Nomura initiated buy ratings on One97 Communications, Dhoot Transmission, and Bharti Hexacom on Thursday, October 15. The firm said Paytm has gone from stock facing a regulatory shock to one on a structural rebound. These three companies show up to 31% upside potential, as Nomura expects strong growth for them.
Shares of One97 Communications Ltd. or Paytm, Dhoot Transmission Ltd. and Bharti Hexacom Ltd. are the three latest names where global investment banking firm Nomura has bet on in three separate notes on Thursday, October 15.
Nomura has initiated coverage on all three names with a "buy" recommendation and the highest upside potential among the three names is 31% from Wednesday's closing price.
Nomura's Paytm Target Above IPO Price
Nomura has initiated coverage on Paytm with a "buy" rating and a price target of ₹2,250, which is above the company's IPO price of ₹2,150. The price target indicates an upside potential of 31.4% from current levels and is the highest among Nomura's three initiations on Thursday.
It said Paytm has gone from stock facing a regulatory shock to one on a structural rebound. Its payments and merchant lending is expected to drive its revenue growth. Paytm is building a leaner, indirect cost base, with supported by AI, scale and disciplined marketing, Nomura said.
The UPI merchant discount rate (MDR), the company's international expansion and AI offer additional growth opportunities for the firm, as per Nomura.
Paytm's earnings before interest, taxes, depreciation and amortisation (EBITDA) is expected to grow at a Compounded Annual Growth Rate (CAGR) of 96% over FY26-29, according to Nomura, who is valuing the stock at 26 times its enterprise value (EV) / EBITDA.
Key risks for the stock include deterioration in lending asset quality and intensifying competition, it added.
A total of 24 analysts have coverage on Paytm. Of these, 19 have "buy" ratings and five have "hold" ratings.
Paytm shares ended the previous session 0.2% lower at ₹1,712.4 apiece. The stock has fallen 1% in the past month but is up 32.6% this year, so far.
Dhoot Transmission Gets Another Positive Note
Nomura has initiated a "buy" rating on the stock with a target price of ₹1,800 per share, indicating an upside 22.7% from its previous close.
The firm sees the stock to be well-positioned to benefit from the electric vehicle (EV) adoption, premiumisation and localisation.
Dhoot Transmission held 41% share of the two-wheeler and three-wheeler wiring harness industry in the financial year 2026 and 77% of its revenue came from the wiring harnesses segment. It commands a 70% to 80% wallet share in popular two-wheeler electric vehicle models, supporting further share gains, Nomura said.
Nomura expects Dhoot Transmissions' electric vehicle revenue contribution to rise from 24% in FY26 to 48% in FY29. Meanwhile, it expects the company's revenue and earnings per share (EPS) to grow at 27% and 28% CAGR, respectively, over FY26-29.
The company's EBITDA margin is also expected to remain stable in the 15.2% to 15.7% range, as per Nomura.
Of the six analysts who have coverage on the stock, four have a "buy" rating while two have "sell" ratings.
Shares of Dhoot Transmission ended the previous session 1.4% down at ₹1,467.2 apiece. The stock has fallen 5.7% in the past month.
Bharti Unit Gets A Thumbs-Up From Nomura
Nomura has initiated a "buy" recommendation on Bharti Hexacom with a target price of ₹1,870 per share, indicating an upside potential of 19.1% from its previous close.
It said the de-rating seen in the stock is overdone and tariff hike will revive sentiment.
The investment banking firm sees Bharti Hexacom as among the most levered to likely tariff hikes. It added that pure-play mobility justifies the valuation premium the stock commands.
The premium operator is under-penetrated in Rajasthan and Northeast India markets, Nomura said.
It added that pure-play wireless mobility operation implies limited capital allocation risks, adding that superior return on capital employed (RoCE) and potential for progressively higher shareholder returns, Nomura said.
Of the 16 analysts that have coverage on the stock, 13 have a "buy" recommendation, while two have a "hold" rating and one has a "sell" rating.
Shares of Bharti Hexacom ended the previous session 1.4% higher at ₹1,570 apiece. The stock has gained 4.3% in the past month but is down 13.3% this year, so far.