The brokerage house Motilal Oswal has made several changes to its model portfolio for Q1FY27. The report highlights its latest sector preferences and stock ideas. As per Motilal Oswal latest report, the strategy continues to favour companies with visible earnings growth, domestic structural themes and select global opportunities.
At the same time, the brokerage has increased its allocation towards
and small-cap stocks while trimming exposure to large-cap names. According to the Motilal Oswal report, the portfolio changes are based on a bottom-up stock selection approach rather than a broad market view.
The brokerage believes investors should focus on companies with improving earnings visibility and long-term growth potential despite ongoing market volatility.
Motilal Oswal’s model portfolio
| Sector | Stocks added |
| Banking & Financial Services | RBL Bank, BSE, HDFC Asset Management Company, L&T Finance |
| Industrials | GE Vernova T&D, Kirloskar Oil Engines (KOEL) |
| Automobiles | Gabriel India |
| Metals | Hindalco Industries |
| Healthcare | Apollo Hospitals, Rubicon Research |
| Mid & Small Caps | Arvind, TBO Tek, Time Technoplast |
Greater focus on mid- and small cap companies
One of the biggest portfolio changes is the higher allocation towards mid-cap and small-cap companies.
The report noted, “We have reallocated 700bp of weight from the large- to the mid and small caps in our model portfolio.”
The brokerage believes that several emerging businesses in these segments offer better long-term earnings growth opportunities. It has therefore added Arvind, TBO Tek and Time Technoplast to strengthen its exposure.
Financial stocks continue to dominate
Financial services remain one of its preferred sectors, although its approach has become more selective.
The brokerage has added RBL Bank after the completion of the Emirates NBD (ENBD) transaction, expecting stronger business momentum over the next few years.
It has also introduced BSE, HDFC Asset Management Company and L&T Finance into the portfolio.
Motilal Oswal report noted, “We continue to have a layered bottom-up stance on the BFSI complex.”
The brokerage expects L&T Finance to benefit from faster loan growth and improving profitability, while BSE could gain market share through technology-led initiatives.
Manufacturing and industrials remain long-term themes
Manufacturing continues to remain one of Motilal Oswal’s preferred investment themes.
According to the brokerage report, “We view this as a core long-term theme.”
The brokerage has added GE Vernova T&D, expecting higher spending on power transmission infrastructure in India and overseas. It has also included Kirloskar Oil Engines, citing opportunities in the power generation market and increasing demand from data centres.
Consumption, healthcare and automobiles
The brokerage continues to favour discretionary consumption over fast-moving consumer goods (FMCG) companies.
“Our positioning on consumption remains unchanged,” the report said, adding that it has maintained zero allocation to consumer staples.
In automobiles, Gabriel India has been added as the brokerage expects the company’s restructuring benefits to begin reflecting in earnings.
Within healthcare, Apollo Hospitals and Rubicon Research have joined the portfolio. According to the brokerage report, Apollo Hospitals could benefit from improving profitability across its hospital and digital healthcare businesses, while Rubicon Research is expected to deliver steady earnings growth supported by research and development.
What is the broader strategy?
Motilal Oswal remains overweight on diversified financials, automobiles, manufacturing, industrials, consumer discretionary companies and new-age technology platforms, while remaining underweight on private banks, consumer staples, energy, telecom, utilities and renewable energy.
The brokerage also added “We retain our Overweight stance on new-age platforms,” while maintaining its existing positions in Eternal, Lenskart and Coforge.
Disclaimer: The stock preferences, portfolio adjustments, and allocations discussed represent the corporate views and research models of the specified brokerage house and are shared for informational and educational purposes only. They do not constitute a direct buy, sell, or hold recommendation or an offer or solicitation by this publication. Investment in equities, particularly mid-cap and small-cap segments, involves substantial market risk, volatility, and potential capital loss; readers are strongly advised to consult a SEBI-registered investment advisor or qualified financial professional before making any investment decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.
