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Kolkata: The Indian stock market is passing through very nervous times. As the Strait of Hormuz remains closed for the passage of crude oil consignments, it directly threatens half of Indian crude imports. If the Iran-US conflict continues, it can imply ominous portents for the Indian economy. This has sent shivers down the spine of the stock markets that have fallen close to 3,000 points over the past five days. However, investment experts are urging investors not to panic but ignore the near-term volatility and correction and pick up quality stocks taking advantage of the correction. In the midst of this development, comes a note from Japanese stock broking major Nomura which has picked LG Electronics India, Bharti Airtel and Kansai Nerolac with upside possibilities. Let’s have a closer look.

LG Electronics India

Nomura has said that it can detect tailwinds in these stocks due to exports, policy support and improving margins. It has set a target price of Rs 1,836 on LG Electronics India. Compared to the price of Rs 1,577 around 12 noon on March5, the upside potential is 17.1%. “Growth recovery remains the key priority and it is working across multiple levers to drive growth and gain market share,” Nomura said about this South Korean consumer electronic giant. It has flagged the firm’s policy to grow both in the affordable and premium segments as a driver of business. The company will also keep focusing on exports, said Nomura. It also thinks margin can recover through hike in prices, operating leverage and higher localization. Premium products will also contribute more to the business.

Kansai Nerolac Paints

The target price Nomura has set for Kansai Nerolac Paints is Rs 285. Compared to the market price of Rs 194 on March 5, the upside potential is a big 47%. Nomura thinks the company is progressing well to become a force in the auto and industrial paints sector. In both the domains, it is than the market. Nomura highlighted that Kansai is trying to maintain its old in the decorative paints segment too despite the entry of new players.

“Management believes that the India growth story is intact and the current growth rates in paints do not depict its true long term potential…. premiumization initiatives and operational efficiency in SG&A spends should help drive 200bp OPM improvement over the medium term.” The brokerage expects EPS growth of about 10% in FY26–FY28.

Bharti Airtel

Nomura has set a target price of Rs 2,300. Considering a market price of Rs 1,910 its signals an upside potential of more than 20%. Nomura said Airtel plans to invest Rs 20,000 crore in financial services over time through Airtel Money. In the first year, 10–15% of the amount will be deployed in this business. “The company will adopt a progressive dividend policy going forward as FCF generation accelerates,” Nomura said. Nomura highlighted that Bharti Airtel trades at 9.3x FY27F EV/EBITDA. Airtel will also opt for a progressive dividend policy as free cash flow strengthens, said the Japanese brokerage.

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