Leading brokerage firm Motilal Oswal has placed a bullish rating on two stocks for long-term investors—Samvardhana Motherson International and Aditya Birla Sun Life AMC (ABSL AMC). With both companies showing strong growth momentum and solid fundamentals, the brokerage believes this is a good opportunity for investors to consider these names for their portfolios.
1. Samvardhana Motherson ShareTarget Price
Shares of Samvardhana Motherson closed at Rs 98 on Monday. Motilal Oswal has set a target price of Rs 114, indicating an upside potential of around 15 per cent from current levels.
Why the brokerage is bullish:
Motilal Oswal believes Samvardhana Motherson (SAMIL) is well-positioned for multi-year growth. Under its Vision 2030, the company aims for ambitious expansion. Over the past five years, it has grown EBIT threefold and PAT nearly 4.7 times. Its return on capital employed (RoCE) improved from 10.5 per cent in FY20 to 18.4 per cent recently. With net debt/EBITDA at just 0.9x, the company is in its strongest financial position in a decade.
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SAMIL has already acquired 23 companies, many of which were underperforming, and is focused on turning them profitable. The company is targeting a revenue of USD 108 billion by 2030.
Key growth drivers:
Aerospace sector: SAMIL is a Tier-1 supplier to global giants like Boeing and Airbus. The sector is expected to offer significant opportunities in the coming years.
Consumer electronics: A major global electronics firm has partnered with SAMIL as its technology partner—showing confidence in SAMIL’s innovation capabilities.
Importantly, the company’s proximity to customers in the US shields it from tariff-related risks. It may also unlock value by listing key business units separately. Despite global uncertainties, Motilal Oswal recommends a ‘Buy’ rating on the stock.
2. Aditya Birla Sun Life AMC Share Target Price
Shares of ABSL AMC ended Monday’s session at Rs 856, and the brokerage has set a target price of Rs 1,050, implying a potential upside of 22 per cent.
Motilal Oswal sees a strong growth trajectory for ABSL AMC. Since January 2025, the company has significantly improved its fund performance. As of July 2025, 67 per cent of its equity AUM ranks in the top two quartiles, up from just 20 per cent a year ago.
The company has expanded beyond mutual funds into private markets, real estate, ETFs, index funds, and offshore strategies—emerging as a robust multi-asset investment platform.
In Q1 FY26, ABSL AMC delivered strong net equity sales, exceeding even full-year FY25 figures. The performance was driven by improved fund returns, focus on core products, and a strong distribution network.
Motilal Oswal estimates revenue, EBITDA, and core PAT for ABSL AMC to grow at 10–11 per cent annually over the next two years.
