In this article, we look at two stocks, one from the tyre sector and the other from the financial services sector, to buy for an upside potential of more than 25%, as recommended by the Trade Brains Portal. Further, we analyze the market’s performance yesterday and also look at some stocks to watch out for today.
1. Balkrishna Industries Ltd (BKT)
- Current price: ₹ 2,477
- Target price: ₹ 3,120
- Upside: 26%
- Time frame: 12 Months
Why it’s recommended
Balkrishna Industries Ltd. is a pioneer and leading manufacturer of off-highway tyres (OHT) and is present in various sectors such as industries, including agriculture, construction, industrial applications, earthmoving, mining, forestry, and lawn and garden equipment. They are the key player in the global tyre market and have a footprint in over 160 countries, and they aim to achieve an 8% global market share in the OHT segment. BKT’s key clients include John Deere, JCB, Caterpillar, AGCO, and TAFE. The company has 5 tyre manufacturing plants in Rajasthan, Maharashtra, and Gujarat. In FY25, the company sold 3,15,273 MT, a growth of 8% YOY.
In FY25, the company reported revenue from operations at Rs 10,447 crore, a growth of 11.5% YoY, and standalone EBITDA stood at Rs 2,682 crore, up by 16% YoY. Standalone EBITDA margin stood at 25.26%, a growth of 50 bps. Profit after tax for FY25 stood at Rs 1,655 crore, up by 12.5% YoY. From the total sales volume of FY25, 59.9% volume comes from the agriculture segment, and OTR (off-the-road) contributes 36.6% volume. In geographical sales, 45.1% of volume came from Europe, whereas India contributed 28.6% of volume as of FY25.
Looking forward, BKT has given ambitious growth guidance up to FY30. It expects to increase the revenue to grow at 17% CAGR and reach Rs 23,000 crore by FY30. The company plans entry into the passenger car radial and truck & bus radial segments for the Indian market only, aiming to achieve 5% market share by 2030 and planning to do capex of Rs 3,500 crores over 3 years for setting up additional production facilities at Bhuj for carbon black, power plants, commercial vehicle tyres, rubber tracks, and passenger car radial tyres.
Ongoing, with the planned capex in the OHT segment, the capacity will increase from 35,000 MTPA, along with de-bottlenecking efforts, to 425,000 MTPA. This expansion will help the company to achieve its target of increasing OHT segment revenue contribution to 70% by FY30.
Risk Factor
BKT is significantly exposed to fluctuations in the prices of key raw materials like natural rubber and crude oil derivatives. The company also faces foreign currency risk, as a major chunk of revenue comes from outside India. Recent developments like tariffs may impact BKT due to higher import costs. Further, on the new business segment entry side, there is a possibility of a downside effect on the profitability due to high competition from established players such as MRF and Apollo, as customers care a lot about price and brand in this market.
2. Computer Age Management Services Ltd
- Current price: ₹ 3,955
- Target price: ₹ 4,960
- Upside: 25%
- Time frame: 12 Months
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. CAMS saw a 25% increase in mutual fund revenue in FY25, a 49% increase in transaction volume from 59.8 crore to 89.2 crore, a 51% increase in new SIP registrations to 400 lakh, and an 18% YoY growth in SIP book growth to 5.7 crore.
The number of unique investors increased by 26% to 4.04 crore, while the number of live investor folios increased by 30% year over year to 9.4 crore. Further, the equity AUM increased to Rs 24.8 trillion, growing by 29% YoY, with a 66.1% market share and 86% growth in equity sales to Rs 3.6 trillion YoY. Furthermore, the systematic transactions processed grew by 43% to 72.3 crore.
In the non-mutual funds segment, their asset revenue grew 25% 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. The non-MF business saw strong growth in revenue in CAMS Pay (64% ↑), CAMS Alternatives (18% ↑), CAMS Repositories (12% ↑), CAMS KRA (31% ↑), CAMS Finserv (92% ↑), and CAMS NPS (111% ↑) In FY25, total revenue grew by 25% YoY to Rs 1,475 crore from Rs 1,177 crore in FY24, operating EBITDA stood at Rs 656 crore, a 46% jump YoY, and PAT jumped by 33% YoY to Rs 465 crore from Rs 351 crore in FY24
Going forward, in FY26, the company expects to spend less than 10% on cost 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. The AUM stood at Rs 69.99 lakh crore at the end of April 2025 and has grown about six and a half-fold in a span of 10 years. Further, debt funds had a resurgence, while equity-oriented schemes witnessed the largest inflows of Rs 4.17 lakh crore. Folios increased 32% year over year to reach 23.45 crore, indicating an increase in investor involvement in all categories.
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 May 30, 2025
Today the Indian markets opened on a bearish note, with Nifty 50 opening at 24,812.60 and reaching an intraday low of 24,717.40. The Nifty 50 closed -0.33%, or 82.9 points lower, at 24,750.70 with an RSI of 55.52. The BSE Sensex touched the bottom of 81,286.45 and closed at 81,451.01, down by 182.01 points, or -0.22%, with an RSI of 55.26.
Top gainers for today, led by the Nifty PSU bank index, surged by 2.88%, or 195.30 points, closing at 6,976. Bank of Maharashtra was leading the index, gaining 5.86%. This rally came after the news of Dubai-headquartered bank Emirates NBD being willing to acquire a 61% stake in IDBI amounting to $6-7 billion. Nifty Bank was up by 203.65 points, or 0.37%, and closed at 55,749.
Amongst the major losers, the Nifty Metal index was dragged down by -1.69%, or 158.40 points, closing at 9,193.25. Most of the major companies of this index were in the red today, with Jindal Stainless Ltd. being the biggest loser, down by -3.65% and closing at Rs 644.75. This comes after US Secretary Scott Bessent’s statement of a slowdown in trade talks between the US and China and would require direct involvement of both country leaders, which created uncertainty in the market.
The Nifty PSE index also followed the laggards and closed at 9,867.95, down by -1.14% or 114 points. Most of the major companies, such as Oil India, RVNL, BHEL, and IRCTC, were in the red today, down by more than 2% today.
In May 2025, Nifty touched the 25,000 mark after a decline since October 2024. Nifty touched the monthly high of 25,116.25. It grew 416.50 points, or 1.71%, this month. Similarly, BSE Sensex, since its fall in October 2024, gained 1.51%, or 1,208.77 points and touched the monthly high of 82,718.14. Among the top gainers, BEL was the top performer and gained by 26.08%, followed by Adani Ports gained by 18.42%; Tata Steel, up by 13.80%; and Hero MotoCorp, which was up by 12.59%.
Disclaimer
About: Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Private Limited, and its SEBI-registered research analyst registration number is INH000015729.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
