Nuvama Institutional Equities picked Galaxy Surfactant, ZEE Entertainment, and Mario with a Buy rating. The brokerage house sees returns of up to 34% from these stocks over the next 12 months. Here’s a detailed analysis behind the pick-
Nuvama on Marico: Demand scenario to be favourable in FY26
Nuvama has retained its Buy rating on Marico, with an unchanged price target of Rs 815. This implies a potential of generating returns of almost 17% over the next 12 months. Analysts of Nuvama met with Saugata Gupta, MD & CEO of Marico, who is now in his 11th year in the role. The company’s market capitalisation surged 18% CAGR during Gupta’s tenure.
Further, Marico is targeting to touch a revenue of Rs 20,000 crore by FY30, it was Rs 10,800 crore in FY25. Plus, the company is aiming for a high single-digit volume growth over the mid-long term. Marico is targeting a 25% CAGR for its food revenue over the medium term.
“We expect the demand environment to be favourable in FY26, and copra inflation pressures to ease off by Q2 FY26. All in all, we remain positive on the stock,” said Nuvama.
Nuvama on ZEE Entertainment: Sees potential of generating 34% returns
The international brokerage house, Nuvama, maintained its ‘Buy’ rating on ZEE Entertainment, with a target price of Rs 178 per equity share. The price target sees an upside potential of up to 34%.
Nuvama picked ZEE as in FY26 it aimed to achieve an EBITDA margin of 18–20% (14.4% in FY25) through cost control and by reducing EBITDA losses up to 60% in Zee5 after a 50% YoY reduction in FY25. Secondly, ZEE is aiming for an ad revenue growth of 8–10% year-on-year after an 11% fall in FY25. Plus, the entertainment giant’s cash and cash equivalents were up 102% at Rs 2,410 crore as on March 2025, which was 19% of the total market capitalisation.
Nuvama on Galaxy Surfactant: Raised target price
Nuvama raised the target price of Galaxy Surfactant to Rs 3,061, while maintaining its ‘Buy’ call on the stock. The new price target looks at generating up to 23%. Nuvama said that it noticed a pivotal shift in management’s approach towards growth. The company is eyeing an entry into high-value and growing areas such as Beauty and Wellness with a fresh focus on the “Leave-On” category. The company is now in the hands of professionally run management.
Galaxy surfactant is aiming 2x volumes, 2.5x EBITDA, and 22%-plus Return on Capital Employed (RoCE) over FY25–30. “We believe the company is shooting for the moon, but shall land among the stars, which also makes a favourable investment case. Assuming slightly better volumes, we are raising FY26 and FY27 EPS by 2.7% and 3.4%,” said Nuvama.