In this article, we look at two stocks, one from the cement sector and the other from the financial services sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 12%. We analyzed the market’s performance yesterday and looked at some stocks to watch out for today.
1. Ambuja Cements
- Current price: ₹ 563
- Target price: ₹ 685
- Upside: 22%
- Time frame: 12 Months
Why it’s recommended
Ambuja Cement is the second-largest cement company in India. In FY25, Ambuja crossed 100 MTPA cement capacity and further targets 118 MTPA by FY26 and 140 MTPA by FY28. The company registered its highest-ever annual volume at 65.2 million tons, a growth of 10% YoY.
The revenue from operations stood at Rs 35,045 crore, grew by 6% YoY, and net profit stood at Rs 5,158 crore, up by 9% YoY. Post the acquisition by the Adani Group, Ambuja Cements has successfully increased its capacity by 50%. It also reduced costs by 19% through acquisitions and OPEX programs.
Further, the company targets reducing the cost from 19% to 12% by FY28. In FY25, the company has 24 integrated units, 22 grinding units, 101 RMC plants, and 11 captive ships. It holds 110,000+ channel partners across India. As of FY25, the company has 65% of the clinker factor, 82% share of blended cement, 10 bulk cement terminals, and 101 ready-mix concrete plants.
During Q4FY25, the company sold 73% of trade sales to the profitable Individual House Builders (IHB) segment, which is the highest among the peers. Additionally, in FY25, the logistics cost decreased by 5% by leveraging rail, sea, and BCT/GU infrastructure strength and optimizing logistics costs. Additionally, green power consumption stands at 21% and is targeting to consume 60% of power from green by FY28. Recently, the company commissioned 200 MW of solar and 99 MW of wind power. For FY25, on a consolidated basis, Ambuja Cements, along with ACC Cements, holds a market share of 73% in trade cement and 29% in the premium cement segment.
National infrastructure push, with projects like Bharatmala Pariyojna of 83,677 km of roads with a capex of Rs 5.35 crore. Rapid urbanization, with Tier 1 cities growing vertically and schemes like PM Aavas Yojana sanctioning 12 million affordable housing projects. These are some of the key growth drivers for the cement industry.
Risk Factor
Ambuja is exposed to raw material costs such as limestone, coal, and gypsum. An increase in raw material costs, power, fuel, and freight costs could squeeze the margins and profitability of the company. The cement industry is directly correlated to the economy, particularly in construction and infrastructure projects, which will directly impact the cement industry.
Also read: Multibagger Infra stock jumps 9% after receiving ₹204 Cr order for 100-MWh battery storage system
2. Central Depository Services (India) Ltd
- Current price: ₹ 1,466
- Target price: ₹ 1,645
- Upside: 12%
- Time frame: 12 Months
Why it’s recommended
CDSL is an Indian depository services company, holding the majority market share of 79% with 15+ crore active client accounts. It also holds 90% market share in newly opened demat accounts as of FY25. CDSL acts as a facilitator for holding securities in the dematerialized form and an enabler for securities transactions. It has positioned itself as the backbone of retail participation, reinforcing its leadership in the depository ecosystem. It holds 8.5 lakh crore securities in dematerialized custody, with the total value of these securities amounting to approximately Rs 72.4 lakh crore.
Furthermore, CDSL became the first depository to register 15+ crore demat accounts as of March 31, 2025, and during FY 2024-25, approx. 3.73 crore new demat accounts were opened. The Indian depository industry is a duopoly in nature; its peer NSDL holds 3.9+ crore active client accounts as of March 31, 2025.
The consolidated total income as of FY25 stood at Rs 1,199 crore, growing by 32% YoY, compared to Rs 907 crore in FY24, and net profit stood at Rs 526 crore, up by 25% YoY, from Rs 420 crore in FY24. Key segment performance highlights of Q4 FY25 include annual issuer income, which stood at Rs 87 crore, up 34% YoY; transaction charges stood at Rs 49 crore, down by 36%; IPO/CA income, down by 4% to Rs 25 crore; online data charges income stood at Rs 37 crore, down by 29% YoY; and other income stood at Rs 58 crore, up by 21% YoY.
CDSL operates through four key business lines. CDSL Ventures Limited is India’s first and largest KYC registration agency, with 8.93 crore records and RTA services for 2,638 companies. CDSL Insurance Repository holds over 18 lakh policies across 17.5 lakh e-Insurance Accounts, partnering with 45 insurers. CDSL Commodity Repository enables electronic commodity ownership and transfer via WDRA and IIBH IFSC, strengthening CDSL’s market position and growth potential. Rapid digitization, simplified processes, and broader retail participation have accelerated dematerialization, pushing investor accounts to 19.24 crore by March 2025, where 4.1 crore were added in FY25 alone. Despite this hyper-growth, retail penetration remains modest at 7% of the population, indicating significant growth potential.
Risk Factors
The company charges tariffs for DPs as well as issuers and registrar and transfer agents (RTAs), which is their main operational income and is dependent on capital market activities. Any market volatility could impact the revenue.
Furthermore, CDSL relying heavily on technology could pose cybersecurity risks like phishing, malware, ransomware, etc., which should be addressed properly to safeguard the business interests. The company operates in a strict regulatory compliance environment, and any change in legal requirements can potentially intensify competition in the sector.
Market Recap May 27, 2025
On Tuesday, May 27, 2025, Indian equity markets reversed their recent gains, with the BSE Sensex dropping 624.82 points (0.76%) to close at 81,551.63, and the Nifty 50 falling 174.95 points (0.70%) to settle at 24,826.20.
The downturn was broad-based, with significant losses in FMCG, IT, and Auto sectors. The Nifty FMCG index fell by 0.88%, led by declines in ITC, Nestle India, and Varun Beverages. The Nifty IT index declined by 0.75%, with major IT firms like Infosys, TCS, and HCL Technologies contributing to the losses. Additionally, the Nifty Auto index slipped by 0.70%, reflecting weakness in the automobile sector.
The broader market indices mirrored the negative trend. The Nifty 100 index decreased by 0.63% to close at 25,436.35, while the Nifty 200 index edged down by 0.50% to finish at 13,829.30.
Global markets presented a mixed picture. Japan’s Nikkei 225 index rose by 0.55% to close at 37,749.00, supported by gains in export-driven sectors. Hong Kong’s Hang Seng Index increased by 0.43% to 23,381.99, lifted by tech and financial stocks. In contrast, China’s Shanghai Composite Index fell by 0.18% to 3,340.69 amid concerns over economic growth and geopolitical tensions.
The decline in Indian markets reflects a market-wide sell-off, influenced by global market trends, economic data, and sector-specific developments. Investors are expected to remain cautious, closely monitoring global macroeconomic cues and domestic policy developments in the coming sessions.
Stocks to watch out for on May 23
Goodyear India Ltd: Revenue from operations rose by 10% YoY and stood at Rs.606.73 crore. Profit after tax stood at Rs.4.5 crore, up from a net loss of Rs.3.58 crore. The Board of Directors has recommended a final dividend of Rs.23.90 per share (239% dividend).
We Win Ltd: We Win Limited secured a three-year, Rs.27.95 crore order from C-DAC Kolkata for biometric system supply, installation, and maintenance.
Afcom Holdings Ltd: Revenue from operations rose by 98% YoY and stood at Rs.152.34 crore. Profit after tax stood at Rs.29.56 crore, up by 123% YoY.
Black Box Ltd: Revenue from operations rose by 4% YoY and stood at Rs.1,546.10 crore. Profit after tax stood at Rs.60.47 crore, up by 48% YoY.
Precision Camshafts Ltd: Revenue from operations fell by 23% YoY and stood at Rs.200.75 crore. Profit after tax stood at Rs.40.44 crore, up by 1,107% YoY.
Tata Steel Ltd: The company has filed a fresh writ petition with the Delhi High Court seeking compensation of Rs.757.14 crore plus interest over the cancellation of a coal block allocation
EID Parry (India) Ltd: Revenue from operations rose by 22% YoY and stood at Rs.6,923.56 crore. Profit after tax stood at Rs.539.44 crore, up by 83% YoY.
Major companies announcing results today
- 3M India
- Avanti Feeds
- Bannariamman Sugars
- Bata India
- Birlasoft
- Cohance Lifesciences
- Cummins India
- Deepak Nitrite
- Dr Agarwals Health Care
- Elgi Equipments
- FDC
- Finolex Cables
- Fischer Medical Ventures
- Granules India
- IFB Industries
- Ion Exchange (India)
- IRCTC – Indian Railway Catering & Tourism Corp
- Jindal Worldwide
- JSW Holdings
- Juniper Hotels
- Mishra Dhatu Nigam
- MMTC
- National Fertilizers
- Natco Pharma
- Nuvama Wealth Management
- Sandur Manganese and Iron Ores
- Steel Authority of India
- Suprajit Engineering
- TVS Supply Chain Solutions
- Welspun Corp
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