Today, we recommend two stocks, one from the renewable energy sector and another from the industrial gases & fuels sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 24%. India’s energy environment is undergoing an enormous transformation, with the renewable energy sector setting ambitious targets for a sustainable future and witnessing unprecedented development.
At the same time, the nation’s growing industrial base and clean energy transition are significantly supported by the industrial gas and fuel sector. We also analyzed the market’s performance on Wednesday to understand what may lie ahead for the stock indices in the coming days.
1. Castrol India Ltd
- Current price: ₹ 208
- Target price: ₹ 260
- Upside: 24.9%
- Time frame: 12-14 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
One of the leading manufacturers and suppliers of industrial and automotive lubricants in India is Castrol India Limited. It is a part of Castrol Limited, a company owned by the BP Group. The company holds a significant market share of more than 20% in the Indian lubricant industry. Reliable names, including Castrol POWER1, Castrol MAGNATEC, Castrol EDGE, Castrol Activ, Castrol CRB, and Castrol GTX, are offered by Castrol products. Castrol India has a huge distribution network that serves over 160,000 outlets nationwide, comprising 32,000+ bike points, 11,000+ multi-brand car workshops, and an extensive dealer network in addition to three blending facilities.
Operating revenue in Q1FY25 was Rs 1,422 crore, up 7% year over year from Rs 1,325 crore in Q1FY24. Profit after tax (PAT) for the quarter was Rs 233 crore, up 8% year over year from Rs 216 crore in Q1FY24. The automotive category, which accounts for 85% of the company’s operations, contributed more to the overall volume gain of 8% YoY. In Q1FY25, the company provided more than 63 million litres of volume.
It is present in more than 148,000 locations throughout India. Currently providing services to 40,000 workshops and retail locations, Castrol is continuing to expand its footprint in rural areas. A supply agreement for Castrol POWER1 (full synthetic 2-wheeler oil) was signed by Castrol India and Triumph, a motorcycle manufacturer. Castrol made significant progress in attracting new customers and raising the visibility of its industrial product range. It added a sizable gearbox manufacturer to its chemical management service (CMS) portfolio. Additionally, the company’s participation in IMTEX 2025 is expected to create opportunities from both existing and prospective clients.
In Q2 FY25, the company reported revenue from operations of Rs 1,497 crore, growth of 7% (YoY), EBITDA at Rs 349 crore, growth of 8% (YoY), and PAT rose 5% (YoY) to Rs 244 crore. The company has maintained strong growth momentum in the first half (H1 FY25), with revenue from operations at Rs 2,919 crore, up 7% (YoY); EBITDA at Rs 657 crore, up 7% (YoY); and PAT up 6.5% to Rs 477 crore (YoY).
Risk Factor
As a buyer of base oil, the company is primarily exposed to market risk concerning commodity pricing. This commodity product’s price is subject to sudden, large fluctuations. Prices for base oil usually fluctuate in tandem with commodity cycles. Purchases of materials account for the majority of their operating expenses. No commodity derivatives contracts have been signed by the company. It should be noted that although crude oil has derivatives, base oil does not have any direct derivatives.
2. NHPC Ltd
- Current price: ₹ 85
- Target price: ₹ 105
- Upside: 23.5%
- Time frame: 12-14 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
NHPC Ltd., the biggest hydropower development company in India, was established in 1975 and can manage all phases of the development of hydro projects, from planning to commissioning. NHPC has ventured into solar and wind energy in addition to creating a number of renewable energy projects. It can be found in 15 states and 2 UTs. 2 solar projects, 1 wind project, and 21 hydro projects make up the company’s 24 active projects.
In Q1FY26, the company reported revenue from operations of Rs 3,213.77 crore as against Rs 2,694.20 crore in Q1FY25, a growth of 19.28%. The company has earned PAT of Rs 1,131.16 Crore as against Rs 1,101.63 Crore, registering a growth of 2.7%. The firm has 8,140 MW of installed capacity (7,771 MW hydro and 369 MW renewable energy) through 30 power plants. The company is currently working on 9,897 MW of projects, including 1,383 MW of solar and 8,514 MW of hydro.
In India, NHPC has 16% of the installed hydroelectric capacity. Out of the 47,928 MW of hydroelectric power in the nation, it has a capacity of 7,771 MW. In April 2025, the Parbati-II Hydroelectric Project (800 MW) was fully commissioned by NHPC. The NHPC’s largest operational power plant is now the Parbati-II Power Station. In the states of Andhra Pradesh, Odisha, Madhya Pradesh, Chhattisgarh, Gujarat, Tripura, Punjab, Rajasthan, and Maharashtra, NHPC is also building pumped storage projects.
Risk Factors
The company is exposed to counterparty credit risk because it works with state distribution utilities and departments that have a moderate to poor credit profile. There have been previous debtors, especially from Jammu & Kashmir Power Corporation Limited. When considering large capital expenditure plans in the hydro and renewable segment, the company is vulnerable to project execution and funding-related issues because NHPC has already encountered cost and schedule overruns for the 800-MW Parbati II and 2,000-MW Subansiri Lower projects.
Market Recap August 13, 2025
The Nifty 50 had a positive start on Wednesday at 24,586, up 99 points from the previous close of 24,487. The index gradually picked up momentum throughout the day and ended at 24,619.3, closing above the 24,600 level. The index closed below both the 20-day and 50-day EMAs but above the 100 and 200-day EMAs. By the close, the Nifty 50 had gained 131.95 points, or 0.54%.
The BSE Sensex mirrored this trend, increasing by 304.32 points, or 0.38%. It had its opening at 80,492 and settled at 80,539.9. The Nifty 50’s RSI was at 44, while it still held above the 200-day EMAs. The BSE Sensex RSI stood at 42.49, staying well below the overbought level of 70. Although it slipped below the 20-day, 50-day, and 100-day EMAs, it managed to close above the 200-day EMAs. The Bank Nifty Index ended in the green, closing at 55,181.4, gaining 137.75 points or 0.25%.
The majority of the sectoral indices ended in the green on Wednesday, with only a few sectoral losers. The Nifty Healthcare Index was the top gainer, closing at 14,691.5, up by 306.50 points or 2.13%. The shares of Apollo Hospitals Enterprise Ltd gained 7.9% after reporting a 42% YoY increase in Net profits in Q1 FY26. Alkem Laboratories continued its rally, increasing by 4.6%, after its strong Q1 results, followed by Laurus Labs and Zydus Lifesciences, which gained up to 4%.
The Nifty Pharma Index was also among the major gainers, closing at 22,130, up 376.80 points, or 1.73%. Alkem Laboratories Ltd was the biggest gainer under this index, increasing 4.6%, followed by Laurus Labs, Zydus Lifesciences, and Dr. Reddy’s Laboratories Ltd. The Nifty Metal Index followed the gains, closing at 9,345.95, up 116.25 points or 1.26%. Stocks like Hindalco Industries Ltd gained 5%, followed by other metal stocks like NMDC Ltd, Lloyds Metals & Energy Ltd, and NALCO Ltd, which rose up to 2.3%.
Among the major losers, the Nifty PSU Bank index was the biggest laggard in Wednesday’s trading session. The index decreased by -9.75 points, or -0.14%, closing at 7,017.15. Bank of Maharashtra Ltd was the major loser, dropping 1.1%, followed by UCO Bank, Central Bank of India, and Bank of Baroda, which declined by up to 1%. Another sectoral loser was the Nifty Oil & Gas Index, which closed at 11,098, losing -5 points, or -0.05%. Major losers include Oil India Ltd, which dropped by 4.2%, followed by Petronet LNG Ltd and Mahanagar Gas Ltd, whose shares declined by up to 1.6%.
Asian markets were broadly on a positive note as well, with Hong Kong’s Hang Seng Index gaining 586.32 points, or 2.29%, to close at 25,556. Whereas, the Shanghai Composite Index closed at 3,683.46, gaining 17.54 points, or 0.48%. South Korea’s KOSPI Index ended at 3,224.37, up 34.46 points, or 1.07%. Japan’s Nikkei 225 Index also closed in the green at 43,275, gaining 556.83 points, or 1.29%. The US Dow Jones Futures were trading at 44,616, up 157.44 points, or 0.35%, as of 5:00 p.m. IST.
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