Nuvama has initiated coverage on Oswal Pumps with a buy rating and a target price of ₹720 per share, citing the company’s strong positioning at the intersection of agriculture and solar energy. The brokerage believes Oswal Pumps is well placed to benefit from the increasing integration of renewable energy solutions within India’s agricultural ecosystem.
Nuvama highlighted Oswal Pumps’ strong expertise in pump technology, combined with its in-house solar module manufacturing capabilities, as a key differentiator. This integrated model offers meaningful lifecycle benefits to both farmers and government programmes by improving efficiency, lowering operating costs and enhancing system reliability.
The brokerage expects Oswal Pumps to deliver revenue, EBITDA and PAT CAGRs of 21%, 13% and 11%, respectively, over FY26–28E, even after factoring in a high base effect. Growth over FY24–26E has already been strong, with revenue, EBITDA and PAT CAGRs of 66%, 86% and 95%, respectively. Nuvama has also conservatively built in a modest delay in the PM-KUSUM 2.0 scheme while assessing the company’s medium-term outlook.
Despite these conservative assumptions, Nuvama believes Oswal Pumps’ structural growth drivers remain intact, supported by policy tailwinds, rising adoption of solar-powered irrigation and the company’s integrated manufacturing capabilities.
Disclaimer: The views and recommendations above are those of Nuvama. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.