Nuvama Institutional Equities has picked three stocks and rated them Buy. These include Adani Ports and SEZ, Motherson Sumi, and VRL Logistics. The brokerage house sees as much as 44% upside potential in one of these stocks over 12 months.
From riding India’s long-term trade growth story to the surging operational metrics, Nuvama lists out a detailed rationale for these counters.
Nuvama on Adani Ports and SEZ: Well placed to ride on India’s long-term growth
Nuvama retained its ‘Buy’ call on Adani Ports, with a target price of Rs 1,900 per share. This implied an upside of as much as 31.5% in the stock over the next 12 months.
The brokerage said that Adani Ports, with a diversified port and cargo mix, is very well placed to ride on India’s long-term trade growth opportunity. Further, strong cash flow and balance sheet augur well for any inorganic possibilities.
Notwithstanding ongoing trade disruption, the company reiterated FY26-FY30 guidance across parameters. However, delayed normalisation of the current trade disruption scenario is a key risk.
Nuvama on Motherson Sumi: Premiumisation and EV transition to lead growth
Nuvama has raised the target price on Motherson Sumi to Rs 60 from Rs 57, implying an upside of almost 28% from the current market price. The brokerage retained its ‘Buy’ rating on the stock. The brokerage believes that premiumisation and EV transition will lead the company to a 14% CAGR in revenue over FY25-FY28, led by industry outperformance on the back of content.
The company reported an EBITDA of Rs 280 crore, growing 12% YoY, slightly above the brokerage’s estimates. Adjusting start-up costs for new greenfields, EBITDA rose to Rs 330 crore.
Nuvama on VRL Logistics: H2 growth is based on customer addition
Nuvama maintained a ‘Buy’ rating on VRL Logistics and raised the target price to Rs 390 from Rs 385, implying an upside of 44% from the current market price. The company’s EBITDA rose 14% YoY and net profit increased by 39% YoY in Q2 FY26, on the back of higher realisation (gross margin improved 470 basis points YoY).
VRL Logistics indicated 4–5% QoQ growth in Q3, 7–8% in Q4 (seasonality) based on customer additions (20% of Q2 volume came from new customers), coupled with partial return of old customers and aspires for 8–10% volume growth on a sustainable basis (FY27 onwards). The company posted flat Q2 FY26 revenue on the back of realisation growth (12% YoY) and volume decline of 11% YoY (+4% QoQ) due to exit from low-margin business.
