The brokerage firm Motilal Oswal has recommended a ‘Buy’ rating on three stocks, pointing out strong growth prospects, strategic expansions, and financial resilience.
Let’s take a closer look at these stocks and the key reasons supporting the Buy recommendation –
Motilal Oswal on UltraTech Cement: Target price of Rs 13,800
The brokerage firm has maintained a Buy rating, with a target price of Rs 13,800. According to the brokerage, UltraTech Cements stands to benefit from its expanding scale, cost-cutting initiatives, and strong cash flow generation. The company follows a well-established strategy of ‘build, leverage, and build again’.
The brokerage, further in its report noted that UTCEM has consistently expanded its capacity, achieving a 10% CAGR over FY15-24, outpacing the industry average of 5% CAGR. The company has improved utilisation rates, averaging 76% over FY15-24 compared to the industry’s 67%.
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“We estimate UTCEM’s consolidated revenue/EBITDA/PAT CAGR at 17%/28%/32% over FY25-27,” said the brokerage in its report.
Motilal Oswal on Glenmark Pharma: New product launches support outlook
According to the brokerage, Glenmark Pharma has shown steady performance, with new product launches and increased market share in the domestic formulation segment. The company is also focusing on niche products in the US market, particularly in respiratory and ophthalmology.
The brokerage estimates an earnings CAGR of 24% over FY25-27, driven by expanding product lines.
“GNP is building a niche product pipeline in the US and enhancing its domestic offerings. Maintain BUY,” added the brokerage in its report. Furthermore, it added, “We maintain our estimates for FY25/FY26/FY27. We value GNP at 25x 12M forward earnings to arrive at a TP of INR 1,725.”
Motilal Oswal on Zen Technologies: Growth potential despite challenges
As per the brokerage house, Zen Technologies Q3FY25 results fell short of expectations due to order execution delays. However, the company remains optimistic about its long term prospects.
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Zen Technologies is expanding its portfolio with naval simulators and air based simulation solutions, strengthening its market position, added the report.
The brokerage has maintained a Buy rating with a target price of Rs 1,600.
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