Top stocks to buy: Stock recommendations for September 15, week - check list

Motilal Oswal Wealth Management Research Desk has named Emcure Pharmaceuticals and Cholamandalam Investment & Finance Company Ltd as the top stocks to consider purchasing during the upcoming shortened trading week beginning September 18, 2026. Emcure Pharmaceuticals has been expanding its presence in Europe, Canada, and emerging markets, supported by solid execution, niche products, and a strong commercial network.

In the first quarter of fiscal 2027, the company's revenue rose 22.8% year-over-year to INR25.8 billion, EBITDA increased 25.8% year-over-year to INR5.1 billion, and adjusted profit after tax climbed 34% year-over-year to INR2.9 billion. However, gross margin declined 34 basis points year-over-year to 58.4%, while India business grew modestly at 10% year-over-year.

Management anticipates low-to-mid single-digit revenue growth, 70-100 basis points EBITDA margin expansion, and continued international growth, new product launches, and stronger domestic execution in fiscal 2027. Revenue, EBITDA, and profit after tax are expected to grow at compound annual rates of 15%, 21%, and 25%, respectively, over the next three years.

Cholamandalam Investment & Finance Company Ltd is transitioning from a vehicle-finance specialist to a diversified lending platform, with mortgage emerging as the key growth engine alongside the core vehicle-finance franchise. Additionally, gold loans, consumer finance, and MSME lending are set to provide more diversified, higher-yielding earnings streams.

Margins are anticipated to remain resilient even as funding costs rise. The net interest margin is expected to be around 7.3% to 7.1% in fiscal 2027 and 7.1% in fiscal 2028, despite a possible 10-20 basis point increase in funding costs during the second half of fiscal 2027, due to a favorable funding mix and rising contribution from higher-yielding businesses.

Return on assets is expected to improve from 2.3% in fiscal 2026 to 2.7% in fiscal 2027 and 2028, while return on equity should stay around 20%. Analysts forecast a mutual fund assets under management (AUM) and profit after tax (PAT) compound annual growth rate of 21% to 27% over fiscal 2026 and 2028. At a price-to-book value ratio of approximately 4.1 times fiscal 2027 earnings, CIFC trades above peer vehicle-financing companies, but this premium is justified by strong growth prospects, improving returns, and broader diversification.