Target prices: REC, Phoenix Mills, Dalmia Bharat, Prataap Snacks, Motherson Sumi, Sapphire Foods, Home First

MOFSL has come out with reports on various companies including REC Ltd, Phoenix Mills Ltd, Dalmia Bharat Ltd, Prataap Snacks Ltd, Motherson Sumi Wiring India Ltd, Sapphire Foods India Ltd, Canara HSBC Life Insurance and Home First Finance Company India Ltd, among others. The brokerage has maintained 'Buy' rating on these eight stocks, with target prices suggesting up to 34 per cent potential upside.

REC Ltd | Target price: Rs 440: Upside potential: 17%
MOFSL said REC reported a subdued quarter, with the loan book exhibiting a modest growth of 3 per cent YoY. Disbursements continued to remain weak (flat YoY), and repayments moderated sequentially in 4QFY26. A decline in yields was offset by lower funding costs, which helped keep spreads stable, it said. Asset quality improved.

"RECL trades at 1x FY27E P/ABV, which is attractive. However, weak loan growth and pressure on margins remain key monitorables. We cut our PAT estimates by 9 per cent/11 per cent for FY27/ FY28 to account for lower margins and higher credit costs. We expect RECL to deliver a RoA/RoE of 2.4 per cent/18 per cent in FY28E. Reiterate BUY with a target of Rs 440," MOFSL said. 

Phoenix Mills Ltd | Target price: Rs 2,030 | Upside potential: 15%
MOFSL said retail segment drove a strong Q4 performance for Phoenix Mills. Growth visibility remained strong, it said as it suggested 'Buy' on the stock. In the retail portfolio, while new malls continue to ramp up well, Phoenix Mills is implementing measures to accelerate consumption at mature malls. These initiatives, along with a further increase in trading occupancy, will help Phoenix Mills sustain healthy traction in consumption, MOFSL said.

It said new asset additions in the coming years would further lead to better growth in rental income over the medium term, adding that the office portfolio has ramped up well, whereas the Hospitality segment continued to remain resilient. "We have a BUY rating on the stock with a TP of INR2,030, valued on an SoTP basis," it said.  

Dalmia Bharat Ltd | Target price: Rs 2,230 | Upside potential: 16%
 
MOFSL said near-term cost pressure remained, as the company is targeting above-industry growth in FY27. In the March quarter, volume growth was muted but lower opex per tonne drove profitability. . In the near term, rising costs of key input materials and their availability remain key challenges. Volume growth in Q4 was partially impacted by the unexpected breakdown at its clinker plant in East. The company expects newly commissioned capacity in the northeast and an expected new line in Belgaum during the year will support volume growth in FY27E.

"At CMP, the stock is trading at 12 times/10 times FY27E/FY28E EV/Ebitda EV/t of $70/$67. We value the stock at 12 times FY28E EV/Ebitda to arrive at our revised target of Rs 2,230 (earlier Rs 2,110; raised mainly due to lower-than-expected cash outflow towards capex). Reiterate BUY," MOFSL said.

Canara HSBC Life Insurance: Target: Rs 180 | Upside: 32% 
Canara HSBC Life Insurance Ltd continued to deliver industry-leading growth in Q4, along with stellar VNB (Value of New Business) margin expansion, supported by a pickup in traditional segment contribution and improving product-level profitability.

"The company offers a rare multi-year compounding opportunity anchored in a structurally improving banca engine, rising contribution from premiumized HSBC flows, and disciplined agency expansion. With one of the most under-penetrated PSU-bank funnels and clear visibility on branch activation, product mix upgrades, and operating leverage, we expect the company to deliver 18-19 per cent operating RoEV going forward," MOFSL said.

Prataap Snacks | Target price: Rs 1,350 | Upside potential: 34%
Prataap Snacks reported a volume-led revenue growth in Q4. The company experienced a period of underperformance despite favorable industry conditions. However, MOFSL believes the company is likely to deliver strong financial performance ahead. During Q4, the board also proposed a dividend of Rs 10 per cent on a face value of Rs 5 each, translating to Rs 0.50 per share. 

"We estimate a CAGR of 13 per cent in revenue and 42 per cent in Ebitda over FY26-28, driven by volume growth and significant margin expansion. We reiterate our BUY rating with a DCF-based target of Rs 1,350," it said.

Motherson Wiring | Target price: Rs 46 | Upside potential: 17%

MOFSL said Motherson Wiring’s Q4 PAT came below its estimates at, primarily due to an 18 per cent sequential jump in copper prices. While rising copper prices are a pass-through with a lag of a quarter, the sustained rise in copper prices over the last few quarters has been hurting margins. Considering a pickup in auto demand following GST rate cuts and the ramp-up of its new greenfield plants, MOFSL estimated Motherson Wiring to post a growth of 11 per cent in revenue, 18 per cent in Ebitda and 18 per cent in PAT over FY26-28.

"We believe MSUMI deserves rich valuations, given its strong competitive positioning, top-decile capital efficiency, and benefits of EVs and other mega-trends in autos," it said.

Sapphire Foods | Target price: Rs 220 | Upside potential: 26% 
Sapphire Foods India Ltd reported a revenue growth of 11 per cent YoY, in line with MOFSL estimates in 4QFY26. KFC sales grew 15 per cent YoY with an sale store sales growth (SSSG) of 4 per cent. Pizza Hut (PH) franchise remained weak, with its revenue dipping 6 per cent YoY as same-store sales declined 7 per cent. In contrast, Sri Lanka posted healthy revenue growth of 16 per cent YoY.

"The ongoing LPG shortage and inflationary pressures have had a limited impact on SAPPHIRE, with a 25–40 per cent increase in LPG prices translating into a 30–50 bps impact on Ebitda margins. There were no store closures for KFC, while Pizza Hut witnessed temporary closures in a small portion of stores. The company also implemented a 2% price hike across both KFC and Pizza Hut," MOFSL said.

It said the Devyani–SAPPHIRE merger is expected to unlock scale benefits and strengthen execution across brands and geographies. Sapphire expects the merger to be completed by FY27, with CCI approval likely within the next 35–40 days. MOFSL reiterated 'BUY' rating on the stock with a target of Rs 220. 

Home First | Target price: Rs 1,350 | Upside potential 20%
MOFSL said Home First remained well-placed to navigate near-term headwinds, supported by its resilient business model, granular loan book, and disciplined execution. With early signs of recovery in disbursements, easing competitive intensity, and stabilising asset quality, the growth is expected to gradually normalize. Backed by structural drivers such as branch expansion, deeper segment penetration, and co-lending, the company is well positioned to deliver steady performance over the medium term, MOFSL said.

"We estimate the company to deliver 23 per cent AUM CAGR over FY26-FY28E, along with stable NIM (as a percentage of average AUM) of 6.1 per cent/5.9 per cent in FY27/FY28E. Accordingly, we recommend a BUY rating on the stock with a target of Rs 1,350, premised on 2.5x FY28E P/BV," it said.