Today, we recommend two stocks, one from the water management sector and another from the pharmaceutical sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 25%. Effective water supply management is vital for India because of its huge population, reliance on agriculture, and growing water scarcity. The pharmaceutical sector is vital to India’s economy and global health, driving innovation and economic growth through exports and robust domestic manufacturing. We also analyzed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. EMS Ltd
- Current price: ₹ 613
- Target price: ₹ 765
- Upside: 24.79%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
EMS Ltd. is a well-diversified, multidisciplinary EPC (engineering, procurement, and construction) company with over 14 years of experience. It primarily operates in the water and wastewater management segment, offering comprehensive EPC and O&M (operation and maintenance) services. The company also executes EPC projects in electrical transmission and distribution, building construction, and public infrastructure development. Since April 2021, EMS Ltd. has completed 18 projects, with a current order book of Rs 2,236.4 crore. Its operations span across Rajasthan, Maharashtra, Uttar Pradesh, Bihar, West Bengal, and Uttarakhand.
Since FY21, EMS Ltd. has undertaken a wide range of projects, including the supply, laying, jointing, testing, and commissioning of 1500 mm dia PCCP pipes in Kanpur; trenchless sewer line installations ranging from 150 mm to 1200 mm in Moradabad; and the construction of an 88 km sewerage network in Patna.
In FY25, the company reported revenue of Rs 965.83 crore, marking a 21.74% increase over FY24. Revenue has grown at a robust CAGR of 48.46% since FY22. EBITDA for FY25 reached Rs 251.16 crore, up 23.2% from Rs 203.84 crore in FY24, with a CAGR of 31% since FY22. Profit after tax stood at Rs 183.78 crore, reflecting a 20.3% year-on-year rise and a CAGR of 33% since FY22. EMS Ltd. maintains a strong financial position with a low debt-to-equity ratio of 0.09x as of FY25.
In the water and wastewater management space, EMS Ltd. is among the top 6-7 players in India by revenue. The sector’s total size is estimated at Rs 12 lakh crore, with Rs 4-5 lakh crore worth of projects already executed, indicating significant growth potential. The sector also benefits from annual budget allocations of approximately Rs 1 lakh crore from the central and state governments.
Risk Factor
The company’s growth relies heavily on securing and executing government contracts. Delays in project execution can impact both revenue and profitability. Additionally, given its dependence on government tenders, any risk of blacklisting could adversely affect future operations and cash flow.
2. Dr Reddy’s Laboratories Ltd
- Current price: ₹ 1,299.8
- Target price: ₹ 1,550
- Upside: 19.25%
- 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
Dr. Reddy’s Laboratories Ltd., founded in 1984 and headquartered in Hyderabad, is a global pharmaceutical company offering products and services across its main areas, including active pharmaceutical ingredients (API), generics, branded generics, biosimilars, and over-the-counter medicines. The company specializes in gastroenterology, cardiovascular, diabetology, oncology, pain management, and dermatology, with over 200 products registered in India. It is also a leading API supplier, operating in more than 80 countries with a portfolio of over 200 ANDA filings and approved dossiers.
The company reported revenue of Rs 8,545 crore, an 11% increase year-over-year. EBITDA rose 5% year-over-year to Rs 2,278 crore, with a margin of 26.7%. Net profit after tax was Rs 1,418 crore, up 2% year-over-year, with a PAT margin of 17%. The annualized return on capital employed (RoCE) remained at 22%, and net cash surplus for the quarter was Rs 2,922 crore. Additionally, for FY26, the company expects R&D investments to be between 7 and 7.5% of sales.
The company and Alvotech extended their collaboration during the first quarter to co-develop, co-manufacture, and co-market pembrolizumab, a potential biosimilar to Keytruda. It furthered its partnership with Sanofi by introducing Beyfortus (Nirsevimab), a new medication that prevents respiratory syncytial virus (RSV), in India.
During the quarter, the company filed one ANDA with the USFDA and launched five generics globally. A total of 73 filings await USFDA approval, including 70 ANDAs (43 Paragraph IV, 22 First to File) and three NDAs under Section 505(b)(2). It introduced 13 products in Europe, 26 in emerging markets, and five in India with ALK-Abello, including Sensimune and Beyfortus. The PSAI division filed 12 DMFs globally.
Risk Factor
The company is heavily regulated by authorities like the US FDA, US SEC, and US DoJ. Thus, non-compliance with manufacturing quality standards can lead to inspection observations, warning letters, or penalties that could impact the operations and financial performance of the company. Moreover, Dr. Reddy’s Laboratories faces substantial risks in the US generic drug market due to intense competition and sustained pricing pressure.
Market Recap 29th July 2025
Today, the Nifty 50 witnessed a rising trend, opening at 24,609.65, lower than its previous close of 24,680.90, indicating a bearish start. It ended below the 20 and 50-day EMAs at 24,821.10 after reaching the day’s low of 24,598.60. The Nifty 50 was up 0.57%, or 140.20 points, at the close of the day. Following the same pattern, the BSE Sensex rose 0.55%, or 446.93 points, to close at 81,337.95. With a day’s low of 80,575.45, the index remained above the 100 & 200-day EMAs and is currently trading below the 20 & 50-day EMAs.
On Tuesday, the Nifty closed above the 100 and 200 EMAs, and the Nifty 50 RSI remained at 42.05. The BSE Sensex RSI also closed at 41.66, significantly below the 70-point overbought level. The market was uplifted in the second half of the session, buoyed by broad-based buying across sectors. On Tuesday, the India VIX also declined by -0.54 points, or 4.46%, to 11.52, indicating lower market volatility.
On Tuesday, most of the indices ended in green, and the biggest gainer was Nifty Realty, which gained 14.60 points, or 1.6%, and closed at 926.50. Today, major stocks like Lodha Developers, Anant Raj, Oberoi Realty, and Godrej Properties saw gains of up to 4%. Also, the Nifty Pharma index was among the top gainers, which finished the day up 311.30 points, or 1.4%, at 23,072.45. With gains of up to 6%, the best performers were Granules India, Abbott India, JB Chemicals & Pharmaceuticals, and Torrent Pharmaceuticals.
However, Asian markets showed a mixed trend on Tuesday. The Hang Seng index of Hong Kong ended the day at 25,524.45, down -37.68 points, or -0.15%. Furthermore, the Shanghai index of China closed at 3,609.71, up 11.77 points, or 0.33%. South Korea’s Kospi index ended the day up 21.05 points, or 0.66%, at 3,230.57. The Nikkei 225 Index ended the day down by -323.72 points, or -0.79%, at 40,674.55 points. At 11,289.41, the Shenzhen component index closed on a positive note, up by 71.82 points, or 0.64%. Dow Jones Futures also rose 63 points, or 0.14%, to 45,077 on Tuesday in the United States, at 4:46 PM.
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