Motilal Oswal Wealth Management Research Desk has identified Granules India and UltraTech Cement as top stock recommendations for the week starting May 4, 2026. Here is a detailed analysis of these picks.
Granules India
Granules India reported in-line revenue with a ~6% beat at the EBITDA and PAT levels, driven by strong growth in formulations (FDF) and active pharmaceutical ingredients (APIs). The contribution from complex generics increased to 46% from ~39% year-on-year, supporting margin expansion. The Europe business saw strong scale-up, growing 49% year-on-year excluding Senn Chemicals, led by new launches and pipeline expansion, indicating improving geographic diversification.
The CDMO segment is gaining traction with Senn Chemicals achieving EBITDA break-even, while growth in peptides and controlled substances adds to future visibility. The company expects ~15% CAGR in FDF over FY26–28, driven by strong base growth in formulations (74% of revenue) and improving product mix. Analysts expect ~27% PAT CAGR over FY26–28, supported by margin expansion from the peptide CDMO business, benefits of integrated R&D capabilities across Switzerland and India, and a continued shift towards high-value complex generics and specialty products.
UltraTech Cement
UltraTech Cement delivered a strong fourth-quarter FY26 result with revenue, EBITDA, and adjusted PAT rising ~12%, ~21%, and ~20% year-on-year respectively. The key positive was better cost control and operating efficiency, which helped margins improve despite a volatile input cost environment. The company crossed 200 million tonnes per annum (mtpa) domestic grey cement capacity, the largest in any country excluding China, and has completed the integration of India Cements and Kesoram ahead of schedule.
With acquired assets turning more efficient and utilisation levels healthy, UltraTech remains well-placed to benefit from expected industry demand growth led by infrastructure, rural demand, and housing. Management has guided annual capital expenditure of INR 80 to 100 billion, with plans to add ~37 mtpa capacity to reach nearly 240 mtpa by FY28E, while targeting net debt to EBITDA below 1x. Analysts expect consolidated revenue, EBITDA, and PAT to grow at a CAGR of 13%, 15%, and 18% respectively over FY26-28, supported by cost savings, expansion benefits, and improving profitability.
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