Today, we recommend two stocks, one from the capital goods manufacturing sector and another from the financial services (capital markets) sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 25%. India’s Capital Goods manufacturing industry serves as a strong base to several sectors, such as engineering, construction, infrastructure, power, consumer goods, etc.
On the other hand, India’s capital markets are also expanding rapidly and steadily due to a variety of reasons, such as a shift from traditional assets to financial instruments, digitization, strong macroeconomic fundamentals, and increased retail participation. We also analysed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. Bharat Heavy Electricals Ltd
- Current price: ₹ 212
- Target price: ₹ 265
- Upside: 25.3%
- 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 1964, BHEL, a prominent player in the capital goods industry, has been a Public Sector Undertaking of the Government of India. With products, systems, and services for power generation (thermal, hydro, gas, nuclear, and solar PV), transmission, transportation, defense, aerospace, oil & gas, and other strategic sectors both domestically and internationally, the company now serves a wide range of power and industry sectors.
In addition to its presence in 91 countries, BHEL has set up 16 manufacturing facilities, 2 repair facilities, 5 research institutes, and 15 centers of excellence throughout India and other countries.
The company generated revenue of Rs 28,339 crore from operations in FY25, registering a growth of 18.61% YoY. In Q1FY26, revenue from operations stood at Rs 5,486.91 crore. It increased its EBITDA to Rs 1,707 crore in FY25, a growth of 47.28% YoY, while its PAT stood at Rs 534 crore, an increase of 89.36% YoY. In Q1FY26, the company registered the highest-ever outstanding order book of Rs 2,04,375 crore. It has successfully grown its order book by 17.76% CAGR since FY21. In FY25, BHEL has secured orders aggregating to Rs 81,349 crores in the power sector, which includes the company’s highest-ever order booking in the thermal power segment.
In FY 2024–2025, it added 3,850 MW of capacity to utility power projects, comprising 700 MW of hydro projects and 3,150 MW of thermal projects. By securing twelve 800MW thermal power units, totaling 9.6 GW, tendered out in the nation and maintaining a domestic market share of 56% nuclear and 46% hydro, BHEL has continued to dominate the Indian thermal power industry. In FY25, the company put 8.1 GW of power capacity into service. Moreover, it is anticipated that India’s electrical equipment market share will grow at a strong CAGR of 11.68%, from USD 52.98 billion in 2022 to USD 125 billion by 2027..
Risk Factor: It is exposed to volatility in the power sector and structural issues such as delays in land acquisition and environmental clearances, availability of fuel and funding, and the weak financial position of many state power utilities, which were among its key clients. Moreover, 80% of the orderbook consists of power sector projects. It has high working capital requirements with sizeable receivables, including contract assets and inventory levels. It faces the risk of doubtful receivables.
2. Computer Age Management Services Ltd
- Current price: ₹ 3,733
- Target price: ₹ 4,550
- Upside: 21.9%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended:
With a dominating 68% market share in registrar and transfer agent (RTA) services, Computer Age Management Services Ltd. is the leading provider of technologically advanced financial infrastructure and services. They mainly provide technology-driven solutions to insurance firms, mutual funds, and AIFs.
The CAMS’ management team has over 27 years of expertise in a variety of financial services industries, and the company crossed a milestone of Rs 50 trillion in assets, including 10 of the top 15 mutual funds. Currently, the business has 286 service facilities located throughout 25 states and 5 union territories.
CAMS saw a 7.2% increase in mutual fund revenue in Q1FY26, a 28% increase in transaction volume from 23.8 crore to 24.43 crore, a 29% increase in new SIP registrations to 112 lakh, and a 15% YoY growth in SIP book growth to 56.6 million. The number of unique investors increased by 27.3% to 4.15 crore, while the number of live investor folios increased by 24% year over year to 9.73 crore. Further, the equity AUM increased to Rs 26.7 trillion, with a 66.1% market share, and the systematic transactions processed grew by 34% to 20.33 crore.
In Q1 FY26, the company generated revenue of Rs 354 crores, a 6.9% increase YoY. The operating EBITDA stood at Rs 154.8 crore, a 2.8% growth YoY, and profit after tax stood at Rs 109 crore, a 0.8% increase YoY. In the non-mutual funds segment, their asset revenue grew 4.4% YoY. Non-mutual funds include a variety of services such as CAMS Pay, CAMS Alternatives, CAMS Repositories, CAMS KRA, CAMS Finserv, Think360, and CAMS NPS.
For the full year, in FY26, the company expects to spend less than 10% on costs for FY26 and maintain EBITDA margins around 20% for non-MF and 44% for the mutual fund segment. On the capex side, CAMS expects to spend Rs 100 crore on re-architecture and Rs 70 crore on BAU capex, including regulatory air gap data centers and tech upgrades. In FY26, the company aims to increase the number of e-policies by 60-70 lakhs every quarter. It is anticipated that the Non-MF business can witness a 25% growth in the run rate of Rs 200 crore, or around Rs 50 crore in absolute growth for FY26.
Risk Factor: Computer Age Management Services (CAMS) faces significant technological and cybersecurity risks, as they are deeply integrated with digital technologies and handle large amounts of data; any breach in data could lead to significant financial losses, reputational damage, and legal liabilities.
Market Recap, 26/08
The broader market indices ended the day lower after a short rebound on Monday, and Tuesday’s trading session started on a bearish note. At 24,899.50, the Nifty 50 opened weakly, down -68.25 points from the previous close of 24,967.75. It then continued to decline, closing at 24,712.0. With the index ending below the 20- and 50-day EMAs but remaining above the 100- and 200-day EMAs on the daily chart, this represented a decline of -255.7 points, or -4.02%. Mirroring the downward trend, the BSE Sensex closed at 80,786.54 after opening at 81,377.39, a loss of -849.37 points, or -1.04%.
Momentum indicators also reflected weakening sentiment, with the Nifty 50’s Relative Strength Index (RSI) at 45.92 and the Sensex RSI at 44.78, both comfortably below the overbought threshold of 70. The Bank Nifty Index was not spared either, closing at 54,450.45 after shedding -688.85 points, or -1.25%. Since the US draft proposal to impose tariffs of up to 50% on Indian goods, which is scheduled to go into effect on August 27th, concerns over U.S. trade policy have grown, which has contributed significantly to the broad negative sentiment across markets.
Except for a few gainers, most sectoral indices finished the day lower. The largest gainer, the Nifty FMCG Index, closed at 56,187, up 505.35 points, or 0.91%. The largest gainer, Britannia Industries Ltd., increased 3.9%. Other FMCG stocks, such as Hindustan Unilever Ltd., gained 2.3%, and ITC Ltd. increased 1.0%. Following the gains, the Nifty MNC Index closed at 29,518.2, up 100 points, or 0.34%. Among the biggest winners were Britannia Industries Ltd., Hindustan Unilever Ltd., Linde India Ltd., and Maruti Suzuki India Ltd.
The Nifty Realty index fell the most during Tuesday’s trading session among the major losers. The index closed at 895.95, down -20.50 points, or -2.24%. The biggest losers, Godrej Properties Ltd., fell 3%; Brigade Enterprises Ltd., 2.5%; and Prestige Estates Projects Ltd., 2.4%. The Nifty Smallcap 50 Index was another significant underperformer, closing at 8,428.7, down -183.95 points, or -2.14%. KFin Technologies Ltd., Firstsource Solutions, and Piramal Enterprises are among the biggest losers, with their shares dropping by as much as 5%.
Asian markets were broadly negative on Tuesday, with Hong Kong’s Hang Seng Index ending at 25,524.92, losing -304.99 points, or -1.18%. The Shanghai Composite Index also closed in red at 3,868.38, losing -15.18 points, or -0.39%. South Korea’s KOSPI Index closed at 3,179.36, up -30.5 points, or 0.95%. Japan’s Nikkei 225 Index also closed on a negative note at 42,394.4, down -15.18 points, or -0.39%. The US Dow Jones Futures were trading at 45,292, down -59 points, or -0.13%, as of 4:57 p.m. IST.
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