From Ceat To Cyient DLM: Motilal Oswal Sees Up To 37% Upside After Q2 Results; Check Target Prices

Brokerage firm Motilal Oswal Financial Services has released its latest Q2 FY27 earnings reviews for several companies, including Jio Financial Services, 360 ONE WAM, Cyient DLM, CEAT, IIFL Finance and Tata Communications. The brokerage has maintained its Buy ratings on five of these stocks while retaining a Neutral stance on Tata Communications. Its latest assessment highlights growth opportunities, earnings performance, margin trends and key risks across sectors, with target prices indicating potential upside ranging from 12% to 37%.

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Motilal Oswal Report

Motilal Oswal Financial Services has retained its Buy ratings on Jio Financial Services, 360 ONE WAM, Cyient DLM and CEAT, IIFL following their September-quarter FY27 earnings, while maintaining a Neutral stance on Tata Communications. 

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In these reports, the brokerage set a target price of Rs 300 for Jio Financial Services, indicating 37% upside; Rs 1,400 for 360 ONE WAM, implying 30% upside; Rs 1,320 for Cyient DLM, suggesting 28% upside; and Rs 3,734 for CEAT, indicating 16% upside. 

Tata Communications received a revised target price of Rs 1,980, up from Rs 1,865, suggesting 12% upside, although its rating remained Neutral.

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CEAT: Buy, Target Price Rs 3,734

Motilal Oswal retained its Buy rating on tyre manufacturer CEAT with a target price of Rs 3,734, implying 16% upside from Rs 3,222.
CEAT's consolidated revenue increased 26.2% YoY to approximately Rs 4,762 crore during Q2FY27, driven by improved volumes and price realisations across business segments.

Its EBITDA margin improved by 110 basis points sequentially to 9.6%, beating the brokerage's expectations. However, adjusted quarterly profit declined 35% year-on-year to around Rs 121 crore as elevated raw material costs continued to weigh on profitability.

The brokerage expects price increases to help offset input cost inflation, while the integration and expansion of the CAMSO business could support margins over the medium term.

Following the better-than-expected quarterly operating performance, Motilal Oswal increased its FY27 earnings estimate by approximately 14%.

Cyient DLM: Buy, Target Price Rs 1,320

Motilal Oswal maintained its Buy rating on Cyient DLM, assigning a target price of Rs 1,320, which suggests 28% upside from the reference price of Rs 1,030.
The electronics manufacturing services company reported revenue growth of approximately 27% YoY to Rs 393 crore during Q2FY27, supported by strong demand in aerospace and medical technology.

However, EBITDA margins contracted by 130 basis points YoY to 8.7%, reflecting higher spending on product development and other growth-related investments. Adjusted net profit rose 26% to approximately Rs 15.8 crore but remained below the brokerage's estimate.

Motilal Oswal identified Cyient DLM's record order book of Rs 2,810 crore as a major source of future revenue visibility. It also expects rising contributions from aerospace, box-build manufacturing and new electronic product programmes to support growth.

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