Today, we recommend two stocks, one from the consumer services (Digital) sector and another from the pharmaceuticals sector, as recommended by the Trade Brains Portal, for a potential upside of more than 23%. India is the world’s third-largest digital economy, behind only the U.S. and China, and leads in mobile and internet users, digital transactions, and Information and Communication Technology (ICT) service exports.
Meanwhile, India’s pharmaceutical industry plays a crucial role in both the national economy and global healthcare, contributing to innovation, strong export performance, and a solid domestic manufacturing base. We also analysed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
1. Info Edge (India) Ltd
- Current price: Rs 1,333
- Target price: Rs 1,650
- Upside: 23.7%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Info Edge, one of India’s leading consumer internet companies, was founded in 1995 and operates across four major digital sectors: recruitment, real estate, education, and matchmaking. Its portfolio includes popular platforms such as Naukri, 99acres, Jeevansathi, Aisle, and Shiksha. Beyond its core operations, Info Edge has a robust investment arm, having backed over 110 startups through both its balance sheet and its venture capital division, Info Edge Ventures. Key strategic investments include companies such as iimjobs.com, Zwayam, AmbitionBox, hirist.tech, and CodingNinjas, which contribute to strengthening its primary businesses.
At the consolidated level, the company reported net sales of Rs 791 crore in Q1 FY26, up 17% year-on-year from Rs 677 crore in Q1 FY25. Profit after tax rose 32% YoY to Rs 343 crore, compared to Rs 259 crore in the previous year. Growth in the recruitment business’s billings slowed to 9% in Q1 FY26, but revenue increased by 14.8%, supported by strong momentum from earlier quarters.
Notable billing increases were seen in IIMJobs (41%), Naukri Gulf (18%), and Naukri Fast Forward (15%) YoY. The recruitment division boasts a vast database of 108 million resumes, 581,000 job listings, and sees 26,000 new resumes uploaded daily, securing a 75%+ market share among competitors. The company grew its billed customer base from 69,000 in FY21 to 128,000 in FY25, reflecting a 17% CAGR.
The 99acres platform achieved a 16.7% YoY growth in billings in Q1 FY26, further solidifying its market leadership with over 185,000 projects and more than 1 million listings. Meanwhile, Jeevansathi posted a 36.4% YoY increase in billings, reached operating breakeven, and began generating positive cash flows, despite strong competition from top industry players.
To broaden its customer base, Info Edge is expanding its reach into GCCs (Global Capability Centres), SMEs, Tier 2 and Tier 3 cities, and non-IT sectors. As of Q1 FY26, it holds 20 active financial investments in unlisted firms with a total book value of Rs 639 crore. The company also owns a 12.43% stake in Eternal and 12.52% in PB Fintech.
Info Edge is actively investing in AI technologies to improve search accuracy, user personalisation, and overall platform productivity. The goal is not only to enhance user engagement and experience but also to develop new AI-driven products and monetisation models, while also improving internal efficiency and execution speed.
Risk factors
The company operates in a highly competitive environment, facing strong competition from online platforms such as LinkedIn, Shine, MagicBricks.com, Housing.com, and Shaadi.com, in addition to offline service providers. Its extensive investment portfolio exposes it to valuation-related risks, as changes in the market value of both listed and unlisted investments could impact its financial statements. Info Edge continues to rely heavily on the Indian recruitment segment for a significant portion of its profits and cash flows, making it vulnerable to sector-specific downturns.
2. Dr Reddy’s Laboratories Ltd
- Current price: Rs 1,262
- Target price: Rs 1,550
- Upside: 22.8%
- Time frame: 16-24 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why It’s Recommended
Founded in 1984 and headquartered in Hyderabad, Dr Reddy’s Laboratories Ltd. is a leading global pharmaceutical company offering a broad spectrum of products and services. Its operations span across key areas such as active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars, and over-the-counter (OTC) medicines.
The company holds a strong position in therapeutic segments, including gastroenterology, cardiovascular, diabetes, oncology, pain management, and dermatology, with over 440+ products registered in the Indian market. A prominent player in the API segment, Dr Reddy’s supplies to more than 80 countries and boasts a robust portfolio with over 329 ANDA filings and approved dossiers.
In Q1 FY26, the company reported operating revenue of Rs 8,545 crore, reflecting an 11% year-over-year growth. EBITDA rose by 5% to Rs 2,278 crore, maintaining a healthy margin of 26.7%. Net profit increased by 2% to Rs 1,418 crore, with a PAT margin of 17%. Return on capital employed (RoCE) remained steady at 22%, while the company reported a net cash surplus of Rs 2,922 crore. For FY26, R&D investment is projected to be in the range of 7% to 7.5% of total sales.
Strategic collaborations have been a key area of focus. In Q1, Dr Reddy’s extended its partnership with Alvotech for the joint development, manufacturing, and commercialisation of a biosimilar version of Keytruda (pembrolizumab). It also deepened its alliance with Sanofi by launching Beyfortus (Nirsevimab), an RSV preventive treatment, in India.
During the quarter, the company filed one new ANDA with the USFDA and launched five generic products globally. It currently has 73 pending filings with the USFDA, comprising 70 ANDAs (including 43 Para IVs and 22 First-to-Files) and three NDAs under the 505(b)(2) pathway.
New product launches during the quarter included 13 in Europe, 26 across emerging markets, and 5 in India, in collaboration with ALK-Abello, featuring offerings such as Sensimune and Beyfortus. The Pharmaceutical Services and Active Ingredients (PSAI) division also submitted 12 Drug Master Files (DMFs) globally.
Risk Factor
Dr Reddy’s operates under the stringent oversight of regulatory authorities such as the US FDA, US SEC, and US DoJ. Non-compliance with quality and manufacturing standards may lead to regulatory actions, including inspection observations, warning letters, or monetary penalties, which could adversely impact business operations and financial performance. Additionally, the company faces substantial exposure in the US generics market, where intense competition and persistent pricing pressure continue to pose significant challenges.
Market Recap 13/10/2025
On Monday, the Nifty 50 opened on a negative note at 25,177.3, down -108.05 points from its previous close of 25,285.35. It dragged down and touched an intraday low of 25,152.3 before closing at 25,227.35, down by -58 points, or -0.23%. Technically, the index remained above all the 20/50/100/200-day EMAs on the daily chart. The BSE Sensex also reflected a similar trend, opening at 82,049.16, down -451.66 points from its previous close of 82,500.82.
It traded in a similar pattern to the Nifty 50 and settled at 82,327.05, marking a decline of -173.77 points, or -0.21%. Momentum indicators showed moderate strength, with the RSI for Nifty 50 at 58.5 and for Sensex at 58.52, both well below the overbought level of 70. The Nifty Bank Index closed in positive territory, rising 15.25 points, or 0.027%, to finish at 56,625.
The Nifty Capital Market Index was the major gainer, closing at 4,565.55, up 104.7 points, or 2.4%. KFin Technologies Ltd gained 6.7%, while other capital market stocks like UTI Asset Management Company Ltd, Aditya Birla Sun Life AMC Ltd, and BSE Ltd rose by up to 4.6%. The Nifty PSU Bank index was also the major gainer, rising by 18.15 points, or 0.2%, and closing at 7,713.95. Indian Bank, Union Bank of India, and Bank of Baroda all rose by up to 0.9%. The Nifty Midcap 50 index also jumped 38.75 points, or 0.2%, and closed at 16,654.
On the other hand, the Nifty FMCG Index was among the major losers during Monday’s trading session. The index closed at 54,473.85, down -492.6 points, or -0.90%. The top loser, Godrej Consumer Products Ltd, fell -1.68%, followed by United Spirits Ltd, which fell -1.56%, and Hindustan Unilever Ltd, which fell -1.43%.
The Nifty Consumer Durable Index also fell on Monday, losing -325.35 points, or -0.84%, closing at 38,262.75. Stocks, including Century Plyboards (India) Ltd, Voltas Ltd, Kalyan Jewellers India Ltd, and Blue Star Ltd, plunged up to 3.08%. The Nifty IT Index also ended in red, closing at 35,330.8, losing -278.25 points, or -0.78%.
The Asian markets were also on a bearish trend on Monday. Hong Kong’s Hang Seng Index declined by -427.32 points, or -1.65%, to close at 25,863. Whereas, China’s Shanghai Composite Index was down at 3,889.5, losing -7.53 points, or -0.19%. Japan’s Nikkei 225 Index declined -491.64 points, or 1.02%, finishing at 48,088.8. South Korea’s KOSPI Index also closed in red at 3,584.55, down -26.05 points, or -0.73%. As of 4:51 p.m. IST, US Dow Jones Futures were trading at 45,816.53, up 336.93 points, or 0.74%.
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