Synopsis: A global brokerage reiterated Buy calls on four Indian stocks, citing export growth, policy support like the PLI scheme, and margin improvement. The brokerage expects sectoral tailwinds to drive earnings growth and up to 51% upside.
Global brokerage Nomura has reiterated ‘Buy’ ratings on four Indian companies, highlighting strong growth visibility across sectors such as consumer durables, paints, electronics manufacturing, and telecommunications. The brokerage believes factors such as export expansion, policy support like the Production Linked Incentive (PLI) scheme, and margin improvement could drive earnings growth for these firms.
Bharti Airtel Limited
Global brokerage Nomura has reiterated its ‘Buy’ rating on Bharti Airtel with a target price of Rs. 2,300. The brokerage expects continued growth driven by strong subscriber additions and rising data usage. The target price indicates a potential upside of about 22.94 percent from current levels.
The brokerage highlighted that the telecom major plans to invest approximately Rs. 0.20 lakh crore (Rs. 20,000 crore) over time to expand its financial services business through Airtel Money, with 10–15 percent of the total investment expected to be deployed in the first year.
Additionally, the company may look to increase its stake in Indus Towers and Airtel Africa. Nomura also noted that the telecom operator intends to adopt a progressive dividend policy as its free cash flow generation strengthens, while the stock is currently trading at around 9.3x FY27F EV/EBITDA.
Bharti Airtel Limited is a leading telecommunications company headquartered in New Delhi, India, providing a wide range of telecom and digital services in India and several international markets. The company operates through multiple segments, including mobile services in India, Africa, and South Asia, Airtel Business, passive tower infrastructure, home broadband services, and digital TV services.
With the market capitalization of Rs. 10,68,004.33 crore, the shares of Bharti Airtel Ltd closed at Rs. 1,870.80 on Friday, down by 1.90 percent from its previous day’s close price of Rs. 1,907 per equity share.
Bharti Airtel Limited reported revenue of Rs. 53,982 crore in Q3FY26, marking a 19.6 percent year-on-year increase from Rs. 45,129 crore in Q3FY25, and a 3.5 percent sequential rise compared to Rs. 52,145 crore in Q2FY26. However, the company’s net profit stood at Rs. 8,503 crore in Q3FY26, which represents a 47.3 percent decline YoY from Rs. 16,135 crore in Q3FY25, and a 1.7 percent decrease QoQ compared with Rs. 8,651 crore in Q2FY26, indicating pressure on profitability despite strong revenue growth.
Dixon Technologies India Limited
Nomura remains positive on Dixon Technologies India and has maintained a ‘Buy’ rating with a target price of Rs. 14,678, indicating the highest potential upside of about 46.36 percent among the stocks under coverage.
The brokerage noted that the government is currently in discussions with smartphone manufacturers to introduce PLI 2.0, as the existing incentive scheme is set to conclude in March 2026. A possible extension of the scheme could provide better visibility for further manufacturing scale-up and capacity expansion.
Nomura also pointed out that backward integration will be an important requirement for manufacturers to qualify for incentives, while the approval of the Vivo joint venture remains a key development to watch.
Dixon Technologies (India) Limited is an Indian electronics manufacturing services (EMS) company that manufactures and sells a wide range of electronic products in India and globally. Its portfolio includes consumer electronics such as LED and smart TVs, lighting products, home appliances like washing machines and refrigerators, mobile phones, wearables, and computing devices.
With the market capitalization of Rs. 61,014.70 crore, the shares of Dixon Technologies (India) Ltd closed at Rs. 10,029 on Friday, down by 1.91 percent from its previous day’s close price of Rs. 10,224 per equity share.
The company reported revenue stood at Rs. 10,672 crore in Q3FY26, registering a 2.1 percent year-on-year increase from Rs. 10,454 crore in Q3FY25, but declining 28.2 percent quarter-on-quarter compared to Rs. 14,855 crore in Q2FY26. Meanwhile, net profit came in at Rs. 321 crore in Q3FY26, reflecting a 48.6 percent YoY growth from Rs. 216 crore in Q3FY25, but showing a 57 percent QoQ decline from Rs. 746 crore reported in Q2FY26, indicating strong annual improvement but a sharp sequential drop in profitability.
LG Electronics India
Nomura has also maintained a ‘Buy’ rating on LG Electronics India Limited with a target price of Rs. 1,836, which implies a potential upside of about 16.22 percent from current market price.
According to the brokerage, the company is prioritising growth across both affordable and premium product categories while aiming to strengthen its market share. Exports are expected to remain a long-term growth engine, with the company targeting to double exports by FY27E, a move that could contribute around 6 percent incremental growth.
Nomura also expects margin recovery to be supported by a combination of price increases, operating leverage, higher localisation levels, and greater contribution from premium products and business-to-business services, making it one of the brokerage’s preferred plays in the consumer durables segment.
LG Electronics India Limited is a consumer electronics and home appliances manufacturer that sells products in India and several international markets across Asia, Africa, Europe, the Middle East, and the Americas. The company operates through two segments; Home Appliances and Air Solution and Home Entertainment, offering products such as air conditioners, refrigerators, washing machines, microwave ovens, TVs, monitors, projectors, audio-visual devices, and security cameras. It also provides installation, repair, maintenance, and after-sales services.
With the market capitalization of Rs. 1,07,789.06 crore, the shares of LG Electronics India Limited closed at Rs. 1,579.70 on Friday, flat percent from its previous day’s close price of Rs. 1,579.90 per equity share.
The company reported revenue of Rs. 4,114 crore in Q3FY26, marking a 6.4 percent YoY decline from Rs. 4,396 crore in Q3FY25 and a 33.4 percent QoQ drop from Rs. 6,174 crore in Q2FY26. Net profit stood at Rs. 90 crore, down 61.3 percent YoY from Rs. 233 crore in Q3FY25 and 76.9 percent QoQ from Rs. 389 crore in Q2FY26, reflecting pressure on both top-line and profitability in the latest quarter.
Kansai Nerolac Paints Limited
For Kansai Nerolac Paints, Nomura has reiterated its ‘Buy’ rating with a target price of Rs. 285, suggesting a potential upside of roughly 50.64 percent from current market price.
The brokerage highlighted that the company’s transformation efforts in automotive and industrial paints are progressing well, with both segments currently growing faster than the broader market. While the decorative paints segment is facing rising competition from new entrants, the management believes the long-term growth potential of the Indian paints market remains strong.
Nomura expects premiumisation initiatives along with improved efficiency in SG&A spending to drive approximately 200 basis points improvement in operating profit margins, while projecting around 10 percent earnings-per-share growth between FY26 and FY28.
Kansai Nerolac Paints Limited is an Indian paint manufacturer that produces and supplies a wide range of decorative and industrial coatings, including interior and exterior wall paints, wood coatings, metal enamels, varnishes, lacquers, adhesives, and waterproofing solutions. The company also offers specialized coatings for automotive, industrial, powder, and construction applications, along with services such as color consultation and painting support.
With the market capitalization of Rs. 15,344.99 crore, the shares of Kansai Nerolac Paints Limited closed at Rs. 189.19 on Friday, down by 2.17 percent from its previous day’s close price of Rs. 193.38 per equity share.
Revenue stood at Rs. 1,982 crore in Q3FY26, registering a 3.1 percent year-on-year increase from Rs. 1,922 crore in Q3FY25, and a 1.4 percent rise quarter-on-quarter compared to Rs. 1,954 crore in Q2FY26. However, net profit came in at Rs. 117 crore in Q3FY26, reflecting a sharp 82.3 percent decline YoY from Rs. 662 crore in Q3FY25, and a 12 percent decrease QoQ from Rs. 133 crore reported in Q2FY26, indicating pressure on profitability despite modest revenue growth.
Nomura remains optimistic on select Indian companies across telecom, electronics manufacturing, consumer durables, and paints, citing structural growth drivers such as export expansion, policy support like the Production Linked Incentive Scheme, and improving margins. Stocks such as Bharti Airtel Limited, Dixon Technologies (India) Limited, LG Electronics India Limited, and Kansai Nerolac Paints Limited could benefit from these tailwinds, with the brokerage seeing potential upside of up to 45 percent over the medium term.
Written by Akshay Sanghavi
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