1 / 8Brokerage firm Motilal Oswal has highlighted seven consumption stocks, from Page Industries to Lemon Tree Hotels as their top picks among small and midcap names within the sector. It said in its note on Tuesday, March 25, that the sharp correction in valuations offers an attractive entry point for these stocks. The seven stocks it highlights have a potential upside of up to 45%. These are the seven names.
2 / 8Page Industries | Motilal Oswal has a price target of ₹57,500 on the stock, which is the highest on the street. This implies a potential upside of 30% for the stock. It highlights that the growth prospects for mass-premium brands like Jockey are substantial. Motilal Oswal anticipates an Earnings Per Share (EPS) Compounded Annual Growth Rate (CAGR) of 17% between financial year 2025-2027. 11 out of the 22 analysts covering the stock have a “sell” rating, while only six have a “buy”.
3 / 8Metro Brands | Motilal Oswal has a price target of ₹1,525 on the stock, which has an implied potential of 39% from current levels. It highlights FILA and Foot Locker to be key growth drivers for the company. The brokerage sees revenue, EBITDA and PAT CAGR of 13%, 17% and 20% over financial year 2024-2027. Significant contribution from FILA and Foot Locker are not factored into these estimates. 19 out of the 27 analysts tracking the stock have a “buy” recommendation.
4 / 8Devyani International | Motilal Oswal’s price target of ₹215 implies a potential upside of 45% from current levels. Citing a strong brand portfolio and market leadership, Motilal Oswal expects store addition for KFC to continue in the next financial year as well. Additionally, the poor operating performance has already been factored in by the QSR companies, according to the brokerage. 18 out of the 26 analysts have a “buy” rating on the stock.
5 / 8LT Foods | Motilal Oswal sees a 20% upside for shares of LT Foods with a price target of ₹460. It said that LT Foods is well positioned to benefit from rising global demand as 69% of the revenue coming from exports from key markets like Middle East, Europe and the US. The company is also likely to benefit from low-priced inventory and report a revenue, EBITDA and PAT CAGR of 14%, 19% and 25% over financial year 2025-2027.
6 / 8Cello World | Motilal Oswal has a price target of ₹800 on the stock, which implies a potential upside of 40% from current levels. It said that Cello is shifting towards premium and value-added products, thereby driving higher realisations and brand differentiation. The brokerage is expecting a revenue, EBITDA and Adjusted Profit CAGR of 14%, 14% and 15% over financial year 2024-2027. Seven out of the nine analysts tracking the stock have a “buy” recommendation.
7 / 8Lemon Tree Hotels | Motilal Oswal has a price target of ₹190 on the stock, implying a potential upside of 38% from current levels. Lemon Tree is likely to maintain a healthy growth momentum, according to Motilal Oswal, which can lead to a revenue, EBITDA and Adjusted PAT CAGR of 16%, 19% and 34% over financial year 2024-2027. 20 out of the 22 analysts covering the stock have a “buy” rating.
8 / 8V-Mart Retail | Motilal Oswal’s price target of ₹3,850 implies a potential upside of 33% from current levels. It said that the revival of Unlimited will improve the company’s growth prospects. V-Mart can report a revenue and EBITDA CAGR of 17% and 42% respectively over financial year 2024 to 2027. Rising competition in the value retail segment is a key risk for the stock, according to Motilal Oswal, who also highlights impact on footfalls, pricing pressure impacting margins and higher rental inflation among other risk factors. 11 out of the 17 analysts tracking the stock have a “buy” rating.