Nuvama Institutional Equities Recommends 'Buy' on Adani Ports, Motherson Sumi, and VRL Logistics, Citing High Upside Potential

Nuvama Institutional Equities has identified three stocks for investors, assigning a 'Buy' rating to each. Adani Ports and Special Economic Zone maintains its 'Buy' call with a target price of Rs 1,900, implying a 31.5% upside over 12 months. Nuvama believes Adani Ports is well-positioned to benefit from India's long-term trade growth, supported by strong cash flows, although trade disruptions pose a risk.

Motherson Sumi (Samvardhana Motherson International Limited) also retains a 'Buy' rating, with its target price raised to Rs 60, suggesting a 28% upside. The brokerage forecasts its revenue to grow at a 14% CAGR between FY25-FY28, driven by premiumization and the electric vehicle (EV) transition, with its EBITDA performance exceeding estimates.

VRL Logistics has received a 'Buy' rating and its target price increased to Rs 390, indicating a substantial 44% potential upside. The company's second-quarter results showed a 14% YoY rise in EBITDA and a 39% YoY increase in net profit, attributed to higher realization. Growth in the latter half of the fiscal year is expected from new customer additions, with projections of 4-5% QoQ growth in Q3 and 7-8% in Q4.

Heading Impact This news is likely to influence investor sentiment and trading activity for these specific stocks. Brokerage 'Buy' ratings, especially with high upside potential, often attract investor attention, potentially leading to increased demand and price appreciation in the short to medium term. The detailed rationales provided by Nuvama also offer insights for investors evaluating their portfolios. Rating: 7/10

Heading Definitions CAGR: Compound Annual Growth Rate, representing the average annual growth rate of an investment over a specified period longer than one year. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operational profitability. Basis points: A unit of measure used in finance to denote the percentage change in a financial instrument. One basis point is equal to 0.01%. Realisation: The price or value a company obtains for its products or services sold. YoY: Year-over-Year, a comparison of a metric from the current period to the same period in the previous year. QoQ: Quarter-over-Quarter, a comparison of a metric from the current quarter to the previous quarter.