The brokerage house Nuvama Institutional Equities has given a ‘Buy’ rating on three stocks: United Breweries, Kalpataru Projetcts, and Titagarh Rail Systems. It raised the target price of United breweries while cutting it on the other two. Read below to know what compelled the brokerage firm to do so.
Nuvama on United Breweries: Raises target price by 6%
Nuvama has raised the target price on United Breweries by 6% to Rs 2,505 from Rs 2,365 while maintaining the ‘Buy’ rating on the stock. This was due to the company’s higher growth compared to Industry volumes. Its premium continued to outperform and its volumes rose 33% YoY, aided by strong growth of Kingfisher Ultra, Ultra Max, and Heineken Silver. “We like UBBL’s efforts on continuously investing in growth and affordability along with the announcement of capex of Rs 750 crore in UP to produce mainstream and premium products, including Heineken, with provision for both cans and bottles,” added Nuvama. The company’s higher-than-expected growth in premium hurt the bottle return rates due to which it slashed FY26 and FY27 earnings per share by 6%, each. United Breweries’ share price fell 2% to an intra-day low of Rs 1,999.05.
Nuvama on Kalpataru Projects: Strong macro triggers a positive
The brokerage house maintained its ‘Buy’ rating on Kalpataru Projects. However, it slashed the target price by 20% to Rs 1,196 from Rs 1,500. It expects the company to deliver an earnings per share compounded annual growth rate of 30% from FY25 to FY27, led by T&D capital expenditure supercycle and non-core asset sales. Plus, the company is likely the beneficiary of strong macro triggers, said Nuvama. These triggers are MoP’s continued investment in transmission connectivity capital expenditure for renewable energy projects, strong positive momentum in real estate launches, and spending on water supply (Jal Jeevan Mission). The share price of Kalpataru Projects rose 5.5% to an intra-day high of Rs 928.40. However, it has fallen almost 9% in the past five days.
Nuvama on Titagarh Rail Systems: FY26 EPS estimate cut on muted tender issue
Nuvama retained its ‘Buy’ call on Titagarh Rail Systems as it sees the inorganic route is propelling the growth trajectory. The company is well entrenched in the wagon segment having beefed up the business in its nearly two-decade journey. However, Nuvama cut the target price by 36% to Rs 1,197 from Rs 1,870. The company’s deferral of execution timelines for wagons, Vande Bharat and existing metro rail orders, and subdued tendering (both in wagons and passenger coach segment) along with no hike in outlay for railways in the budget led to a cut in earnings per share (EPS) estimates. It slashed the FY26 EPS estimates by 12% and FY27 by 13%. The share price of Titagarh Rail Systems fell 5.2% to a low of Rs 763.20, intra-day. It has fallen more than 10% in the past five days and erased over 29% of investors’ wealth in the last one month.