Nomura, a well-known brokerage firm, has named three stocks as “Buy” candidates. The firm believes these stocks could rise significantly from current levels. One of them could go up by as much as 21%.
Below I break down each pick. I also explain what could support or challenge their growth.
Table of Contents
1. Hindustan Unilever (HUL)
Target & Upside
Nomura maintains a “Buy” rating on Hindustan Unilever. It sets a price target of ₹2,900 per share. That gives about 15% upside from today’s market price.
Why Nomura favors it
- After a recent GST announcement, distributors delayed buying inventory. Consumers also held back purchases. HUL responded by offering extra trade discounts to clear stock and to pass on GST benefits.
- Nomura expects recovery in demand starting November, when prices and consumer behavior stabilize.
- The firm anticipates a trough (low point) in demand and margins. In other words, the worst may be behind HUL.
Risks & Watchpoints
- Recovery timing is key: if demand doesn’t bounce back strongly by end-year, margins could stay weak.
- Policy changes (tax, regulation) could affect input costs, consumer spending, or distribution.
- Competition from local and global FMCG firms may pressure pricing and market share.
2. Lupin
Target & Upside
Nomura gives Lupin a price target of ₹2,350. That suggests an upside of around 21% from the current level.
Why Nomura is upbeat
- Lupin acquired VISUfarma, a specialty ophthalmology company in Europe. This gives Lupin a footprint in a branded, niche segment.
- The European ophthalmology market grows about 5% annually. VISUfarma alone is expected to grow ~7% CAGR (Compound Annual Growth Rate) over 2022–2025.
- Lupin’s acquisition is funded from internal cash reserves. This lowers risks tied to debt or big external financing.
Risks & Watchpoints
- Integrating a foreign company may bring execution, regulatory, or cultural challenges.
- The specialty medicines market is competitive and regulated. Price controls or patent disputes could hinder growth.
- Currency risk and geopolitical issues in Europe may affect VISUfarma’s contributions.
3. Anant Raj
Target & Upside
Nomura sets a target price of ₹700 for Anant Raj. That offers a modest upside of about 3% from current levels.
Why Nomura includes it
- Anant Raj is investing in the data centre (DC) business. The firm sees tailwinds (positive trends) for this sector.
- They plan to lease 24 MW of capacity for colocation and 1–2 MW for cloud clients. The firm anticipates revenue in FY26 from this segment might reach ₹150–200 crore.
- When raising funds, management may choose options depending on growth opportunities in data centre and residential segments.
Risks & Watchpoints
- Data centre business needs high capital expenditure (capex). If demand or prices don’t meet expectations, returns may suffer.
- Competition from more established players could limit leasing success.
- Execution risk: delays in building or leasing out capacity would hurt near-term results.
Putting It Together
Nomura’s three picks cover different sectors: consumer goods (HUL), pharmaceuticals (Lupin), and real estate / infrastructure + tech (Anant Raj).
| Stock | Sector | Target Price | Upside Estimate | Key Strength | Main Risk |
|---|---|---|---|---|---|
| Hindustan Unilever | FMCG / Consumer | ₹2,900 | ~15% | Recovery post-GST impact, brand strength | Weak demand, margin pressure |
| Lupin | Pharma / Specialty | ₹2,350 | ~21% | Acquisition of VISUfarma, entry into niche market | Integration risk, regulatory / pricing issues |
| Anant Raj | Real estate / Data Centres | ₹700 | ~3% | Early mover in data centre leasing | Execution, competition, high capex |
Of these three, Lupin carries the highest upside in Nomura’s view. HUL offers a more stable, moderate play. Anant Raj gives exposure to a newer growth segment, but with smaller near-term gains.
What Investors Should Watch Next
Here are some points you may want to track if you consider these stocks:
- Quarterly results
Watch revenue, profit margins, debt levels and segment breakdowns. See how much VISUfarma contributes to Lupin. For Anant Raj, see how much data centre revenue begins to flow. - Policy / regulation
FMCG, pharma, real estate and data centres all face regulation, tax rules, or sector-specific policies. Changes could help or hurt. - Market conditions
If consumer spending falls, HUL may be hit. If pharma pricing becomes tougher, Lupin may struggle. If demand for data centres slows, Anant Raj may see delays. - Management execution
Acquisitions, expansion, fund raising — all depend on execution. Success depends on how well companies manage these moves.
My View (Neutral Tone)
Nomura’s picks are interesting. Lupin stands out as bold with high upside. HUL is safer and more familiar. Anant Raj is riskier but gives exposure to a sector that may grow fast.
If I had to pick one, I might lean toward Lupin, but I’d keep a careful eye on how well it integrates VISUfarma and handles regulatory pressures. HUL may be my second pick as a steadier choice.
I would treat Anant Raj as speculative — worth a small part of a diversified portfolio if one believes in the data centre theme.
Frequently Asked Questions For Nomura’s 3 Buy Picks and Why They Matter
Q1. Which stocks did Nomura recommend as “Buy”?
Nomura recommended Hindustan Unilever, Lupin, and Anant Raj.
Q2. Which stock has the highest upside potential?
Lupin has the highest upside, with about 21% growth potential.
Q3. Why does Nomura like Hindustan Unilever?
Nomura expects demand recovery and stronger margins after GST disruptions.
Q4. What is Anant Raj focusing on for growth?
Anant Raj is investing in data centres and residential projects for future revenue.