Nuvama Institutional Equities has given a Buy rating to select stocks. The recommendations are based on the company’s quarterly results, share price performance and other key metrics like consumer demand, price hikes, and other factors –
Top 3 Buy recommendations by Nuvama
Bajaj Consumer Care
The brokerage house retained a Buy rating on Bajaj Consumer Care. However, it slashed the target price by 8.6% to Rs 274 from Rs 300. The brokerage house factored in weak consumer demand and margin pressure. This also led to a cut in earnings per share (EPS) estimates by 9% for FY26 and FY27. The company’s EBITDA was lower in Q3 FY25 which was dented by high copra prices and staff cost. The company’s EBITDA margins came 388 basis points lower YoY to 11.2%. However, the company took a 5% price hike in the quarter to come over the higher copra prices. The management of Bajaj Consumer Care’s EBITDA margin of 11% was an aberration and has guided for 15% in the near term.
United Breweries
Nuvama Institutional Equities maintained its ‘Buy’ rating on United Breweries. Also, it raised the target price by 5.9% to Rs 2,505 from Rs 2,365. The 15% price hike in Telangana (17% of volume) shall make United Breweries’s state EBITDA neutral versus loss-making earlier. “We like the company’s efforts on continuously investing in growth and affordability along with the announcement of a capex of Rs 750 crore in UP to produce mainstream and premium products, including Heineken, with provision for both cans and bottles,” said Nuvama. However, due to higher-than-expected growth in Premium hurting bottle return rates and a dip in gross margin, the brokerage cut the EPS estimates by 6% for FY26 and FY27. Plus, it took into account the higher interest cost on debt, which the company will take for capital expenditure.
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Nuvama retained its Buy rating on Aditya Birla Fashion and Retail. However, it cut the target price by over 8% to Rs 315 from Rs 343. It maintained the rating as the company’s margins in Q3 FY25 inched up after rolling out lower discounts. Plus, its like-for-like growth in retail channels was in double digits.
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