In this article, we look at two stocks, one from the IT sector and the other from the Automobile sector to buy for an upside potential of up to 20%, recommended by the Trade Brains Portal. Further, we analyze the market’s performance yesterday and also look at some stocks to watch out for today.
1. Tata Consultancy Services Ltd
- CMP: ₹ 3,521
- Target: ₹ 4,250
- Upside: 20.7%
- Time frame: 14-16 Months
Why it’s recommended
TCS reported a 6% YoY increase in revenue from operations, rising from Rs 2,40,893 crore in FY24 to Rs 2,55,324 crore in FY25, with a 3.8% growth in dollar terms. The operating margin saw a slight dip to 24.3% from 24.6% in the previous year. Net margin remained stable at 19.0%, while earnings per share grew by 5.05% YoY, indicating steady profitability. The company generated a free cash flow of $1.48 billion and holds invested funds totaling $5.53 billion, reflecting a strong liquidity position that supports consistent shareholder returns.
TCS’s order book remained robust, with a Total Contract Value (TCV) of $12.2 billion as of Q4. Notably, the North American market hit a record TCV of $6.8 billion, while the BFSI segment contributed $4.0 billion and the consumer business segment added $1.7 billion, showcasing TCS’s ability to strengthen its market presence across key sectors.
TCS, with a strong workforce of 6.07+ employees, has a nominal attrition rate at 13.3% for IT services and has 35.2% women employees, which highlights its focus on talent retention, diversity, and development. A structured hiring strategy and diverse global presence (152 nationalities) ensure scalability and operational efficiency, strengthening its long-term growth prospects. The management also noted that TCS is gearing up to onboard an increased number of campus hires in FY 26.
The company remains optimistic about its international and domestic business performance in FY26, expecting improvements as macroeconomic challenges ease. While a major part of the BSNL project has already been executed, which may soften revenue in the short term, TCS is actively exploring new opportunities both in India and overseas to compensate for this and improve its margins, aiming to achieve 26% operating margins. In addition, strong total contract values recorded in the third and fourth quarters further support confidence in its growth outlook for FY26.
Risk Factor
If the macroeconomic uncertainty relating to US tariffs continues, it can impact the company’s operating leverage as utilization will be affected, and any sudden decline in demand, delays, or deferrals would negatively affect the margins.
Also read: Can Sensex Reach 1 Lakh? Morgan Stanley Predicts 22% Upside by 2026
2. Bajaj Auto Ltd
- CMP: ₹ 8,680
- Target: ₹ 9,856
- Upside: 13.5%
- Time frame: 12 Months
Why it’s recommended
Bajaj Auto is a flagship company of the Bajaj Group, a 2W and 3W manufacturing company exporting to over 79 countries globally and anticipating over 20% growth from exports in the coming years. The company has 5 manufacturing plants across India with a total installed capacity of 7.1 million units annually.
Bajaj Auto has a diversified product portfolio and a strong market presence overseas. It has popular brands in its portfolio like Pulsar, KTM, Triumph, Chetak, Dominar, and Avenger. Further, the company has forayed into the e-2W scooter space with the Chetak brand and is among the top 5 players within the industry.
Bajaj Auto is the 2nd largest player within the motorcycle business in India and India’s largest exporter of 2-wheelers. It received board approval to develop export capacity to 50,000+ units by FY26 for its Dominar brand. In FY24, they had a market share of 18.2% of motorcycle sales in India and a 46.3% share in the export market.
They are also a dominant player in the 3W passenger carrier segment, with a market share of 75.5% in FY24 and around 46.5% share in the 3W cargo segment. The company is also the largest exporter of 3Ws from India.
The company has further plans for infusing capital of Rs 2,300 crore into Bajaj Auto Credit Limited by FY26. The company is committed to providing Rs 1,000 capex as part of the PLI scheme in a horizon of 5 years and will incur Rs 600-700 crore in FY25-26, mostly towards maintenance capex. The company has reported sales of 9,43,563 units for 2-wheelers and 1,59,371 units in the commercial vehicle segment in Q4 FY25, and April sales stood at 3,17,937 units for 2-wheelers and 47,873 units in the commercial vehicle segment.
Risk factors
The auto industry is closely aligned with the macroeconomic situation of the country. Industry is susceptible to geopolitical concerns, such as tariffs levied by the Trump administration, which may lead to high costs and supply chain disruption.
Other macro events like a decline in per capita income across economies, which will lower people’s purchasing power, shifting national demand and preferences, global inflation, and the availability of input materials may impact the industry. The 2W segment has become extremely competitive; players like Hero MotoCorp, Honda Motorcycles, Suzuki Motorcycle, and TVS Motors continue to launch new models to gain market share.
Market Recap May 21, 2025
The Indian stock market rebounded on Wednesday, May 21, 2025, snapping a three-day losing streak. The Nifty 50 index opened at 24,744.25 and closed at 24,813.45, gaining 129.55 points or 0.52%. Similarly, the BSE Sensex opened at 81,327.61 and settled at 81,596.63, up by 410.19 points or 0.51%. Both indices traded above their 20/50/100/200 EMAs, indicating sustained bullish momentum.
Sectorally, Nifty Pharma and Nifty Realty led the gains, with the Pharma index rising by 1.25% and Realty by 1.72%. Notable gainers included Gland Pharma, Cipla, and DLF Ltd. On the flip side, Nifty Consumer Durables was the only sectoral index to close in the red, reflecting a marginal decline.
In the broader markets, the Nifty Next 50 index advanced by 1.17%, closing at 66,939.10. The Nifty Bank index also showed strength, closing at 55,075.10, up by 197.75 points or 0.36%.
Globally, the Dow Jones Industrial Average futures declined by 0.9%, indicating cautious sentiment amid rising U.S. Treasury yields and geopolitical tensions. Asian markets presented a mixed picture: the Hang Seng index gained 0.62% to close at 23,827.78, while Japan’s Nikkei 225 fell by 0.61% to 37,298.98, affected by a strengthening yen and soft trade data.
Stocks to Watch Out for on May 22nd
NTPC Green Energy Ltd: Revenue from operations grew by 35.8% YoY, stood at Rs.751.50 crore. Profit after tax stood at Rs.233.21 crore, up by 188.09% YoY.
Interglobe Aviation Ltd: Revenue from operations grew by 24.81% YoY, stood at Rs.2,30,975 crore. Profit after tax stood at Rs.30,675 crore, up by 61.89% YoY. The company has approved a dividend of Rs.10 per share.
Oswal Agro Mills Ltd: Revenue from operations grew by 2,550% YoY, stood at Rs.102.28 crore. Profit after tax stood at Rs.63.11 crore, up by 5,427.12% YoY.
Hazoor Multi Projects Ltd: Received an order from NHAI worth Rs.22.995 crore contract for toll collection at Shrishikalan Fee Plaza on NH-76 and maintenance of nearby toilet blocks.
VRL Logistics Ltd: Revenue from operations grew by 5% YoY, stood at Rs.811.54 crore. Profit after tax stood at Rs.74.25 crore, up by 245% YoY. The board has announced a dividend of Rs.10 per share.
Team Lease Services Ltd: Revenue from operations grew by 18% YoY, stood at Rs.2,867.65 crore. Profit after tax stood at Rs.37.88 crore, up by 35% YoY.
Star Cement Ltd: Revenue from operations grew by 15% YoY, stood at Rs.1,057.11 crore. Profit after tax stood at Rs.123.11 crore, up by 41% YoY.
Uno Minda Ltd: Revenue from operations grew by 20% YoY, stood at Rs.4,535.96 crore. Profit after tax stood at Rs.289.24 crore, down by 4% YoY. The board has announced a dividend of Rs.2.5 per share.
Major Companies Announcing Results Today
- Astra Microwave Products Ltd
- Bajel Projects Ltd
- Barbeque-Nation Hospitality Ltd
- Container Corporation of India Ltd
- Deepak Fertilisers & Petrochemicals Corporation Ltd
- Emami Realty Ltd
- Emcure Pharmaceuticals Ltd
- Flair Writing Industries Ltd
- Gandhar Oil Refinery (India) Ltd
- GMR Airports Ltd
- Goodluck India Ltd
- Grasim Industries Ltd
- Gujarat State Petronet Ltd
- HFCL Ltd
- Honasa Consumer Ltd
- Indoco Remedies Ltd
- ITC Ltd
- Metro Brands Ltd
- MTAR Technologies Ltd
- Orient Paper & Industries Ltd
- Power Mech Projects Ltd
- The Ramco Cements Ltd
- Taparia Tools Ltd
- Sun Pharmaceutical Industries Ltd
- Unichem Laboratories Ltd
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