Today, we recommend two stocks, one from the telecom services sector and another from the plastic products sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 28%. The Indian telecom service is a vital sector, contributing significantly to the nation’s economy, fostering digital inclusion, and enabling various other industries. The plastic products sector plays a crucial role in various sectors like packaging, construction, and consumer goods. We also analyzed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. Tata Communications Ltd
- Current price: ₹ 1,736
- Target price: ₹ 2,085
- Upside: 20%
- 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
Tata Communications Ltd, a part of the Tata Group, was established in 1986 and serves as a global facilitator of the digital ecosystem, bolstering the rapidly growing digital economy across more than 190 nations and territories. The company helps businesses around the world undergo digital transformation by offering a wide range of services, such as next-generation connectivity, cloud and security solutions, collaboration tools, media services, IoT, and customer engagement platforms. Tata Communications serves 300 of the Fortune 500 companies and connects businesses to 80% of the leading cloud providers worldwide.
The combined operational revenue increased 6.5% YoY from Rs 5,592.32 crore in Q1 FY25 to Rs 5,959.85 crore in Q1 FY26. The company’s profit after taxes for the first quarter of FY26 was Rs 190.14 crore. The company has continued to grow at a steady pace over the last two years, with digital revenues rising by 29.5%. From Rs 4,500 crore in FY23 to Rs 9,100 crore in FY25, the company’s digital revenue increased. The company had robust year-over-year growth in the enterprise market segment both in India and outside. While Indian enterprise grew by 8.7% YoY in FY25, international enterprise grew by up to 20%.
The company is implementing cost-synergy measures concerning acquisitions. Both Switch and Kaleyra are nearing the inflection point, and it is expected that the synergies will become evident in the next quarters, although they have been working on this for 24 and 18 months, respectively. Additionally, the Inter Group Share Purchase Agreement (SPA) for the acquisition of Solutions Infini Technologies (India) Private Limited (commonly referred to as “SI India”) from Kaleyra S.P.A. for a sum of Rs 123.6 crore was approved by the company board.
The business is branching out into new markets like AI cloud and digital fabric technologies. They are already present in extremely promising categories such as Unified Cloud Network (UCN), Secure Access Service Edge (SASE), and Customer Interaction Suite (CIS). Due to the industry’s quick adoption of AI, there is an increasing need for strong networks, scalable cloud infrastructure, and advanced cybersecurity. Tata Communications is well-positioned to seize this opportunity by expanding its portfolio of cutting-edge solutions in crucial fields.
Risk Factor
Tata Communications’ competition is getting more intense in a lot of areas. Cloud providers are gradually expanding into telecom services, OEMs are entering the cybersecurity space, system integrators are expanding their managed service offerings, and specialised technology suppliers are targeting business clients directly. At the same time, traditional telecom companies are starting to place a greater emphasis on enterprise services. If the business is unable to maintain its market leadership and successfully differentiate its services, it may face price difficulties and a decline in its profits.
2. Astral Ltd
- Current price: ₹ 1,471
- Target price: ₹ 1,875
- Upside: 28%
- 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
Since its inception in 1996, Astral Ltd. has developed into a global leader in the building materials sector, distinguished by its innovative and superior products. The business has 26 manufacturing facilities as of FY25, with a total production capacity of 5,49,126 (MTPA). With a robust network of 3,610+ distributors and 2.5+ lakh dealers, they provide excellent and reliable service to millions of customers.
The company produces pipes and fittings, water tanks, adhesives and sealants, bathware, specialty valves, construction chemicals, and infrastructure items under eight high-growth product categories. It has also made its way into the sanitaryware, paint, and tap sectors. Astral is expanding its global reach and offering top-notch products by exporting to over 31 nations.
The company’s revenue increased 3.4% annually from Rs 5,641.4 crore in FY24 to Rs 5,832.4 crore in FY25. With a net profit of Rs 519 crore, EBITDA grew 2.8% YoY to Rs 987.2 crore from Rs 960.3 crore in FY24. Their revenue from paints and adhesives increased 9.1% YoY to Rs 1,636.1 crore, while their revenue from plumbing increased 1.3% to Rs 4,196.3 crore. Their revenue has increased at a CAGR of 16.5% over the past five years, while EBITDA has grown by 10.48% and PBT by 7.15%. Over the last two years, the company has spent over Rs 1,000 crore on new plant expansions in Hyderabad, Guwahati, Bhubaneswar, and Kanpur.
The company is establishing a fully automated solvent cement facility, which is the pipe-joining chemical plant, and increasing its capacity for more chemistries at Dahaj in the following year. The company anticipates growing its product line in both domestic and international markets with the acquisition of Al Aziz Plastics. By focusing on quality and innovation, Astral aims to increase paint revenue by 15% to 20% in the coming years.
Risk Factor
Crude oil by-products are the source of Astral’s primary raw materials, which include UPVC, CPVC, PPR, and HDPE resins. Changes in the price of crude oil around the world have a direct impact on the cost of these raw materials, which in turn affect Astral’s production costs and profitability.
Market Recap July 22nd, 2025
The Nifty 50 index opened at 25,167 on Tuesday, up by 76 points from Monday’s closing of 25,091. The index was volatile throughout the day and closed on a flatter side at 25,060.90, down -29.80 points or -0.12%. It traded above the 50/100/200 EMAs but below the 20 EMA in the daily time frame. Its RSI stood at 46.65, well below the overbought zone of 70. BSE Sensex also had a similar start, opening at 82,527, up by 327 points from the previous close of 82,200. Sensex closed at 82,186, down -13.53 points or -0.02%. Bank Nifty ended in red at 56,756, down by -196.75 points or -0.35%.
On Tuesday, one of the major gainers was the Nifty India Digital Index, which ended the day at 9,114.25, up 102 points, or 1.1%. Major stocks like Eternal Ltd., which rose 10.3%; Swiggy Ltd., which increased 5.7%; and Info Edge (India) Ltd., which increased 4.2% on Tuesday, all contributed to the index’s increase. The Nifty India Consumption Index also closed with gains at 11,801.50, up 54.40 points, or 0.5%.
However, the Nifty Media Index closed at 1,733.60, down -40.30 points, or -2.3%. Stocks including Zee Entertainment, Dish TV India, and Network 18 Media & Investments pulled the index down, with Zee Entertainment being the major loser, falling by 5.7%. The Nifty PSU Bank Index was another big loser, closing at 7,006.35, down -111.75 points, or -1.6%. Banking stocks, including Canara Bank, Punjab National Bank, and Punjab & Sind Bank, dragged the index down, with Canara Bank losing 3.6%, being the major loser.
Asian markets were mostly mixed on Tuesday. South Korea’s Kospi was down -1.29%, or -40.87 points, to 3,169.94. The Nikkei 225 index was down -0.11% or -44.19 and closed at 39,774.92 points. While Shanghai’s Composite Index closed the day on a higher note at 3,581.86, up 22.07 points, or 0.62%. The Hang Seng index grew by 0.54%, or 135.89 points, closing at 25,130.03 points. At 4:33 p.m., Dow Jones Futures are down by -30.80 points, or -0.08%, on the US stock exchange at 44,292.27.
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