Motilal Oswal lists out its latest recommendations on stocks after the March quarter earnings, backing companies where earnings visibility and business momentum remain intact across technology, financial services and defence-linked manufacturing. The brokerage retains ‘Buy’ ratings on five stocks, citing steady deal flows, strong order books and improving growth outlook despite near-term pressures in select segments.
Motilal Oswal retains ‘Buy’ ratings on HCL Technologies, Persistent Systems, 360 One Wam, PNB Housing Finance and Cyient DLM after reviewing fourth quarter performance and outlook. The brokerage continues to favour companies with strong execution, stable demand pipelines and visibility on earnings growth.
Motilal Oswal on HCL Technologies: ‘Buy’
Motilal Oswal retains a ‘Buy’ rating on HCL Technologies with a target price of Rs 1,650, implying a 15% upside from Rs 1,441. The brokerage says the company reports a weak fourth quarter, with revenue declining sequentially and margins falling below expectations due to client-specific issues and reduced discretionary spending in segments such as telecom. The company guides for revenue growth of 1% to 4% in constant currency for the next financial year, indicating a slow start.
Motilal Oswal continues to support the stock due to its diversified portfolio and deal pipeline, even as near-term performance remains under pressure. The brokerage expects gradual recovery as execution improves, though the first half remains soft. It also points to early pricing pressure from artificial intelligence-led efficiencies.
“Near-term performance is impacted by a mix of client-specific issues and early-stage AI deflation, and the interplay remains a key monitorable,” Motilal Oswal says.
Motilal Oswal on Persistent Systems: ‘Buy’
Motilal Oswal maintains a ‘Buy’ rating on Persistent Systems with a target price of Rs 6,200, indicating a 16% upside. The brokerage says the company reports steady growth, though the pace moderates for the fifth straight quarter when excluding software licence revenue. Despite this, the company continues to outperform most mid-tier peers.
Motilal Oswal expects strong revenue and earnings growth over the medium term, supported by investments in artificial intelligence, consulting and platform capabilities. These investments keep margins within a narrow range in the near term. The brokerage also notes stable deal activity and improving positioning in large accounts.
“While Persistent Systems remains one of the fastest-growing information technology services companies in our coverage, this marks the fifth straight quarter of year-on-year deceleration in revenue growth excluding software licenses,” Motilal Oswal says.
Motilal Oswal on 360 One WAM: ‘Buy’
Motilal Oswal reiterates a ‘Buy’ rating on 360 One WAM with a target price of Rs 1,300, implying a 17% upside. The brokerage says the company reports strong operating performance, with revenue rising to Rs 834 crore in 4QFY26 from Rs 651 crore in 4QFY25, marking a 28% increase. Operating profit also grows strongly, supported by recurring and transactional income.
Motilal Oswal says inflows remain strong across wealth and asset management segments, supporting growth in assets under management. It expects continued expansion driven by distribution growth and scale benefits, even as costs remain elevated due to hiring and expansion.
“360 One WAM offers a compelling structural growth story anchored to India’s expanding wealth and asset management market,” Motilal Oswal says.
Motilal Oswal on PNB Housing Finance: ‘Buy’
Motilal Oswal retains a ‘Buy’ rating on PNB Housing Finance with a target price of Rs 1,260, implying a 29% upside. The brokerage says profit after tax rises to Rs 229 crore in FY26 from Rs 194 crore in FY25, reflecting an 18% increase, while quarterly profit rises to about Rs 780 crore in 4QFY26 from around Rs 700 crore in 4QFY25. Loan growth remains steady, supported by demand in affordable and emerging segments, which are expected to account for nearly half of the loan mix over the medium term.
Motilal Oswal says margins remain stable, supported by a shift toward higher-yield segments and improving funding costs, while asset quality remains stable with no fresh stress build-up. The brokerage expects sustained growth in loans and profitability over the next few years, aided by distribution expansion and digital initiatives.
“The company’s operating trajectory reflects improving growth visibility and stable profitability drivers,” Motilal Oswal says.
Motilal Oswal on Cyient DLM: ‘Buy’
Motilal Oswal maintains a ‘Buy’ rating on Cyient DLM with a target price of Rs 470, implying a 31% upside. The brokerage says revenue declines to Rs 370 crore in 4QFY26 from Rs 430 crore in 4QFY25, reflecting a 14% drop due to a high base and disruptions in defence and aerospace orders, while margins also contract due to operating leverage.
Motilal Oswal points to a strong order book, which expands sharply and supports future growth. The brokerage expects improvement from the next financial year, supported by new client additions and higher-margin orders, particularly in defence-linked electronics manufacturing.
“These factors should help Cyient DLM to sustain a four percent level margins in FY27,” Motilal Oswal says.
Conclusion
Motilal Oswal continues to back companies where earnings visibility, order inflows and execution remain strong across sectors. Technology names such as HCL Technologies and Persistent Systems remain supported by deal pipelines, while 360 One WAM and PNB Housing Finance benefit from steady demand trends in financial services. Cyient DLM stands out with its defence-linked opportunity, supported by a strong order bookk and expected recovery in the coming quarters.
Disclaimer: The stock ratings and target prices mentioned in this report are based on views issued by Motilal Oswal and do not represent the opinions of this publication. Such projections are based on current market data and earnings visibility, which are subject to change due to macroeconomic shifts, sectoral headwinds, or company-specific developments.
Investors should note that equity investments involve significant risk; “Buy” ratings and price targets are not guarantees of future returns. Before making any financial decisions, it is strongly recommended to consult with a SEBI-registered investment advisor to ensure any action aligns with your specific risk appetite and financial objectives.
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