2 Stocks to Buy with Upside of Up to 32%, Recommended by Bernstein and ICICI Securities

Synopsis: Two stocks are in the spotlight after positive broker views, with significant upside potential of up to 32%. Bernstein has retained its positive view on Nuvama Wealth Management despite short-term negatives, while ICICI Securities has maintained a positive view on Travel Food Services due to its strong operating and growth visibility through expansion.

Broking commentary has brought Nuvama Wealth Management and Travel Food Services into the spotlight, with both stocks carrying meaningful upside potential. Bernstein retained its ‘Outperform’ rating on Nuvama despite trimming its target, citing strong wealth business execution. Meanwhile, ICICI Securities maintained a BUY call on Travel Food Services following a robust quarterly performance and improving passenger traffic trends, reinforcing growth visibility across key airport expansions.

Nuvama Wealth Management Ltd

Nuvama Wealth Management Ltd is in the business of brokering and trading in equity securities and is also registered as an investment adviser and merchant banker with SEBI.

With a market cap of Rs 23,144 crore, the shares of Nuvama Wealth Management Ltd are trading at Rs 1,271 and are trading at a PE of 22.6 compared to its industry PE of 19.3. The shares have given a return of about 160% since September 2023.

Bernstein has an Outperform call on Nuvama but reduced its target to Rs 1,710 from Rs 1,940 due to various overhangs. The stock has been under pressure because of overhangs related to Jane Street exposure in FY26, the impact of increased transaction taxes and leverage ratios on HFT business in FY27, and the supply overhang from PAG. Despite this, the stock has been executing its business well.

But Bernstein is still bullish on the stock, thanks to its execution in the wealth management business and its attractive valuation multiples. The broking firm is unsure about the estimates for the asset services business but thinks that the HFT volume and PAG supply overhangs are already factored into the stock price. With the previous stock price of Rs 1,291.65, the new target of Rs 1,710 indicates a potential upside of 32.4%.

On the whole, the attitude is one of cautious optimism. Although volatility in the short term may continue because of regulatory and supply chain issues, Bernstein feels that the current valuation is sufficient to offset these risks and that the price “seems right” to investors who are prepared to take this risk.

Travel Food Services Ltd

Travel Food Services Ltd provides Travel QSR and Lounge services in India and abroad. With a market cap of Rs 16,414 crore, the shares of Travel Food Services Ltd are trading at Rs 1,246 and are trading at a PE of 38.8 compared to its industry PE of 106. The shares have given a return of about 15% in the last one month alone.

ICICI Securities has maintained a BUY rating on Travel Food Services, as its Q3FY26 results have beaten expectations. The key reasons for the beat are the recovery in passenger traffic, which has increased by 1.6% YoY after being impacted earlier, as well as festival and travel-related business. System sales have increased by 28% YoY, thanks to the start of operations at Delhi T2 and Navi Mumbai airports, indicating robust operating performance.

There has been a significant improvement in profitability, with EBITDA margins expanding by 137 bps YoY, thanks to operating leverage. Moreover, increased profit share from JVs, especially the Adani JV, has helped PAT grow by 36% YoY. The company’s strong cash flows and further airport expansion plans, including Kochi Domestic and the upcoming Noida airport, offer visibility into future growth.

ICICI Securities maintains a target price of Rs 1,600. Based on the last closing price of Rs 1,223.90, this translates into an upside potential of approximately 30.7%. The broking house projects revenue, EBITDA, and PAT CAGRs of 6%, 12%, and 15%, respectively, over FY25-28E, based on new concessions, growth in passenger traffic, and per-passenger sales.

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