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Nomura Issues 'Buy' Ratings on Sona BLW, eClerx Services, and Indian Oil Corporation

Strategic Insights

— 1 min read

Global brokerage firm Nomura has turned optimistic on select stocks across auto components, IT, and oil refining sectors, issuing 'Buy' calls on Sona BLW Precision Forgings, eClerx Services, and Indian Oil Corporation (IOCL) with an upside potential of up to 25%. Nomura believes that these companies are well-positioned to benefit from new business wins, strong revenue growth, and robust refining margins.

Key Takeaways:

  • Nomura has assigned a 'Buy' rating with a target price of Rs 605 to Sona BLW Precision Forgings, projecting an upside potential of 25% from the current levels.
  • The brokerage firm believes that Sona BLW is well-positioned to benefit from new business wins amid the restructuring of auto component supply chains in Europe, with a potential business win size of around EUR 300 million.
  • Nomura expects strong revenue growth driven by strong deal momentum and margin discipline in eClerx Services, with a target price of Rs 5,200 and an 8.6% upside potential.
  • eClerx Services' EBITDA margin at 27% has been ahead of expectations, and the brokerage expects margins to stabilise between 24-28%.
  • Nomura remains bullish on Indian Oil Corporation (IOCL), assigning a 'Buy' rating with a target price of Rs 160 per share and an upside potential of around 6.7%.
  • Indian Oil Corporation's Q2FY26 EBITDA of Rs 14,600 crore exceeded expectations by 36% and up 16% QoQ, reflecting a much better refining performance.

Statistics:

  • Sona BLW Precision Forgings' potential business win size: EUR 300 million
  • eClerx Services' target revenue growth: 17-18% YoY over FY26-FY28
  • eClerx Services' EBITDA margin: 27% (better than expectation of 26%)
  • Indian Oil Corporation's Q2FY26 EBITDA: Rs 14,600 crore
  • Indian Oil Corporation's core refining margin: $8.9/bbl (sharply above estimate of $6.3/bbl)
  • Nomura's upside potential for Sona BLW Precision Forgings: up to 25%
  • Nomura's upside potential for eClerx Services: 8.6%
  • Nomura's upside potential for Indian Oil Corporation: around 6.7%

Sources:

  • Contify.com
  • IE Online Media Services Pvt. Ltd. (2025)

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