In this article, we look at two stocks, one from the Stock/ Commodity Brokers sector and the other from the Auto Ancillaries-batteries sector to buy for an upside potential of up to 26%, 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. Motilal Oswal Financial Services Ltd
- CMP: ₹ 762
- Target: ₹ 880
- Upside: 15%
- Time frame: 12 Months
Why it is recommended: Moitlal Oswal is a leading financial services company and ranked No. 1 in QIP league with major deals from VBL, PNB, AngelOne, Bank of Maharashtra and more. The company has diversified in various segments including retail and institutional broking, asset management, private equity, wealth management, loans against shares, margin financing, commodities broking, investment banking, venture capital management, housing finance, and treasury investments.
The company currently holds 12.8 million active client base, an 83% increase YoY and NSE active clients was around 1+ million, a 15% rise YoY. The company crossed a major milestone by servicing more than 12 million customers, comprising 7.8 million unique mutual fund folios and over 4.8 million unique broking accounts.
The assets under advice stood at Rs 5.5 lakh crore, a 33% growth YoY, and lending book stood at Rs 12,114 crore, a 7% growth YoY. In FY25, the company registered the highest-ever net revenue of Rs 5,161 crore and PAT stood at Rs 2,016 crore, up 31% YoY. Their Net worth was at Rs 11,079 crore, a 27% growth YoY.
They have four reportable segments: Wealth management contributed 45% of revenue stood at Rs 2,339 crore, a 31% rise YoY, Capital markets contributed 11% of revenue stood at Rs 598 crore, a 37% rise YoY, Asset & Private Wealth Management contributed 37% of revenue stood at Rs 1,912 crore, a 32% rise YoY, and Housing Finance contributed 7% of revenue stood at Rs 384 crore, a 13% increase YoY. Further, their asset management segment surged 933% and net flows stood at Rs 48,450 crore and has skin in the game in treasury investments worth Rs 10,000 crore.
The company holds a 3.2% market share in SIP and 4.3% share in Mutual fund gross sales, 6.8% share in Mutual fund net sales. In wealth management, their market share stood at 7.6% in cash and 8.5% in F&O Premium. In asset & Private Wealth Management, the AUM stood at Rs 2.8 lakh crore and Net sales of Rs 65,000 crore in FY25 and focused on HNI & UHNI of Rs 5 crore. In Capital markets, the company completed 39 deals with a total issue size of Rs 51,000 crore.
Their equity contributed 7% to Total Indian households assets. In addition, the company expects a positive outlook for household savings and aims to increase their household savings from USD 13 trillion in FY25 to USD 125 trillion in the next 25 years. Further, alternative investments fund delivering greater yields, expects to grow in the medium term.
Also, the company expects strong growth in the housing finance segment in the next 2-3 years in both AUM and profitability. In FY25, the company reached 2,500+ business locations covering clients across 98% of the pin codes. Going forwards, the company plans to tap into the potential wealth opportunity of USD 2.5 trillion by FY27, attracting the billionaires, UHNI, and HNI.
Risk Factor
The capital markets industry is highly regulated in nature, with higher margin requirements; not being able to fulfill the compliance requirements and the regulatory requirements may result in hampering operations. Despite diversification, the company is exposed to the volatility and cyclicality of the capital markets, which may affect the profitability of the company.
Additionally, the brokerage industry is going through major changes, and the company also faces intense competition from new-age brokers such as Zerodha and Groww, which leads to an aggressive pricing strategy implemented by discount brokerages, which may pose a risk of losing market share for the company.
2. Amara Raja Energy & Mobility Ltd
- CMP: ₹ 1,013
- Target: ₹ 1,280
- Upside: 26%
- Time frame: 12 Months
Why it is recommended: Amara Raja Energy & Mobility Limited (ARE&M) is the flagship company of the Amara Raja group, with more than 4 decades of experience and the 2nd largest manufacturer of the lead-acid battery market for industrial and diversified presence in four-wheelers and two-wheelers automotive applications.
They offer a wide range of energy solutions, including lithium-ion cell manufacturing, EV chargers, battery pack assembly, and lubricants. They are a major supplier to sectors like telecom, railways, power control, solar, and UPS, with key clientele like Maruti Suzuki, Tata Motors, Airtel, Mahindra, etc. The company has a portfolio of 2 top automotive battery brands like Amaron and Powerzone, with a presence of 1 lakh+ POS distribution network and exporting to over 50 countries globally.
The company holds an 2.6 billion AH industrial battery capacity as of 9M FY25. It operates 10 manufacturing facilities (including 2 plastic units), with an annual capacity of over 55 million units of automotive batteries. In the state of art manufacturing facilities, the company has two segments: Mobility has 1 GWh annualised capacity, and Stationary has 1 GWh annualised capacity as of 9M FY25. They have one of the largest distribution networks in the market, with over 1,000+ Power Zone retail outlets, 2,000+ extended service hubs, 550+ Amaron franchisees, 39 distribution points, 1,00,000+ points of sale, and 23 branches across India.
For 9M FY25, revenue from operations stood at Rs 9,786.3 crore, a growth of 11.2% YoY, and profit after tax stood at Rs 783.1 crore, which surged by 11.1%. PAT margins stood at 8%, remaining stable compared to 9MFY24. The company has announced a capex of Rs 9,500 crore for GIGA cell plant, through an MOU signed with the government of Telangana.
This partnership is to build E-positive energy labs, in 262 acres of land for 16 GWH cell capacity over the next 10 years. Further, India’s electrification demand is expected to be 150GWh by 2030, by adopting Mobility Telecom and Data Centres, which brings emerging opportunities to gain market share. This includes Rs 50,000 crore financial subsidies and high customer pull for EVs.
In addition, a capex project update on lead acid battery includes 1.5 Lac MTPA (Phase I and Phase II) State-of-the-art Advanced Green field Lead Acid Battery Recycling plant. Phase I with 50K MTPA refinery capacity(eventual capacity of 1 Lac MTPA) commercial production commenced in December 2024. Battery breaking expected to commence from Q1- FY26. For Tubular Battery Plant at ARGC, 1 Mn+ Battery/ Annum Advanced Tubular Manufacturing plant. Commercial production is expected to commence from Q4 FY25/Q1 FY26.
The company proposes to invest Rs 100-150 crore in Phase I/II of the lead recycling facility at ARCSPL (Amara Raja Circular Solutions Pvt Ltd) and Rs 2,000 crore through ARACT (Amara Raja Advanced Cell Technology Pvt Ltd) over the next 2.0-2.5 years. In addition, the company made Rs 500 crore last year from the lithium-ion battery business and expects to make Rs 550 crore this year an increase of 10%.
Further, the company expects a 20% jump in sales, which may stand at more than Rs 1,400 crore in FY26, in the tubular lead-acid battery market after manufacturing starts. The company intends to invest Rs 750 crore in lead acid and new energy industries and anticipates a cash outflow of Rs 1,000 crore for these divisions in the next year.
Risk Factor
Price fluctuations in raw materials like lead and sulfuric acid, caused by supply chain disruptions and geopolitical tensions, continue to challenge the industry. Additionally, in 2025, the average price of lead rose to $1,953 per ton, leading to higher production costs and affecting profit margins for battery manufacturers.
While upgrading from lead-acid batteries to lithium-ion, sodium-ion, or semiconductor batteries offers technological advantages, these alternatives typically involve higher initial costs, intensifying competitive pressure among the players. The telecom segment has been going through a transition phase where telecom providers have been migrating to Li-ion batteries rather than lead acid batteries for newly installed towers due to higher energy density and longer life cycle, the company may face intense competition in this sector.
Also read: Defence stocks trading at a discount of up to 42%; Do you own any?
Market Recap May 20, 2025
The Indian market opened slightly above on Tuesday, with the Nifty 50 opening at 24,996, slightly above yesterday’s closing at 24,945. BSE Sensex opening at 82,116. All broad indices fell today, and the Nifty dropped below the 25,000 mark. Nifty 50 closed at 24,683, down by 262 points, or -1.05%, with an RSI of 57.97, below the overbought zone of 70, and was trading above all four 20/50/100/200 EMAs in the daily timeframe. Whereas, the Sensex closed at 81,186, down by 873 points, or -1.06%, with an RSI of 56.91, and was trading above all four EMAs as well.
Today all sectoral indices are in red, with no indices in green. Nifty Auto was among the top losers today, it fell by 521 points, or -2.17%, closing at 23,351, with Tube Investment of India being the biggest laggard, down by 4.06%, stood at Rs 3,000 and Nifty Next 50 dropped by 1,240 points, or -1.84%, closing at 66,165, with Bajaj Holdings & Investments ltd is the biggest loser, falling 7.45%, stood at Rs 13,973, it fell from its all time high of Rs 14,400. Nifty Midcap 50 was also among the top losers fell by -246 points or -1.54% to 15,798. Today’s market saw a fall today post Moody’s downgrade of the US credit rating, weak global cues, FII outflows hurting investor sentiments ,and profit booking in various sectors like Auto and Defense.
Stocks to watch out for on May 21st
Senores Pharmaceuticals Limited – The company, through its wholly owned subsidiary Senores Pharmaceuticals Inc. USA, has signed an agreement today to acquire the USFDA-approved Abbreviated New Drug Application (“ANDA”) for Enalapril Maleate Tablets 2.5mg, 5mg, 10mg, and 20mg from Wockhardt Limited (“Wockhardt”).
United Breweries Ltd – The Company, by entering into a leasing agreement, is increasing its manufacturing capabilities through an additional facility from Ilios Breweries Private Limited (‘Ilios’) in the State of Andhra Pradesh.
Johnson Controls-Hitachi Air Conditioning India Ltd – In FY25, revenue from operations grew by 44% to Rs 2,756.5 crore from Rs 1,919 crore in FY24, and Profit for the year turned around from a loss to Rs 59 crore in FY25.
Dixon Technologies – The company has reported Revenue from Operations of Rs 38,880 crore, an increase of 119% YoY from Rs 17,690 crore in FY24. Profit after tax surged by 229% at Rs 1,233 crore YoY from Rs 375 crore in FY24. The board has approved a final dividend of Rs 8 per equity share for FY25, subject to the approval of the members of the Company at the ensuing AGM.
Solar Industries India Ltd – For FY25, the company’s revenue from operations surged 24% to Rs 7,540 crore from Rs 6,069.5 crore in FY24 and Net profit grew by 47% to Rs 1,288 crore from Rs 876 in FY24. The company announced Rs 15 per share final dividend for FY25.
State Bank of India – The Executive Committee of the Central Board at SBI has approved long term fund raising in single / multiple tranches of up to US$ 3 Billion through a public offer and/or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2025-26.
J. Kumar Infraprojects Limited – The company reported revenue from operations Rs 5,693 crore, surged by 17% from Rs 4,879 crore in FY24. Profit after tax increased by 19% to Rs 390.45 crore in FY25 from Rs 328 crore in FY24.
Gujarat State Fertilizers and Chemicals – For FY25, the company’s revenue from operations increased by 4% to Rs 9,534 crore from Rs 9,155 crore in FY24. Profit after tax grew by 4.8% to Rs 591 crore from Rs 564 crore in FY24.
Major companies are announcing results today
- Oil and Natural Gas Corporation
- Interglobe Aviation
- Power Finance Corporation
- Mankind Pharma
- NTPC Green Energy
- Rail Vikas Nigam
- Colgate Palmolive (India)
- Oil India
- IndusInd Bank
- UNO Minda
- Astral Limited
- National Aluminium Company
- Ircon International
- Trident
- Star Cement
- Va Tech Wabag
- HG Infra Engineering Ltd
- Gulf Oil Lubricants India
- GMM Pfaudler
- Moschip Technologies
- Interarch Building Solutions
- Geojit Financial Services
- Indusind Bank
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