Synopsis:
Motilal Oswal has recognized some essentially robust small-cap shares with important development potential, providing enticing upside alternatives for buyers.
The brokerage has set goal costs indicating potential positive aspects of 17.89% for Kalpataru Tasks Worldwide, 38.07% for Raymond Life-style Ltd, and 26% for VRL Logistics Ltd. These picks are backed by robust enterprise fundamentals, strong earnings outlook, and sectoral development prospects, making them interesting choices within the small-cap section.
Motilal Oswal has set a goal value of Rs. 1450 for this inventory, indicating an upside potential of 17.89%. Kalpataru Tasks (KPIL) beat income and revenue expectations in Q1FY26, pushed by robust execution in its key divisions.
The corporate is poised for continued development from new T&D tasks, its current robust order ebook, and steady working capital. Additionally, barely raised monetary forecasts for FY26/27. With the inventory buying and selling at enticing valuations, the corporate has reiterated their BUY score with a goal value of Rs. 1,450.
Kalpataru Tasks Worldwide Ltd is a number one engineering, procurement, and building (EPC) firm that operates in a number of infrastructure segments. It undertakes large-scale tasks in energy transmission and distribution, buildings and factories, railways, oil and fuel pipelines, and concrete infrastructure.
The corporate has a robust world presence, executing tasks in over 30 nations, and is understood for delivering complicated infrastructure options with a give attention to high quality, security, and well timed execution.
Q1FY26 Outcomes
Kalpataru Tasks Worldwide Ltd’s YoY efficiency for the Q1FY26 confirmed important development. Gross sales elevated by 35%, EBIDT by 39%, and web revenue noticed a outstanding leap of 154%. The Earnings Per Share (EPS) additionally grew by 119% in comparison with the identical quarter within the earlier yr (Jun 2024).
Wanting on the QoQ outcomes, there was a slight decline from the Mar 2025 quarter. Gross sales decreased from Rs. 7,067 to Rs. 6,171, EBDIT from Rs. 538 to Rs. 525, and web revenue from Rs. 218 to Rs. 214. The EPS additionally dropped from Rs. 13.20 to Rs. 12.51.
Motilal Oswal has assigned a goal value of Rs. 1425 for this inventory, reflecting an upside potential of 38.07%. Raymond Life-style (RLL) noticed a 17% YoY income enhance in Q1, exceeding expectations.
Nonetheless, EBITDA development was weaker than projected attributable to excessive advertising and marketing prices and challenges within the garmenting enterprise from US tariffs, inflicting us to decrease our FY26-27 EPS estimates by 11-14%.
Administration is optimistic a few margin restoration within the second half of the yr, with indicators of bettering demand. Regardless of a latest inventory drop, RLL’s valuation seems enticing, however a sustained restoration in development and higher execution are wanted for a re-rating.
Raymond Life-style Ltd is part of the Raymond Group and focuses on the branded attire and textile section. It gives a variety of premium and mid-segment clothes, together with formal put on, informal put on, and ethnic put on, below in style manufacturers like Raymond, Park Avenue, ColorPlus, and Parx. The corporate operates by an in depth retail community throughout India and exports to a number of nations, catering to each males’s and ladies’s trend wants.
Q1FY26 Outcomes
Raymond Lifestyl’s monetary outcomes for Q1FY26 present blended efficiency. On a YoY foundation, the corporate noticed constructive development with gross sales up 17%, EBDIT up 29%, and web revenue exhibiting a 13% enchancment regardless of nonetheless being a loss.
Nonetheless, on a QoQ foundation, there was a slight decline in gross sales from the final quarter, whereas EBDIT and web revenue improved considerably, with the web loss shrinking from Rs. 45.0 crore to Rs. 19.8 crore.
Motilal Oswal has set a goal value of Rs. 710 for this inventory, indicating an upside potential of 26.40%. Nonetheless, the inventory underwent a 1:1 bonus on 14th August. So, the adjusted goal value can be Rs. 355 with an upside of 26 % from present ranges of Rs. 280.
VRL stays well-placed for long-term development with its give attention to worthwhile contracts, effectivity, and powerful community. Regardless of near-term quantity weak point and better worker prices, restoration is anticipated from 2HFY26. Estimates for FY26 are minimize by ~6–7%, however FY27 outlook stays intact. Income/EBITDA/PAT CAGR anticipated at 6%/10%/19% over FY25–27.
VRL Logistics Ltd is a number one Indian logistics and transportation firm specializing in cargo and passenger transportation companies. It operates an enormous fleet of vehicles and buses, providing street freight, parcel companies, and passenger journey options throughout India.
The corporate caters to numerous industries by offering environment friendly and dependable logistics assist, together with items motion, provide chain administration, and categorical cargo supply.
Q1FY26 Outcomes
VRL Logistics’s monetary outcomes for the quarter ending June 2025 present robust YoY development however a decline on a QoQ foundation. In comparison with the identical quarter final yr, gross sales elevated by 2%, EBDIT grew by 74%, web revenue surged by a outstanding 272%, and EPS noticed a 271% rise. Nonetheless, when in comparison with the earlier quarter, there was a decline throughout all key metrics: gross sales, EBDIT, web revenue, and EPS all decreased.
Written by Manideep Appana
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