According to Nuvama Institutional Equities, the brokerage has identified four companies with substantial growth potential, targeting upsides ranging from 7.6% to 51.8%. As reported by Nuvama, analysts cite corporate mergers, declining raw material expenses, and national green energy initiatives as key catalysts creating new market opportunities. The firm's research reports position these companies for significant gains based on sector-specific growth drivers.
Nuvama has set a target price of ₹211 for Devyani International, signaling a potential 51.8% increase from its current ₹139 level. According to the brokerage, the long-anticipated merger with Sapphire is expected to yield significant cost savings on raw materials and streamline operations. The combined entity will operate over 3,000 stores, generating nearly ₹80 billion in annual turnover. Additionally, Devyani International is acquiring 19 KFC stores from Yum India at a favorable price while strategically closing underperforming Pizza Hut outlets to focus on delivery-centric formats.
The brokerage maintains a 'Buy' rating on Godrej Consumer Products with a target of ₹1,350, suggesting a 7.6% gain. According to Nuvama, the company's home care segment is experiencing robust double-digit sales volume growth, with forecasts showing 20% year-on-year earnings growth in India. For Marico, Nuvama recommends a 'Buy' with a target price of ₹865, indicating potential 13.8% upside. The brokerage expects total revenue to climb by 27%, driven by a 22% expansion in specialized hair oil business and profit margin improvement due to 30% drop in copra prices.
Nuvama initiates coverage on Oswal Pumps with a target price of ₹720, representing a 42.5% increase from current trading levels. According to the firm, Oswal Pumps is positioned as a leader in India's agricultural solar power transition, particularly through the government's PM-KUSUM scheme. The company's in-house manufacturing of solar modules and controllers provides a cost advantage for securing government contracts. As reported by Nuvama, Oswal Pumps is set to benefit from the government's target of installing an additional 3 million solar pumps, with expansion plans in key states like Maharashtra and Haryana.
