Today, we recommend two stocks, one from the railways sector and another from the FMCG sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 27%. The Indian railway sector is crucial for the nation’s economic and social development, acting as the backbone of transportation for both passengers and freight.
While the FMCG (Fast-Moving Consumer Goods) sector is a vital part of the Indian economy, providing essential goods for daily life and consistent growth, fueled by factors like rising incomes, urbanization, and changing consumer habits. We also analyzed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. IRCTC Ltd
- Current price: ₹ 726
- Target price: ₹ 923
- Upside: 27%
- 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
Established in 1999, the Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a ‘Navratna’ public sector organization under the Ministry of Railways, Government of India. IRCTC serves Indian Railways’ professional travel and hospitality division. As a division of Indian Railways, IRCTC is responsible for administering, upgrading, and professionalizing the food and hospitality offerings at train stations, on trains, and at other locations.
It also contributes significantly to the growth of both domestic and international travel through the development of low-cost hotels, well-planned travel packages, commercial marketing, information exchange, and connectivity with international reservation systems.
Over the years, the company has performed well financially. Operating revenue increased by 9.7% from Rs 4,260 crore in FY24 to Rs 4,675 crore in FY25. Its absolute EBITDA increased by 5.71% year over year with a robust margin of 33.15%, to Rs 1,549 crore. PAT increased by an incredible 18.30% annually from Rs 1,111 crore in FY24 to Rs 1,315 crore in FY25. The company’s revenue and PAT have been increasing at a robust 3-year CAGR of 35% and 26%, respectively. Its internet ticketing income surged to Rs 372.5 crore in Q4 FY25, a robust 8.78% YoY and 5.30% QoQ increase, confirming its dominance in the digital market.
In Q4, tourism income jumped to Rs 274.4 crore, up 22.65% QoQ and 38.17% YoY. Strong demand and cutting-edge travel options were the main drivers of expansion. Rail Neer also had a stable quarter, reporting sales of Rs 92.2 crore, up 15.49% from the year before. During the quarter, catering income fell to Rs 529.4 crore, mostly as a result of seasonal fluctuations. The company expects this area to grow and recover significantly in the next quarters.
The company projects that revenue in FY28 will amount to Rs 7,825 crore. IRCTC has a monopoly in the online ticketing business thanks to its website and Rail Connect mobile app. It has also profited from train passenger catering because of the strong entry restrictions. Additionally, the company is the only one permitted to give train passengers packaged drinking water. Indian Railways is in a strong position to grow, with passenger traffic predicted to increase by 29% from 9,457 million in 2021 to 12,213 million in 2031. The Indian railway industry is predicted to grow into the third largest in the next five years, holding 10% of the global market.
In Q1 FY26, IRCTC reported revenue from operations of Rs 1,159.68 crore, which rose by 3.8% YoY. EBITDA increased by 7.5%, to Rs 458.45 crore in this quarter from Rs 426.34 crore during the same period the previous year. PAT rose to Rs 330.7 crore in this quarter, an increase of 7.5% YoY from Rs 307.72 crore.
Risk Factor
During periods of high booking demand, the company’s reservation and ticketing system may have issues, resulting in poor response times and crashes. Lower revenue and a negative brand image for the business may result from this. Safe online transactions are also crucial to its operations because security breaches can have a significant detrimental effect on the business.
2. Emami Ltd
- Current price: ₹ 600
- Target price: ₹ 720
- Upside: 20%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Emami Ltd., one of the leading FMCG companies in India, was founded in 1974 and manufactures and sells personal care and healthcare products. Well-known brands like Navratna, BoroPlus, Smart and Handsome, Zandu Balm, Mentho Plus, and Kesh King are among Emami’s more than 550 varied product offerings. Emami products are available in over 5.4 million retail outlets across India, with a robust network of over 3,400 distributors.
More than 70 countries are part of the company’s global footprint, including those in Africa, Eastern Europe, the CIS (Commonwealth of Independent States), MENA (Middle East and North Africa), SEA (Southeast Asia), and SAARC (South Asian Association for Regional Cooperation).
In Q1FY26, the company recorded revenue from operations of Rs 904.1 crore, remaining flat, declining marginally by -0.2%. EBITDA stood at Rs 214.2 crore, with an EBITDA margin of 23.7% as of Q1FY26. Profit after tax increased by 9.1% to Rs 164.3 crore. Emami Ltd. proved resilient in the face of weak urban mass demand; its core domestic business, which was driven by important brands like Navratna, BoroPlus, and the Healthcare line (excluding Talc/PHP), posted 6% revenue growth and 3% volume growth in Q1FY26. Strong growth of 17% was registered in balms and pain management products due to early monsoons. Boroplus antiseptic cream witnessed a jump of 60% during Q1FY26.
In Q1FY26, their international business grew by 2%, contributing 16% of the overall sales. SAARC & SEA markets contributed 44% of the international business, followed by MENA markets contributing 41% of the international business. The Company expects the macro environment to gradually improve, supported by a buoyant monsoon, stabilizing inflation, and ongoing consumption recovery. The company is well-positioned to drive profitable and sustainable growth in the upcoming quarters since it has firmly established strategic levers for innovation, distribution expansion, digital acceleration, and cost agility.
Risk Factors
As the business requires menthol, packaging materials, and vegetable oil, profitability is impacted by changes in the price of raw materials. The unpredictable price of crude oil affects the cost of polymers, which are used to produce packaging materials. Til oil, seshale wax, rice bran oil (RBO), LLP (crude derivative), and menthol/mentha oil (which has a relaxing effect) are the primary raw materials used in health care and personal care products.
Most of the materials are bought domestically, with very few imported. It can be challenging for the company to swiftly pass on price increases for raw materials to price-sensitive clients. It is also susceptible to rural demand and the monsoon, as it has more presence in rural areas.
Market Recap August 19, 2025
The broad indices continued their positive momentum on Tuesday. The Nifty 50 index had its opening at 24,891, up by 14 points from the previous closing of 24,877. The index continued its positive trajectory, reaching an intraday high of 25,013, touching the key 25,000 level, and ended the day at 24,980.65, closing above the 24,950 level. The index closed above all four 20/50/100/200-day EMAs. By the close, the Nifty 50 had gained 103.7 points, or 0.42%. The BSE Sensex mirrored this trend, increasing by 370.64 points, or 0.46%. It had its opening at 81,319 and settled at 81,644.39.
The Nifty 50’s RSI was at 55.12, whereas the BSE Sensex RSI stood at 53.37, staying below the overbought level of 70. The Bank Nifty Index also ended in the green, closing at 55,865.1, gaining 130.25 points, or 0.23%. This Positive momentum stemmed from easing global tensions, the S&P’s credit rating upgrade for India to BBB (stable), and expectations of potential GST rate cuts.
The majority of the sectoral indices ended the day in green, except for a few losers. The Nifty Oil & Gas Index was the top gainer, closing at 11,200.3, up by 182.90 points or 1.66%. Oil & Gas stocks, including Petronet LNG Ltd, Reliance Industries, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd, rose up to 3.3%. The Nifty Media Index followed the gains, closing at 1,671.5, up by 22.05 points, or 1.34%. PVR Inox Ltd was the biggest gainer, increasing by 3.8%, followed by Hathway Cable & Datacom Ltd, which gained 2.2%, and Network 18 Media & Investments Ltd, up 1.9%. The Nifty MNC Index remains one of the top gainers, closing at 29,457.7, up by 384.30 points or 1.32%.
Among the major losers, the Nifty CPSE index plunged the most on Tuesday’s trading session. The index decreased by -25.05 points, or -0.39%, closing at 6,344.15. Cochin Shipyard was the major loser, dropping 0.8%, followed by NHPC Ltd, Power Grid Corporation of India Ltd, and Bharat Electronics Ltd, which declined by up to 0.8%. Another major laggard was the Nifty Pharma Index, which closed at 22,066.7, losing -74.4 points, or -0.34%. Major losers include Dr Reddy’s Laboratories Ltd, Gland Pharma Ltd, Glenmark Pharma Ltd, and Divi’s Laboratories Ltd, whose shares declined by up to 1.5%.
Asian markets were broadly on a negative note, with Hong Kong’s Hang Seng Index dropping -80.85 points, or -0.32%, to close at 25,096. Whereas, the Shanghai Composite Index closed on a flatter note at 3,727.29, losing -0.74 points, or -0.02%. However, South Korea’s KOSPI Index closed in the red at 3,151.56, down -25.72 points, or -0.82%. Japan’s Nikkei 225 Index also closed in the red at 43,598.00, down -116.31 points, or -0.27%. The US Dow Jones Futures were trading at 44,936.11, up 25.29 points, or 0.05%, as of 4:50 p.m. IST.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
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.
