Today, we recommend two stocks, one from the power sector and another from the water management sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 25%. The Indian power sector is experiencing strong growth, fueled by increasing electricity demand, rapid expansion of renewable energy, and ongoing infrastructure upgrades.
On the other hand, effective water supply management is vital for India because of its huge population, reliance on agriculture, and growing water scarcity. We also analysed the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
1. Power Grid Corporation of India Limited
- Current price: ₹ 283
- Target price: ₹ 345
- Upside: 21.8%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
The largest electric power transmission company in the nation, Power Grid Corporation of India Limited, was founded in 1989 and is a Schedule “A” and “Maharatna” public sector organization under the Government of India. Its activities are divided into three main areas: consulting, telecom, and transmission. The transmission segment continues to be the leading contributor, with more than 97% of the overall revenue. Transmission systems for Independent Power Producers (IPPs), Ultra Mega Power Projects (UMPPs), Central Generating Stations (CGS), and the incorporation of renewable energy are provided by Powergrid.
The company generated a total revenue of Rs 11,444 crore in the first quarter of FY26. EBITDA was Rs 9,394.94 crore while Profit After Tax (PAT) was Rs 3,631 crore. Transmission revenue showed a slight decrease of 0.31% at Rs 10,694.66 crore, over the previous year. With a year-over-year increase of 120.35% to Rs 405.92 crore, the consulting segment demonstrated robust development. The telecom sector too did well with revenue up 17.75% year over year to Rs 289.49 crore.
During the quarter, the company added 16 new clients and obtained orders totalling Rs 58 crore within its telecom division. In Q1 FY26, Powergrid acquired two international contracts and eleven new domestic orders in the consultancy division. As part of its global expansion strategy, the company is aggressively seeking transmission opportunities in regions like South Asia, Africa, the Americas, and Australia.
With a total inter-regional (IR) capacity of 101,180 MW, Powergrid has built 180,849 km of transmission lines and runs 286 substations as of Q1 FY26. It has a remarkable 99.84% system availability rate. With more than 150 domestic and 25 foreign clients, the company’s consulting division is present in more than 25 countries. Powergrid achieved Rs 26,255 crore in FY25, exceeding its capex target of Rs 20,000 crore.
The company has budgeted a total capital expenditure of Rs 28,000 crore for FY26. The transmission network expansion in Gujarat and the western region’s fibre optic communication system are two notable project completions. Furthermore, Powergrid paid around Rs 8.53 crore to acquire MEL Power Transmission Limited.
Risk Factor
Several counterparties, especially state distribution utilities, have weak financial standing, which exposes the company to risks. For its ongoing and under-construction projects, it also confronts risks associated with execution. Furthermore, its activities and strategic importance could be negatively impacted by any unfavourable changes in the regulatory environment.
2. Enviro Infra Engineers Ltd
- Current price: ₹ 268
- Target price: ₹ 335
- 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
Since its incorporation in 2009, the company has worked on drinking water treatment plants (WTPs), sewage treatment plants (STPs), common effluent treatment plants (CETPs), industrial water reuse projects, wastewater management projects, and urban and rural drinking water distribution networks for different government agencies. In addition, it is an EPC works contractor and a project developer (HAM mode). With operations in more than eleven states, the company has so far completed fifty-two projects.
The company recorded robust operational revenue growth in FY25 at Rs 1,066 crore, a 46% rise over FY24. PAT rose to Rs 177.15 crore, a 66% rise. The company has delivered a strong quarter with a 31% YoY growth in sales and a 30% increase in PAT in Q4 FY25. The company intends to maintain good EBITDA margins between 22% and 24% while continuing on its present expansion trajectory, with an expected annual growth rate of 35% to 40%.
In Q1 FY26, the company has reported robust growth with revenue up 17.4% YoY at Rs 240.9 crore, EBITDA growing by 25.2% at Rs 64.2 crore, and PAT surging 41.8% to Rs 42.5 crore. During the quarter, the company entered into the ZLD space, securing a CETP project from MIDC worth Rs 395.5 crore. Also secured major STP and sewer network projects worth over Rs 527 crore in Karnataka and Chhattisgarh.
EIEL has expanded into renewable energy across Odisha and Maharashtra with 69 MW of solar capacity. The company has an O&M portfolio worth Rs 945.9 crore, a healthy order book at Rs 2,997.1 crore, and bids totalling Rs 5,000 crore in the pipeline. The company secured new EPC and O&M projects valued at over Rs 788.5 crore.
In the future, the company aims to increase the size of its projects from 50 to 200 MLD for sewage treatment plants and from 20 to 50 MLD for common effluent treatment facilities. Additionally, they are searching for opportunities in solar assets and EPC projects in addition to expanding their water infrastructure across the country through reuse, ultrafiltration, RO, and ZLD facilities.
Risk factor
Revenue and profitability are solely dependent on winning contracts. Additionally, companies must place aggressive bids to win contracts due to the intense competition in this industry, which restricts their operating margin to a manageable level. Furthermore, due to the seasonality of the water EPC industry, over 70% of the work is completed during the six dry months of the year due to the impact of the monsoon, which lasts from May to October. As a result, it becomes imperative to maintain a profit margin through operational efficiency.
Market Recap 22nd August 2025
After six sessions of rising, all major indices concluded the week lower after Friday’s trading session began on a negative note. At 25,064, the Nifty 50 opened negatively, down 20 points from its closing value of 25,083.75. It ended the day above all four 20/50/100/200-day EMAs, closing at 24,870.1. The Nifty 50 had dropped -213.65 points, or -0.85%, by the end of the day.
The BSE Sensex, following a similar pattern, lost -693.86 points, or -0.85%, from the closing of the day before. It settled at 81,306.85 after opening at 81,951.48. Regarding momentum, the Sensex RSI was at 49.28 and the Nifty 50’s RSI was at 50.59, both of which were below the 70-point overbought mark.
At 55,149, the Bank Nifty Index likewise ended down, losing -606.05 points, or -1.09%. The biggest gainer, the Nifty Media Index, closed at 1,653.95, up 15.5 points, or 0.95%. Zee Entertainment Enterprises Ltd. led the gains, saw a 5.5% increase, followed by gains of 1.4% for Saregama India Ltd. and 0.8% for PVR Inox Ltd. Following the gains, the Nifty Pharma Index closed at 22,265, up 87.3 points, or 0.39%. The biggest gain was 4.4% for Ipca Laboratories Ltd, 2.1% for Divi’s Laboratories Ltd, and 1.2% for JB Chemicals & Pharmaceuticals Ltd.
Among the major losers, the Nifty Metal index plunged the most on Friday’s trading session. The index decreased by -118.2 points, or -1.25%, closing at 9,375.4. Lloyds Metals & Energy Ltd was the major loser, dropping 2.8%; Adani Enterprises Ltd declined 2.2%, and Tata Steel Ltd fell 1.8%. Another major laggard was the Nifty PSU Bank Index, which closed at 6,998.1, losing -79.15 points, or -1.12%. Major losers include Punjab & Sind Ltd, Punjab National Bank Ltd, Central Bank of India, and Union Bank of India Ltd, whose shares declined by up to 2.3%.
Asian markets were broadly positive on Friday, with Hong Kong’s Hang Seng Index ending at 25,292, gaining 187.39 points, or 0.74%. The Shanghai Composite Index also closed in green at 3,825.76, gaining 54.66 points, or 1.43%. South Korea’s KOSPI Index closed at 3,168.73, up 26.99 points, or 0.85%. However, Japan’s Nikkei 225 Index closed on a flatter note at 42,597, down -13.17 points, or -0.03%. The US Dow Jones Futures were trading at 44,944.80, up 163 points, or 0.37%, as of 4:43 p.m. IST.
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