The brokerage firm Nuvama has picked three stocks to bet on. According to brokerage house, these stocks could see double-digit gains from current levels with some surging as much as 34%. Let’s take a look at what is driving Nuvama’s optimism on each of these picks.
Nuvama on Reliance Industries: Upside potential of 28%
Nuvama has a ‘Buy’ call on Reliance Industries, with a target price of Rs 1,733 per share. From the current price of Rs 1,357, this translates to an upside potential of nearly 28%.
The brokerage is upbeat about RIL’s ambitious plans in energy transition, retail, and digital. “RIL, at its AGM, guided for New Energy (NE) profits equalling O2C in five-seven years, strong Digital and Retail outlook, and huge O2C expansion,” they added.
By 2032, Reliance is targeting 3MMTPA of Green Hydrogen capacity, a 3GW electrolyser project, and a 40GWh battery facility scalable to 100GWh.
“RIL reiterated its target of doubling EBITDA by 2027E. Separately, NE’s earnings shall spiral up to O2C’s level in five-seven years while Retail shall clock a revenue CAGR of 20%+ over the next three years,” added the brokerage report.
The upcoming IPO of Jio platforms is another big trigger for RIL. Additionally, its growing FMCG business under Reliance Consumer Products is also expected to unlock further value. “Strong guidance for Retail and Digital, and huge petchem capacity-adds shall drive growth,” the brokerage added.
Nuvama on Asian Paints: Upside potential of 18%
The brokerage has also reiterated its ‘Buy’ rating on Asian Paints with a target price of Rs 2,935. This translates to an upside potential of about 18% from the current price of Rs 2,490.
According to Nuvama, the management remains focused on protecting market share while keeping profitability intact. “Priority of Asian Paints is to protect market share. EBITDA margins shall stay within the 18–20% band over medium to long term with quarterly fluctuations,” added the brokerage firm.
The report highlights signs of a revival in demand, especially in rural areas, while urban markets are stabilising. Raw material costs remain benign, which is likely to support margins through FY26.
“We reckon Q2 shall sustain momentum on urban demand recovery, benign RM costs, and an early Diwali, with H2FY26 likely to outpace H1FY26,” the brokerage noted.
Nuvama on United Breweries: Upside potential of 34%
Nuvama has recommended ‘Buy’ call on United Breweries with a target price of Rs 2,400 per share. This implies a potential upside of nearly 34% from the current market price of around Rs 1,796.
According to the brokerage report, the company has made a big push in Andhra Pradesh by expanding the production of its flagship brand.
“UBBL has ramped up production of its flagship brand at the Ilios Brewery, Andhra, on a lease basis. It has a monthly capacity of 0.45 million beer cases, complementing the 1.2mn case capacity of the Srikakulam brewery, thereby adding nearly one–third additional capacity in a key state of Andhra (which has progressive policy environment),” added the brokerage firm.
This move, Nuvama believes, will help the company prevent stock-out during peak demand season and reduce supply bottlenecks. At the same time, the company is enhancing its canning capacity in Telangana, a state that contributes nearly 15-17% of sales.
