In this article, we look at two stocks, both from the IT Services and Financial Services sector, recommended by the Trade Brains Portal to buy for an upside potential of more than 25%. We also analyzed the market’s performance yesterday to understand what may lie ahead for the stock indices in the coming days.
LTI Mindtree Ltd
- CMP: ₹ 5,402
- Target: ₹ 6,350
- Upside: 18%
- Time frame: 12 Months
Why it’s recommended
Established in 1996, LTIM offers IT solutions into applications, development, maintenance, enterprise solutions, infrastructure management, testing, analytics, artificial intelligence, and cognitive services. LTIM has worldwide development centers in the US, Canada, Europe, South Africa, the Middle East, and Singapore, as well as offshore delivery centers in Mumbai, Pune, Bengaluru, and Chennai with headquarters in Mumbai. The company’s strength consists of the combined abilities of 84,000+ skilled and enterprising experts spread over more than 40+ countries.
In FY25, the company reported revenue of Rs 38,008 crore, up 7% YoY and PAT of Rs 4,602 crore, up by 0.4% YoY. Free cash flow to PAT was 78.5% and operational cash flow to PAT was 98.8% in FY25. The total amount of cash and investments is $1.56 billion, or Rs 13,346 crore, the highest amount ever.
The following represents LTIM’s revenue allocation by region: 74.8% comes from North America, 14.1% from Europe, and 11.1% from the rest of the world. With 84,307 people overall, the company has added 2,657 net employees year over year. At 14.4%, attrition stayed constant. 4,700+ new hires were onboarded in FY25, assisting with systematic correction.
For FY26, three projects have been given top priority by the company in an effort to increase sales and profitability. The first effort aims to transform sales by enhancing leadership; the second focuses on major deals powered by AI to boost sales; and the third is the Fit4Future program, which optimizes costs to boost profitability. To speed up the modernization of its IT infrastructure, the company has bolstered its partnership with Arenco Group, UAE, in recent months.
Additionally, it has worked with Google Cloud to use Agentic AI to drive business transformation. With 741 active clients as of March 2025, the company is shifting from discretionary to longer-tenure, efficiency-driven deals, and it received significant order inflows of $6 billion, up 6% YoY. The company remains robust, and management expects further large deal closures in the coming quarters, especially in retail.
Risk Factors
LTIMs North America division has consistently contributed over 70% to the total revenue which shows customer and geographical concentration risk for the business. Any regulatory changes in the region could have a significant impact on operations and affect its profitability.
IREDA Ltd
- CMP: ₹ 182
- Target: ₹ 215
- Upside: 18%
- Time frame: 12 Months
Why it’s recommended
Incorporated in 1987, IREDA is the largest NBFC with over 38 years of experience and holds a ‘Navratna’ status. It offers the renewable energy industry a full range of financial solutions and associated services. Solar, hydro, transmission, wind, battery storage systems, green hydrogen, project-term loans, loan refinancing, and EV charging infrastructure are all part of its diverse portfolio of renewable energy products. The company operates in 23 states and 4 union territories, and its loan book is well-diversified. The GOI owns 75% of the enterprise, which is strategically important to the growth of India’s renewable energy sector.
In FY25, the company reported revenue from operations Rs 6,743 crore, growing by 36% YoY, PAT stood at Rs 1,698 crore, a growth of 36% YoY. The amount disbursed was Rs 30,168 crore, up 20% year over year, while the amount sanctioned was Rs 47,453 crore, up 27% year over year. IREDA keeps its NIM at 3.27%, which is up 42 basis points year over year. In FY25, the yield on advances was 10.03%, while the controlled cost of borrowing was 7.61%. The company’s NPA decreased from 5.61% in FY21 to 1.35% in FY25, demonstrating its ability to improve asset quality over time.
The outstanding loan book stood at Rs 76,282 crore, the solar thermal sector accounted for the largest portion of the outstanding loan book (24%), followed by the wind sector (14%), and hydropower (11%). 73% of the loan book as of FY25 came from the private sector, while 27% came from the state sector. The company successfully raised Rs 25,200 crore in borrowings in FY25, with 13% coming from the foreign borrowings. India’s renewable energy industry has tripled in size over the past ten years and is expected to continue growing. India’s non-fossil fuel capacity is now 220 GW, with a goal of 500 GW by 2030. Since FY19, the installed capacity of solar PV has grown at an incredible rate of 24% CAGR;
Risk Factors
The company is exposed to interest rate volatility risk that could adversely affect its business, hedging instruments, net interest income and net interest margin. IREDA may suffer a decline in net interest margin which would adversely affect their business, results of operations and financial condition.
Market Recap June 11th, 2025
The Nifty 50, after opening above the 20-day EMA today at 25,134.15, surging to 25,222.40, and closing at 25,141.40, the Nifty 50 finished the day on the upside. The BSE Sensex increased 123.42 points, or 0.15%,opening at 82,473.02, indicating a positive trend and closed at 82,515.14. Both indexes were trading above all four EMAs (20/50/100/200), with the Nifty 50 RSI at 62.26 and the BSE Sensex RSI at 60.67 (far below the overbought threshold of 70). Both benchmark indices saw modest gains as a result of profit bookings, but they also continued to rise as a result of monetary policy and global indicators, such as the US-China trade discussions that stimulated market activity.
The largest sectoral gainer was the Nifty Oil & Gas index, which closed at 11,725.50, up 169.30 points, or 1.47%. Gains of up to 6.5 percent were recorded by the major oil and gas firms, including GAIL, Bharat Petroleum, Hindustan Petroleum, and Oil India. This follows the major state-run refineries’ plans to order ten domestically made vessels to transport petroleum across the country as part of their infrastructural development. A combined tender for medium-range vessels, valued at about $600 million, will be released later this year, with delivery beginning in 2028.
The Nifty IT index increased 484.35 points, or 1.26%, to settle at 38,784.30. With advances of up to 3.3%, Wipro, Tech Mahindra, Infosys, and HCL Technologies were the industry leaders.
In contrast, the Nifty PSU Bank index dropped -63.10 points, or -0.88%, closed at 7,107.75. Punjab and Sind Bank saw a decline of 2%, Indian Overseas Bank was down by 1.91%, and Bank of India fell by 1.85% causing the index to fall. In addition, the Nifty FMCG Index dropped -378.20 points, or -0.67%, to end the day at 55,820.
Asian markets reacted favorably on Wednesday to the agreement reached in the US-China trade negotiations. The agreement is currently awaiting both leaders’ approval. The Kospi index in South Korea continued its upward trajectory, climbing 1.23%, or 35.19 points, to close at 2,907.04, while the Hang Seng index in Hong Kong gained 0.84%, or 204.07 points, to conclude at 24,366.94 in the Asia-Pacific markets.
The Nikkei 225 in Japan gained 0.55%, or 209.68 points, to close at 38,428.19. The Shanghai index increased 0.52%, or 17.5 points, to conclude at 3,402.32. The new trade agreement between the US and China caused lukewarm response amongst investors, as the US Dow Jones Futures closing at 42,824, down -81 points, or -0.2% was seen in the US market since the focus remains on the monthly reading of US consumer prices, which is essential for evaluating inflation and the impact of President Donald Trump’s punishing tariffs.
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