Domestic brokerage Motilal Oswal has initiated or reiterated ‘Buy’ calls on three stocks across education, cement and power equipment, with its target prices pointing to potential upside of 14% to 66%.

The three picks are PhysicsWallah, UltraTech Cement and CG Power and Industrial Solutions. The reasons behind the calls are different. 

PhysicsWallah’s outlook is linked to online growth and improving margins, UltraTech is being supported by cement demand and its entry into cables and wires, while CG Power is benefiting from higher transformer capacity and rising power-sector demand.

Here is a detailed look at the brokerage’s investment rationale for each stock and the outlook going forward – 

Motilal Oswal on PhysicsWallah: Online business remains the main bet

Motilal Oswal has initiated coverage on PhysicsWallah (PW) with a ‘Buy’ rating and a target price of Rs 200, implying around 66% upside.

According to Motilal Oswal report, the online business remains the biggest contributor to its valuation. It expects online revenue to grow at around 28% compound annual growth rate (CAGR) between FY26-30. This is supported by more paid users, expansion into new categories and monetisation using artificial intelligence.

ALSO READ

The brokerage said, “The online business is PW’s primary value driver.”

Motilal Oswal expects pre-Ind AS EBITDA margins to improve from around 26% in FY26 to 30% by FY28. 

The offline business is also expanding. PW currently has 353 centres, with the brokerage expecting offline revenue to grow around 20% CAGR through FY30 as newer centres mature and utilisation improves.

But there are risks. Competition, faculty attrition, slower centre utilisation and regulatory changes remain key monitorables.

Motilal Oswal on UltraTech Cement: Demand holds up, but margins need watching

For UltraTech Cement, Motilal Oswal has maintained its ‘Buy’ rating with a target price of Rs 13,800, implying around 22% upside.

The brokerage expects cement demand to remain healthy, although muted prices and higher operating expenses could weigh on margins in the near term.

It said, “demand remains healthy in Q2 so far even in a seasonally weak period.”

The company is also entering the cables and wires segment under the Ultravolt brand. Motilal Oswal noted that the business has started commercial production from September 1, 2026, from its Bharuch, Gujarat plant.

The brokerage estimates consolidated revenue, EBITDA and profit after tax (PAT) to grow at around 12%, 17% and 19% CAGR, respectively, between FY26-28.

It said, “We estimate a consolidated revenue/EBITDA/PAT CAGR of ~12%/17%/19% over FY26-28.”

Motilal Oswal on CG Power: Transformer capacity adds another growth lever

CG Power and Industrial Solutions is another stock Motilal Oswal has retained its ‘Buy’ rating and raised its target price to Rs 1,020 from Rs 975. The revised target implies around 14% upside.

ALSO READ

The brokerage recently visited CG Power’s new transformer plant in Sehore, Madhya Pradesh. The facility has a manufacturing capacity of 45,000 Mega Volt Amperes (MVA), taking the company’s total transformer capacity to 120,000 MVA.

Motilal Oswal said, “With the commissioning of this greenfield capacity, CG Power’s transformer manufacturing capacity has increased to 120,000 MVA.”

The brokerage expects the power systems business to grow strongly and has modelled revenue, EBITDA and PAT CAGR of 25%, 33% and 28%, respectively, between FY26-29.

It also expects CG Semi, the company’s semiconductor business, to reach break-even by FY28.

What investors need to watch

The three Buy calls come with very different earnings drivers. For PhysicsWallah, the focus is online growth and improving margins. 

For UltraTech Cement, the key variables are cement demand, pricing and the new cables and wires business. For CG Power, transformer capacity and power-sector capital expenditure are central to the outlook.

Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.