The stock markets have seen significant pressure recently but it could be an opportunity for some buying on dips. The brokerage firm Nuvama has maintained a ‘Buy’ rating to these four stocks- SAIL, Berger Paints, Muthoot Finance, and Lupin. According to the brokerage firm, these stocks have a strong growth potential despite the headwinds.
Let’s take a look at the four stock recommendations by Nuvama in the down market. Nuvama on SAIL: To benefit from safeguard duty on steel imports
As per the brokerage firm, SAIL reported a solid Q3FY25 performance, with an adjusted EBITDA of Rs 20.3 billion, surpassing the estimated Rs 17.9 billion and marks a 60% QoQ increase, majorly driven by lower costs of production.
The brokerage in its report added, “SAIL will be the biggest beneficiary of any safeguard duty on steel imports.” The brokerage has upgraded SAIL from ‘Reduce’ to ‘Buy’ following a 40% stock decline and has revised the target price to Rs 123 from Rs 112.
The shares price of SAIL today, February 13 is trading at Rs 110.75 apiece on NSE, up by 4.73% in the intraday.
ALSO READSAIL surges 4% despite 66% drop in Q3 profit: Find out why Nuvama on Berger Paints: Rising market share a positive
The paint maker, Berger Paints reported mixed results for Q3FY25, with revenue growing 3.2% YoY while EBITDA declined 1.7% YoY. The company’s volume growth stood at 7.4%, but price reductions of 4% to 5% and slower growth in premium and luxury segments affected revenue.
Despite this, the brokerage firm remains optimistic, noting in its report that Berger Paints is making steady market share gains even in a competitive environment.
Furthermore, the brokerage has revised its FY25E/26E/27E earnings per share estimates downward by 9.4%/4.9%/4.2%, setting a revised TP of Rs 595 (earlier Rs 625) but maintaining a ‘Buy’ rating.
Nuvama on Muthoot Finance: Rally in gold price supports growth
In the Q3FY25, Muthoot Finance poste an AUM growth accelerating to 34% YoY and 8% QoQ. This was driven by a 1.5% increase in tonnage, 3% rise in gold prices, and stable net interest margins.
The brokerage believes that Muthoot is well-positioned for sustained growth and has upgraded the stock from ‘Reduce’ to ‘Buy’,
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