It’s a muted session for the markets and if you are keen to understad what stocks to buy, Nuvama has some options. The brokerage house has given ‘Buy’ call to three stocks on strong earnings visibility over the next few years in these stocks. As per the brokerage report, the outlook for Mahindra & Mahindra, Vedanta, and APL Apollo Tubes remains firm. This is supported by the growth triggers across their core businesses.
Let’s take a look at what the brokerage expects and how much upside each stock may offer from current levels.
Nuvama on Mahindra and Mahindra
The brokerage firm Nuvama has reiterated its ‘Buy’ recommendation on Mahindra & Mahindra (M&M) with a target price of Rs 4,200. With the stock currently around Rs 3,665, this suggests an upside of 14.6%.
The brokerage believes that both the automotive and farm machinery segments are set for healthy expansion over the next three years. According to the brokerage report, “We estimate revenue would expand at a 15% CAGR over FY25–28 for the automotive segment led by healthy demand for SUVs along with a pipeline of new models.”
Demand for sport-utility vehicles (SUVs) is expected to support steady sales, while new platforms like Oja and Naya Swaraj are likely to lift tractor and farm-equipment volumes.
Nuvama also highlighted improving export opportunities, stating, “We expect export volumes to expand at a 12% CAGR owing to increasing penetration in regions such as Brazil, North America and ASEAN (Association of Southeast Asian Nations).”
On the farm business, the report added, “The farm segment’s revenue shall increase at a 13% CAGR over FY25-28 owing to market share gains and benign government policies for farmers.”
At the current price, M&M trades at 26.7 times FY27 earnings per share (EPS) and 24.4 times FY28 EPS, as per the report.
Nuvama on Vedanta
Nuvama has also maintained a ‘Buy’ call on Vedanta, setting a target price of Rs 686 per share. The upside potential works out to 34% from the current market price.
The brokerage expects Vedanta’s restructuring plan, that is, the demerger into five listed companies to be a major value trigger, especially with the final approval expected soon. The report noted that the “hearing at the NCLT’s second motion was completed on November 12, 2025 and we forecast the final and favourable order shall come in December.”
Nuvama believes Vedanta’s focus on reducing debt and leveraging stronger commodity prices could support earnings. As per the brokerage report, “We expect EBITDA to increase at a CAGR of 16% over FY25–28 on the back of lower aluminium CoP, aluminium and zinc volume growth and higher commodity prices.”
The debt position is also expected to improve significantly. The report noted, “Consolidated net debt is likely to fall to around Rs 610 billion by end-FY27 (net debt/EBITDA ex-HZ to fall to 1.4x from 2.7x in FY25).”
Nuvama on APL Apollo
For APL Apollo Tubes, Nuvama has set a target price of Rs 2,093. With shares currently near Rs 1,718, this indicates an upside of 21.8%.
The brokerage highlighted the metal-tube manufacturer’s rising focus on value-added products (VAP), expansion across key facilities, and improved product mix. According to the brokerage report, “We view APL’s sharpened focus on value-added products (VAP) and a strong balance sheet as positives.”
The company’s new SG Premium product has been introduced to counter competition from unorganised steel players. The report noted, “Though not profitable, the SG brand aims to rake in volumes, whereas APL branded products shall drive profitability.”
Nuvama expects SG Premium alone to account for 10–15% of volumes over time, compared to the current 5%.
APL Apollo is also scaling up capacity across locations such as Gorakhpur, Siliguri, and Dubai, with plans to expand from 5 million tonnes per annum (mtpa) to 7 mtpa, and eventually to 10 mtpa.