Motilal Oswal Financial Services maintains a neutral stance on Vodafone Idea and Amara Raja, highlighting evolving operating trends and execution risks amid a cautiously optimistic outlook based on recent quarterly results.
Motilal Oswal Financial Services has turned cautious but constructive on parts of its latest quarterly stock coverage, keeping a Neutral stance on Vodafone Idea and Amara Raja Energy & Mobility while signalling that the telecom group’s operating trends were better than expected. The brokerage also left room for selective optimism elsewhere in its broader review of quarterly results, even as it flagged clear execution risks in some businesses.
For Vodafone Idea, Motilal Oswal lifted its target price to ₹11 after June-quarter performance came in ahead of estimates. The brokerage said pre-Ind AS earnings before interest, tax, depreciation and amortisation rose 13.5% from a year earlier to ₹2,480 crore, helped by a better subscriber mix and lower network operating costs. Average revenue per user also improved to ₹195. Separate brokerage commentary has been more upbeat in the near term, with Emkay Global upgrading the stock to Add and JPMorgan cutting its rating to Underweight, underscoring how sharply views still differ on the telecom operator’s recovery path.
On Amara Raja, Motilal Oswal kept a Neutral call and set a target price of ₹1,030, valuing the stock at 18 times estimated earnings for June 2027. The brokerage said the company’s lead-acid battery business has improved, but it remains cautious about returns from the new-energy push. Motilal Oswal noted that the lithium-ion project could require investment of ₹60 billion to ₹70 billion for 16GWh of capacity, with the business expected to generate an EBITDA margin of 10% to 11% at scale.
The broader message from the review is that Motilal Oswal is still distinguishing between near-term operating momentum and longer-term capital allocation risk. That leaves Vodafone Idea and Amara Raja in the middle ground: both show signs of progress, but both also face questions that could limit how far the rerating can run.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
