Motilal Oswal Financial Services has placed a bullish bet on two building material stocks, projecting an upside potential of up to 27%, driven by expectations of a strong demand recovery in the sector. The brokerage believes improving real estate activity, rising construction momentum, and stabilising input costs will support healthy growth for select companies over the coming quarters.
According to the report, India’s building materials space—which includes tiles, pipes, cement alternatives, and home improvement products—is poised for renewed expansion as housing demand strengthens across major cities. Government-led infrastructure spending and increased private-sector construction activity are further boosting sentiment.
Motilal Oswal analysts highlighted that the two shortlisted stocks have demonstrated consistent financial performance, strong balance sheets, and resilient distribution networks. With rural consumption showing early signs of recovery and urban markets maintaining stable demand, these companies are expected to benefit from improved volumes and margin expansion.
The brokerage also noted that easing commodity prices and better operating efficiencies will enhance profitability in FY25–26. As the real estate cycle picks up, building material companies are likely to see sustained order flows and higher revenue visibility.
Motilal Oswal’s positive outlook signals renewed investor confidence in the sector, especially as India enters a multi-year construction and housing growth phase.
