Today, we recommend two stocks, one from the waste management sector and another from the consumer durables sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 24%. India’s consumer durables sector is projected to grow at an 11% CAGR, reaching Rs 3 lakh crore by 2029 and becoming the fifth-largest globally by 2025.
At the same time, the domestic waste management market is expected to grow at a 7.21% CAGR, from USD 13.6 billion in 2025 to USD 19.26 billion by 2030. With over 62 million tonnes of municipal solid waste generated annually, India ranks among the top 10 waste-producing countries worldwide. We also analyzed the market’s performance on Thursday to understand what may lie ahead for the stock indices in the coming days.
1. Havells India
- Current price: ₹ 1,552
- Target price: ₹ 1,850
- Upside: 19.21%
- 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 August 1983, Havells India Ltd. is one of the leading players in the consumer electrical products market, now evolved into a diversified FMEG and consumer durables company with a presence in over 70 countries. It offers a wide range of products across 20 verticals, supported by 16 manufacturing units and a dealer network of over 19,400. In FY25, Havells reported a 17.15% YoY revenue growth to Rs 21,778 crore and a 15.7% rise in net profit to Rs 1,470.24 crore. Despite subdued consumer demand, the company maintained its mid-teen growth trajectory, driven by strong execution and market share gains.
With a diversified product portfolio, Havells operates across categories such as switchgears, cables, lighting & fixtures, and Electrical Consumer Durables (ECDs), along with offerings in motors, solar panels, and pumps. The company caters to a wide range of industries and consumer segments through its brands, Havells, Lloyd, Standard, Reo, Havells Crabtree, and Havells Studio. This broad brand portfolio enables Havells to meet varied market demands while maintaining a strong presence across both premium and mass-market segments.
Havells’ R&D strategy is driven by consumer-centric innovation, technology ownership, and complete product responsibility. In FY25, the company invested Rs 258 crore in R&D to enhance in-house capabilities, upgrade infrastructure, and strengthen intellectual property, filing 77 patent applications and 211 design registrations. Recent innovations include the Q-TRON MCCB, Lloyd Stunnair Air Conditioner, IE4 motors, and the Vita Dlight range, reflecting Havells’ focus on advanced, energy-efficient solutions tailored to evolving consumer needs.
Risk Factors
The company’s operations heavily depend on raw materials, which make up approximately 68 to 70% of its total revenue. Major raw materials include copper, stainless-steel strips and rods, G.I. wires, PVC & DOP, and aluminum. Fluctuations in the prices of these commodities could affect the company’s profit margins. Furthermore, a slowdown in GDP growth or an economic downturn in India, influenced by global factors, may lead to decreased demand for electrical products.
2. Gravita India Limited
- Current price: ₹1,813
- Target price: ₹ 2,250
- Upside: 24%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Founded in 1992, Gravita India Ltd is a global leader in recycling and manufacturing, operating advanced facilities for lead metal and products, aluminum alloys, and plastic granules across India. The company has a robust procurement network with over 1,900 touchpoints, 33 yards, and more than 287,000 MT of scrap collection. With a strong global footprint across Asia, Africa, the Middle East, Europe, and America, Gravita secures raw materials at competitive prices and serves a diverse customer base of over 340 clients in 34 countries.
In FY25, Gravita delivered strong performance with volumes, revenue, EBITDA, and PAT growing by 20%, 22%, 22%, and 31% YoY, respectively. Value-added products contributed 46% to the business, while domestically sourced scrap grew by 60%. Revenue rose 22.4% YoY from Rs 3,161 crore in FY24 to Rs 3,869 crore in FY25, with 68% from India and 32% from overseas markets. PAT grew 30.5% YoY from Rs 239 crore to Rs 312 crore.
The company is targeting capacity expansion across key verticals such as lead, aluminium, plastic, rubber, turnkey solutions, and emerging areas like lithium-ion, paper, and steel. Gravita aims for over 25% volume CAGR, 35% profitability growth, and 25% return on invested capital by 2029, with more than 50% contribution from value-added products and over 30% from the non-lead segment. With 12 recycling plants and four core recycling verticals, Gravita reached 3.34 lakh MTPA in FY25 and is on track to achieve over 700,000 MTPA by FY28. Its healthy order book stands at over 60,000 MT.
Risk Factors
Gravita faces significant competition in the domestic lead alloy manufacturing space from both organized and unorganized players, which could lead to pricing pressure. Moreover, given that lead is a hazardous metal and its recycling involves environmentally sensitive processes, the company is exposed to regulatory risks. Any unfavourable changes in government policies or stricter environmental norms could impact its operations and profitability.
Disclaimer
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