Motilal Oswal Wealth Management Research Desk has recommended Samvardhana Motherson and Zydus Wellness as top stocks to buy for the week starting May 25, 2026.
Samvardhana Motherson
Samvardhana Motherson delivered a strong performance in the fourth quarter of fiscal year 2026, with adjusted net profit rising 55% year-on-year. The EBITDA margin expanded by 200 basis points to 11%, driven by robust execution and margin improvement across wiring harness, integrated assemblies, and emerging businesses. The company’s growth visibility remains strong, supported by a USD 96 billion booked business pipeline, multiple greenfield projects across global markets, upcoming acquisitions, and rapid scaling in high-growth segments such as consumer electronics and aerospace. Management has raised its five-year revenue aspiration to USD 108 billion, supported by a strong order backlog, EV transition, and premiumization trends. Better-than-expected fourth-quarter performance amid a challenging global macro environment has led to an 8% upward revision in FY27/FY28 earnings estimates.
Zydus Wellness
Zydus Wellness operates a diversified wellness portfolio across seasonal healthcare, nutrition, skincare, and healthy snacking categories. Incremental growth is increasingly driven by RiteBite Max Protein and Comfort Click. Innovation-led premiumization, expanding digital channels, and improving international scale are supporting margin expansion and medium-term earnings visibility, despite historically modest core-category growth. The fourth-quarter FY26 performance was broadly in line operationally, though domestic revenue growth lagged expectations due to delayed summer onset and unseasonal rainfall impacting Glucon-D and Nycil demand. Consolidated revenue rose 63% year-on-year, aided by acquisition-led growth and strong traction in Everyuth and international operations. We expect consolidated revenue and EBITDA CAGR of approximately 26% and 37%, respectively, over FY26-28E, supported by scaling of Comfort Click, improving profitability in RiteBite, and recovery in seasonal demand. Margins are expected to trend toward the company’s 17-18% long-term aspiration under normalized seasonality, while FY27/FY28 earnings should benefit from operating leverage, product innovation, and expanding international wellness offerings.
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