Today, we recommend two stocks, one from the real estate sector and another from the water management sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 25%. A vital pillar of the Indian economy, the real estate industry makes a substantial contribution to both GDP and employment in the country. India’s vast population, reliance on agriculture, and growing water scarcity make water supply management vital. We also analysed the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
1. Va Tech Wabag Ltd
- Current price: ₹ 1,482
- Target price: ₹ 1,775
- Upside: 20%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
VA Tech Wabag Ltd., the third-largest water technology company in the world, was founded in 1924 and provides environmentally friendly solutions to the industrial and municipal sectors. It employs more than 1,600 water professionals to serve almost 96 million people across more than 25 nations. In the past three decades, WABAG has constructed over 1,500 water and wastewater treatment facilities and, with the assistance of research and development institutions in Europe and India, has more than 125 patents.
The company’s EBITDA was Rs 430.2 crore, while its FY25 sales were Rs 3,294 crore, a 15% increase from the previous year. EBITDA grew at a 20% CAGR from FY22 to FY25. Profit after taxes grew by 20% annually and at a CAGR of 31% between FY22 and FY25. At Rs 705.6 crore, the company’s net cash has been positive over the past five years. Of the company’s geographical distribution, 38% originates from outside India, while 62% is in the nation. The company also had an order inflow of about Rs 6,000 crore and continued to be a preferred bidder in the Hybrid-Annuity Model (HAM), which is worth Rs 3,000 crore.
Among the contracts and orders the business recently signed was a non-binding term agreement for a municipal platform to focus on the development of capital projects for the municipal sector with an equity investment commitment of $100 million in capital projects over a three- to five-year period. The company received an O&M order for an Industrial TTRO Plant from IOCL, valued at about Rs 360 crore, and a Zero Liquid Discharge (ZLD) DBO deal from GAIL and acquired a $371 million major consortium order from Al Haer Environmental Services Company for the EPC of a 200 MLD Independent Sewage Treatment Plant (ISTP).
Additionally, the company was given a $14 million order by BAPCO Refining B.S.C. (BAPCO) to operate (O&M) the Industrial Wastewater Treatment Plant (IWTP) in the Kingdom of Bahrain for seven years. 4,400 US gallons per minute (USGPM) of wastewater are processed at the IWTP. WABAG was given a Rs 145 Crore order by Chennai Petroleum Corporation Limited to design, engineer, supply, fabricate, install, and commission desalination water pipes between the CPCL Manali Refinery and the CPCL Desalination complex in Kattupalli. The company also aims to maintain a 3x order book to revenue ratio, 15–20% revenue growth, 13–15% EBITDA margins, a RoCE >20%, ROE >15%, and an annual order intake of Rs 6,000–7,000 crore.
It predicts $300 to 400 million orders from the Middle East in FY26, with a 25–30% win rate in the Middle East/Africa and $4.6 billion RFQs anticipated. In four to five years, it hopes to achieve a 70:30 municipal-industrial mix, a 50:50 India-RoW split, and more than 50% international/industrial revenue. Working capital days have decreased to 110, and O&M revenue is on track to reach 20%. Excellent medium-term guidance with an emphasis on profitability and execution over the next three to four years of visibility.
Risk Factor
With 38% of its income coming from outside markets, VA Tech Wabag is exposed to currency volatility. Additionally, 95% of its operations are dependent on the government, which puts it at risk for delays, sluggish execution, and working capital hardship. Project demand and financial performance are also under danger from geopolitical unrest, global economic slowdowns, and regulatory changes in areas like Russia, the Middle East, and Europe.
2. Brigade Enterprises Ltd
- Current price: ₹ 1,063
- Target price: ₹ 1,325
- Upside: 25%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Established in 1986, Brigade Group is a leading real estate developer in India. It has altered the skylines of Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, Trivandrum, and GIFT City, among other Indian cities, and produced many famous buildings with projects in the residential, office, retail, hotel, and educational sectors. The business has constructed more than 300 buildings with a combined floor area of more than 100 million square feet. It has 26 million square feet of current projects in addition to 16 million square feet of planned launches.
The company recorded its highest-ever real estate sales value of Rs 7,847 crore in FY25, up 31% YoY. In addition to setting a record for the year, its receipts of Rs 7,250 crore represented a 23% increase over FY24. A total of 7.05 million square feet was sold in FY25 compared to FY24, and net cash flow from operations increased by 36% to Rs 2,135 crore. In FY25, Brigade’s leasing component generated Rs 1,165 crore, a 24% rise over FY24’s Rs 938 crore.
As of FY25, Brigade has completed a record 100 million square feet of development across projects since its inception. With a total potential income of about Rs 3,600 crore, the business recently purchased 16.41 acres of prime land in Bengaluru and Chennai. The company is steadily expanding its presence outside of Bangalore in the significant marketplaces of Chennai and Hyderabad. It started 11.5 million square feet of projects in FY25 with a GDV of Rs 13,500 crore, of which 9.5 million were residential projects with a GDV of Rs 11,700 crore. The business has a sizable pipeline of about 16 million square feet of residential, commercial, and hospitality developments planned for the next fiscal year.
Risk Factor
The Bengaluru real estate market accounted for 74% of Brigade’s revenues in the first nine months of fiscal 2025, indicating the company’s strong reliance on this region. In addition, cyclicality in the domestic real estate market results in changes in realisations and saleability, which have an impact on cash flows. Muted demand may also affect cash flow and collections.
Market Recap 11th July 2025
On Friday, the Nifty began the trading session with a decline, opening at 25,255.50, which was below the prior close of 25,355.25. It reached a low for the day of 25,129.00 and closed at 25,149.85, which stands below the 20-day EMA. The Nifty 50 closed the day down 205.40 points, or -0.81%. In line with this trend, the BSE Sensex saw a decrease of 689.81 points or -0.83%, moving from an opening of 82,820.76 to a closing of 82,500.47. On Friday, the Nifty 50 RSI fell to a monthly low of 48.75, while the Nifty closed above the 50/100/200 EMAs.
Furthermore, the Sensex also fell below the 20-day EMA but closed above the 50/100/200 EMAs, while the BSE Sensex RSI closed at 48.59, significantly below the overbought level of 70. This decline was caused by several factors, including poor first-quarter earnings and US trade concerns after imposing a 35% tax on Canada. On Friday, the India VIX stood at 11.82.
Friday saw a fall in most of the indices. One of the worst losers was the Nifty IT index, which ended the day at 37,693.25, down 683.40 points, or -1.78%. The index fell more than 1% on Friday, with TCS, Wipro, LTI Mindtree, and Oracle Financial Services among the top losers. TCS has fallen 3.43% due to weak Q1 results. The Nifty Media index was also among the top losers, which ended on Friday at 1,704.30, down by -1.60% or 27.80 points. Dish TV India, Zee Entertainment, PVR Inox, and Saregama India were among the top losers for the index, having gone down more than 2% on Friday.
On the other hand, the Nifty Pharma index closed the day at 22,225.90, up 149.10 points, or 0.68%. Stocks like Glenmark Pharmaceuticals, Alkem Laboratories, and Ajanta Pharma led the sector with gains exceeding 1%. Glenmark Pharmaceuticals rose 14.55% on Friday, post the announcement that its subsidiary, IGI Therapeutics SA & AbbVie, got an exclusive global licensing agreement for the cancer and autoimmune drug ISB 2001.
In contrast, Asian markets experienced a moderately bullish response on Friday. The Hong Kong Hang Seng index climbed 0.46%, or 111.20 points, to close at 24,139.57, while the South Korean Kospi index plunged by -0.23%, or 7.46 points, to close at 3,175.77. Japan’s Nikkei 225 ended the day down 76.68 points, or -0.19%, at 39,569.68. The Thailand SET composite grew 0.96%, or 10.73 points, and closed at 1,121.13.
The Indonesian Jakarta Composite climbed 0.60%, or 42.07 points, closing at 7,047.44 points. The Shanghai index ended the day flat at 3,510.18, up 0.50 points, or 0.01%. On Friday, the US Dow Jones Futures closed at 44,403.41 (5:11 PM), down 247.23 points, or -0.55%. The Nifty 50 index plunged -1.22% this week. Various factors, such as the weak start of earnings season, tariff concerns, and the weakened risk appetite of investors, caused the index to fall.
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