Motilal Oswal Picks Emcure and Cholamandalam for Up to 17% Gains

Motilal Oswal Wealth Management Research Desk has released its top stock recommendations for the trading week starting September 18, 2026. The research desk identified Emcure Pharmaceuticals and Cholamandalam Investment & Finance Company Ltd as preferred buys. Both financial ideas target solid returns during the holiday-shortened trading week.

The research desk sees clear upside potential for both market counters over the medium term. Emcure Pharmaceuticals offers an expected upside of 16% from current trading levels. Meanwhile, Cholamandalam Investment presents an upside potential of 17% based on its diversified business expansion.

Emcure Pharmaceuticals currently trades at a price of Rs 1,975 per share on domestic exchanges. Motilal Oswal has established a target price of Rs 2,300 for the stock. This projection reflects continued growth momentum across the company's core healthcare segments.

Cholamandalam Investment currently trades at Rs 1,843 per equity share. The brokerage has assigned a target price of Rs 2,160 to the non-banking financial company. The firm continues to show steady loan compounding across multiple lending verticals.

Emcure Pharmaceuticals Delivers Revenue Gains Across Global Markets

Emcure Pharmaceuticals continues to strengthen its domestic and international pharmaceutical footprint. The drugmaker reported broad-based business expansion across Europe, Canada, and rest-of-the-world (ROW) markets. This international presence helped support its total earnings during recent quarters.

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In the first quarter of the 2027 financial year, Emcure saw its revenue jump 22.8% year-on-year. Total quarterly revenue reached INR 25.8 billion. The company achieved this top-line growth through steady demand in both developed and emerging international territories.

Operating earnings also demonstrated healthy expansion during the first quarter. Emcure's EBITDA rose 8% year-on-year to reach INR 5.1 billion. In addition, adjusted profit after tax climbed 34% year-on-year to INR 2.9 billion.

Despite these positive gains, the drugmaker experienced some pressure on its profit margins. Gross margin contracted 4%. Meanwhile, the company's core India business expanded at a modest 10% year-on-year pace.

Company leadership remains confident about near-term performance goals. Management expects low-to-mid teen revenue growth throughout financial year 2027. They also project EBITDA margin expansion of 70 to 100 basis points over the full fiscal year.

Motilal Oswal models consistent compound growth for the pharmaceutical firm. The brokerage projects a 15% revenue CAGR, a 21% EBITDA CAGR, and a 25% PAT CAGR from FY26 to FY28. These projections reflect steady execution across both domestic and overseas drug markets.

Cholamandalam Expands Beyond Vehicle Financing Into Diversified Lending

Cholamandalam Investment is shifting its primary identity away from standalone vehicle financing. The firm is transitioning into a comprehensive, multi-product lending platform. This expanding loan book forms the foundation for its next phase of compounding growth.

Mortgage lending is emerging as a primary growth driver alongside vehicle loans. At the same time, the company is growing its gold loan and consumer finance businesses. Micro, small, and medium enterprise loans also provide higher-yielding revenue streams.

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Financial margins for the lender remain resilient against rising sector-wide borrowing rates. Net interest margins are expected to reach 7.3% in FY27 and 7.1% in FY28. This outlook accounts for a possible 10 to 20 basis point increase in funding costs during 2HFY27.

Credit costs are normalizing while internal operating leverage continues to improve across branches. As a result, return on assets should climb from 2.3% in FY26 to 2.7% across FY27 and FY28. Return on equity is expected to hold steady near 20%.

The brokerage forecasts compound annual growth rates of roughly 21% in assets under management and 27% in PAT over FY26-28. Cholamandalam trades at 4.1 times its FY27 estimated price-to-book value. Motilal Oswal views this premium valuation over vehicle-financing peers as justified.

A standard disclaimer noted that The Times of India does not endorse these specific analyst recommendations.