The markets are under pressure and the benchmark equity indices were trading in the red. The Nifty 50 was down 0.65% at 23,228.60 while the Sensex was down 0.56% at 76,88.26. That said there are some interesting opportunities to invest. Brokerage houses have recommended a ‘Buy’ call on select stocks. Here are 3 stocks to watch-
Nuvama on Eicher Motors
The brokerage house, Nuvama Institutional Equities in a research note, said that Eicher Motors reported a 13% rise in its domestic Royal Enfield sales compared to a drop of 2% industry-wide in the third quarter of FY25. “We reckon the momentum shall continue ahead on the back of strong acceptance of the new Bullet variant–Battalion Black, new models/variants (Bear 650, Classic 650, Guerrilla 450, Scram 450, Classic 350 variants) and marketing push,” said Nuvama. Following this, it raised the revenue estimates by 4% for FY25-27.
ALSO READEicher Motors shares slide 7%. 3 reasons are… Nomura on Kansai Nerolac
The brokerage house maintained its ‘Buy’ rating on Kansai Nerolac. It finds the stock a good bet as Nerolac is trading at a 25% discount to its 10-year average price given the condition of high competitive environment. Plus, it is trading 30% lower than its market leader. According to Nomura, Nerolac performed much better than the market leader. Now, the spotlight is on a change of guard and a new strategy. The higher inflation impacted decorative demand leading to a low-single-digit-percentage sales decline which it factored in by cutting earnings per share estimates for FY26 by 3% and 6% for FY27. Further, it adjusted the target price slightly to Rs 325 from Rs 333.
Motilal Oswal on Varun Beverages
The domestic brokerage house, Motilal Oswal, in a research note, maintained its ‘Buy’ rating on Varun Beverages with a target price of Rs 680. It expects Varun Beverages to maintain its earnings momentum. This will be helped by increased penetration in newly acquired territories in Africa, stable growth in the domestic market, continued expansion in capacity and distribution reach (10% annual addition in outlets), and growing refrigeration in rural and semi-rural areas.
Nuvama on Mahindra & Mahindra
The brokerage firm maintained its ‘Buy’ rating on Mahindra & Mahindra. The brokerage house expects the auto segment’s revenue to grow at a compounded annual growth rate of 16% over FY25-27,
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