Stocks to buy today: Nuvama sees 35% upside in Titan Company; Emkay retain buy on L&T post Q4 results

Time of India

09-05-2025

Emkay Global and Nuvama express confidence in L&T, Aarti Industries, and Titan Company, citing strong fundamentals and growth prospects. Emkay maintains a 'Buy' rating for L&T and Aarti Industries, while Nuvama upgrades Titan's target price due to robust jewellery sales. These brokerages anticipate significant upsides, driven by solid performance and positive future outlooks.
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We have collated a list of recommendations from top brokerage firms from ETNow and other sources:
Emkay Global on L&T: Buy| Target Rs 4000| LTP Rs 3320| Upside 20%
Emkay Global on Aarti Industries: Buy| Target Rs 500| LTP Rs 447| Upside 12%
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Leading brokerages Emkay Global and Nuvama remain bullish on key Indian stocks, reaffirming their positive outlooks despite broader market volatility for the next 12 months.Their latest research notes highlight resilient performances and robust growth prospects across companies such as Larsen & Toubro (L&T), Aarti Industries , and Titan Company Emkay Global sees continued strength in L&T and Aarti Industries, underpinned by solid fundamentals, strong execution momentum, and visibility on future growth.Meanwhile, Nuvama has upgraded its target price for Titan Company, driven by strong traction in its jewellery segment and optimistic demand forecasts.The revised target prices imply potential upsides ranging from 12% to 35%, reflecting the confidence of these brokerages in the companies' ability to deliver sustained long-term value to investors.Emkay Global has maintained a BUY rating on Larsen & Toubro (L&T), while revising its SOTP-based target price for March 2026 downward by approximately 12% to Rs 4,000, from the current LTP of Rs 3,320, implying a potential upside of 20%.The brokerage noted that L&T's resilient performance in Q4 and FY25 reflects its diversified engineering and manufacturing capabilities and widespread presence across multiple geographies and customer segments.The company's revenue, EBITDA, and PAT witnessed robust year-on-year growth of 11%, 13%, and 17%, respectively, aided by a 30bps expansion in core EBITDA margin, along with strong cash flows and a return on equity (RoE) of around 16%.This solid performance was primarily driven by sustained momentum in international project execution. Order inflow remained healthy during Q4 and FY25, supported by large marquee orders across various geographies.Looking ahead, L&T's management has highlighted a strong prospect pipeline of Rs 19 trillion for FY26, up from Rs 12.1 trillion in FY25, suggesting robust visibility for future order inflows.However, Emkay also cautioned that geopolitical tensions could lead to a slowdown in execution and delays in order conversion, posing near-term risks.Emkay Global has maintained a BUY rating on Aarti Industries, with a revised target price of Rs 500, implying a 12% upside from the current market price of Rs 447.The company's Q4 EBITDA came in at Rs 2.7 billion, marking a 16% sequential increase but a 5% decline year-on-year, surpassing both street and internal estimates.This outperformance was driven by higher volume growth across value chains. Notably, volumes in the non-energy segment rose 14% QoQ, led by strong performance in NCB, NT, and Ethylation, while the energy segment saw a 21% QoQ increase, benefiting from the bulk shipment of MMA, which had been deferred from Q3 to Q4.Management indicated early signs of demand stabilisation across product portfolios, supporting consistent volume growth despite a tough macroeconomic backdrop. Additionally, due to the imposition of US tariffs, Aarti is expected to experience improved volume growth in the coming months.The company has successfully met its FY25 EBITDA guidance of Rs 10 billion and reiterated its FY28 EBITDA target of Rs 18–22 billion.Emkay has made minor adjustments to its estimates, tweaking FY25E/FY26E EBITDA by -2% and +2%, respectively, to account for expected back-ended growth. Consequently, the target price has been revised upward by 11% to Rs 500 (from Rs 450 earlier), based on 25x March 2027 estimated EPS.Nuvama has maintained a BUY rating on Titan Company, raising its target price to Rs 4,541 from Rs 4,115 earlier, reflecting a 35% upside from the current market price of Rs 3,363.The upgrade is driven by strong operational performance in Q4FY25, particularly in the jewellery segment, where EBIT margins came in at 11.9%, beating expectations.This was achieved despite gross margin pressures and a 3-percentage point year-on-year decline in the studded jewellery ratio, supported by operational leverage, a revival in the solitaire segment, and minor hedging gains.Titan also benefited from robust wedding and festive demand, which contributed to a 25% year-on-year growth in jewellery sales, even amid elevated gold prices.Looking ahead, demand is expected to remain strong in Q1FY26, given the higher number of wedding dates.In light of this continued momentum, Nuvama has revised FY26 and FY27 revenue estimates upward by 4% and 5%, respectively, and PAT estimates by 2% and 5%.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)