Motilal Oswal Financial Services Unveils Top Stock Recommendations for March 2026
In its latest weekly market analysis, Motilal Oswal Financial Services Ltd has identified Siemens Energy and Polycab as its premier stock recommendations for investors. The advisory, covering the week commencing March 2, 2026, provides detailed rationales and target prices, highlighting significant upside potential based on robust financial performance and favorable industry trends.
Siemens Energy: Capitalizing on Global Energy Transition
Siemens Energy emerges as a standout pick, with a current market price (CMP) of ₹2,897 and a target price (TP) of ₹3,600, representing an impressive 24% upside. The company is strategically positioned to benefit from both domestic and global transmission and distribution (T&D) capital expenditure cycles, driven by energy transition tailwinds and escalating transformer demand.
Key financial metrics underscore its strength: revenue grew 26% year-over-year, while EBITDA margin expanded by 200 basis points to 24.1%, aided by reduced other expenses. This led to a remarkable 57% YoY growth in profit after tax (PAT). Furthermore, the order backlog surged 38% YoY, ensuring healthy revenue visibility.
Motilal Oswal projects a revenue/EBITDA/PAT compound annual growth rate (CAGR) of 27%/31%/32% over FY25–28E, fueled by robust transmission growth and a steady recovery in generation. The firm has marginally adjusted its estimates by 4%/1%/1% for FY26/27/28, revising the target price to ₹3,600 from ₹3,400, based on 55 times March 2028 estimated earnings per share (EPS). Incremental capacity expansion to 60,000 MVA reflects confidence in long-term demand and export opportunities.
Polycab: Dominating Cables & Wires with Market Share Gains
Polycab is another top recommendation, with a CMP of ₹8,469 and a TP of ₹9,600, offering a 13% upside. The company continues to gain market share in the Cables & Wires segment, supported by an extensive distribution network, a premium product portfolio, and favorable demand from real estate, infrastructure, and urbanization trends.
Project Spring aims to achieve growth at approximately 1.5 times industry levels, strengthening long-term visibility. After facing temporary margin pressure due to commodity inflation and elevated channel inventory, Polycab has quickly reversed this trend, with inventory normalizing and full cost pass-through implemented. Stabilizing raw material prices and strong underlying demand are expected to drive sequential margin improvement and earnings recovery.
Premiumization, increased brand investments, and deeper distribution penetration are accelerating growth across wires and FMEG (fast-moving electrical goods) categories. Motilal Oswal anticipates a revenue/EBITDA/PAT CAGR of around 16%/19%/18% over FY26-28, supported by strong cash flows, disciplined capital expenditure, and improving operating leverage.
Investment Outlook and Disclaimer
These recommendations are part of Motilal Oswal's ongoing market analysis, focusing on stocks with strong fundamentals and growth trajectories. Investors are advised to consider these insights alongside their own research and risk tolerance.
Disclaimer: The recommendations and views on the stock market provided by experts are their own and do not represent the views of The Times of India or its affiliates. Investors should exercise due diligence before making any investment decisions.
