Nuvama Institutional Equities has reiterated ‘Buy’ calls on Shriram Finance, Reliance Industries and Axis Bank, with target prices implying upside in the range of about 17% to 33% from current levels. The brokerage, in its latest result updates, names Shriram Finance, Reliance Industries and Axis Bank as key picks backed by earnings visibility, improving margins and identifiable long-term growth drivers, even as parts of their businesses face near-term pressure.
Nuvama on Shriram Finance ‘Buy’
Nuvama has retained a ‘Buy’ rating on Shriram Finance with a target price of Rs 1,300, implying an upside of about 28% from the current price of Rs 1,011.
The brokerage says asset under management growth remains strong across segments, supported by traction in vehicle financing and gold loans. Asset under management rose to 15% year on year from 4% sequential growth in the March quarter, while lower operating expenses supported profitability with pre-provisioning profit coming in ahead of expectations. Margins improved slightly and are expected to remain stable going ahead.
It also points to the MUFG capital infusion, which has led to credit rating upgrades and is expected to reduce the cost of funds over time, supporting margins and growth.
“Consistent strong performance. SFL reported an in-line NII in Q4FY26, but opex came in lower than expected, which led to PPoP beating consensus by 5%. AUM growth was strong across segments except CE. New vehicle segment posted healthy growth in the quarter. NIM increased 3bp QoQ to 3.61% and is likely to remain stable at current levels going ahead. Asset quality remains largely stable, but a shortfall in monsoon and the West Asia war remain key risks going ahead. MUFG infusion has been completed and the deal has led to various credit rating upgrades,” Nuvama said.
Nuvama on Reliance Industries ‘Buy’
Nuvama has maintained a ‘Buy’ rating on Reliance Industries with a target price of Rs 1,765, implying an upside of about 33%.
The brokerage says the investment case is built on multiple growth drivers, particularly the new energy business where capacity additions across solar, battery storage and green hydrogen are progressing. These are expected to contribute to profitability over time.
At the same time, oil-to-chemicals and retail segments have seen near-term pressure, while digital continues to support earnings. The brokerage also expects cost benefits from captive renewable energy capacity to support margins.
“Weak Q4; Q1FY27 headwinds. Q4FY26 EBITDA at INR441bn was 6% below consensus. New Energy roll-out rapid as module or cell capacity ramps up. Most gigafactories starting by end-FY27. Phase-I renewable power plant shall commence in FY28 with initial capacity by end-FY27 and eventually scale up significantly. Captive power cost to fall materially, adding to profitability. Green hydrogen production planned with a portion for internal use and balance for green chemicals,” Nuvama said.
Nuvama on Axis Bank ‘Buy’
Nuvama has retained a ‘Buy’ rating on Axis Bank with a revised target price of Rs 1,600, implying an upside of about 17%.
The brokerage highlights steady loan and deposit growth along with improving asset quality. Loan growth stood at 19% year on year and 6% sequentially, led by corporate and small business segments, while deposits increased 14% year on year. Asset quality improved with lower slippages and reduced credit costs.
While core operating performance was mixed during the quarter, reported profit was supported by a one-time tax benefit. The brokerage expects earnings to improve as credit costs moderate and growth continues.
“Loan growth was robust at 6% QoQ or 19% YoY driven mainly by corporate and SME while retail continued to lag at 4% QoQ. Deposits grew 6% QoQ or 14% YoY while QAB deposits rose 2% QoQ or 13% YoY. Asset quality improved sequentially with technical slippages largely normalised with net impact down to about 0.07%. Management also created one-time provision, prudent and precautionary and does not reflect any deterioration in asset quality,” Nuvama said.
Conclusion
Across the set of reports reviewed, Nuvama has ‘Buy’ ratings only on these three stocks. The brokerage builds its positive stance on earnings visibility, balance sheet strength and medium-term growth drivers.
The target prices indicate upside in the range of 17% to 33%, with risks tied to macro conditions, execution timelines and segment-specific pressures.
Disclaimer: This report contains specific stock ratings and price targets which are for informational purposes only and do not constitute an offer or solicitation to buy or sell securities. Investing in equities involves market risks; readers are advised to consult a SEBI-registered investment advisor before making any financial decisions based on these brokerage views. Past performance and projected upsides are not indicative of future results.
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