Nuvama Institutional Equities has picked three stocks and sees as much as 56% upside in one of these stocks. The brokerage house has chosen Dabur, Flair Writing, and AWL Agri Business with a ‘Buy’ rating. Here are the details behind the rating and target price-
Nuvama on Dabur: Urban consumption to recover
Nuvama maintained ‘Buy’ on Dabur, with a target price of Rs 615, implying an upside of 25%. The brokerage instilled confidence in Dabur after it released its Q1FY26 update. The stock is likely to do well in the near term.
Plus, the FMCG giant remains positive on its India business, citing a recovery in urban consumption and sequential demand growth in the FMCG sector driven by higher volumes.
“We expect consolidated revenue to grow 2.1% YoY (up 7% in Q1FY25). Domestic business shall fall 3% YoY (up 7% YoY in Q1FY25). International business shall expand 17% YoY,” said Nuvama.
Home and Personal Care is likely to perform well, while healthcare shall see double-digit growth led by Dabur Honitus (up 40% in Q1FY26). The beverages portfolio was hurt by a weak summer, while Activ Juices and Coconut Water are expected to grow in mid-teens in Q1FY26, according to the brokerage firm.
Nuvama on Flair Writing Industries: New avenues led to rise in price target
The analysts at Nuvama interacted with the top management of Flair Writing Industries. The stock has recently seen a correction in valuation. Now, considering healthy 15–16% YoY growth (starting Q1FY26 itself) led by new avenues such as creative and steel bottles along with a gradual margin increase, Nuvama raised price target to Rs 400 from Rs 340, implying an upside of 46.5%. The company expects revenue to expand 15–16% YoY, led by rapid growth in creatives (40% YoY), steel bottles (50% YoY) and pens (10% YoY) business in FY26.
Adding to that, the gradual margin recovery is likely via a higher share of premium products and an increase in in-house production. Plus, the expectations are to scale up the steel bottle business to Rs 100 crore by FY27. The brokerage maintained its ‘Buy’ rating on Flair writing.
Nuvama on AWL Agri Business: Core segments posted strong growth
AWL Agri Business’s core categories, except rice and edible oil, reported strong volume growth in Q1 FY26. Nuvama has a target price of Rs 401 on the stock, looking at an upside of 56%. The brokerage house estimates that the revenue may grow 21% YoY, compared to the earlier estimate of 10% YoY growth.
However, it expects that the overall volumes shall fall 4% YoY, with rice acting as a primary drag and input price volatility. The company’s edible oil segment’s volume shall fall 2% YoY due to pressure on palm oil sales, which were up 12% in Q1 FY25.
The company’s food and FMCG volume shall fall 21% YoY due to the consolidation of the branded regional rice business and high base (up 40% in Q1 FY25), while basmati rice volume shall grow in double digits.