Latest news with #NuvamaInstitutionalEquities
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Business Standard
5 days ago
- Business
- Business Standard
Outlook: Where to invest in an ageing bull market? Nuvama Equities decodes
Stock market outlook: As the pent-up demand-led stock market rally faces downside risks, analysts at Nuvama Institutional Equities share their investment guide for an ageing bull market Nikita Vashisht New Delhi Listen to This Article Stock market outlook: The bull run in India's stock market, which began after the Covid-19 -induced market crash, is ageing. In fact, rising headwinds, including high valuations and plateauing profit growth, are leaving little room for upside for Indian equities. According to analysts at Nuvama Institutional Equities, every bull or bear market, typically, expires in about five years. The post-pandemic rebound completed five years in March 2025, thus, officially crossing the five-year mark. The Indian stock market, however, lacks levers to extend this uptrend, they caution. Outlook: Rising risks for Indian stock markets A recent report by the brokerage noted
Business Upturn
12-06-2025
- Business
- Business Upturn
Nuvama downgrades Coal India stock to ‘Reduce'; cuts target price to Rs 367 on weak volumes, rising costs
Nuvama Institutional Equities has downgraded Coal India Ltd (CIL) to 'Reduce' from 'Hold', citing continued earnings pressure due to weak power demand, lower e-auction prices, and rising competition from captive coal miners. By Markets Desk Published on June 12, 2025, 07:55 IST Nuvama Institutional Equities has downgraded Coal India Ltd (CIL) to 'Reduce' from 'Hold' , citing continued earnings pressure due to weak power demand, lower e-auction prices, and rising competition from captive coal miners. The brokerage has revised its target price to ₹367 from ₹405 earlier, valuing the stock at 5x FY27E EV/EBITDA. Coal India has started FY26 on a soft note, with sales volume declining ~4.7% year-on-year during April–May 2025. Nuvama expects this trend to continue through June, as overall power demand fell 1.6% YoY during the pre-monsoon period, and captive coal players continue to gain share. Data from the Ministry of Coal shows that volume from captive and commercial mines rose 14.5% YoY to ~35 million tonnes in April–May 2025, capturing ~20% of demand, up from 17.5% in the same period last year. During FY25, captive players consumed 197 million tonnes, growing 31% YoY. With captive mine capacity peaking at 575 mtpa, Nuvama sees even Coal India's 2–3% volume CAGR target at risk. Nuvama has trimmed its volume estimates by 2% for both FY26 and FY27 to 770 mt and 793 mt, respectively — implying just 2% CAGR over FY25–27. High inventory, rising costs to impact margins Coal India's coal inventory at end-May 2025 stood at ~112 million tonnes, significantly above the five-year average of 83 million tonnes, restricting any meaningful production increase. Management has guided for a rise in the stripping ratio to 2.67x in FY26 (vs 2.58x in FY25), which will push cost of production (CoP) higher due to increased overburden removal without corresponding volume growth. Nuvama expects CoP to grow at 4% CAGR to ₹1,422 per tonne by FY27, factoring in wage revision-related cost increases in FY27. Limited operating leverage from stagnant production will further weigh on earnings. Lower e-auction realisations add to pressure Adding to the challenges is the continued decline in e-auction realisations. Benchmark Indonesia thermal coal (6323 kcal) prices have dropped to USD 115/t, down from earlier highs, and Nuvama believes further downside is possible. Coal India's e-auction prices have dropped from ₹2,615/t in Q4FY25 to ₹2,200–2,300/t currently. The brokerage now factors in an average realisation of ₹2,200/t in FY26 and ₹2,100/t in FY27. Despite these headwinds, Coal India's high dividend yield (~6%) remains its only bright spot. However, Nuvama noted that it prefers growth-focused opportunities, which are currently lacking for Coal India. The brokerage expects EBITDA to fall at a 2% CAGR over FY25–27, reinforcing its cautious stance. Disclaimer: The views and target prices mentioned are as stated by Nuvama and do not represent the opinions or recommendations of this publication. Investors are advised to consult their financial advisors before making any investment decisions. Markets Desk at
Economic Times
29-05-2025
- Automotive
- Economic Times
Nuvama sees India as auto safe haven, bets on Eicher, TVS, M&M, Maruti amid global slowdown
Nuvama Institutional Equities has turned bullish on key Indian auto stocks, backing domestic demand resilience and new product momentum. It issued 'buy' calls on Eicher, TVS, Maruti, M&M and others, while cutting ratings for Tata Motors and Ashok Leyland. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India a bright spot Global outlook weak Nuvama Institutional Equities is betting on Indian two-wheeler, passenger vehicle and tractor majors including Eicher Motors Maruti Suzuki and Mahindra & Mahindra to outperform, citing resilient domestic demand and product momentum, even as the global auto industry faces broad-based volume declines in brokerage has turned selectively bullish on Indian auto stocks, issuing 'buy' ratings for four two-wheeler manufacturers, Eicher Motors with a target price of Rs 6,200, TVS Motors at Rs 3,200, Bajaj Auto at Rs 10,700, and Hero MotoCorp at Rs 5,100, and naming them as key beneficiaries of 'domestic strength, new launches and premiumisation tailwinds.' Nuvama said the two-wheeler export cycle has likely bottomed out and expects Bajaj and TVS to 'lead the pack on volume growth.'Nuvama also maintained a positive view on passenger vehicle major Maruti Suzuki, with a target price of Rs 13,400, and on tractor and utility vehicle maker Mahindra & Mahindra at Rs 3,700. Escorts Kubota was rated 'buy' at Rs 3,600. On the other hand, Tata Motors and Ashok Leyland were rated 'reduce' with target prices of Rs 670 and Rs 240, respectively, citing weak segments and freight-related structural component stocks also feature among the brokerage's top picks. Motherson Wiring India was rated 'buy' with a target of Rs 83, Uno Minda at Rs 1,300 and Sona Comstar at Rs 560. In the tyre segment, Nuvama favours CEAT with a target of Rs 3,800 and Apollo Tyres at Rs 550.'Domestic 2Ws and PVs continue to see tailwinds from demand and product refresh. Export-oriented names should gradually recover as overseas demand stabilises,' Nuvama global pressures, the brokerage sees India's auto landscape as relatively insulated. While global auto players face demand weakness, regulatory overhangs and soft freight markets, the Indian market is benefiting from steady farm incomes, infrastructure activity and improving consumer expects India's domestic tractor industry to grow in the mid-to-high single digits in FY26, supported by 'good Rabi harvest cash flows, higher crop prices, above-normal monsoon expectation, and sufficient water levels in reservoirs.' Escorts expects export growth of 20–25% in the same period, while M&M is upbeat about demand in South India and Leyland sees growth across light, intermediate and heavy commercial vehicles in FY26. Tata Motors forecasts 'single-digit growth,' supported by cargo HCVs and buses, although it flagged risks to high-tonnage trailer volumes from the shift to the Western Dedicated Freight contrast to India's resilience, Nuvama expects the global auto sector to remain subdued in 2025. 'North America HCV volumes are likely to decline up to 16% and Europe HCV by up to 15%,' the brokerage said, citing economic uncertainty, weak freight demand and lack of prebuying amid unclear EPA27 equipment demand is expected to fall by up to 15% in North America and 10% in Europe, while tractor volumes are also projected to remain weak after sharp Q1 declines in both regions. Global PV production is expected to drop in the U.S. and EU, while China may see marginal gains. Bosch forecasts a 4–7% increase in PV production and 7–10% in two-wheelers in India for such as Bharat Forge, Ramkrishna Forgings, Balkrishna Industries and SAMIL are exposed to these global headwinds, but Nuvama said it believes they 'should outpace industry' due to robust order books and a global slowdown weighing on volumes across regions, Nuvama is tilting toward India-centric names that offer visibility on domestic demand and margin tailwinds.
Mint
29-05-2025
- Business
- Mint
Up 50% in May! This T&D stock jumps another 5% to hit new record high. Is it in your portfolio?
GE Vernova T&D India share price in focus: Extending its winning streak for the sixth straight session, GE Vernova T&D India's share price surged another 5% in intraday trade on Thursday, May 29, touching a new record high of ₹ 2,334 apiece. This took the six-day cumulative gain to 29%. The surge in demand for the stock came after the company's March quarter results beat Street estimates, helping it maintain a steady upward trend despite sharp volatility in frontline indices. Domestic brokerage firms have also raised their target prices for the stock, lending further support to GE Vernova T&D India's ongoing rally. Since the release of its Q4 numbers on May 23 (post-market hours), the stock has jumped 24% in just four trading sessions and has gained 50% in May so far. For the quarter ended March, the company reported a nearly three-fold jump in net profit to ₹ 186.49 crore, driven by a sharp rise in revenue, which surged to ₹ 1,173.65 crore from ₹ 919.31 crore a year earlier. For FY25, net profit and revenue grew by 235% and 35.5%, reaching ₹ 608 crore and ₹ 4292 crore, respectively. Operating profit margin for Q4FY25 surged to 21.9%, compared to 12.1% in the same quarter last year, with FY25 closing at a robust 19.1% versus 10.1% in FY24. In terms of order inflows, the company secured ₹ 30 billion worth of new orders in Q4 — a 125% year-on-year increase — pushing its total order backlog to ₹ 127 billion. This is nearly three times FY25 sales and ensures revenue visibility for the next three to four years. Following GE Vernova T&D India's strong March quarter results, brokerages have revised their target prices upward. Japanese brokerage firm Nomura raised its target price to ₹ 2,600, up from the earlier ₹ 2,500, while maintaining its 'Buy' recommendation. Domestic brokerage Nuvama Institutional Equities also raised its target price to ₹ 2,250 per share, retaining a 'Buy' rating. However, the stock has already surpassed this target during its recent rally. Nuvama highlighted that the company's consistent base order inflow growth of 20–25% per annum, combined with HVDC optionality and sustained operating profit margins of 19.1% in FY25, remains a key growth driver. The brokerage also pointed to a significant rise in exports, which have increased to approximately 30%, up from 20% two to three years ago. This growth is attributed to larger orders from GE's global group entities and international clients across Europe, the Middle East, Southeast Asia, LATAM, and Australia. This export momentum is in addition to India's ongoing transmission and distribution (T&D) investment cycle, with the Central Electricity Authority (CEA) planning to spend ₹ 9.15 trillion over FY22–32, including 8–9 HVDC projects. Of these, equipment orders for at least two HVDC projects are expected within the next 12 months — a development that could position GE Vernova as a major beneficiary in the high-voltage and extra-high-voltage (HV/EHV) segment (220 kV and above), the brokerage added. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Business Upturn
28-05-2025
- Business
- Business Upturn
Nuvama cuts Aurobindo Pharma target to Rs 1,485 but retains ‘Buy' on healthy EBITDA margin
By News Desk Published on May 28, 2025, 08:26 IST Nuvama Institutional Equities has retained its Buy rating on Aurobindo Pharma (ARBP) but revised its target price down to ₹1,485 from ₹1,677, citing a mixed Q4 performance and a cautious FY26 outlook. The brokerage said revenue and adjusted EBITDA beat expectations, but PAT (profit after tax) missed estimates. Nuvama noted that the adjusted EBITDA margin of 22.6% was better than anticipated, reflecting effective cost control and operational efficiency. The management has guided for single-digit growth and flat margins in FY26, while FY27 is expected to benefit from new product launches and biosimilar contributions in Europe. This could support stronger performance in the medium term. Despite the margin outperformance, Nuvama has reduced its PAT estimates for FY26E and FY27E by 5% and 4% respectively, factoring in lower earnings visibility and conservative growth assumptions. The report also flagged a potential future trigger in the form of a government announcement on minimum input price for PLI (Production Linked Incentive) scheme products, which could support sector margins. Disclaimer: The views and recommendations expressed above are those of the brokerage firm. Business Upturn does not endorse or offer any investment advice. News desk at
