Leading brokerage firm Motilal Oswal Financial Services Ltd has identified two prominent stocks as its top investment recommendations for the trading week commencing December 8, 2025. The firm sees substantial growth potential in luggage maker Safari Industries and steel giant JSW Steel, projecting double-digit upside from their current market prices.
Detailed Breakdown of the Stock Recommendations
The analysis from Motilal Oswal provides specific price targets and a rationale for each pick. Safari Industries, with a current market price (CMP) of Rs 2,362, has been given a target of Rs 2,700, implying a potential upside of 14%. Meanwhile, JSW Steel, trading at a CMP of Rs 1,149, has a target price of Rs 1,350, indicating a possible gain of 17%.
Safari Industries: Riding the Premiumization Wave
Safari Industries is solidifying its status as one of India's fastest-growing players in the luggage sector. The company's robust growth is underpinned by a diverse product portfolio, a strong omnichannel presence, and an expanding in-house manufacturing capability. A strategic focus on e-commerce and modern trade channels, coupled with the rapid addition of exclusive brand stores and deeper penetration into tier-2 and tier-3 cities, has created a powerful demand engine.
Operational efficiencies are improving, particularly through backward integration at its Jaipur plant, which is strengthening cost management and supporting margin expansion. The company is successfully executing a premiumization strategy, evidenced by its growing market share in hard luggage and the popularity of its premium ranges like Urban Jungle and SI-Select. With consistent monthly store additions and increasing plant utilization, Safari Industries is positioned for smooth scaling and durable growth, despite competitive pressures in the soft luggage segment.
JSW Steel: Strategic Restructuring for Future Growth
JSW Steel's recent strategic move involves placing Bhushan Power & Steel (BPSL) into a 50:50 joint venture with Japan's JFE Steel. This pivot is aimed at enhancing capital efficiency and driving a technology-led upgrade of its value-added steel offerings. The restructuring unlocks significant value from the successful turnaround of BPSL, resulting in a substantial cash inflow of INR 320 billion and a reduction of INR 350 billion in consolidated debt. This dramatically improves JSW Steel's financial flexibility as it pursues an ambitious target of achieving 50 million tonnes per annum (mtpa) capacity by FY31.
The joint venture grants JSW access to JFE's advanced steelmaking expertise. Following a slump sale, the cleaner corporate structure is expected to bolster governance and product capability. The 4.5 mtpa Odisha operations of BPSL, now part of the JV, continue to benefit from post-acquisition efficiency gains. The enterprise valuation of INR 530 billion for the transaction reflects a fair realization of value. With expectations of improving steel spreads, a rising EBITDA per tonne trajectory, and net debt-to-EBITDA likely easing towards 1.7x by FY27, this transaction strengthens JSW Steel's balance sheet and provides strategic headroom for major capacity expansions.
Investment Outlook and Key Takeaways
Motilal Oswal's selections highlight two distinct investment themes for the Indian market. Safari Industries represents a play on strong domestic consumption, brand premiumization, and operational excellence in the retail sector. JSW Steel, on the other hand, is viewed as a strategic bet on corporate restructuring, deleveraging, and long-term capacity expansion in a core industry. Both stocks are presented with clear fundamental drivers for the projected price appreciation in the near term.
(Disclaimer: The recommendations, views, and opinions expressed by the brokerage are their own and do not represent the views of this publication. Investors are advised to consult certified experts before making any investment decisions.)
