Today, we recommend two stocks, one from the capital goods sector and another from the real estate sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 21%. India’s pump industry continues to experience steady growth, fueled by increasing demand across agriculture, infrastructure, water management, and industrial sectors.
Meanwhile, the country’s real estate market remains robust, supported by long-term structural factors such as urbanization, infrastructure growth, financial market advancements, and the rapid pace of digitalization. We also analysed the market’s performance on Monday & Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. Shakti Pumps Ltd
- CMP: Rs 823
- Target: Rs 995
- Upside: 20.9%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Shakti Pumps India Ltd., founded in 1982, is a leading manufacturer specializing in fully energy-efficient stainless-steel submersible solar pumps and motors. The company commands a strong presence in the industry, holding over 25% market share under the PM KUSUM scheme. With exports to more than 100 countries, Shakti Pumps is among the few companies capable of in-house production of both pumps and motors. The company has 500+ dealers and 400+ service centers across India, offering 1,200+ products, including pumps, motors, VFDs, inverters, and mounting structures. Its Pithampur facility produces 500,000 pumps/motors, 400,000 inverters/VFDs, and 200,000 structures annually.
In Q1 FY26, the company reported revenue from operations of Rs 622.5 crore, an increase of 9.7% YoY from Rs 567.6 crore in Q1 FY25. The EBITDA improved by 5.7% YoY at Rs 143.6 crore, with an EBITDA margin of 23.1%. Profit after tax grew by 4.5% YoY to Rs 96.8 crore, with PAT margins at 15.6%. The total outstanding order book stands at Rs 1,350 crore.
In FY25, ROE and ROCE improved to 35.2% and 43.9%, respectively. As of 30 June 2025, Shakti Pumps has installed 157,297 pumps out of the total installed pumps of 840,947 under the PM Kusum scheme. Segment-wise, customers under government projects grew at a 37.5% CAGR, and export customers grew at a 24.8% CAGR during FY2021-25.
The company is executing an Rs 1,700 crore capex plan, including Rs 250 crore to double capacities for pumps, motors, VFDs, and solar structures; Rs 250 crore for an EV motors, controllers, and chargers facility under Shakti EV Mobility Pvt Ltd; and Rs 1,200 crore for a 2.2 GW solar DCR cell and PV module plant in Pithampur, Madhya Pradesh.
Shakti Pumps is working with the International Solar Alliance (ISA), which is driving demand for 270,000+ solar pumps in 22 countries, over 1 GW of rooftop solar in 11 countries, and 10+ GW of mini-grid capacity in 9 countries. Additionally, the company secured a USD 35.3 million contract from the Ugandan government to supply solar-powered water pumps. Looking ahead, the company aims to achieve 25-30% revenue growth in FY26 and intends to maintain this momentum over the next 3-4 years.
Risk factors
The company faces several business risks due to its heavy dependence on government contracts, which are primarily tender-based. Revenue stability is contingent on winning these tenders, while delays in government-led initiatives, such as those supporting the solar pump market, could impact earnings. Intense competition from both organized and unorganized players further pressures margins. Additionally, operations are highly working capital-intensive, as payments from government entities, particularly under the PM-KUSUM scheme, are often delayed. The company is also vulnerable to raw material price volatility, with materials accounting for about 62% of revenue and being subject to frequent market fluctuations.
2. Lodha Developers Ltd
- CMP: Rs 1,184
- Target: Rs 1,420
- Upside: 19.9%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Lodha Developer Ltd. (Lodha Group), founded in 1995, is a leading real estate developer in India with a strong presence in MMR, Pune, and Bengaluru. It offers residential, commercial, and township projects across affordable to luxury segments and also operates in London. As of Q1 FY26, the company has 40 active projects and plans to launch 11 new ones in FY26 with an estimated GDV of Rs 133.3 billion. It holds a 10% market share in MMR, 5% in Pune, and 2% in Bengaluru, with key brands including Lodha, Lodha Luxury, and Palava City.
In Q1 FY26, the company reported a revenue of Rs 34.9 billion with a 22.7% growth YoY; adjusted EBITDA stood at Rs 12 billion with a margin growth of 70 bps to 34.4%. The profit after tax was at Rs 6.8 billion, seeing a 41.9% growth. The net worth was at Rs 209.5 billion, and net debt to equity stood at 0.24. The return on equity was at 20% in FY25, and the company expects to reach 21% in FY26. The collections stood at Rs 28.8 billion, a 7% rise YoY, and the best-ever pre-sales were achieved at Rs 44.5 billion, a 10% growth YoY. The company anticipates an improvement in the non-launch weekly sales rate and expects it to reach Rs 300 crore by the end of FY26
The management is confident of delivering Rs 50 billion as the new quarterly presales base, with embedded guidance of a 33%+ EBITDA margin, a 21% PAT margin on presales, and a 20%+ ROE target. The management gave guidance on achieving Rs 210 billion in pre-sales for the full year FY26. Whereas operating cash flow is projected to reach Rs 77 billion in FY26. The launch pipeline for FY26 stands at Rs 250 billion, with a stronger growth towards H2. The company is on track to deliver the guidance. Additionally, the company expects to enter Delhi NCR in the next 12 months and hopes to launch in fiscal 2027 for growth and expansion opportunities.
Risk factors
The company’s performance is largely tied to the Mumbai Metropolitan Region (MMR) real estate market, which accounted for about 80% of its collections in FY25. Any decline in demand or excess supply in this region could negatively affect future revenue prospects. Due to the cyclical nature of the real estate sector, cash flows tend to fluctuate, and a slowdown in booking activity could result in lower-than-expected collections.
Market Recap of 20th & 21st October 2025
On Monday, the Nifty 50 opened on a strong note at 25,824.6, rising 114.75 points from Friday’s close of 25,709.85. The index climbed to an intraday high of 25,926.2, crossing the 25,900 level. The BSE Sensex mirrored Nifty’s momentum, opening at 84,269.3, up 317.11 points from the previous close of 83,952, and hitting an intraday high of 84,656.56, crossing the 84,600 mark. The Bank Nifty Index also ended positively, marking a 52-week high of 58,261.55, crossing the 58,250 level.
On Tuesday’s Muhurat session, which was held from 1:45 p.m. to 2:45 p.m., the broader indices extended their upward movement. The Nifty 50 opened at 25,901, up 57.85 points from Monday’s close of 25,843.15. It reached a 52-week high of 25,934.35 before closing on a flatter note at 25,868.6, up 25.45 points, or 0.10%.
The BSE Sensex followed a similar pattern, opening at 84,484.67, up 121.3 points from Monday’s close of 84,363.37, and closing slightly higher at 84,426.34, up 62.97 points, or 0.07%. The BSE Sensex marked its 52-week high of 84,665.44, crossing above the 84,650 level. The Bank Nifty Index, however, saw a muted start during the Muhurat session, ending slightly lower at 58,007.20, down 26 points or -0.04%.
All three indices closed above their 20/50/100/200-day EMAs on the daily timeframe, indicating strong bullish momentum. The Nifty 50’s RSI stood at 72.26, and the BSE Sensex’s RSI was at 72.18, both entering the overbought zone (above 70). Meanwhile, the Bank Nifty’s RSI came in at 76.17, placing it well into the overbought territory.
On the sectoral indices front, the Nifty Media Index was the biggest gainer on Tuesday, rising 0.56%, or 8.65 points, to 1,541.50. Stocks like Tips Music Ltd, Prime Focus Ltd, Hathway Cable & Datacom Ltd, and D.B. Corp Ltd saw gains of up to 2.3%. The Nifty Metal Index also posted gains, advancing 0.40%, or 40.90 points, to 10,232.75. Key stocks, including Lloyds Metals & Energy Ltd, Welspun Corp Ltd, Jindal Stainless Ltd, and JSW Steel Ltd, were up by 2.3%. The Nifty Pharma Index followed the positive trend for the fifth consecutive session, closing at 22,515.70, up 0.34%, or 75.80 points.
The Nifty Realty index was among the sectoral losers on Tuesday, declining 0.10%, or -0.80 points, closing at 937.40. The shares of Sobha Ltd, DLF Ltd, The Phoenix Mills Ltd, and Prestige Estates Projects Ltd fell up to 0.5%. The Nifty PSU Bank Index also fell on Tuesday, closing at 7,853.30, losing -4.55 points, or -0.10%. Stocks, including Bank of Baroda, Canara Bank, and Punjab National Bank, emerged as the major laggards, dropping up to 0.5%.
Asian markets followed a mixed sentiment on Wednesday. Japan’s Nikkei 225 ended on a flatter note at 49,308, -8.06 points, or -0.02%. Hong Kong’s Hang Seng index fell by -0.91%, or -234.55 points, closing at 25,793, while China’s Shanghai Composite index also declined by -0.07%, or -2.57 points, to 3,913.76. However, South Korea’s KOSPI Index rose 1.54%, or 59.84 points, ending at 3,883.68. At 4:00 p.m. IST, U.S. Dow Jones Futures were up 0.06%, at 46,952.65, an increase of 27.91 points.
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