A fresh set of stock calls from Nuvama has brought Gravita India, Kalpataru Projects, Dr Lal PathLabs, Motherson Sumi Wiring India and Welspun Corp into focus, with the brokerage reiterating ‘Buy’ ratings and pointing to strong earnings visibility backed by capacity expansion and robust order books.
The reports list multiple company-specific triggers, including new business segments, improving utilisation levels and steady demand across domestic and international markets. Target prices indicate upside potential of about 28% to over 60%, placing these stocks on the radar as momentum builds around execution-led growth over the next two financial years.
Nuvama on Gravita India: ‘Buy’
Nuvama has retained a ‘Buy’ rating on Gravita India with a target price of Rs 2,301, implying an upside of about 62% from the current price. The brokerage has built its case around capacity expansion and entry into a new segment that could lift volumes sharply over the next two years.
The report notes that the company has added around 80,000 tonnes per annum of lead recycling capacity and has another 45,000 tonnes lined up, taking total capacity higher after a long gap. At the same time, Gravita has entered copper recycling through the acquisition of Rashtriya Metal Industries, adding a 31,200 tonnes per annum facility. This move is expected to bring diversification and improve earnings mix over time.
Nuvama expects volumes to grow at a compound annual rate of 32% between financial year 2026 and financial year 2028, compared with about 12% in the earlier period. Earnings before interest, tax, depreciation and amortisation and profit after tax are seen rising at 33% and 24% respectively over the same period.
“Expansion into copper recycling and ongoing capacity additions provide strong volume visibility and improve diversification,” said Nuvama.
The brokerage has, however, factored in a softer near-term quarter due to higher freight costs and some volume loss in the Middle East, with growth expected to pick up again from financial year 2027.
Nuvama on Kalpataru Projects: ‘Buy’
Nuvama has maintained a ‘Buy’ rating on Kalpataru Projects with a target price of Rs 1,428, indicating an upside of about 28% from the current price.
The brokerage’s interaction with the company’s management points to steady execution despite disruptions in certain geographies. Exposure to the Middle East stands at roughly 10% of the order book, and the impact so far has been limited to logistics rather than project execution.
The report highlights a strong order pipeline in transmission and distribution as well as buildings and factories, which together account for a large share of the order book. Nuvama expects revenue growth to remain strong, supported by a bidding pipeline of Rs7,00,000 crore to Rs8,00,000 crore in the near term and annual capital expenditure opportunities exceeding Rs10,00,000 crore.
Margins are projected to improve gradually, with the brokerage building in EBITDA margins of 8.2% in financial year 2026, rising to 8.6% by financial year 2028.
“Growth visibility remains strong, led by transmission and distribution and building and factory segments supported by robust pipelines,” said Nuvama.
The brokerage also points to improving traction in oil and gas and international markets, while noting that railways remain subdued in the near term.
Nuvama on Dr Lal PathLabs: ‘Buy’
Nuvama has reiterated a ‘Buy’ rating on Dr. Lal Pathlabs with a target price of Rs1,863, suggesting an upside of about 37% from the current price.
The brokerage’s outlook is anchored in steady volume-led growth, with management guiding for 11% to 12% organic revenue growth in financial year 2026 and double-digit expansion over the medium term. Margins are expected to remain healthy at around 28%.
The report highlights that the company has seen improving traction in recent months, with growth largely driven by higher volumes rather than pricing. The Swasthfit segment continues to scale up and now contributes a significant share of revenue, while radiology is expected to add to margins over the next few years as utilisation improves.
Nuvama expects revenue and profit after tax to grow at 13% and 14% respectively between financial year 2026 and financial year 2028, supported by network expansion and stable competitive intensity.
“Management remains confident of sustaining double digit organic growth driven largely by volumes, with pricing acting as an additional lever over time,” says Nuvama.
The brokerage also notes that the ongoing geopolitical tensions in the Middle East have not had any material impact on operations so far.
Nuvama on Motherson Sumi Wiring India: ‘Buy’
Nuvama has retained a ‘Buy’ rating on Motherson Sumi Wiring India with a target price of Rs60, implying an upside of about 58% from the current price.
The brokerage expects a pickup in earnings as utilisation at newly commissioned plants improves. Greenfield facilities are currently operating at around 45% utilisation and are expected to move up to 65% to 70% over the next year, led by higher production at plants in Gujarat and Maharashtra.
The company is also expected to benefit from new orders tied to upcoming vehicle launches, along with higher content per vehicle as electrification gathers pace. Nuvama has trimmed its earnings estimates slightly to account for near-term cost pressures linked to copper prices, though the broader growth trajectory remains intact.
Revenue and EBITDA are projected to grow at a compound annual rate of 13% and 23% respectively between financial year 2026 and financial year 2028.
“Improvement in utilisation levels of greenfield plants and new order wins from key original equipment manufacturers should support earnings growth,” adds Nuvama.
The brokerage also points to rising content per vehicle in electric vehicles as a structural driver for the business.
Nuvama on Welspun Corp: ‘Buy’
Nuvama has maintained a ‘Buy’ rating on Welspun Corp with a target price of Rs1,082, indicating an upside of about 33% from the current price.
The brokerage’s view is driven by a strong order book and visibility on execution over the next few years. The company has recently secured orders worth Rs1,000 crore in the United States, taking its total order book to around Rs24,700 crore.
Nuvama notes that operations in the Middle East remain stable despite ongoing tensions, and the company’s expansion plans in the region are on track. Demand for ductile iron pipes remains strong, supported by government spending on water infrastructure.
The report also points to emerging opportunities in the global liquefied natural gas market, where supply disruptions could lead to higher demand for pipeline infrastructure.
“A strong order book and consistent execution across geographies provide long term revenue visibility,” says Nuvama.
The brokerage expects steady growth as new capacities come on stream and newer segments scale up.
Conclusion
Across Gravita India, Kalpataru Projects, Dr Lal PathLabs, Motherson Sumi Wiring India and Welspun Corp, Nuvama builds its case on earnings growth, order visibility and balance sheet strength. While input costs and geopolitical developments remain factors to watch, the brokerage expects execution momentum and capacity ramp-up to support performance. With ‘Buy’ ratings intact and meaningful upside to target prices, these stocks remain in focus amid ongoing market action and sector-specific developments.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
