Today, we recommend two stocks, one from the automobile & ancillaries sector and another from the IT sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 25%. The Indian IT sector plays a vital role in the country’s economic growth, global positioning, and social development. It contributes a significant portion to India’s GDP, fosters innovation, and creates considerable employment opportunities. The automobile and ancillaries sector is also a key pillar of the Indian economy, making notable contributions to GDP, manufacturing output, and job creation.
1. Tanla Platforms Ltd
- Current price: ₹ 656
- Target price: ₹ 825
- Upside: 26%
- 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
Founded in 1995, Tanla Platforms Ltd. has emerged as the leading provider of Communications Platform as a Service (CPaaS) in India, capturing nearly 35% of the market. The company has been at the forefront of innovations in mobile and digital communications, becoming the preferred partner for over 2,500 businesses across multiple sectors in India, Southeast Asia, and the Middle East. Tanla’s client list includes prominent global tech companies such as Google, Meta, and Truecaller. While they are expanding in Southeast Asia and the Middle East, India remains their core market, contributing over 95% of their business.
In FY25, the company posted a 2.5% year-on-year growth in revenue, reaching Rs 4,028 crore, with a gross profit of Rs 1,051 crore and a margin of 26.1%. EBITDA for the year stood at Rs 691 crore with an EBITDA margin of 17.2%. Profit after tax came in at Rs 507 crore, resulting in a profit margin of 12.6%. Free cash flow was Rs 514 crore, which was 101% of profit after tax, and earnings per share stood at Rs 37.76.
In order to prevent scams on their messaging platform by detecting fraud phone numbers, Tanla entered into an agreement with one of the global tech majors on its Wisely ATP platform in Q1 FY25. In Q2 FY25, it launched Wisely ATP with a major Indian bank and became the first to implement Call to Action (CTA) whitelisting on the Trubloq platform. In Q3 FY25, the company ranked among the top global players by delivering one billion RCS business messages in a single month and introduced PE or TM binding on Trubloq.
Additionally, its subsidiary Karix collaborated with several partners, including MakeMyTrip (MMT), Chennai Metro Rail Limited (CMRL), and Axis Bank to digitize ticketing and enhance customer experiences. The company continues its strong partnerships with global tech giants like Google and Meta to promote Over-the-Top (OTT) channel adoption in India. In FY25, the OTT channel segment doubled in size, and nearly one-third of the 400 new customers adopted new OTT solutions.
Risk Factor
Operating in a fast-changing digital environment, Tanla faces significant exposure to potential technical failures. Evolving market dynamics and new communication technologies could render existing CPaaS solutions less competitive. System glitches and potential cyberattacks pose risks to customer data security and the company’s reputation.
2. Sona Blw Precision Forgings Ltd
- Current price: ₹ 479.7
- Target price: ₹ 550
- Upside: 15%
- 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
Founded in 1995, Sona BLW Precision Forgings Limited (Sona Comstar) is one of the global leaders in mobility technology. It specializes in designing, manufacturing, and supplying systems and components for global OEMs in both electric and non-electric powertrain segments. The company operates three engineering centres, five R&D facilities, and twelve manufacturing plants across India, the United States, China, Serbia, and Mexico. North America contributes 41% of the revenue, followed by India at 29%, Europe at 24%, Asia at 6%, and the rest of the world at 0.3%. Globally, Sona BLW holds an 8% market share in differential gears and a 5% share in starter motors.
In FY25, the company achieved revenue from operations of Rs 3,546 crore, marking an 11.3% increase from Rs 3,185 crore in the previous year. EBITDA reached Rs 975 crore with a 27.5% margin. Profit after tax rose 16% to Rs 600 crore from Rs 518 crore in the prior year. The revenue contribution from Battery Electric Vehicles (BEV) increased from 29% to 36% in FY25. The global market share for starter motors rose from 4.2% to 4.4%, while differential gears increased from 8.1% in CY 2023 to 8.8% in CY 2024. The total net order book climbed to Rs 242 billion with fresh orders worth Rs 47 billion.
The company entered into a Business Transfer Agreement (BTA) with Escorts Kubota Ltd. in FY25 to acquire its Railway Business for an enterprise value of Rs 16,000 million. The transaction was completed on June 1, 2025. At CES 2025 in Las Vegas, USA, Sona Comstar signed a memorandum of understanding (MOU) with the NMICPS Technology Innovation Hub on Autonomous Navigation Foundation at IIT Hyderabad (TIHAN-IITH) to collaborate on connected, autonomous, and electric technologies for AGVs, drones, and eVTOLs. Under India’s Production-Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, the company secured certification for another product, the hub wheel motor designed for electric two-wheelers.
Risk factor
Fluctuations in commodity prices could have a considerable impact on Sona BLW’s manufacturing costs. Although the company has systems in place to monitor and manage these risks, it is not always possible to fully predict or neutralize the effect of price volatility through hedging, cost pass-through mechanisms, or operational improvements.
Market Recap July 18th, 2025
The Nifty 50 had a flat start on Friday, opening at 25,108.5, compared to the previous day’s closing price of 25,108.5. On Friday, the Nifty index dropped for the second consecutive session by -143.05 points, or -0.57%, closing at 24,968.4 after plunging to a day’s low of 24,918.6. The Nifty closed below the 20-day EMA and also broke the 25,000 level, while the RSI was at 43, well below the overbought zone of 70.
The Sensex also ended the day on a negative note at 81,757.7, down -501.51 points, or -0.61%, below the 20-day EMA, with an RSI of 42 on the daily chart. Subdued IT results, concerns about interruptions to global trade, and a careful approach ahead of quarterly reporting all contributed to Friday’s decline.
On Friday, the majority of the sectoral indices were down, with only a few gainers. One of the biggest gainers was the Nifty Media Index, which ended the day at 1,771, up 16.8 points, or 0.96%. Stocks like Saregama India, which rose 4.6%; PVR Inox, which increased 4.4%; and Dish TV India, which increased 1.2% on Friday, all contributed to the index’s increase. The Nifty Metal Index also closed at 9,458.2, up 34.85 points, or 0.37%. NMDC Ltd was the index’s biggest gainer, up 2.7%, followed by SAIL, which rose 2.13%.
However, the Nifty Private Bank Index closed at 27,534, down -408.85 points, or -1.46%. Heavyweights including Axis Bank, RBL Bank, and HDFC Bank pulled the index down, with Axis Bank being the major loser, falling by 5.2%. The Nifty Consumer Durables Index was another big loser, closing at 38,630, down -368.90 points, or -0.95%, mainly due to profit booking. The indices saw a decline as investors were cautious due to the IT and banking sectors’ weak and mixed quarterly earnings reports.
On Friday, Asian markets had a mixed trend. Hong Kong’s Hang Seng gained 326.71 points, or 1.32%, reaching 24,825.66. South Korea’s Kospi ended the day at 3,188.07, down 4.22 points, or 0.13%. Japan’s Nikkei 225 closed at 39,819.11 with a 0.2% decline, or -82.08 points, and Shanghai’s Composite Index ended the day up 17.65 points, or 0.50%, to close at 3,534.48. On the US stock exchange, Dow Jones Futures were up 68.7 points, or 0.15%, at 44,551.21 at 5:00 p.m.
The Nifty 50 Index declined by -0.72%, and the BSE Sensex dropped by -0.9% this week. Major reasons, such as the subdued start of earnings season, US-India trade deal concerns, and the cautious approach of investors, caused the index to fall.
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