The brokerage firm Nuvama has placed three stocks on its ‘Buy’ list, indicating a growth potential despite near-term challenges. The brokerage has shared its target prices, upside potential, and the key reasons driving its bullish view. Let’s take a look –
Titan Company
Nuvama has set a target price of Rs 4,479 for Titan Company, implying an upside of 31.1% from its current market price of Rs 3,416. The jewellery major posted a 16.6% year-on-year growth in its core jewellery business in Q1FY26.
“We are tweaking revenue and PAT estimates for FY26/27 by -2.1%/-3.5% and +0.4%/+0.1%, respectively, factoring in the high base in revenue, but improvement in profitability across the other segments; maintain ‘BUY’ with a revised TP of Rs 4,479,” the brokerage said.
Beyond jewellery, the Watches & Wearables segment recorded 23.8% growth, with the Helios channel delivering strong double digit gains. Titan World added four new stores in the quarter. Emerging categories posted a sharp 35% growth, alongside improved operational efficiency that reduced segment losses from Rs 260 million last year to Rs 140 million this year.
Godrej Consumer
With a target price of Rs 1,450 against the current market price of Rs 1,220, Nuvama sees 18.9% upside potential for Godrej Consumer Products (GCPL).
GCPL’s Q1FY26 revenue grew 10% year-on-year, its best in eight quarters. However, EBITDA fell 4.4% due to weakness in the India soaps business (price cuts, high trade margins, grammage cuts) and intense competition in Indonesia, added in the brokerage report.
“Benefits from PFAD correction and a recovery in Indonesia are likely Q3FY26 onwards. We are cutting FY26E/27E EPS by 4-6% given challenges in Indonesia and India soaps business; yielding a TP of Rs 1,450; maintain ‘BUY’,” the brokerage noted.
Further Nuvama in its report noted that while India EBITDA margins are expected to remain below normal in Q2, improvement is likely in the second half of the year. Management has maintained its FY26 guidance of mid to high single digit UVG for India, with high-single-digit consolidated revenue growth and double digit EBITDA growth.
BSE
Nuvama has raised its target price for BSE to Rs 2,820 from Rs 2,770 earlier. This projects an upside of 15.5% from the current Rs 2,442 level. The exchange’s Q1FY26 performance was driven by its growing index options segment, where average daily premium turnover value (ADPTV) market share rose to 23.8%, up 241 basis points from the previous quarter.
“We are reducing FY26E/27E/28E APAT by 3.1%/6.2%/6%. Meanwhile, we are increasing the TP to Rs 2,820 based on a P/E of 45x along with a rollover to Sep-27E plus the value of a 15% stake in CDSL,” the brokerage explained.
BSE also posted an EBITDA of Rs 6.26 billion, up 29.3% quarter-on-quarter. Management attributed the drop in clearing charges to “better premium quality” and clarified that certain one off costs in the previous quarter had inflated expenses.