Cracking Motilal Oswal's Top Picks: Indraprastha Gas, UltraTech Cement, and Cholamandalam Investment. Here's the Scoop!
Top Investment Recommendations from Motilal Oswal at Present Time
Hey there, lucky investor! The market may be standing still today, but the wise heads over at Motilal Oswal have handpicked some steadfast gems. They've narrowed down their top Buy recommendations to include Indraprastha Gas, UltraTech Cement, and Cholamandalam Investment & Finance. Let's dive into the juicy details!
Motilal Oswal's Take on Indraprastha Gas (IGL)
These experts have got their eyes on IGL for a couple of reasons. The first is the EBITDA margin kicking back up, thanks to the recent CNG price hike (cheers to Rs 1-3), and a decline in Q1FY26 raw material costs such as lower crude oil and Henry Hub index prices. Secondly, they've taken a cautious approach regarding earnings estimates. Even though strong growth in new territories is on the horizon, they're keeping it real by acknowledging that most areas are still working towards EBITDA profitability. Lastly, they've got their eyeballs on the valuation – IGL is currently trading at a PE ratio of 16.9x for FY26.
Motilal Oswal's Thumbs-Up for UltraTech Cement
The research team at Motilal Oswal has kept their Buy call on UltraTech, with a target price of Rs 13,900, based on in-line Q4 earnings. UltraTech's EBITDA grew 12% YoY to reach Rs 4,620 crore, and they've managed to drive efficiency by keeping their EBITDA/t and operation margin at 4% YoY and 20%, respectively. Their Q4FY25 volume growth of 6% YoY was ahead of industry volume growth, and their grey cement capacity utilisation clocked in at 89% in Q4FY25 and 78% in FY25.
Motilal Oswal on Cholamandalam Investment & Finance
Last but not least, they've got a Buy rating on Cholamandalam, with a target price of Rs 1,770. The reason? Healthy AUM growth and the launch of a gold loan business. The company's AUM grew by 27% YoY to Rs 1.85 lakh crore, with newer businesses now making up 13% of the AUM mix. Total loan disbursements in Q4FY25 grew by 7% YoY and 2% QoQ to Rs 26,400 crore. Despite this, Motilal has noted that the company needs to work a little magic on their net interest margin (NIM) and fee income to counteract the impact of moderating AUM growth and elevated operational costs.
So, there you have it! Motilal Oswal's top picks for your investing pleasure – Indraprastha Gas, UltraTech Cement, and Cholamandalam Investment & Finance. Happy investing, matey!
- Despite the current market stagnation, Motilal Oswal recommends investing in stocks such as Indraprastha Gas, UltraTech Cement, and Cholamandalam Investment & Finance for their promising outlook.
- Indraprastha Gas (IGL) is one of Motilal Oswal's top picks due to factors like a recovery in EBITDA margin, lower Q1FY26 raw material costs, and a cautious approach towards earnings estimates.
- UltraTech Cement is also a Motilal Oswal favorite, with an EBITDA growth of 12% YoY, strong Q4 earnings, and impressive grey cement capacity utilization rates.
- Cholamandalam Investment & Finance also gets a Buy rating from Motilal Oswal, thanks to healthy AUM growth and the launch of a gold loan business.
- Defi and market trading aren't mentioned in the text, but as a forward-thinking investor, one might consider diversifying their portfolio to include these innovative financial opportunities.
- The stock-market landscape may vary between Q4FY25 and Q1FY26, but by following Motilal Oswal's top picks, you can potentially secure steady returns on your investments.
- As you build your portfolio, remember to keep an eye on key factors such as earnings estimates, commodity prices, and competitive positioning in the finance industry, akin to assessing cement production and expansion in different regions (as seen in the case of Indraprastha Gas).
