Motilal Oswal on Infosys: Guidance upgrade drives the investment case
Motilal Oswal has maintained a ‘Buy’ rating on Infosys, India’s second-largest information technology services company, with a target price of Rs 2,200. According to the brokerage report, this implies an upside potential of around 38% from the current market price.
The key trigger behind the positive view is Infosys’ recent guidance upgrade. As per the brokerage report, “Guidance upgrade is positive and a step toward AI services inflection in 2026.” The revised outlook suggests a stronger base for growth going into the next financial year, supported by steady demand from clients.
Motilal Oswal believes growth has been helped by healthcare projects and early signs of a pickup in discretionary spending in Financial Services and Energy & Utilities. According to the brokerage report, “Healthcare growth was supported by ramp-up of the $1.6 billion NHS deal in the UK,” while demand in financial services is gradually improving.
The report also flags risks. The potential loss of business from Daimler could create pressure in the coming years, though the brokerage expects this to be partly offset by a revival in short-cycle deals. As per the brokerage report, “Loss from Daimler a risk, but revival in short-cycle deals could help Infosys backfill the loss.”
Another area of focus is artificial intelligence. Motilal Oswal noted that Infosys partnership with Cognition signals early steps toward wider adoption of artificial intelligence services. According to the brokerage report, “Infosys-Cognition partnership signals early formation of AI services layer.”
Motilal Oswal on HDFC Life Insurance: Growth steady despite margin pressure
Motilal Oswal has also given a ‘Buy’ rating on HDFC Life Insurance, with a revised target price of Rs 930. This implies an upside of around 25% from current levels.
According to the brokerage report, the insurer delivered an in-line performance during the third quarter of FY26. Annualised Premium Equivalent (APE) grew 11% year-on-year, while Value of New Business (VNB) rose modestly despite some pressure on margins.
The brokerage highlighted that margins were affected by recent changes in the Goods and Services Tax (GST), but the impact appears manageable. As per the brokerage report, “The GST impact was contained to less than 200 basis points on VNB margins,” and management expects the effect to be neutralised over the next few months.
Motilal Oswal believes the company’s diversified product mix, rising sum assured, and improving rider attachments support its medium-term outlook. According to the brokerage report, “HDFC Life maintains a strong growth trajectory along with a stable VNB margin.”
The brokerage expects margins to normalise gradually. As per the brokerage report, “A strong growth trajectory and improving product-level margin should help normalise its VNB margin.”
Motilal Oswal on HDFC Asset Management Company: Scale and cost control in focus
HDFC Asset Management Company (HDFC AMC) is the another stock on Motilal Oswal’s buy list. The brokerage has set a target price of Rs 3,200. This indicates an upside potential of around 25%.
As per the brokerage report, “We expect a 16% compound annual growth rate each in revenue, earnings before interest, tax, depreciation and amortisation, and profit after tax, and an 18% assets under management compound annual growth rate over FY25-FY28.”
The report also highlighted the company’s cost efficiency. Despite higher employee expenses, overall margins have remained stable. According to the brokerage report, “The EBITDA margin was 81.5%.”
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Motilal Oswal believes HDFC AMC’s expansion into alternatives, portfolio management services, and digital channels provides additional growth levers. As per the brokerage report, “With an improved market position and diversified business streams beyond mutual funds, HDFC AMC is well positioned to sustain growth.”
Conclusion
Overall, Motilal Oswal’s recommendations point to a cautious but selective strategy. According to the brokerage report, while broad market triggers remain limited, company-specific factors such as earnings visibility, margin stability, and sector-specific trends continue.
As of January 16, 2026, Motilal Oswal Financial Services has highlighted three key stocks with significant growth trajectories. Leading the list is Infosys, which the brokerage identifies as having the highest upside potential of 38% following a strong Q3 performance and an upgraded revenue guidance.
Here are the three featured "Buy" recommendations:
1. Infosys (IT Services)
Target Price: ₹2,200
Potential Upside: 38%
Rationale: Motilal Oswal is bullish on Infosys following its Q3FY26 guidance upgrade. The brokerage views this as a pivot point toward an "AI services inflection" by mid-2026. Growth is being driven by large-scale healthcare projects (such as the $1.6 billion NHS deal) and early signs of a revival in discretionary spending within the Financial Services and Energy sectors.
2. HDFC Life Insurance (Insurance)
Target Price: ₹930
Potential Upside: ~25%
Rationale: Despite recent margin pressure due to GST changes, the brokerage remains positive due to the company's 11% YoY growth in Annualised Premium Equivalent (APE). The impact of tax changes is expected to be neutralized in the coming months, and a diversified product mix is expected to sustain medium-term growth.
3. HDFC AMC (Asset Management)
Target Price: ₹3,200
Potential Upside: ~25%
Rationale: HDFC AMC is favored for its operational efficiency, boasting an 81.5% EBITDA margin. Motilal Oswal projects an 18% CAGR in Assets Under Management (AUM) through FY28, supported by the company's expansion into alternative investments and digital distribution channels.
Summary Table: Motilal Oswal Top Picks (Jan 16, 2026)
| Stock | Rating | Target Price (₹) | Potential Upside |
| Infosys | Buy | 2,200 | 38% |
| HDFC Life | Buy | 930 | 25% |
| HDFC AMC | Buy | 3,200 | 25% |
Note: Motilal Oswal also recently highlighted Castrol India with a potential upside of approximately 40%, citing potential strategic realignments and management changes, though it is often categorized as a specific "turnaround" pick rather than a core large-cap recommendation.
Would you like me to look up the specific entry levels (Stop Loss and Buy Zone) for any of these stocks, or perhaps a technical analysis of their current charts?
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