Nuvama Initiates 'Buy' Ratings on TVS Motor, SRF, and KFin Technologies with Up to 27% Upside Potential

Nuvama, a brokerage firm, has issued 'Buy' ratings for three diverse companies: TVS Motor Company, SRF Limited, and KFin Technologies Limited, anticipating significant growth. Nuvama sees up to a 27% upside potential in these stocks, citing strong earnings visibility, margin expansion, and positive industry trends.

For TVS Motor Company, Nuvama set a target price of Rs 4,100, implying a 15% potential rise. The brokerage highlights TVS Motor's strong growth momentum in domestic and export markets, driven by new product launches, market share gains (expected to rise from 18% to 19% by FY28), and benefits from the PLI scheme. The company is also set to launch six premium Norton brand models from FY26 and expects export volumes to grow sharply.

SRF Limited received a 'Buy' rating with a target of Rs 3,841, suggesting a 27% upside. Nuvama remains optimistic due to the 'China +1' strategy and strong performance in its HFC gases segment, which is benefiting from supply constraints leading to higher realisations. The company's upcoming specialty chemical product launches, including new Active Ingredients (AIs) like Tetraniliprole from Q4FY26, are expected to drive growth.

KFin Technologies Limited also earned a 'Buy' rating and a Rs 1,480 target price, indicating a 27% upside. The brokerage points to KFin's strong Q2FY26 performance, fueled by robust growth in its mutual fund segment (up 9.9% YoY) and improving margins across its businesses. Increased SIP inflows and stable margins due to operational efficiency and product diversification are expected to sustain its growth.

Impact: This news is highly relevant for investors tracking the Indian stock market. The 'Buy' ratings and target prices issued by Nuvama can influence investor sentiment towards TVS Motor Company, SRF Limited, and KFin Technologies Limited, potentially leading to increased trading volume and stock price appreciation for these companies. Positive analyst ratings from reputable brokerage houses often attract institutional and retail investors, thus impacting their stock performance and potentially the broader indices if these companies are significant components. Rating: 8/10

Heading: Difficult Terms Brokerage House: A financial firm that helps investors buy and sell stocks and other securities. 'Buy' Rating: An analyst's recommendation for an investor to purchase a particular stock, indicating they believe its price will increase. Target Price: The price level at which an analyst or brokerage firm expects a stock to trade within a specific timeframe. Upside Potential: The estimated increase in a stock's price from its current level to its target price. Earnings Visibility: The predictability and clarity of a company's future earnings. Margin Expansion: An increase in a company's profit margins, meaning it retains a larger percentage of its revenue as profit. Sectoral Tailwinds: Favorable trends or conditions within a specific industry that support the growth of companies in that sector. Momentum: The rate at which a stock's price is increasing or decreasing. PLI Scheme (Production Linked Incentive): A government scheme to boost domestic manufacturing by providing incentives based on increased sales of manufactured goods. Compounded Basis: Growth calculated on a year-over-year basis, where the growth in each period is added to the base for the next period's calculation. ICE Scooters (Internal Combustion Engine Scooters): Scooters that run on traditional fuel engines. EVs (Electric Vehicles): Vehicles powered by electricity. Global Headwinds: Negative economic or market conditions occurring internationally that can affect businesses. Agrochemicals: Chemicals used in agriculture, such as pesticides and fertilizers. China +1 Theme: An investment strategy where companies diversify their supply chains by adding a country other than China (e.g., India) to reduce reliance on a single source. HFC Gases (Hydrofluorocarbon Gases): Gases used in refrigeration and air conditioning, often subject to environmental regulations. Buoyant: Strong and healthy, often used to describe prices or markets. Realizations: The price at which a company sells its products or services. CPLY (Compared to Previous Year): A comparison of current performance metrics against the same period in the prior year. Supply Constraints: Limitations in the availability of goods or raw materials needed for production. Specialty Chemicals: Chemicals produced in smaller volumes but with higher value, often for specific industrial applications. AI (Active Ingredient): The primary component in a pharmaceutical or agrochemical product responsible for its intended effect. High-value Molecules: Complex chemical compounds that are expensive to produce and have significant market value. Q2FY26 (Second Quarter of Fiscal Year 2026): The financial period from July to September of the fiscal year 2026. YoY (Year-over-Year): A comparison of a metric from the current period to the same period in the previous year. Mutual Fund (MF): An investment vehicle that pools money from many investors to invest in securities like stocks, bonds, etc. Operational Efficiency: A company's ability to produce goods or services with minimal waste of resources. Product Diversification: Offering a wider range of products or services to reduce risk. SIP (Systematic Investment Plan): A method of investing a fixed sum of money at regular intervals in mutual funds. Equity AUM (Assets Under Management): The total market value of all the investment funds managed by a company, specifically in equities (stocks). Yield Compression: A decrease in the yield or return on an investment, often due to increased demand or regulatory changes.