Today, we recommend two stocks, one from the healthcare sector and another from the railways sector, recommended by the Trade Brains Portal, to buy for an upside of up to 21%. We also analyzed the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
1. Biocon Ltd
- Current price: ₹ 352
- Target price: ₹ 405
- Upside: 15%
- Time frame: 16-24 Months
Why it’s recommended
The leading biopharma company in India, Biocon Ltd., was established in 1978 and has improved the lives of people in over 120 countries by creating innovative and affordable therapies for autoimmune diseases, diabetes, and cancer.
The company’s research services, biosimilars, generics, and novel biologics divisions employ about 18,200 individuals. In addition to having one of the largest biomanufacturing facilities for insulin, monoclonal antibodies, and devices, Biocon operates Malaysia’s largest integrated insulin manufacturing and research & development facility.
Biocon Biologics, which specializes in biosimilars, generated 58% of total revenue in FY25; the generics division contributed 19%; and Syngene, which offers research services, generated 23% of total revenue in FY25.
These are the group’s four incubated businesses. Comparing the performance on a like-for-like basis, revenue from operations totaled Rs 15,262 crore, a 10% YoY increase, and EBITDA reached Rs 4,374 crore with a margin of 27%; and the net profit in FY25 was Rs 1,013 crore, which is a remarkable turnaround. The company’s major product launches, including YesintekTM, Dasatinib in the U.S., and Liraglutide in the U.K., improved revenue performance in Q4 FY25.
The company intends to make capital investments in a number of business divisions totaling $200–$250 million in the future. As part of its capital investment plans, BBL intends to expand its insulin factory in Malaysia, while Syngene will boost the capacity of its research centers and production facilities for both large and small molecules.
In the next year, generics are expected to require capital expenditures of $50 million. The company plans to introduce liraglutide in the US and approve generic Copaxone there. Lenalidomide will be released in unlimited amounts, with more launches planned for FY26, according to management. Over the next 12 to 18 months, five additional medications will be released: denosumab, aspart, aflibercept, bevacizumab, and Stelara.
Risk factor
Biocon’s biosimilar segment can lose out on prospects if clearances from the European Medicines Agency, the US Food and Drug Administration, and those in the Asian and Latin American markets are delayed.
The company also faces intense competition from several cost-competitive Indian businesses along with strong defensive strategies from innovative companies that manufacture approved generics.
2. Titagarh Rail Systems Ltd
- Current price: ₹ 867
- Target price: ₹ 1,050
- Upside: 21%
- Time frame: 16-24 Months
Why it’s recommended
Established in 1997, Titagarh Rail Systems has over 25 years of experience as one of India’s leading suppliers of all-inclusive mobility solutions. Production of passenger coaches, propulsion equipment, urban metros, semi-high-speed trains, and other wagons, including specialized ones, are among its primary operations.
The company can currently process over 30,000 tons of casting steel per year and construct 12,000 wagons and 300 coaches at its four production facilities. Their total order book value as of FY25 was Rs 24,526 crore. The only firm in India that manufactures both wagons and coaches is Titagarh Rail Systems.
Although operational income climbed by 18% CAGR from FY23 to FY25, it was only slightly higher at Rs 3,867 crore compared to Rs 3,853 crore in FY24. Although PAT decreased 4.9% from Rs 288 crore in FY24 to Rs 274 crore, it has been rising at a strong CAGR of 43% from FY23.
Revenue from the FRS category increased by 5.64% year over year to Rs 3,610.27 crore in FY25. The PRS section brought in Rs 255.55 crore in FY25. With 9,431 wagons, the firm set a record for the most wagons ever constructed in a single year in India. It reached a new production record in FY25 with 27,240 metric tons produced in the foundry.
The company intends to build fully modern foundry production facilities in order to grow its foundry and raise its production to a much higher level in FY26. The company’s goal for the first phase of production in FY26 is to manufacture about 40,000 tonnes of castings.
The company expects manufacturing for the Bangalore Metro to be more efficient now that the supply chain issues with China have been resolved. Production is expected to be fully streamlined beginning in Q2 of FY26.
The business intends to add 125 to 150 traction motors per month, or 1,500 to 1,800 traction motors per month, to its propulsion division beginning in FY26. The company’s goal is to secure several projects from the vast pipeline of possibilities. Major projects include the Rs 72,000 crore Vande Bharat Coach and the projected Rs 15,800 crore Metro coach contracts.
Risk Factor
Indian railways remain the company’s biggest source of sales, and freight rail lines and wagons account for over 90% of operating revenues. Furthermore, the company has little to no exposure to international markets and works on almost exclusively domestic projects.
Market Recap 20th June 2025
The Nifty opened Friday’s trading session at 24,787.65, rose to a day-high of 25,136.20, and closed at 25,112.40. At the end of the day, the Nifty 50 was up 319.15 points, or 1.29%. The BSE Sensex gained 1,046.30 points, or 1.29%, from its opening price of 81,354.85 to its closing price of 82,408.17.
With the Nifty 50 RSI at 59.09 on Friday, the Nifty ended above all 20/50/100/200 EMAs. Additionally, the BSE Sensex RSI closed at 58.29, well below the overbought level of 70, and the Sensex closed above all 20/50/100/200 EMAs.
Due to foreign investors’ purchasing, the correction of crude oil prices, and investors’ increased confidence as a result of the easing of Middle East tensions, both benchmark indices witnessed an increase. Additionally, the India VIX fell 4.13 percent to 13.7 on Friday, reaching a weekly low, demonstrating a decrease in investor anxiety and improving market sentiment.
Every major index was up on Friday. The Nifty Realty index, which finished the day at 1,013.65, up 20.90 points, or 2.11%, was one of the largest gainers. Prestige Estates Projects, Phoenix Mills Ltd., and Macrotech Developers are among the index’s top gainers, as it increased by over 2% on Friday.
Among the top gainers was the Nifty Infrastructure index, which closed Friday at 9,130.55 after rising 1.73%. Among the top gainers in this index were Max Healthcare Institution, Indus Towers Ltd., and CG Power & Industrial Solutions, which had a gain of over 3% on Friday.
The Nifty PSU Bank index ended the day at 6,844.75, up 110.45 points, or 1.64%. Union Bank of India, Canara Bank, and Indian Overseas Bank led the sector with gains exceeding 2%.
Asian markets experienced a mixed response as China maintained its benchmark rates at their current level, as investors anxiously watched the developments between Israel and Iran.
The Hong Kong Hang Seng index rose 1.24%, or 292.74 points, to close at 23,530.48, while the South Korean Kospi index extended its upward trend, rising 1.48%, or 44.10 points, to close at 3,021.84, touching its three-year high.
Japan’s Nikkei 225 ended the day down 85.11 points, or -0.22%, at 38,403.23. The Shanghai index ended the day at 3,359.90, down 2.21 points, or -0.07%. On Friday, the US Dow Jones Futures closed at 42,444.03, up 267.37 points, or 0.63%.
The Nifty 50 index rose 1.59% this week, but investors were cautious going forward due to significant events, including the Iran-Israel conflict, rising crude oil prices, and the US Fed maintaining its fed rate at its current level.
Written by Anushka Roy
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