Motilal Oswal’s August small-midcap focus spans retail, electronics manufacturing, spirits, packaging, and water treatment capturing structural consumption, Make-in-India supply chains, premiumisation, materials innovation, and critical infrastructure demand.
For investors, it offers diversified thematic exposure with research-backed conviction; for the industry, it signals capital flowing to scalable, formalizing segments on track for multi-year growth tailwinds
1. Vishal Mega Mart
A leading offline-first retailer in India, offering apparel, FMCG, and general merchandise through 600+ stores across 458 cities. It focuses on middle and lower-middle-income groups, with a strong private brand portfolio and e-commerce presence.
With a market capitalisation of Rs. 68,125 crores, it fell to Rs. 145.40, hitting a low of up to 1.07 percent from its previous closing price of Rs. 146.98. Motilal Oswal sets a target price of Rs. 165, implying about 13.4% upside, underpinned by Vishal Mega Mart’s scale (696 stores across 458 cities) and deep Tier-2/3 penetration with 72% of stores in smaller towns.
The brokerage highlights a diversified mix: apparel 44%, FMCG and general merchandise ~28% each and a strong private-label engine contributing 73% of revenue, supporting margins and cash generation.
With robust unit economics (50% RoCE) and double-digit same-store growth, it projects FY25–28 revenue/PAT CAGRs of 19%/24% and cumulative operating cash flow of Rs. 32 billion to fund expansion and margins.
2. Kaynes Technology India
A leading end-to-end electronics manufacturing company, providing IoT solutions, design, and lifecycle support for automotive, aerospace, medical, and industrial sectors. Incorporated in 2008, it operates eight facilities across India with advanced PCB and ODM capabilities.
With a market capitalisation of Rs. 41,737 crores, it fell to Rs. 6,200, hitting a low of up to 1.26 percent from its previous closing price of Rs. 6,279. Motilal Oswal’s target price of Rs. 7,300 implies roughly 17.7% upside, backed by strong execution in Q1FY26 with revenue up 34% YoY, EBITDA up 69% YoY, and margins expanding to 16.8%.
Management reaffirmed FY26 revenue guidance of Rs. 45 billion and expects margins to remain elevated, while recent acquisitions and a push into ODM broaden the global footprint and improve the profitability mix. The brokerage models FY25–27 revenue/adjusted PAT CAGRs of 58%/74%, reflecting operating leverage, a richer mix, and a healthy order pipeline.
3. Radico Khaitan
One of India’s largest IMFL manufacturers, producing brands like Magic Moments, Rampur, and Morpheus since 1943. It specialises in vodka, whisky, brandy, and rum, with a strong presence in premium and flavoured liquor categories.
With a market capitalisation of Rs. 38,138 crores, it fell to Rs. 2,837.50, hitting a low of up to 0.48 percent from its previous closing price of Rs. 2,851.30. Motilal Oswal assigns a target price of Rs. 3,250, indicating about 14.5% upside, anchored by accelerating premiumisation and volume momentum.
In Q1FY26, standalone net sales rose 32% YoY to Rs. 15.1 billion, with volumes up 38%; premium-and-above grew 41% and regular segments 52%, while the company holds roughly 8% share in the Prestige & Above segment.
The brokerage expects FY25–28 CAGRs of 16% in revenue, 22% in EBITDA, and 30% in APAT, as mix upgrades, scale efficiencies, and execution drive earnings compounding.
4. Time Technoplast
A multinational conglomerate manufacturing polymer products like industrial packaging, composite cylinders, and automotive components. Operating since 1992, it has over 40 global facilities, focusing on innovative solutions for diverse industries.
With a market capitalisation of Rs. 10,409 crores, it rose to Rs. 459.50, hitting a high of up to 1.27 percent from its previous closing price of Rs. 453.75. With a target price of Rs. 578 and 26% upside potential, Motilal Oswal’s thesis centres on scaling higher-value composite products, disciplined capital allocation, and strengthening free cash flow.
The company aims to turn net cash positive by FY27, supported by about Rs. 4 billion in annual FCF, while growth skews toward value-added segments to lift margins and returns. The brokerage estimates FY25–28 CAGRs of 15% in revenue, 16% in EBITDA, and 23% in PAT, reflecting mix improvement and sustained financial discipline.
5.VA Tech Wabag
A global leader in water treatment, providing engineering, procurement, and O&M solutions for water and wastewater management. With a strong order book and focus on high-margin contracts, it drives sustainable water solutions worldwide.
With a market capitalisation of Rs. 9,995 crores, it fell to Rs. 1,601.70, hitting a low of up to 0.57 percent from its previous closing price of Rs. 1,610.90. Motilal Oswal pegs a target price of Rs. 1,900, implying 18% upside, citing high visibility from an order book of Rs. 137 billion (~4.2x FY25 revenue) and a Rs. 200 billion bid pipeline, supporting 15–20% revenue CAGR over FY25–28.
The company’s focus on high-margin engineering, procurement, and long-term O&M, along with strategic initiatives like Wriddhi, underpins margin resilience and profitability. This asset-light, order-backed model positions VA Tech Wabag for steady growth and potential operating leverage as execution scales.
Written By Fazal Ul Vahab C H
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