Nuvama Institutional Equities has picked three stocks to bet on as the market prepares for the weekend. The key stocks to focus on include Divi’s Laboratories, Greenply Industries, and Aditya Vision. The brokerage sees as much as 50% potential in one of the stocks. Here’s a detailed analysis of why Nuvama chose these stocks. 

Nuvama on Divi’s Lab: Eli Lilly brings big opportunity

Nuvama maintained its ‘Buy’ rating on Divi’s Laboratories. The brokerage has a target price of Rs 7,110 on the stock. This implies an upside of almost 15% from current levels. Divi’s Laboratories has a big opportunity as Eli Lilly is poised to submit Orforglipron for regulatory approval after the recent successful trial results for its oral GLP-1. The drug would be launched globally, giving the path for a part of the 1 billion global obese population to benefit from the drug.

Divi’s Laboratories serves as a significant partner to Eli Lilly, primarily functioning as a key supplier of peptide fragments and intermediates for Eli Lilly’s anti-obesity and anti-diabetes drugs, such as tirzepatide and the upcoming oral GLP-1 candidate orforglipron. Nuvama thinks that Divi’s Lab is working on 2–3 Orforglipron ingredients.

Nuvama on Greenply Industries: Deleveraging balance sheet main focus

Nuvama has a target price of Rs 464 on Greenply Industries. This implies a bullish 50% upside on the stock, while retaining its ‘Buy’ recommendation. The Nuvama analysts met the management of Greenply Industries. The highlight of the meeting is that balance sheet deleveraging remains the key focus area of the company. The management thinks that MDF oversupply will normalise over the coming quarters. Greenply Industries is likely to revise its plywood growth guidance post-Q2FY25 while maintaining double-digit growth for MDF in FY26.

Nuvama on Aditya Vision: GST cuts to improve demand

Nuvama raised the target price on Aditya Vision to Rs 580 from Rs 503, implying an upside of 17% from current levels. The brokerage retained its ‘Buy’ call on the stock. Nuvama stated that upcoming GST cuts shall improve demand next season, and with a strong start to Central UP expansion, per-store throughput is likely to recover to FY25 levels by FY27. This raises the brokerage’s estimate for revenue by 4, EBITDA by 5, and net profit by 5% for FY27. 

However, Aditya Vision faced a weak Q1 FY26 due to unseasonal rain after building up a large AC inventory in March. To manage excess stock, Aditya Vision halted AC orders after April. 

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