The brokerage firm Nomura has zeroed in on three stocks that it believes can outperform from here. In its latest report, Nomura has issued a “Buy” rating on EPL, Lupin, and Britannia, highlighting potential upsides of up to 60% on one of these stocks.
According to the brokerage, each of these stocks is backed by a strong business ranging from rising global demand, margin expansion, to distribution plays.
Let’s take a look at why the brokerage is optimistic about these stocks and what could drive these stocks higher in the coming quarters.
Nomura on EPL
Nomura has raised its target price on EPL to Rs 350. This implies a 59.8% upside from its current market price of around Rs 219.
“We expect EPL to sustain double-digit value growth, with EBITDA growth ahead of revenue,” the brokerage said in its report.
Furthermore, it noted in its report, “Beauty and Cosmetics segment now contributes 54% of tube revenue and is growing at 35% y-o-y.”
Revenue growth in Q1FY26 came in at 10% year-on-year, beating street estimates. While the AMESA region (Africa, Middle East, South Asia) remained weak due to sluggish oral care demand, management is confident of recovery in the second half of the fiscal year.
What is working well for EPL as per the brokerage report is its strong traction in Beauty and Cosmetics (B&C), now over half of tube revenues. Furthermore, the company expanded Brazil capacity performing above expectations. Thailand plant expected to kick in during 2HFY26
Nomura values the stock at 22.5x P/E on Sep-27F EPS, highlighting that it trades 1 standard deviation below its five-year average, making valuations attractive.
Nomura on Lupin
The pharma major Lupin is the second stock on Nomura’s radar, with a target price of Rs 2,350, implying a 27% upside from the current level of Rs 1,852.
In Q1FY26 results, the company’s EBITDA beat estimates slightly, while PAT surpassed expectations by 21%. India and EMEA regions delivered better-than-expected performance, even as North America lagged slightly.
“Lupin continues to benefit from early approvals and complex product launches,” Nomura said.
The report further added that the company is also proactively addressing potential tariff concerns due to global shifts such as tech transfer to US plants, IP transfer from India to the US and so on. “We expect a strong double-digit sales growth in FY26 with EBITDA margins in the range of 24–25%,” noted the brokerage report
Nomura believes these steps will help mitigate impacts on margins. The stock is currently trading at 17.5x FY26F EPS and 20.4x FY27F EPS, and is expected to deliver strong earnings growth over the next two years.
Nomura on Britannia
FMCG player Britannia Industries is the third pick with a target price of Rs 6,400, representing an 18.5% upside from the current market level.
Though volume growth was muted at 2% y-o-y in Q1FY26 due to prior price hikes transaction growth held up at 12%, pointing to strong underlying demand. According to Nomura, this indicates a likely pick-up in volume growth going forward.
“Britannia’s rural demand remains strong, and its direct distribution in Central India is gaining ground,” Nomura noted. The brokerage added, “The new route-to-market strategy is expected to improve urban sales and boost premium product reach.”
Nomura has upgraded Britannia to “Buy” from “Neutral”, with a P/E valuation of 52x on Sep-27F EPS. Key upside triggers include falling raw material prices and better execution, though volume and margin pressures remain key risks.