The brokerage firm Nomura has given ‘Buy’ rating to 3 stocks across different sectors that it believes could deliver strong returns for investors. According to the brokerage report, these stocks have upside potential as much as 21%.
Let’s take a look at the rationale behind each recommendation –
Nomura on Hindustan Unilever
Nomura has maintained a ‘Buy’ rating on Hindustan Unilever. The brokerage has set a target price of Rs 2,900. This translates to an upside of around 15% from the current market price.
According to the brokerage report, “This is compared to our earlier expectation of normalised standalone/consolidated sales growth of 3%/4% YoY (without factoring in the transitory impact).”
The firm noted that after the GST announcement on September 3, distributors delayed purchases, and consumers postponed pantry buying. Hindustan Unilever responded by offering additional trade discounts to clear inventory and pass GST benefits to consumers. Nomura expects recovery from November as prices stabilize. The report added, “It remains to be seen if this transient impact will have any bearing on the full-year numbers; this will be known only during Q3.”
The brokerage noted, “We expect it to be at the trough of demand and margin cycle.”
Nomura on Lupin
Lupin has also been rated a ‘Buy’ by Nomura, with a target price of Rs 2,350. This indicates an upside of roughly 21%. According to the brokerage report, Lupin’s acquisition of VISUfarma, a specialty ophthalmology company in Europe, is a strategic move to enter a branded and relatively stable segment.
Nomura highlighted that “Through the acquisition of VISUfarma, Lupin gains access to a branded portfolio in a niche ophthalmology segment.”
The brokerage also noted that the European ophthalmology market is growing at approximately 5% annually, with VISUfarma expected to grow at 7% CAGR over CY22–25.
Lupin plans to fund the acquisition from internal cash reserves, and Nomura believes this “should allay investor concerns about high-risk acquisitions in the speciality segment.”
Nomura on Anant Raj
Anant Raj is the third pick, with a target price of Rs 700. This suggests an upside of about 3%. Nomura sees potential in the data center segment, noting that investors are drawn to the company’s early start and relatively lower capex costs.
According to the brokerage report, “Management was positive about sector tailwinds for the DC business.”
The company expects to lease 24 MW of capacity for colocation and 1–2 MW for cloud clients, with targeted FY26 revenue from the segment around Rs 150–200 crore.
Nomura added, “For fund-raising, management said that it would consider its options depending upon the opportunities for growth in the DC/residential segment.”