Gravita India: Capacity Boost and New Segments
Nuvama maintains a 'Buy' rating for Gravita India, setting a target price of ₹2,301 and expecting a 62% increase. This positive outlook stems from significant additions to the company's lead recycling capacity, with 80,000 tonnes per annum (TPA) already operational and another 45,000 TPA planned. Gravita India is also diversifying earnings by entering copper recycling through Rashtriya Metal Industries, adding a 31,200 TPA facility. Volumes are projected to grow at a 32% compound annual rate from FY2026 to FY2028, with profit after tax (PAT) expected to rise 24%. The brokerage notes a softer near-term quarter might occur due to freight costs and temporary dips in Middle East volumes.
Kalpataru Projects: Order Pipeline Strength
Kalpataru Projects International Limited (KPIL) also holds a 'Buy' rating from Nuvama, with a target of ₹1,428, suggesting a 28% upside. Nuvama's analysis, based on management discussions, indicates steady project execution despite geopolitical issues, with limited Middle East exposure focused on logistics. A robust order pipeline across transmission, distribution, buildings, and factories is expected to drive revenue growth, supported by a ₹7-8 lakh crore bidding pipeline. Nuvama forecasts EBITDA margins to improve to 8.6% by FY2028, up from 8.2% in FY2026.
Dr Lal PathLabs: Volume-Led Growth
For Dr Lal PathLabs, Nuvama reiterates its 'Buy' recommendation with a target price of ₹1,863, representing a 37% potential upside. The firm's positive view is based on expected consistent volume-driven growth. Management projects 11-12% organic revenue expansion in FY2026 and sustained double-digit growth long-term. Margins are anticipated to stay stable around 28%. The Swasthfit segment is expanding, and radiology services are set to boost profitability as facility utilization increases. Revenue and PAT are forecast to grow at 13% and 14% respectively between FY2026 and FY2028.
Motherson Sumi Wiring India: Utilization and EVs
Nuvama also reiterates its 'Buy' rating on Motherson Sumi Wiring India, setting a target of ₹60, which implies a 58% upside. The company's earnings are expected to accelerate as recently commissioned plants increase utilization from 45% to a target of 65-70% within the year. Key growth drivers include new orders from vehicle launches and greater content per vehicle, especially for electric vehicles (EVs). Revenue and EBITDA are projected to grow at compound annual growth rates (CAGRs) of 13% and 23% respectively between FY2026 and FY2028.
Welspun Corp: Order Book and Infrastructure Demand
Welspun Corp maintains a 'Buy' rating from Nuvama with a target price of ₹1,082, indicating a 33% potential upside. The company boasts a strong order book totaling ₹24,700 crore, significantly boosted by recent U.S. orders, offering clear execution visibility. Operations in the Middle East are stable, and expansion plans are proceeding as scheduled. Robust demand for ductile iron pipes aligns with government infrastructure spending, alongside emerging opportunities in the global LNG market.