Leading brokerage firm MOFSL (Motilal Oswal Financial Services) has identified four stocks with significant upside potential, ranging from 20% to 40%. These recommendations, updated on May 26, 2026, include Arvind Fashions, L&T Finance Holdings, Blue Jet Healthcare, and Campus Activewear, each supported by specific growth drivers and strategic initiatives.
Arvind Fashions: Targeting 33% Upside
MOFSL rates Arvind Fashions as a 'Buy' with a target price of Rs 620, suggesting a 33% upside potential. The company is undergoing a strategic transformation, dubbed 'Arvind 3.0', focusing on becoming a D2C (Direct-to-Consumer)-led fashion platform. MOFSL notes consistent operational momentum despite a challenging demand environment, driven by strong execution across retail, online, and brand portfolios. Growth is increasingly fueled by direct channels, an improved product mix, inventory discipline, and better margin quality. The USPA brand is a key earnings contributor, while adjacent categories are scaling profitably without diluting overall margins. Despite a recent 25% stock correction since August 2025, MOFSL views the current valuation as an attractive entry point into a franchise with improving dynamics and visible adjacency-led growth.
L&T Finance: Poised for 22% Growth
L&T Finance Holdings receives a 'Buy' rating from MOFSL, with a target price of Rs 340, indicating a 22% upside potential. FY26 marked a pivotal year as the company completed its 'Lakshya 2026' roadmap and embarked on the 'Lakshya 2031' growth phase. L&T Finance has successfully transitioned from a diversified, wholesale-focused financier to a predominantly retail-oriented NBFC, with 98% retailisation and a total loan book of Rs 1.2 lakh crore. The firm boasts one of India's most technology-intensive operating models in the NBFC sector. MOFSL anticipates a healthy 28% Compound Annual Growth Rate (CAGR) in profit after tax (PAT) over FY26-28, driven by robust retail loan growth, operational leverage from tech investments, moderating credit costs, and improving profitability across key segments. Return on Assets (RoA) and Return on Equity (RoE) are projected to improve to 2.6% and 15.0% by FY28, respectively.
Blue Jet Healthcare: Expecting 20% Upside
MOFSL recommends 'Buy' for Blue Jet Healthcare, setting a target price of Rs 580, which implies a 20% upside potential. The brokerage expects a recovery in the pharma intermediates (PI) segment in FY27, following the end of destocking. Growth is anticipated to be bolstered by strong momentum in contrast media, propelled by new launches, NCE (New Chemical Entity) molecule commercialization, backward integration, and capacity expansion. Further support comes from healthy order visibility and new opportunities in pharma intermediates. Ongoing investments in Vizag, Hyderabad, and CDMO (Contract Development and Manufacturing Organization) capabilities are also expected to drive the company's next phase of commercialization-led growth. MOFSL projects a CAGR of 16% in revenue, 19% in EBITDA, and 16% in PAT over FY26-28, raising its FY27/FY28 earnings estimates by 14% each.
Campus Activewear: Highest Potential at 40%
Campus Activewear is rated 'Buy' by MOFSL, with a target price of Rs 325, indicating the highest upside potential of 40% among the four stocks. The company is strategically expanding beyond its traditional sports shoe category into sneakers, women's, and kids' segments. Enhanced segmentation, affordability-led positioning, and ongoing operational initiatives are contributing to stronger execution and an improved product mix. MOFSL notes stronger channel feedback on execution compared to peers. The brokerage forecasts a revenue CAGR of 13% over FY26-28, driven by 8% average selling price (ASP) growth and 5% volume growth. Premiumisation, mix improvements, and recent price hikes are expected to support stronger ASP growth and cushion margins against raw material inflation. MOFSL models an EBITDA/PAT CAGR of 18%/21% over FY26-28, with a 155 basis points EBITDA margin expansion.