Motilal Oswal Financial Services has issued updated target prices for three companies following their Q1 FY27 results, while ICICI Securities has also issued a 'Buy' rating on Fusion Finance with a target price of ₹240, as reported by Moneycontrol. According to NDTV Profit, Motilal Oswal maintains a 'Buy' rating on Fusion Finance with a target price of ₹260, implying a potential upside of 27%. For KPR Mill, the brokerage reiterates its 'Neutral' rating with a target price of ₹1,200, suggesting a 10% potential upside from current levels. Additionally, Motilal Oswal maintains its 'Buy' rating on Shaily Engineering Plastics with a target price of ₹4,074, implying a 21% potential upside. As per NDTV Profit, Ajay Khandelwal, Head of Equities at Motilal Oswal Asset Management Company, emphasizes that mid- and small-cap stocks continue to offer attractive opportunities, but investors need to be highly selective, with the recent correction creating opportunities in businesses where earnings growth, balance-sheet quality and market-share gains remain intact.
Fusion Finance delivered a strong Q1 FY27 performance with recovery broadening across asset quality, growth, margins and operating profitability. Net profit rose 67% QoQ to ₹624 million in Q1 FY27, though this represented an 11% miss against estimates, as reported by Moneycontrol. Net Interest Income (NII) declined ~11% YoY to ~₹2.4 billion in line with expectations, while operating expenses declined ~2% YoY to ₹2.06 billion. The cost-income ratio improved significantly, declining ~190bp QoQ to ~67% from previous quarters of 69% and 71%. Pre-Provision Operating Profit (PPoP) rose ~18% YoY to ~₹1.02 billion, though this was a 6% miss against estimates. Annualized credit costs declined ~115bp QoQ to ~2.5% from 3.6% in the previous quarter, with net credit costs declining sequentially to ~₹397 million. The microfinance lender demonstrated stronger underwriting and collections that supported credit cost moderation, with GNPA declining 70bps QoQ to 2.51% and credit cost easing for the seventh straight quarter.
According to Motilal Oswal's latest research report dated August 10, 2026, the brokerage expects Fusion Finance to deliver an AUM CAGR of ~27% over FY26E-28, with RoA/RoE of ~4.3%/15% by FY28E. The stock currently trades at ~1.0x FY28E P/B. Motilal Oswal maintains its 'Buy' rating with a target price of ₹260, based on 1.3x FY28E P/BV. The turnaround comes on the heels of a management transition in March 2025, with Mr. Sanjay Garyali taking the helm, and a subsequent business model reset. Higher yields and improving growth momentum provide a favorable backdrop for sustained earnings growth, with the business positioned for a healthy growth trajectory and improving profitability ahead.
According to NDTV Profit, Khandelwal acknowledges that Indian equities remain richly valued with the Nifty trading at around 20-21 times trailing earnings, but believes these valuations need to be considered alongside the earnings outlook. Over the next six to 12 months, he prefers financials, domestic consumption, power and select industrials, where he sees a favourable combination of growth and earnings visibility. The QGLP approach remains central to his investment strategy, with focus on quality, growth and longevity while remaining mindful of price. Khandelwal expects stable interest rates to provide visibility on the cost of capital, while improving government and private capex and comfortable liquidity could support growth, particularly favoring rate-sensitive domestic sectors such as financials, automobiles and select consumption.
