Aster DM and 3 Other Stocks to Buy With Up to 32% Upside, Recommended by Motilal Oswal
Motilal Oswal has highlighted four stocks, including Aster DM Healthcare, Petronet LNG, and other companies, with potential upside of up to 32% based on its latest target prices. The brokerage’s recommendations span sectors with different growth drivers and business prospects.
The stock picks reflect Motilal Oswal’s views on earnings growth, business expansion, sectoral demand, and company-specific catalysts. In this article, we look at the four stocks recommended by the brokerage, along with their target prices and potential upside.
Petronet LNG Limited
Petronet LNG Limited is one of India’s leading importers of liquefied natural gas (LNG). The company operates LNG receiving, storage, and regasification terminals, including its major facility in Dahej, Gujarat. It supplies natural gas to industries, city gas distributors, refineries, and other customers, supporting India’s growing demand for cleaner energy.
The Indian brokerage firm Motilal Oswal has initiated a Buy rating on the company, with a target price of Rs. 362, implying an upside potential of 25 percent from the previous day’s closing price of Rs. 289.50.
Reason for the Target
Kochi Terminal to Become a New Earnings Driver: Petronet LNG’s Kochi terminal could see improved utilization as the Kochi-Mangalore-Bangalore pipeline is commissioned, potentially by March 2027. Rising Kerala CGD demand and LNG trucking could lift utilization toward 40%. GUCD services and potential bunkering operations also offer additional revenue streams.
Dahej Tariff Concerns Appear Manageable: Management has indicated that the tariff for the renewed 7.5 MTPA Qatar contract will not fall below the current level. At the same time, tolling volumes remain protected through contracted tariffs and minimum utilization commitments. This provides greater earnings visibility and reduces concerns around a significant Dahej tariff cut.
Strong Economics of the Petrochemical Project: Petronet LNG’s Dahej petrochemical project remains on track for a mid-FY29 start and could benefit from strong polypropylene demand in India. The project also has a structural cost advantage through LNG terminal integration, with cold-energy utilization expected to reduce power consumption and operating costs.
Capacity Expansion Supports Long-Term Growth: Dahej’s expanded 22.5 MTPA capacity, with technical flexibility up to 25 MTPA, strengthens Petronet LNG’s ability to capture future LNG demand. The expansion was completed ahead of schedule and at a relatively low cost, reinforcing the company’s cost advantage as LNG demand recovers.
New Businesses Diversify Future Earnings
Petronet LNG is expanding beyond its core regasification business through CBG plants, small-scale LNG trucking, and potential bunkering at Kochi. The company has approved ₹20 billion for 10 CBG plants, while new infrastructure could create additional earnings avenues over the medium term.
Aster DM Healthcare Ltd
Aster DM Healthcare operates a network of hospitals, clinics and pharmacies, providing tertiary and quaternary healthcare services across India. The company offers specialties including cardiology, oncology, neurology, gastroenterology and orthopaedics. Aster focuses on expanding its hospital network, strengthening clinical capabilities, and improving access to quality healthcare through integrated medical services.
The Indian brokerage firm Motilal Oswal has initiated a Buy rating on the company, with a target price of Rs. 910, implying an upside potential of 22 percent from the previous day’s closing price of Rs. 747.80.
Reason for the Target
Strong Growth From a Pan-India Hospital Network: The Aster DM Healthcare–QCIL merger creates a scaled platform with 39 hospitals and around 10,600 operational beds across 28 cities. The combined network can expand beyond 15,000 beds by FY30, providing multiple avenues for revenue growth through brownfield, greenfield, and asset-light expansion.
Significant Synergy Potential From the Merger: The enlarged platform can benefit from centralized procurement, supply-chain optimization, shared clinical resources, and corporate cost rationalization. These synergies, combined with greater bargaining power and improved asset utilization, could support margin expansion and operating leverage as the merged hospital network matures.
Strong Revenue and Profit Growth Outlook: The company is expected to deliver revenue, EBITDA, and PAT CAGRs of around 19.5%, 25%, and 33%, respectively, over FY26–28. Growth is supported by improving occupancy, higher ARPOB, a richer case mix, and the maturation of emerging hospitals across key regional clusters.
Medical Value Travel Adds a High-Value Growth Avenue: Medical value travel is emerging as an important growth driver, with revenue increasing 62% YoY in 1QFY27. International patients are increasingly seeking high-value treatments such as oncology, cardiac sciences, and organ transplants, which can support a richer case mix and stronger hospital profitability.
Capacity Expansion and Regional Diversification Support Long-Term Growth: AsterDM plans to add more than 4,150 beds by FY30, expanding capacity beyond 15,000 beds across high-growth markets. The merger also strengthens its presence across Hyderabad, Trivandrum, Nagpur, Indore, and other cities, creating greater regional diversification and cross-cluster referral opportunities.
Niva Bupa Health Insurance Ltd
Niva Bupa Health Insurance is a standalone health insurance company in India offering health, personal accident, and travel insurance products. It provides individual and family health plans, senior citizen coverage, and group insurance solutions through a network of hospitals and distribution partners, focusing on technology-led services and expanding healthcare insurance access.
The Indian brokerage firm Motilal Oswal has initiated a Buy rating on the company, with a target price of Rs. 100, implying an upside potential of 32 percent from the previous day’s closing price of Rs. 75.67.
Reason for the Target
Distribution Reforms Could Improve Long-Term Profitability: The proposed IRDAI distribution reforms are expected to reduce commission costs across major channels, supporting Niva Bupa’s operating economics. Management expects the company’s expense-to-management ratio to decline to around 25% of GWP in two years and approximately 20% over five years.
Strong Retail Health Insurance Franchise: Retail health insurance contributes around 75% of Niva Bupa’s book, providing a strong base for sustainable growth. Lower distributor commissions could allow the company to keep premiums stable for longer, while higher volumes, larger ticket sizes and cross-selling opportunities could support continued expansion.
Combined Ratio Expected to Improve: The reforms could accelerate Niva Bupa’s path toward a 98–99% combined ratio target by FY29. Lower distribution costs, operating leverage and improving claims performance are expected to strengthen profitability, while management has retained its long-term return on equity target of 15–18%.
Banca and Digital Channels Offer Growth Opportunities: Niva Bupa expects lower commission rates to remain economically viable for banks and digital brokers, creating scope to expand these distribution channels. The company plans to reinvest part of the savings into bank relationships, while technology-led efficiencies could support digital distribution economics.
Credit-Linked Weakness Could Be Offset by New Opportunities: Credit-linked insurance, which contributes around 15% of FY26 GWP, is expected to see lower volumes under the reforms. However, Niva Bupa is pursuing new lender relationships and has signed an MoU with a life insurer for a combined term, credit life, and health offering, providing potential mitigation.
Indegene Limited
Indegene is a technology-led healthcare solutions company that supports pharmaceutical, biotechnology, and medical-device companies across commercial, clinical, and regulatory functions. Its services include digital transformation, data analytics, medical communications, clinical development and AI-enabled solutions, helping life-sciences companies improve operational efficiency, accelerate product launches and engage healthcare stakeholders globally.
The Indian brokerage firm Motilal Oswal has initiated a Buy rating on the company, with a target price of Rs. 708, implying an upside potential of 16 percent from the previous day’s closing price of Rs. 612.95.
Reason for the Target
Rising Pharma Outsourcing Supports Growth: Increasing cost pressures, complex drug pipelines, and tighter regulatory requirements are encouraging global life-sciences companies to outsource medical, regulatory, and commercial activities. Indegene can benefit from this trend by providing scalable teams that help pharma companies reduce costs and accelerate product launches.
Strong Opportunity From Pharma GCC Expansion: The growing number of pharma GCCs in India could create additional outsourcing opportunities for Indegene. While companies continue to build captive capabilities for R&D and technology, limitations around specialized commercial talent and operating costs can support demand for external partners to manage global commercialization activities.
AI-Enabled Solutions Can Improve Operating Leverage: Indegene is embedding generative AI across regulatory, medical, safety, clinical, and commercial workflows. Its AI-powered solutions can shorten submission and content-development timelines while improving efficiency, potentially supporting higher productivity and margins as adoption expands across client engagements.
Diversified Capabilities and Strong Client Relationships: Indegene operates across the life-sciences value chain, covering clinical, regulatory, medical, and commercial functions. Over the past five years, it has supported more than 100 product launches, activated 800+ brands and digitally engaged over 3 million healthcare professionals, strengthening its positioning with global pharma clients.
Strong Earnings Growth and Margin Recovery: The brokerage expects Indegene’s revenue, EBIT, and PAT to grow at approximately 19%, 29%, and 27% CAGR, respectively, during FY26–28. EBITDA margins are expected to recover to 19–20% by 4QFY27, supported by operating leverage and improving business efficiency, underpinning the ₹708 target.