Motilal Oswal Issues Buy Recommendations for Max Financial and Delhivery Stocks
Motilal Oswal Financial Services Ltd has released its stock market recommendations for the trading week commencing February 23, 2026, highlighting Max Financial and Delhivery as prime buying opportunities. The financial services firm provided a detailed analysis, projecting significant upside potential for both stocks based on robust operational performance and strategic advantages.
Detailed Stock Analysis and Target Prices
The recommendations include specific price targets and upside projections:
- Max Financial: Current market price (CMP) of Rs 1,850 with a target of Rs 2,200, representing an upside of 18.90%.
- Delhivery: CMP of Rs 431 with a target of Rs 580, indicating a substantial upside of 35%.
Max Financial: Sustaining Industry-Leading Growth
Max Financial Services continues to demonstrate exceptional performance within the life insurance sector, driven by multiple growth catalysts. The company has reported strong double-digit growth in Annualized Premium Equivalent (APE) and Value of New Business (VNB), with margins expanding to above 24%. This improvement is attributed to a strategic product mix shift toward higher-margin protection and non-participating savings products, alongside a moderation in unit-linked contributions.
Key growth drivers include:
- Diversified Product Performance: Protection, annuity, and rider segments have shown strong traction, while the group credit life business is witnessing a recovery, reinforcing diversified revenue streams.
- Distribution Channel Strength: Momentum remains healthy across proprietary, bancassurance, and digital channels, with improving agency productivity and robust growth in non-Axis bank partnerships.
- Operational Stability: Persistency trends have strengthened across long-term cohorts, solvency remains comfortably above regulatory requirements, and assets under management continue to expand steadily.
With disciplined margin management, improving operating leverage, and a balanced product strategy, Max Financial Services is well-positioned to sustain superior growth and deliver value to investors.
Delhivery: Capitalizing on Logistics Sector Consolidation
Delhivery has significantly strengthened its market position through the strategic acquisition of Ecom Express, accelerating consolidation within the competitive logistics sector. This move has enabled the company to gain market share as smaller players face margin pressures, positioning Delhivery for enhanced profitability.
Performance highlights for the third quarter of FY26 include:
- Robust Financial Metrics: EBITDA margins expanded to 7.4%, supported by strong volume traction in the Express Parcel and Part Truck Load segments.
- Segment-Level Improvements: Margins improved to 18.1% and 11% in key segments, respectively, highlighting the benefits of operating leverage and improved realizations.
- Capital Efficiency: With the heavy investment phase largely complete and capital intensity moderating, free cash flow generation is set to improve significantly.
Management continues to target steady-state margins of 16–18% in core transportation, with additional upside expected from Supply Chain Services and newer offerings such as Delhivery Direct and Rapid. This strategic positioning is expected to drive structurally stronger profitability in the coming quarters.
Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India or Bharat Horizon.
