Motilal Oswal Unveils Top Stock Picks for February 2026 Trading Week
Motilal Oswal Financial Services Ltd has released its weekly stock market recommendations, identifying two standout picks for investors to consider during the trading week commencing February 9, 2026. The financial advisory firm has highlighted Steel Authority of India Limited (SAIL) and Ventive Hospitality as prime opportunities based on detailed fundamental analysis and growth projections.
Detailed Stock Analysis and Price Targets
The brokerage provided comprehensive data points for both recommended stocks, outlining current market prices, target projections, and potential upside percentages.
- SAIL (Steel Authority of India Limited): Current Market Price (CMP) stands at Rs 159, with a target price of Rs 175, indicating a projected upside of approximately 10%.
- Ventive Hospitality: Trading at a CMP of Rs 772, with an ambitious target price of Rs 1,000, suggesting a substantial potential upside of around 30%.
SAIL: Robust Operational Performance and Strategic Discipline
SAIL demonstrated an in-line operating performance during the third quarter of fiscal year 2026, where healthy steel production volumes effectively compensated for weaker realizations. This outcome underscores the company's improving execution capabilities and stringent cost discipline.
Sales volumes experienced a significant 16% year-over-year increase, reaching 5.15 million tonnes. This growth was facilitated by aggressive inventory liquidation strategies and enhanced market outreach initiatives. Consequently, inventory levels declined to 2.4 million tonnes, which released working capital and strengthened the overall balance sheet position.
Despite softer average realizations during the quarter, profitability remained supported by scale benefits, stable coking coal costs, and disciplined operational controls. Management commentary points toward a more constructive near-term outlook, with January price hikes expected to fully reflect in February realizations. Further inventory reduction is planned for the fourth quarter, with operations normalized across key manufacturing plants.
Medium-term visibility is reinforced by sustained volume targets, ongoing deleveraging efforts, and a structured capital expenditure program focused on modernization and efficiency gains. These initiatives are projected to structurally improve cost competitiveness over the business cycle.
Ventive Hospitality: Luxury Expansion and Diversification Strategy
Ventive Hospitality operates marquee luxury assets across two primary segments: hospitality (77%) and annuity (23%). The company is strategically expanding its presence beyond its Pune base into high-growth urban centers such as Bengaluru and Navi Mumbai, thereby reducing geographical concentration risk.
This expansion is complemented by a partnership with Soho House, which introduces membership-based revenue streams. Together, these developments support stronger occupancy rates, enhanced revenue generation, and improved medium-term earnings visibility.
Within its hospitality segment, international operations contribute 54% of segment revenue. The company is expected to deliver a 21% compound annual growth rate (CAGR) in revenue and a 27% CAGR in EBITDA over the fiscal years 2025 to 2028. This growth is supported by new property developments, rising global demand for luxury accommodations, and improved connectivity infrastructure.
Over the same FY25-28 period, Ventive Hospitality is projected to achieve a 21% CAGR in both revenue and EBITDA. This performance will be driven by rapid multi-city expansion, diversification into membership-led hospitality via the Soho House collaboration, and strong overseas performance led by high-average-daily-rate (ADR) assets in the Maldives and expansion into Sri Lanka. Adjusted profit after tax (PAT) is likely to double, supported by operating leverage, reduced interest costs, and a lower tax burden.
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