A recovery in consumer demand, rapid jewellery expansion, new manufacturing capacity, a stronger infrastructure order pipeline and rising LNG infrastructure spending is putting the spotlight on several key stocks. Nuvama has a ‘Buy’ rating on six stocks where its target price implies upside of 17.4% to 51.1%.
Bajaj Consumer Care sits at the top of the list, with Nuvama expecting its core franchise to regain momentum as premiumisation and volume growth take hold. Sky Gold and Diamonds is pursuing an aggressive expansion in revenue and production, while PG Electroplast is adding compressor capacity as air-conditioner demand grows. Afcons Infrastructure Ltd. is building its order book, Astral Ltd. is moving deeper into CPVC integration and Petronet LNG is expanding its LNG infrastructure.
Nuvama on Bajaj Consumer: ‘Buy’
Nuvama has a ‘Buy’ rating on Bajaj Consumer with a target price of Rs 760, implying 51.1% upside from current levels.
The brokerage sees the company entering a new phase of growth after a period of pricing-led gains. The next leg is expected to come from volumes, premiumisation and a stronger contribution from Almond Drops Hair Oil (ADHO).
“Management aspires for revenue growth in the teens over four–five years, with ADHO targeting high single-digit volume growth and double-digit revenue growth,” Nuvama wrote.
Coconut and Banjara could add 300-400 basis points to core growth, while management is targeting EBITDA margins in the low-to-mid 20s. The focus is on increasing absolute EBITDA rather than trying to restore the earlier 30% margin level.
“With catch-up pricing largely complete, sustained volume growth and premiumisation will drive the next phase. A stronger ADHO franchise, alongside selective investment in the wider portfolio, remains central to management’s strategy,” the brokerage said.
The company’s growth plan therefore rests on a combination of higher volumes in the core portfolio and a stronger contribution from brands outside its traditional base.
Nuvama on Sky Gold and Diamonds: ‘Buy’
Nuvama has a ‘Buy’ rating on Sky Gold and Diamonds with a target price of Rs 1,144, implying 46.1% upside.
Sky Gold is pursuing a large expansion in both revenue and manufacturing capacity. Management has retained its FY26-30 revenue CAGR guidance of 30-35%, with a target of Rs 18,000-19,000 crore in revenue by FY30.
“Management reiterated their FY30 Vision targeting revenue of INR180–190bn by FY30E with an implied CAGR of 30–35% driven by customer additions, deeper wallet share, focus on value-added jewellery and export growth,” Nuvama wrote.
Production is currently around 9-10 tonnes, with management targeting around 24 tonnes annually by FY30. The company expects customer additions, greater wallet share and value-added jewellery to support the expansion.
Cash generation is also becoming an important part of the growth plan. Operating cash flow turned positive in Q1FY27, with management expecting Rs 180 crore of operating cash flow in FY27.
The company is targeting a net debt of Rs 200-250 crore by FY27 and aims to become net cash positive by FY30.
Nuvama on PG Electroplast: ‘Buy’
Nuvama has a ‘Buy’ rating on PG Electroplast with a target price of Rs 700, implying 38.1% upside.
The company is expanding its role in the air-conditioner value chain at a time when demand for cooling products is expected to remain strong. PG Electroplast expects air-conditioner volumes to grow around 20% in FY27, ahead of estimated industry growth of about 15%.
“PGEL expects FY27 AC volume to grow by ~20% (outperforming expected industry growth of ~15%) on a favourable FY26 base,” Nuvama wrote.
A two-million-unit compressor facility is on track to commence production by December 2026. The new capacity adds a significant manufacturing capability and gives the company greater participation in the compressor segment.
Raw material costs remain a pressure point, although the company has passed on around 75-80% of the inflation, according to Nuvama. Management has retained its ex-PLI FY27 EBITDA margin guidance of 7.5-8%.
The combination of higher air-conditioner volumes and the new compressor facility is expected to support the next phase of expansion.
Nuvama on Afcons Infrastructure: ‘Buy’
Nuvama has a ‘Buy’ rating on Afcons Infrastructure with a target price of Rs 334, implying 31.5% upside from current levels.
For Afcons, the focus is increasingly on the size and quality of the order pipeline. Management is targeting around Rs 30,000 crore of fresh orders in FY27, with about Rs 15,700 crore already secured at the time of Nuvama’s assessment.
“Management is looking to win Rs 30,000 crore of fresh orders in FY27E; the company has already won ~INR157bn orders to date in the current fiscal,” Nuvama wrote.
The marine business is expected to become a larger part of the order book. Afcons has won a Rs 5,300 crore order for the Vadhvan port and is pursuing additional dredging and jetty-related opportunities.
International orders are expected to account for around 30% of the order book, with opportunities across Europe, Africa and the Middle East.
Nuvama expects revenue growth to improve in FY28, while margins could remain under pressure in the first half of FY27 before recovering from the third quarter. The brokerage also expects the working-capital cycle to improve as stuck receivables are realised.
Nuvama on Astral: ‘Buy’
Nuvama has a ‘Buy’ rating on Astral with a target price of Rs 1,771, implying 27.3% upside.
Astral’s piping business remains the main earnings driver, with management retaining its FY27 volume growth guidance of 10-15%. The company has a 25-27% market share in CPVC pipes and around 10% in the overall pipes segment.
“Management maintained their FY27E growth guidance of 10–15%. Moreover, higher value growth is likely to support better fixed-cost absorption,” Nuvama wrote.
Backward integration into CPVC resin is another important part of the plan. Management expects in-house resin production to support margins and reduce working-capital requirements, given that a significant portion of the raw material is currently imported and stocked.
Astral is also expanding its paints distribution network. Management has retained its 20% revenue growth target for the paints business, while EBITDA margins are expected to remain in the low single digits.
The brokerage expects piping volumes, higher-value products and the resin project to remain important contributors to Astral’s earnings over the coming periods.
Nuvama on Petronet LNG: ‘Buy’
Nuvama has a ‘Buy’ rating on Petronet LNG with a target price of Rs 337, implying 17.4% upside.
Petronet is using its established LNG infrastructure as a base for further expansion. The Kochi-Koottanad-Bangalore-Mangalore pipeline is expected to be completed by the end of FY27, which should support higher utilisation at the Kochi terminal.
Nuvama wrote: “PLNG shall benefit from: i) new low-cost 5mtpa expansion at Dahej; ii) completion of the Kochi-Bangalore pipeline by FY27-end; iii) huge liquefaction capacity coming up globally, putting prices under pressure in the medium term; and iv) long-term fixed quantity take-or-pay contracts with annual 5% tariff hikes.”
The company’s third jetty at Dahej is progressing and is expected to be commissioned in FY28. It will be capable of handling LNG, propane and ethane.
Petronet is also increasing C2-C3 handling capacity at Dahej to 3 million tonnes per annum each from 1.2 million tonnes. Additional opportunities include LNG bunkering, LNG trucking, gassing-up and cool-down services and compressed biogas.
Nuvama expects the Dahej expansion, the Kochi pipeline, additional global LNG liquefaction capacity and long-term take-or-pay contracts to support Petronet’s earnings.
Six stocks, six different growth stories
The six ‘Buy’ recommendations by Nuvama are being driven by very different business developments. Bajaj Consumer is looking for a volume-led recovery in its core portfolio, while Sky Gold and Diamonds is targeting a rapid increase in revenue and production.
The common thread is that each company has a specific business trigger supporting Nuvama’s earnings expectations, whether that is premiumisation, manufacturing capacity, order inflows, integration or infrastructure expansion.
| Stock | Nuvama target price | Upside |
| Bajaj Consumer | Rs 760 | 51.1% |
| Sky Gold and Diamonds | Rs 1,144 | 46.1% |
| PG Electroplast | Rs 700 | 38.1% |
| Afcons Infrastructure | Rs 334 | 31.5% |
| Astral | Rs 1,771 | 27.3% |
| Petronet LNG | Rs 337 | 17.4% |
Disclaimer: This article is based solely on the respective Nuvama research reports. The target prices, estimates, business outlooks and other views attributed to Nuvama and its analysts are their own and have not been independently verified by the publication. The upside percentages are calculated from the price and target price stated in the respective reports and do not represent live market prices. Actual financial and operating results may differ from brokerage estimates because of business, execution, commodity-price, financing, regulatory and market-related factors. This article is intended for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security.