Nuvama continues to back BHEL’s turnaround potential, maintaining its ‘Buy’ rating even as it lowers the target price to ₹335 from ₹360. The brokerage notes that despite a weak quarter, the revival story remains intact, backed by new order inflows.
BHEL is seen benefiting from a dominant 90%+ market share in thermal power equipment and may secure an additional ~17GW in orders over the next 2–3 years. However, factoring execution spillovers, the brokerage has trimmed FY26E and FY27E EPS estimates by 15% and 5%, respectively. Execution of backlog and growth from non-thermal projects remain key monitorables.
Nuvama on Trent share: Retains hold, TP at ₹5,850
Retail major Trent has seen margin resilience despite weak like-to-like (LTL) sales. Nuvama maintains a ‘Hold’ rating with a target price of ₹5,850.
The brokerage highlights that margin gains were supported by automation, technology deployment, and rationalized employee and rental costs. However, management commentary indicates continued pressure on LFL performance across markets. Consequently, revenue estimates for FY26/27 have been trimmed by 8% and 11%, while EBITDA estimates are adjusted upward by 1.7% and 0.1% on stronger margins.
Nuvama on Bharat Forge share: Retains hold, TP hiked to ₹1,280
Nuvama has retained a ‘Hold’ call on Bharat Forge, revising the target price upwards to ₹1,280 from ₹1,230. While the Q1 was soft and the outlook for core businesses remains muted, the brokerage remains cautiously optimistic.
The firm sees weakness in CVs, construction equipment, and tractor segments. Subsidiaries are expected to continue posting losses, while export and domestic auto growth remain modest. The brokerage estimates standalone revenue and EBITDA CAGR of 7% and 6% respectively over FY25–28E. Bharat Forge is seen trading at 35x/15x FY28E earnings, justifying the current stance.
Nuvama on Bajaj Auto share: Maintains buy, trims TP to ₹9,400
Despite lowering the target price to ₹9,400 from ₹10,700, Nuvama maintains a ‘Buy’ rating on Bajaj Auto following a strong Q1 EBITDA beat and a positive demand outlook.
The firm forecasts a 7% volume CAGR over FY25–28E, led by 13% export and 3% domestic growth. Latin America and Asia are expected to drive export performance. Revenue and EBITDA CAGR are pegged at 10% with RoE likely to hover around 28%. The lower TP reflects a revised valuation multiple amid moderated growth expectations.
Disclaimer: The views and investment recommendations expressed above are those of Nuvama Institutional Equities. These do not represent the views of this publication and are not to be construed as investment advice. Readers are advised to consult their financial advisors before making any investment decisions.
