The Day 3 of Nuvama Conference India: Reformed, Resilient and Resurgent saw investor-corporate meetings from sectors such as financials, real estate, industrials, cement and chemicals to pharma, metals, energy, consumer and internet. They included Wipro Ltd, Adani Wilmar Ltd, Hindustan Zinc Ltd, Varun Beverages Ltd, Zaggle Prepaid Ocean Services Ltd, Hyundai Motor India Ltd and IDFC First Bank Ltd.
Nuvama said corporate sentiment seems quite buoyant about the medium term outlook, and companies at large have certainly learnt from their past mistakes.
"They remain focused on profitability and capital allocation. This should ensure a long runway for growth, near-term headwinds notwithstanding remain focused on profitability and capital allocation," it said.
Wipro | Target: Rs 350 Nuvama said Wipro is seeing traction in BFSI and healthcare. The IT firm expects public and communication segment to grow on the back of deal execution. Clients continued to focus on cost-takeout deals, the Wipro suggested. The IT firm is tugging all available levers to deliver margins, but would invest back additional savings to support growth.
"Wipro's current combination of a favourable portfolio mix, new CEO ushering in positive momentum, strong margin performance and inexpensive valuation (21x FY27PE) make for an attractive risk-reward profile. Retain ‘BUY’ with a target of Rs 350 (25x FY27E PE)," Nuvama said.
Adani Wilmar | Target price: Rs 424 Adani Wilmar is the leading player in the edible oils market in India with 18 per cent market share. The company known as an oil brand is now positioning itself as a food brand with likely salience of 25 per cent by FY27. Nuvama noted that the company has a strong distribution network, with plans to increase direct distribution to 1mn outlets over the next two–three years.
Adani Wilmar is focusing on becoming the largest chana producer and is scaling up the branded portfolio. The Foods business and branded portfolio are seen maintaining strong growth trajectory. The company has retained ‘Buy’ with a target of Rs 424, Nuvama said.
Hindustan Zinc | Target price: Rs 411 As per Hindustan Zinc's management, lower power cost and improved efficiencies are facilitating Hindustan Zinc's progress on reducing zinc CoP ex-royalty to less than $1,000 per tonne by FY27E. Zinc-silver volumes are expected to increase 8–9 per cent YoY in FY26E. Plans are afoot to expand capacity of mined metal to 1.5 mtpa in the first phase along with that of zinc by 250ktpa. Nuvama said Hindustan Zinc will reduce its cost of production and the management is working on raising capacity to 2mtpa in phases over the next five years.
"We expect dividend per share of Rs 25 each in FY26E and FY27E, translating to a yield of 6 per cent. Retain ‘Reduce’ with a target of Rs 411 (8 times FY27 EV/Ebitda) on rich valuations," it said.
Varun Beverages | Target price: Rs 659 In the case of VBL, capacity expansion and newer markets (especially in Africa) are seen driving growth going forward. The competitive intensity remains healthy in India and the recent acquisition of SBC Beverages could add 8 per cent to VBL's revenue and 5 per cent to its Ebitda. VBL may also launch ‘Sting Gold’ and various other products for the upcoming season. The company is looking to expand the market reach by adding 3–4 lakh outlets.
"We forecast VBL’s growth shall come from its organic acquisitions. For the domestic business, we reckon competition shall heat up with Campa’s aggression; maintain ‘BUY’ with a target of Rs 659," it said.
Zaggle Prepaid | Target price: NA Zaggle Prepaid's management highlighted that inorganic expansion is necessary to address market gaps and expand capabilities. Propel's margins have exhibited fluctuations due to the ORC agreement, with redemptions primarily occurring in Q4FY25. Zaggle noted that working capital requirements arise from banks remitting interchange fees after a 45-day period. Life time cards issued total 5 crore while monthly active users stand at 30 lakh. The management is confident of delivering strong growth and expects Propel’s margins to improve in Q4FY25E.
Hyundai Motors India | Target price: NA Hyundai Motors India's management expects FY25 growth to be in low single digits. The auto major's rural share reached 21.2 per cent in Q3FY25, and the company remains focused on strengthening its rural presence through network expansion. HMIL is a beneficiary of mega trends such as premiumisation and CNG/EV penetration, it suggested. EVs are a key focus area. Post-Creta EV launch, three mass-market EVs are planned for the next few years. The capacity is at 8.2 lakh units, which is expected to increase by 1.7 lakh by H2FY26. The stock is trading at 23x FY25E annualised EPS,
IDFC First Bank | Target price: Rs 60 IDFC First Bank's loan and deposit growth are likely to be 20–22 per cent and 24 per cent, respectively, for FY26E. The microfinance credit cost is likely to peak in Q4FY25 (8 per cent for 9MFY25). Opex growth is seen moderating to 13 per cent by FY26E versus 16 per cent YoY in Q3FY25.
"IDFC Bank reduced its high-cost borrowings to Rs 6,700 crore making up 13 per cent of total liabilities and has another Rs 1,855 crore due for maturity in Q4FY25E. Our target price remains unchanged at Rs 60 at 1.1 times FY26E BV; maintain ‘HOLD’ as we await more data on MFI stress and opex," Nuvama said.