ~7x FY27E P/E), the company offers strong earnings visibility and sustainable growth, with RoA/RoE projected at ~3.2%/15% by FY28E.
Mphasis Ltd is an Indian IT services and consulting company that provides solutions in cloud and cognitive services, digital transformation, and application development and maintenance. Headquartered in Bengaluru, it serves clients globally across banking, financial services, insurance, and other sectors. Mphasis focuses on leveraging emerging technologies like AI, automation, and blockchain to drive business innovation and efficiency.
With a market capitalization of Rs 42,683.87, the share of this company closed at Rs 2238.65 per share, it was down by 3.05 percent from its previous day’s close. Motilal Oswal, a prominent brokerage firm, has recommended a “Buy” call on Mphasis Ltd with a target price of Rs. 3,400 per share, indicating an upside potential of 47.2 percent from its previous close price.
Rationale
Mphasis sees AI as an augmentative tool in large enterprises, with legacy systems and governance limiting immediate revenue impact. Demand remains stable, supported by cost optimization and ~USD2bn TCV wins over the past year, with sustained growth relying on consistent large-deal replenishment and leadership-driven execution.
AI is driving application modernization and maintenance opportunities, adding revenue stability. With resilient BFSI exposure and improving visibility on growth, Mphasis is valued at 26x FY28E EPS and the BUY rating.
ABB India Ltd
ABB India Ltd is a premier technology company specializing in electrification and automation, deeply integrated into India’s industrial infrastructure since 1949. As a subsidiary of the Swiss-based ABB Group, it provides solutions for energy efficiency, industrial productivity, and sustainability across sectors like data centers, railways, and manufacturing.
With a market capitalization of Rs 1,28,458.86, the share of this company closed at Rs 6062.00 per share, it was up by 2.47 percent from its previous day’s close. Motilal Oswal, a prominent brokerage firm, has recommended a “Buy” call on ABB India with a target price of Rs. 6,600 per share, indicating an upside potential of 12 percent from its previous close price.
Rationale
ABB’s 4QCY25 PAT exceeded expectations, supported by 52% YoY growth in order inflows, including strong base and large orders from data centers, automotive, railways, and metals. Emerging sectors such as renewables and electronics are expected to sustain inflows, while EBITDA margins, adjusted for labor code and forex effects, remained in line with estimates. With the earnings cut cycle largely behind, continued momentum in large and base orders is expected to drive revenue growth over CY25-27.
Segment performance was led by Electrification and Motion, benefiting from data center and infrastructure orders, while Robotics and Process Automation show improving demand and operational efficiencies. The impact of QCO-related costs is expected to subside in the coming quarters, supporting margin expansion. CY26/27 estimates have been revised up by 9%, with revenue/EBITDA/PAT CAGR of 15%/18%/19%. The stock is valued at INR6,600 (DCF, Mar’28), with further re-rating contingent on sustained inflows and margin improvement.
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