From Maruti to Eternal: Why Nuvama is betting big on 5 stocks with 15% to 54% upside potential 

The list cuts across sectors and includes names such as Eternal, Maruti Suzuki India, Motherson Sumi Wiring India and Skipper, along with consumption plays like Sapphire Foods.

Across reports, the common theme is that operating performance is holding up even where costs remain a pressure point, and management commentary continues to back medium-term growth.

Here is a detailed analysis of Nuvama’s investment rationale for these 6 stocks –  

Nuvama on Eternal: ‘Buy’

Nuvama has maintained a ‘Buy’ rating on Eternal with a target price of Rs 380, implying an upside of around 50%. The brokerage notes that revenue rose to Rs 17,290 crore in Q4FY26, up 196.5% year on year from Rs 5,833 crore, while adjusted profit stood at Rs 174 crore compared to Rs 39 crore in the same quarter last year.

The report points to a steady recovery in food delivery demand and improving unit economics, while quick commerce continues to scale with better contribution margins.

“Management remains confident of delivering 60% CAGR over the next three years aided by assortment expansion, densifying in existing cities and expanding into newer geographies, while the margin shall move steadily towards ~3% levels,” Nuvama said.

Nuvama adds that cost efficiencies and higher revenue per order are supporting margins in the core food delivery business, while the quick commerce segment is expected to drive incremental growth over the medium term.

Nuvama on Sapphire Foods India: ‘Buy’

Nuvama has upgraded Sapphire Foods India to ‘Buy’ with a target price of Rs 239, indicating an upside of about 37%. The brokerage notes that revenue increased to Rs 792 crore in Q4FY26 from Rs 711 crore a year ago, while EBITDA rose to Rs 124.5 crore from Rs 106.2 crore.

The report highlights that growth is being driven by the KFC segment, supported by strong customer acquisition and improved traction in value offerings.

“The performance was driven by KFC, supported by a two-pronged consumer recruitment strategy, while Pizza Hut remained weak,” Nuvama says.

Nuvama also points out that same-store sales growth has picked up and continues into the current quarter, which could support a gradual recovery in profitability despite ongoing weakness in the Pizza Hut business.

Nuvama on Maruti Suzuki India: ‘Buy’

Nuvama has retained a ‘Buy’ rating on Maruti Suzuki India with a target price of Rs 15,800, implying an upside of about 22%. The brokerage notes that revenue rose to Rs 52,449 crore in Q4FY26 from Rs 40,909 crore, while EBITDA increased to Rs 6,156 crore from Rs 4,842 crore.

While margins came in below estimates due to commodity cost pressures, the report remains positive on the growth outlook supported by new product launches and exports.

“We anticipate revenue and EBITDA shall grow at 10% and 11% CAGR over FY26 to FY28E, with an average return on invested capital of around 40%,” Nuvama said.

Nuvama adds that expansion in the product portfolio, especially in sports utility vehicles, along with capacity additions and export opportunities, should support earnings momentum over the coming years.

Nuvama on Motherson Sumi Wiring India: ‘Buy’

Nuvama has maintained a ‘Buy’ rating on Motherson Sumi Wiring India with a target price of Rs 60, implying an upside of about 54%. The brokerage notes that revenue rose to Rs 3,334.6 crore in Q4FY26 from Rs 2,509.5 crore, while profit came in at Rs 167.3 crore compared to Rs 164.9 crore a year earlier.

The report highlights that demand from original equipment manufacturers and ramp-up at new facilities are supporting growth, even as margins remain sensitive to commodity costs.

“We forecast a 13% revenue CAGR over FY26 to FY28E driven by industry growth, premiumisation and electrification,” Nuvama says.

Nuvama expects the transition towards electric vehicles and higher electronic content per vehicle to support long-term growth, with utilisation gains aiding profitability.

Nuvama on Skipper: ‘Buy’

Nuvama has retained a ‘Buy’ rating on Skipper with a target price of Rs 560, indicating an upside of about 15%. The brokerage notes that revenue rose to Rs 1,666.6 crore in Q4FY26 from Rs 1,287.8 crore a year earlier, while profit increased to Rs 78.1 crore from Rs 47.9 crore.

The report points to strong execution in the engineering segment and improving operating margins as key drivers of performance.

“Management has pegged FY27 growth guidance at a conservative 15% YoY citing export pain due to the West-Asia conflict with PAT growth of 30% plus supported by a healthy contract buffer,” Nuvama adds.

Nuvama adds that a strong order book and ongoing capacity expansion provide revenue visibility, while better cost control and execution are likely to support margins.

Conclusion

Nuvama’s latest set of recommendations brings together companies at different stages of growth but with a common thread of earnings visibility backed by operating momentum. Consumption-driven names are seeing demand recovery, auto and ancillary players are benefiting from product cycles and technology transitions, while industrial companies are executing on order books with improving margins.

The brokerage’s target prices suggest meaningful upside across these stocks, with the case built on sustained revenue growth and gradual improvement in profitability over the next few years.

Disclaimer: The investment details and target prices mentioned are based on third-party brokerage reports and are for informational purposes only. They do not constitute a direct recommendation to buy, sell, or hold any security. Capital market investments carry significant risks; readers are advised to consult a SEBI-registered investment advisor before making any financial decisions.

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