The markets are flat in today’s trade but there is never any dearth of value buys in the market. The well-know domestic brokerage house Motilal Oswal has published a list of its top Buy recommendations at this hour. It has selected Indraprastha Gas, UltraTech Cement, and Cholamandalam Investment & Finance as the top three picks. Here are the details and investment rationale for choosing these three stocks.
Motilal Oswal on Indraprastha Gas
The broker upgraded the rating on Indraprastha Gas to ‘Buy from ‘Neutral’, considering primarily three factors. The first one is the EBITDA margin bottoming out, and the margin may be driven by the recent CNG price hike of Rs 1/Rs 3, which it took on April 07, 2025. Plus, raw material costs have declined in Q1FY26, such as lower crude oil and Henry Hub index prices. Secondly, the broker has taken a conservative approach regarding earnings assumptions. Although the a strong growth in new geographical areas, which has grown at over 30% year-on-year is upside for it, and the majority of the areas are now reaching EBITDA positive levels. Thirdly, Motilal Oswal found the valuation attractive. The stock is trading at a price-to-earnings ratio of 16.9 times for FY26.
Motilal Oswal on UltraTech Cements
Motilal Oswal retained its ‘Buy’ call on the stock with a target price of Rs 13,900 on the back of in line Q4 earnings. The company’s EBITDA increased 12% YoY to Rs 4,620 crore, while EBITDA/t declined 4% YoY to Rs 1,126, which the broker estimated at Rs 1,104. Operation margin was flat on year at 20%. UltraTech Cement’s volumes of 6% YoY on a like-for-like basis were ahead of industry volumes of 4% in Q4FY25. Its grey cement capacity utilisation was at 89% in Q4FY25 and 78% in FY25. “The company remains focused on capitalising on the infrastructure-led demand recovery, while the recent price increases and cost-saving initiatives drive improvement in profitability,” said Motilal Oswal in a research note.
Motilal Oswal on Cholamandalam Investment and Finance
The brokerage firm retained its Buy rating on the stock with a target price of Rs 1,770 on the back of healthy assets under management (AUM) growth. Plus, it has launched a gold loan business. The company’s AU grew 27% YoY and 6% sequentially to Rs 1.85 lakh crore, with newer businesses now forming 13% of the AUM mix. Its total loan disbursements in Q4FY25 grew 7% YoY and 2% QoQ to Rs 26,400 crore. However, Motilal noted that the company will have to utilise its levers on NIM (and fee income) to offset the impact of moderation in AUM growth and elevated opex/credit costs.