The markets are muted, but there are many stock-specific opportunities. Nuvama Institutional Equities has picked three stocks with a ‘Buy’ rating, and the brokerage house sees as much as 39% upside potential in one of the stocks.
Here’s a detailed analysis of the top stock picks by Nuvama at this hour and how much they expect these stocks to run up-
Nuvama on Uno Minda
Nuvama has raised the target price in Uno Minda to Rs 620 from Rs 590, while retaining its ‘Buy’ rating on the stock. This implies a potential upside of 13% from the current levels for the Uno Minda share price. The company‘s management targets a revenue growth of 28% and 30% increase in EBITDA annually over FY25–FY30.
The growth in the existing business, premiumisation, higher exports, new products, and other opportunities to aid incremental revenue over FY25–FY30. The company’s premiumisation push is likely to be driven by growth in the Smart Access, Cockpit Electronics, and EV Harness segments.
The company’s revenue share of PVs (passenger vehicles) is likely to expand to 25% by FY30 from 14% in FY25. However, the two- and three-wheelers share may fall to 40% by FY30 from 47% in FY25. The share in the commercial vehicle space is also expected to dip to 25% from 28% during the same time frame.
“We are tweaking FY26–FY28 EBITDA by 1–4% factoring in higher growth for the underlying industry and increasing content,” said Nuvama.
Nuvama on Gujarat Fluorochemicals
Nuvama has increased the target price of Gujarat Fluorochemicals to Rs 5,298 per share from Rs 4,940, implying an upside of 39.4%. The brokerage maintained its ‘Buy’ rating on the stock. The change in price target came after the Directorate General of Trade Remedies (DGTR) recommended an anti-dumping duty on imports of polytetrafluoroethylene (PTFE) from China and Russia, ranging from $2,884/tonne to $5,933/tonne. This development is a significant positive for Gujarat Fluorochemicals (GFL), India’s largest PTFE manufacturer, which stands to gain from a more level playing field against low-cost imports.
In light of this positive structural shift, “we are revising up FY26, FY27, and FY28 EPS by 4.9%, 7.4%, and 6.9%, respectively,” said Nuvama.
Nuvama on CESC
Nuvama has upgraded CESC to ‘Buy’ from ‘Hold’ and also raised the target price to Rs 200 from Rs 187, with a potential upside of 17%, as the company’s renewable energy growth plans become more pronounced.
The company aims to double net profit to Rs 2,800 crore over FY25–FY30, led by 1.2/3.2GW RE addition by FY27-FY29 and 10GW target by FY32—3.8GW approved/7.6GW transmission connectivity applied for in high RE potential states. New solar manufacturing initiative of 3GW each cell and module CoD by FY28.
“While the current market price captures recent tariff hikes and regulatory asset recovery, valuations underplay the strong RE pipeline and solar manufacturing initiative, while a potential UP discom win could add a new growth optionality,” said Nuvama.
Factoring in timely regulatory asset recovery by FY30, 3.2GW of RE at 17% RoE, and a new solar manufacturing venture, along with a valuation rollover to FY28, yields a bull-case of rating upgrade along with increased target price.