Home brokerage Motilal Oswal has initiated or reiterated ‘Purchase’ calls on three shares throughout schooling, cement and energy tools, with its goal costs pointing to potential upside of 14% to 66%.
The three picks are PhysicsWallah, UltraTech Cement and CG Energy and Industrial Options. The explanations behind the calls are completely different.
PhysicsWallah’s outlook is linked to on-line progress and enhancing margins, UltraTech is being supported by cement demand and its entry into cables and wires, whereas CG Energy is benefiting from increased transformer capability and rising power-sector demand.
Here’s a detailed take a look at the brokerage’s funding rationale for every inventory and the outlook going ahead –
Motilal Oswal on PhysicsWallah: On-line enterprise stays the primary wager
Motilal Oswal has initiated protection on PhysicsWallah (PW) with a ‘Purchase’ ranking and a goal value of Rs 200, implying round 66% upside.
In response to Motilal Oswal report, the net enterprise stays the most important contributor to its valuation. It expects on-line income to develop at round 28% compound annual progress charge (CAGR) between FY26-30. That is supported by extra paid customers, enlargement into new classes and monetisation utilizing synthetic intelligence.
The brokerage stated, “The net enterprise is PW’s main worth driver.”
Motilal Oswal expects pre-Ind AS EBITDA margins to enhance from round 26% in FY26 to 30% by FY28.
The offline enterprise can also be increasing. PW presently has 353 centres, with the brokerage anticipating offline income to develop round 20% CAGR by means of FY30 as newer centres mature and utilisation improves.
However there are dangers. Competitors, college attrition, slower centre utilisation and regulatory adjustments stay key monitorables.
Motilal Oswal on UltraTech Cement: Demand holds up, however margins want watching
For UltraTech Cement, Motilal Oswal has maintained its ‘Purchase’ ranking with a goal value of Rs 13,800, implying round 22% upside.
The brokerage expects cement demand to stay wholesome, though muted costs and better working bills may weigh on margins within the close to time period.
It stated, “demand stays wholesome in Q2 thus far even in a seasonally weak interval.”
The corporate can also be coming into the cables and wires section underneath the Ultravolt model. Motilal Oswal famous that the enterprise has began business manufacturing from September 1, 2026, from its Bharuch, Gujarat plant.
The brokerage estimates consolidated income, EBITDA and revenue after tax (PAT) to develop at round 12%, 17% and 19% CAGR, respectively, between FY26-28.
It stated, “We estimate a consolidated income/EBITDA/PAT CAGR of ~12%/17%/19% over FY26-28.”
Motilal Oswal on CG Energy: Transformer capability provides one other progress lever
CG Power and Industrial Solutions is one other inventory Motilal Oswal has retained its ‘Purchase’ ranking and raised its goal value to Rs 1,020 from Rs 975. The revised goal implies round 14% upside.
The brokerage just lately visited CG Energy’s new transformer plant in Sehore, Madhya Pradesh. The ability has a producing capability of 45,000 Mega Volt Amperes (MVA), taking the corporate’s complete transformer capability to 120,000 MVA.
Motilal Oswal stated, “With the commissioning of this greenfield capability, CG Energy’s transformer manufacturing capability has elevated to 120,000 MVA.”
The brokerage expects the ability methods enterprise to develop strongly and has modelled income, EBITDA and PAT CAGR of 25%, 33% and 28%, respectively, between FY26-29.
It additionally expects CG Semi, the corporate’s semiconductor enterprise, to achieve break-even by FY28.
What traders want to observe
The three Purchase calls include very completely different earnings drivers. For PhysicsWallah, the main target is on-line progress and enhancing margins.
For UltraTech Cement, the important thing variables are cement demand, pricing and the brand new cables and wires enterprise. For CG Energy, transformer capability and power-sector capital expenditure are central to the outlook.
Disclaimer: This text is predicated on analysis reviews from a number of brokerage companies and is for informational functions solely. The views, goal costs, and proposals expressed are these of the respective brokerage companies and don’t mirror the official coverage or place of Monetary Specific. This shouldn’t be construed as a proposal, solicitation, or advice to purchase or promote securities. Traders should conduct their very own impartial due diligence and search recommendation from a SEBI-registered monetary advisor earlier than making any funding selections.
