The brokerage firm Nuvama has given “Buy” call to five stocks, projecting an upside potential of up to 30%. These recommendations are based on recent earnings, sectoral trends, and business outlook.
Let’s take a look at each of these stocks and know why the brokerage is bullish on them:
Nuvama on ITC: “Buy” with target price of Rs 540
The brokerage firm, Nuvama has given a “Buy” rating on ITC with a target price of Rs 540. This implies nearly 30% upside from its current market price of Rs 416.
The brokerage sees strong fundamentals for ITC, especially with the company reporting 20.6% YoY growth in net sales for Q1FY26. This was led by a 39% rise in the agri-business segment. Furthermore, the Cigarette volumes also beat expectations with 6.5% YoY growth.
According to the brokerage report, “We stay positive on ITC given early trends of urban revival and broad-based growth across segments.” However, margins were impacted due to high-cost tobacco inventory and elevated input prices.
Although, the FMCG revenues grew 5.2% YoY, excluding notebooks, the growth stood at 8.6%. The brokerage has revised its revenue estimates upwards but trimmed earnings projections slightly due to margin pressure.
Nuvama on Godrej Properties: “Buy” with a target price of Rs 2,506
Nuvama has maintained a “Buy” call on Godrej Properties. The brokerage has given a target of Rs 2,506 to the stock from the current market price of Rs 2,054.
In Q1FY26, Godrej Properties (GPL) posted pre-sales of Rs 70.8 billion, a decline of 18% YoY. However, the collections grew 22% YoY. The company launched six projects worth Rs 85 billion and added five new ones valued at Rs 114 billion.
“GPL’s steady market share gain has enabled it to withstand the softness in sales volumes,” the brokerage said. Despite some weakness in deliveries, Nuvama remains positive, citing a strong project pipeline and guidance for 10% growth in bookings for FY26E.
Nuvama on UPL: “Buy” with a target price of Rs 808
UPL is trading on an average at Rs 665 and Nuvama projects a 21.5% upside with a target price of Rs 808.
At a current price of Rs 665, Nuvama expects UPL to deliver nearly 21.5% returns. Q1FY26 revenue grew 1.6% YoY, aided by price gains and FX benefits, despite a marginal volume decline. EBITDA rose by 13.7% YoY to Rs 13 billion.
The report noted, “The worst of the inventory and pricing pressure is behind. Reiterating ‘BUY’.” Strong performance from Advanta and UPL SAS helped offset weaker numbers from Brazil. The company also improved its net debt metrics significantly and plans to raise $200 million through a rights issue in September 2025.
Nuvama on Federal Bank: “Buy” with a target price of Rs 225
Nuvama has a “Buy” rating on Federal Bank with a target price of Rs 225, suggesting a 14.8% upside from the current price of Rs 196.
Q1FY26 results were mixed, with net interest margin (NIM) contracting and credit costs rising.
“Federal is the safest mid-sized bank with potential to deliver strong growth,” according to the report. While Nuvama has trimmed its earnings forecasts, the long-term growth outlook remains intact.
Nuvama on Delhivery: “Buy” with a target price of Rs 545
Delhivery is rated “Buy” with a target price of Rs 545, representing a 26.7% upside from its current price of Rs 430.
Q1FY26 results beat expectations with 53% YoY growth in EBITDA and 67% rise in PAT. The company’s acquisition of Ecom Express is expected to boost volume growth and pricing power. “Delhivery is likely to turn in strong volume growth…along with a better pricing scenario,” the brokerage noted.
The company is also targeting over 20% growth in its partial truckload (PTL) segment. Management has maintained a guidance of 16-18% service EBITDA margin, with a possibility of even higher gains from operational efficiency.