Buy, Sell or Hold: Nuvama initiates coverage on Eureka Forbes; Religare Broking positive on REC

Brokerages remain optimistic on select mid-to-large cap names, highlighting strong structural drivers and attractive valuations.

Nuvama has initiated coverage on Eureka Forbes, Religare Broking has turned positive on REC Ltd, while Motilal Oswal reiterated its bullish stance on Biocon.

The common thread across these calls is robust earnings visibility, leadership in core segments, and growth tailwinds from sectoral trends such as infrastructure capex, healthcare innovation, and rising consumer demand.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Nuvama on Eureka Forbes: Initiating Coverage | Buy | Target Rs 700 | LTP Rs 579 | Upside 20%

Nuvama has initiated coverage on Eureka Forbes with a Buy rating and a target price of Rs 700, implying a 20% upside from the current market price of Rs 579.

The company is the largest player in the electric water purifier (EWP) segment, commanding a dominant 40–45% share of the Rs 4,900 crore organized market.

Notably, it remains the only large full-stack EWP company in an underpenetrated market with just 6% penetration.

Eureka Forbes is strengthening its brand proposition of "purity of trust" through multiple levers, including innovative SKUs, a revitalized advertising and promotion strategy, an omni-channel distribution reach, and a revamped after-sales service network, which already contributes about 33% of its revenue.

Nuvama projects a 14% revenue CAGR between FY25–28E, supported by a robust EBITDA and PAT CAGR of 24% and 31%, respectively.

The brokerage also expects an additional 300 bps operating leverage over FY25–28E, building on the 530 bps gain achieved in FY23–25, driven largely by cost optimization initiatives.

However, key risks to this bullish outlook include delays or weaker-than-expected results from the after-sales service revamp, as well as heightened competitive intensity in the sector.

Motilal Oswal on Biocon: Buy | Target Rs 410 | LTP Rs 360 | Upside 13%

Motilal Oswal has initiated coverage on Biocon with a Buy rating, setting a target price of Rs 410, which implies a 13% upside from the current market price of Rs 360.

The company is proactively expanding its peptide API capacity in anticipation of Semaglutide’s patent expiry in India in March 2026, aiming to capture the projected 50–60 ton demand surge.

By focusing on in-house manufacturing, Biocon looks to de-risk supply and establish itself as a leading player in the GLP-1 API segment.

With its significantly lower manufacturing costs compared to innovators, Biocon is strategically pursuing both CDMO and front-end models for Semaglutide formulations.

The demand is expected to be dominated by injectable forms—particularly for weight loss and diabetes management—over oral versions in emerging markets post-patent expiry.

Beyond Semaglutide, the company’s pipeline across Generics and Biologics remains promising, supported by ongoing investments in manufacturing capacity to enable commercial scale-up.

Additionally, Syngene, Biocon’s subsidiary, is expanding its CDMO capabilities to cater to rising global demand. Motilal Oswal projects Biocon to deliver a sales CAGR of 18% in Biologics, 16% in Generics, and 10% in Syngene over FY25–27.

Religare Broking on REC Ltd: Buy | Target Rs 466 | LTP Rs 380 | Upside 22%

Religare Broking has initiated coverage on REC Ltd with a Buy rating and a target price of Rs 466, implying a 22% upside from the current market price of Rs 380.

The company is well-positioned to ride India’s ongoing power and infrastructure capex cycle, with its loan book expected to grow at a CAGR of 12% over FY25–27E.

This growth will be driven by strong demand from state utilities, increasing investments in renewable energy, and a gradual diversification into non-power infrastructure projects.

Earnings visibility for REC remains strong, backed by operating leverage, scale benefits, and an improving asset mix that is largely anchored in state-backed and renewable loans.

The company also continues to deliver sector-leading return ratios, with RoE expected to sustain near 20%. Additionally, its consistent dividend payout policy translates into an attractive 4–5% yield for investors.

Based on these factors, Religare values REC at Rs 466 per share, or 1.2x FY27E BV, and recommends a Buy.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times).