Nuvama Institutional Equities has released a series of research reports identifying four companies that could see double-digit growth in the coming months. These reports suggest that a mix of massive corporate mergers, falling raw material costs, and a national push for green energy in farming is creating new opportunities for these specific businesses. By looking at internal company data and sector trends, the firm has mapped out why these picks stand out in the current market.
Nuvama on Devyani International: ‘Buy’
Nuvama Institutional Equities has set a target price of Rs 211 for Devyani International, which indicates a possible upside of 51.8% from the current price of Rs 139. The firm notes that the long-awaited merger between Devyani and Sapphire is a major positive step. This move is expected to help the company save money on raw materials and improve daily operations by combining two of the biggest food and beverage platforms in the country. The new entity will run over 3,000 stores with an annual turnover of nearly Rs 80 billion. Nuvama also points to a new deal where the company will ‘Buy’ 19 KFC stores from Yum India at a good price. To improve profits, the management is closing small, poorly performing Pizza Hut shops and moving toward smaller stores that focus mostly on home delivery.
Nuvama on Godrej Consumer Products: ‘‘Buy’’
Nuvama Institutional Equities maintains a ‘Buy’ rating for Godrej Consumer Products with a target price of Rs 1,350, suggesting a potential gain of 7.6%. The firm’s analysis shows that the company is doing better than expected, especially in its home care business which is seeing double-digit growth in sales volume. While there is some pressure on pricing in Indonesia due to heavy competition, the business in India remains very healthy. Nuvama expects the India-based earnings to grow by 20% compared to last year. The report also mentions that the company is benefiting from lower costs for the materials used to make its products. Growth in other international markets like Africa, the USA, and the Middle East also remains steady and is expected to stay in the double digits.
Nuvama on Marico: ‘Buy’
Nuvama Institutional Equities has assigned a target price of Rs 865 to Marico, offering a potential upside of 13.8% from the current market levels. According to the firm, the company is successfully growing its sales volume, with its total revenue expected to rise by 27%. A major reason for this is the 22% growth in the specialized hair oil business and strong sales in Bangladesh. The report notes that Marico is likely to see better profit margins because the price of copra, a key ingredient, has dropped by 30%. Additionally, Nuvama finds that the company’s newer digital-only brands are starting to scale up well and contribute more to the overall business.
Nuvama on Oswal Pumps: ‘Buy’
Nuvama Institutional Equities has started covering Oswal Pumps with a target price of Rs 720, which is 42.5% higher than the current price. The firm believes the company is a leader in the move toward solar power in Indian agriculture, specifically through the PM-KUSUM government program. Unlike many competitors, Oswal Pumps makes almost all its own parts, including solar modules and controllers, which helps keep costs low and makes them more likely to win government contracts. Nuvama points out that between 2022 and 2024, the company installed solar pumps faster than any of its rivals. With the government aiming to install 3 million more solar pumps, the firm sees a massive market ahead, especially as the company expands into states like Maharashtra and Haryana.
Conclusion
The latest findings from Nuvama Institutional Equities show that these four companies are following very different paths to growth. While Marico and Godrej Consumer Products are benefiting from cheaper raw materials and steady demand for household goods, Devyani International and Oswal Pumps are growing through major corporate deals and new green energy technology. Nuvama’s analysis suggests that all four companies have shown they can manage their businesses well and are in a strong position to benefit from current economic trends in India.