In the everyday churn of the world of stock market, not every stock moves in the same direction. Some counters see profit booking, others quietly attract attention based on future triggers rather than daily price swings.
In this constant hustle, leading brokerage firm Nuvama Institutional Equities has given a Buy recommendation on a set of stocks where it sees meaningful upside from current levels. According to the brokerage report, these some of these stocks offer upside potential of up to 52%, backed by sector-specific trends, earnings visibility and balance sheet changes.
Nuvama on Vedanta
Vedanta is Nuvama’s top pick among metals and mining companies. The brokerage has retained its ‘Buy’ rating and raised its target price to Rs 806. This translates into an upside potential of around 28% from the current market price.
As per the brokerage report, Vedanta is in the final leg of receiving statutory clearances for demerger into five separately listed companies, unlocking value. The planned split is expected to separate aluminium, zinc, oil & gas, power, and steel businesses into independent listed entities.
The report also highlighted that “strong commodity prices, cost reduction along with volume growth further propelled our earlier investment thesis.”
Nuvama has increased its earnings before interest, tax, depreciation and amortisation (EBITDA) estimates for financial year 27-28 to factor in higher aluminium, zinc and silver prices. According to the brokerage report, this would lead EBITDA to grow at a compounded annual growth rate of 20% between financial years 2025 and 2028.
The brokerage further noted expectations of value unlocking amid demerger by raising valuation multiples for aluminium and revising assumptions for steel, iron ore and power businesses, leading to the revised target price of Rs 806.
Nuvama on ICICI Prudential Life Insurance
Nuvama has also maintained a ‘Buy’ rating on ICICI Prudential Life Insurance and raised its target price to Rs 790. From the current market price of around Rs 683, this implies an upside potential of nearly 16%.
According to the brokerage report, total annualised premium equivalent (APE) growth remained modest in the recent quarter, but profitability showed improvement. “Protection share improved 240 basis points year-on-year aiding value of new business (VNB) margin of 24.3%,” the report noted.
The brokerage believes that the goods and services tax (GST) exemption on protection products should support demand going ahead. As per the brokerage report, any margin impact from higher growth is likely to be offset through distributor commission renegotiation and operating cost optimisation.
Nuvama has marginally tweaked its VNB estimates for the next three financial years and raised the target price, while noting that the stock is trading at a lower price-to-embedded value multiple compared with historical levels.
Nuvama on ICICI Lombard General Insurance
ICICI Lombard General Insurance is another stock where Nuvama has reiterated a ‘Buy’ rating. The brokerage has set a target price of Rs 2,350. This indicates an upside potential of about 23% from the current market price of around Rs 1,913.
As per the brokerage report, gross direct premium income and gross written premium grew at a double-digit pace in the recent quarter, supported by strong growth in retail health insurance following the GST exemption. However, combined ratio levels remained elevated due to higher claims and cost pressures.
The report stated that “excluding impact of one-time wage code impact, combined ratio came in at 103.5%.” Nuvama believes the company’s relatively better portfolio management and recovery in the motor segment position it well compared to peers.
Nuvama on Just Dial
Among internet and digital platform stocks, Nuvama has retained a ‘Buy’ rating on Just Dial with a target price of Rs 1,100. From the current market price of about Rs 722, this implies a sharp upside potential of nearly 52%.
According to the brokerage report, revenue growth remains moderate, but profitability has improved in the short term. “Earnings before interest, tax, depreciation and amortisation margin came in at 31.2%, ahead of estimates,” the report noted.
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.
In early January 2026, Nuvama Institutional Equities released a series of research reports identifying four key stocks with significant growth potential, with the highest estimated upside reaching 51.8% (rounded to 52%).
These recommendations are primarily driven by corporate mergers, declining raw material costs, and structural sector tailwinds.
Nuvama’s Top 4 Buy Recommendations (Jan 2026)
| Company | Target Price | Current Price* | Potential Upside | Key Growth Trigger |
| Devyani International | ₹211 | ₹139 | ~52% | Strategic merger with Sapphire Foods & KFC expansion. |
| Oswal Pumps | ₹720 | ₹505 | ~42.5% | Leadership in solar pumps & PM-KUSUM scheme. |
| Marico | ₹865 | ₹760 | ~13.8% | 30% drop in copra prices & growth in digital brands. |
| Godrej Consumer | ₹1,350 | ₹1,255 | ~7.6% | Double-digit volume growth in India home care. |
*Prices are approximate based on the report date (Jan 7-14, 2026).
Analysis of the Picks
1. Devyani International (The 52% Upside Pick)
The massive upside is centered on the merger between Devyani and Sapphire Foods, creating a mega-platform for Yum Brands (KFC, Pizza Hut) in India.
The Synergy: The combined entity will operate over 3,000 stores with an annual turnover of ₹80 billion.
Profitability Strategy: Management is closing underperforming Pizza Hut stores to focus on smaller, high-margin delivery-only formats.
2. Oswal Pumps
Nuvama initiated coverage on this stock, viewing it as a primary beneficiary of India's green energy transition. The company has outpaced competitors in solar pump installations and is eyeing a target of 3 million additional pumps under government schemes.
3. Marico
The "Buy" call is supported by a 30% drop in copra prices, which significantly expands profit margins for their flagship Parachute oil. Additionally, their newer digital-first brands (like Beardo and Just Herbs) are now scaling profitably.
4. Godrej Consumer Products (GCPL)
While the upside percentage is lower, Nuvama highlights GCPL's resilience. The India business is seeing a 20% earnings growth, offsetting some competitive pressure in the Indonesian market.
Other Recent Nuvama "Top Picks" (Jan 14, 2026 Update)
In a separate institutional report released today (January 14), Nuvama also highlighted Vedanta as a top sector pick:
Vedanta: Target raised to ₹806 (up from ₹686). The brokerage believes the market is getting the non-zinc/aluminum businesses "virtually for free" ahead of the demerger into five separate listed companies.
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