Essential Stock Picks: Recommended Companies for the Week of May 4, 2026
Motilal Oswal Wealth Management has identified Granules India and UltraTech Cement as top stock picks for the week starting May 4, 2026. Both companies have demonstrated strong financial performance and growth potential, making them attractive options for investors. Granules India has shown impressive growth in its revenue and profit margins, while UltraTech Cement has improved its operational efficiency and expanded its market capacity.
Granules India: Strong Financial Performance
Granules India has reported a solid financial performance, with revenue figures aligning closely with expectations. The company achieved approximately a 6% beat at the EBITDA and profit after tax (PAT) levels, driven by robust growth in its Finished Dosage Forms (FDF) and Active Pharmaceutical Ingredients (APIs). Notably, the contribution from complex generics has increased to 46% compared to around 39% year-on-year, which has supported margin expansion. The company’s European operations have also seen significant growth, with a 49% year-on-year increase, excluding Senn Chemicals, attributed to new product launches and an expanding pipeline.
The Contract Development and Manufacturing Organization (CDMO) segment is gaining traction, with Senn Chemicals reaching EBITDA break-even. Additionally, growth in peptides and controlled substances is expected to enhance future visibility. Analysts project a compound annual growth rate (CAGR) of approximately 15% in FDF from FY26 to FY28, driven by strong growth in formulations, which account for 74% of revenue. Furthermore, a projected 27% CAGR in PAT over the same period is anticipated, supported by margin improvements from the peptide CDMO business and the benefits of integrated research and development capabilities across Switzerland and India.
UltraTech Cement: Operational Efficiency and Growth
UltraTech Cement has delivered impressive results for the fourth quarter of FY26, with revenue, EBITDA, and adjusted PAT rising by approximately 12%, 21%, and 20% year-on-year, respectively. A key factor in this success has been the company’s effective cost control and operational efficiency, which have helped improve profit margins despite fluctuations in input costs. UltraTech has also achieved a significant milestone by surpassing 200 million tons per annum (mtpa) in domestic grey cement capacity, making it the largest cement producer in any country outside of China.
The company has successfully integrated India Cements and Kesoram ahead of schedule, enhancing its operational efficiency. With the acquired assets becoming more efficient and healthy utilization levels, UltraTech is well-positioned to capitalize on anticipated industry demand growth driven by infrastructure projects, rural demand, and housing. Management has outlined plans for annual capital expenditures ranging from ₹80 billion to ₹100 billion, with intentions to add approximately 37 mtpa of capacity, aiming to reach nearly 240 mtpa by FY28. Analysts expect consolidated revenue, EBITDA, and PAT to grow at CAGRs of 13%, 15%, and 18%, respectively, over FY26 to FY28, bolstered by cost savings and expansion benefits.
Investment Outlook
Both Granules India and UltraTech Cement present compelling investment opportunities based on their recent performance and growth strategies. Granules India is focusing on expanding its product mix and geographic diversification, while UltraTech Cement is enhancing its operational capabilities and preparing for future demand in the construction sector. Investors looking for stocks with strong fundamentals and growth potential may find these recommendations from Motilal Oswal Wealth Management particularly appealing.
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