Electronics Mart India’s shares surged 4% following a positive update from Nuvama, which initiated coverage with a ‘Buy’ rating. The brokerage highlighted the company’s strong cash flow generation from its key markets in Telangana and Andhra Pradesh, positioning it well for future expansion. Nuvama sees these regions as a strategic foundation for growth, particularly as the company ventures into the highly competitive NCR market.
As per Nuvama, the stock is currently valued at 30 times its projected FY27 earnings per share (EPS), with a discounted cash flow (DCF)-based target price of ₹237. Nuvama’s valuation assumes an 18% free cash flow growth rate over the next decade, supported by a 15% weighted average cost of capital (WACC). This reflects confidence in the company’s ability to generate strong and sustainable cash flows.
Despite recent fluctuations in the stock price, with a 52-week high of ₹262.00 and a low of ₹153.87, the company’s growth potential continues to attract investor attention.
As of 11:14 am, Electronics Mart India shares were trading 4.98% higher at Rs 181.02 on the NSE.
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