In today’s trading session, the markets may appear stable, but savvy investors know that opportunities for value purchases abound. Renowned brokerage firm Motilal Oswal has unveiled its top stock picks that are garnering attention for potential investment. Among these are Indraprastha Gas, UltraTech Cement, and Cholamandalam Investment & Finance. Let’s delve into the compelling reasons behind these recommendations.

Indraprastha Gas: A Promising Upgrade

Motilal Oswal has elevated its stance on Indraprastha Gas, moving from a ‘Neutral’ to a ‘Buy’ rating, driven by a trio of key factors.

• EBITDA Margin Recovery: Analysts are optimistic as the EBITDA margin appears to have reached its lowest point. This rebound is partly fueled by a recent hike in CNG prices, which increased by Rs 1/Rs 3 on April 7, 2025.
• Decrease in Raw Material Costs: In the first quarter of FY26, lower prices of crude oil and the Henry Hub index have positively influenced operational costs.
• Conservative Earnings Forecasts: Although the potential for growth in new geographical markets is substantial—showing a remarkable 30% year-on-year increase—most regions are now approaching profitability.

Additionally, Motilal Oswal finds the stock’s current valuation appealing, trading at a price-to-earnings ratio of 16.9 for FY26.

UltraTech Cement: Solid Performance Amidst Challenges

Motilal Oswal continues to endorse UltraTech Cement with a target price set at Rs 13,900, based on its satisfactory performance in the fourth quarter.

• Strong EBITDA Growth: The company reported a 12% year-on-year rise in EBITDA, reaching Rs 4,620 crore, although the EBITDA per ton saw a slight dip of 4%.
• Operational Stability: Operating margins remained steady at 20%, with the company’s volume growth of 6% year-on-year surpassing the industry average of 4%.
• Capacity Utilization: The grey cement capacity utilization stood at 89% in Q4FY25 and 78% for the entire fiscal year.

Motilal Oswal highlighted the company’s strategic focus on leveraging infrastructure demand recovery, alongside recent price increases and cost-management measures to enhance profitability.

Cholamandalam Investment & Finance: Growth and New Ventures

The brokerage maintains a ‘Buy’ rating for Cholamandalam Investment & Finance, with an ambitious target price of Rs 1,770. This optimism is grounded in the firm’s robust growth in assets under management (AUM).

• Impressive AUM Increase: The company recorded a 27% year-on-year growth in AUM, reaching Rs 1.85 lakh crore, with emerging businesses contributing 13% to the AUM mix.
• Loan Disbursement Growth: In Q4FY25, total loan disbursements increased by 7% year-on-year and 2% quarter-on-quarter, amounting to Rs 26,400 crore.

However, Motilal Oswal cautioned that the firm must effectively manage its net interest margin (NIM) and fee income to counterbalance the slowdown in AUM growth and rising operational and credit costs.

By keeping an eye on these top picks from Motilal Oswal, investors can strategically position themselves in the market, capitalizing on potential growth and value opportunities. For more insights and updates on market trends, check out our related articles on investment strategies.