Today, we recommend two stocks, one from the automobile sector and another from the consumer durables sector, as recommended by the Trade Brains Portal, to buy for an upside potential of more than 29%. The Indian automobile industry stands as a key pillar of the economy, significantly contributing to GDP growth and job creation through its extensive manufacturing network and rising exports, particularly in segments like tractors, two-wheelers, and three-wheelers.
Simultaneously, India is set to become a dynamic global hub for electronics and consumer durables, driven by technological advancement, a focus on sustainability, a large domestic market, and a highly skilled workforce. We also analyzed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
1. Bajaj Auto
- Current price: Rs 9,433.5
- Target price: Rs 10,800
- Upside: 14.5%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Bajaj Auto, the flagship company of the Bajaj Group, is a leading manufacturer of 2-wheelers and 3-wheelers, exporting to over 79 countries worldwide. It is the 2nd largest player in the motorcycle segment in India and the country’s largest exporter of 2-wheelers. The company operates five manufacturing plants across India with a total annual installed capacity of 7.2 million units.
Bajaj Auto became the first 2-wheeler company globally to achieve a market capitalization of Rs 1 Lakh Crore. With a diversified product portfolio and a strong global presence, Bajaj Auto offers well-known brands such as Pulsar, KTM, Triumph, Chetak, Dominar, and Avenger. The company has also forayed into the electric 2-wheeler scooter market with the Chetak brand and currently ranks among the top five players in the segment.
As of Q1 FY26, Bajaj Auto reported revenue from operations of Rs 13,133.35 crore, reflecting a 10% YoY growth driven by exports, commercial vehicles, premium motorcycles, and the Chetak brand. The company achieved double-digit growth across key international markets, including Africa, Latin America, and Asia. EBITDA stood at Rs 3,301.92 crore and PAT at Rs 2,210.44 crore. During the same quarter, the company recorded sales of 5,29,344 units in the 2-wheeler segment and 1,05,464 units in the commercial vehicle segment. For August alone, sales were reported at 1,84,109 units for 2-wheelers and 48,289 units for commercial vehicles.
Bajaj Auto has committed a capex of Rs 1,000 crore under the PLI scheme over five years and plans to invest Rs 600 to 700 crore in FY25-26, primarily towards maintenance capex. The board has approved a final dividend of Rs 210 per share of face value Rs 10 for the year ended FY25.
In FY25, the company held a market share of 16.6% in domestic motorcycle sales and 46.3% in the export market. Bajaj Auto maintained its leadership in the ICE 3-wheeler segment with a market share of 75.7% and had a 52.4% share in the ICE 3-wheeler goods carrier segment. It remains the largest exporter of 3-wheelers from India.
The company is progressing toward expanding its production capacity to 50,000 units per annum at its Bajaj Brazil facility after reaching 7,000 units in Q1 FY26. It has also recorded commercial vehicle sales of over 1,00,000 units for the eighth consecutive quarter, solidifying its position as a market leader in the 3-wheeler EV segment in Q1 FY26.
Risk factors
The macroeconomic environment of the nation is closely linked to the performance of the automobile industry. Geopolitical developments, such as the tariffs introduced by the Trump administration, can disrupt supply chains and lead to increased costs across the sector. Other broader macroeconomic factors, including global inflation, shifts in domestic demand and consumer preferences, fluctuations in the availability of raw materials, and declining per capita income in various economies, can also negatively affect purchasing power and overall industry growth. The 2-wheeler segment, in particular, has become highly competitive, with key players like Hero MotoCorp, Honda Motorcycles, Suzuki Motorcycle, and TVS Motors consistently launching new models in an effort to capture greater market share.
2. Crompton Greaves Consumer Electricals Ltd
- Current price: Rs 327
- Target price: Rs 425
- Upside: 29.9%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
In 1947, L.K. Thapar acquired Crompton Parkinson Works Ltd., which later merged with Greaves Cotton & Crompton Parkinson Ltd. in 1966, forming the Thapar Group and laying the foundation for Crompton Greaves. In 2015, the consumer durables division was carved out to form Crompton Greaves Consumer Electricals Ltd. (CGCEL). Today, the company is a leading name in the consumer electricals space, offering a wide range of products including fans, lighting, pumps, and household appliances.
It holds the number one position in fans and residential pumps, ranks sixth in air coolers, and fifth in water heaters. With a robust pan-India footprint, the company operates through 23 branches, 7 manufacturing plants, over 6,100 channel partners, and more than 2.36 lakh retail outlets. Its extensive portfolio includes over 12,000 SKUs and is backed by strong growth prospects driven by brand-building efforts and positive consumer sentiment.
In Q1 FY26, the company reported consolidated net sales of Rs 1,998 crore, EBITDA of Rs 192 crore, and net profit of Rs 124 crore. The solar pumps segment recorded 2X year-on-year growth during the quarter. The company secured the largest-ever single order from the Maharashtra Energy Development Agency (MEDA), valued at Rs 101 crore, reinforcing its leadership in the segment.
Butterfly Gandhimathi Appliances Ltd., a subsidiary of CGCEL, posted revenue of Rs 187 crore and achieved strong EBITDA growth of 39% YoY. It also reported market share gains in core categories, supported by effective execution and a recovery in distribution channels. The lighting segment recorded EBIT of Rs 29 crore, up 41% YoY, with margins improving by 370 basis points to 12.6%, driven by a better product mix and operational efficiencies.
The consumer durables sector contributes approximately 0.6% to India’s GDP and is expected to grow at a CAGR of 11%, reaching Rs 3 lakh crore by 2029. To support future growth, the company has launched its Crompton 2.0 vision through initiatives such as Nucleus and Xtech. This strategy is focused on accelerating double-digit revenue growth, expanding market share, and ensuring sustainable growth in core categories like fans, pumps, and large domestic appliances.
The company also aims to transform the lighting segment through innovation, product range expansion in panels, premiumization, and entry into new categories. As part of its commitment to innovation and maintaining a competitive edge, the company increased its R&D spend from 0.5% of revenue in FY21 to 1.02% in FY25.
Risk Factors
The company is operating in an increasingly competitive domestic consumer durables market, where rivalry has intensified in recent years. Organized players like Havells India Ltd. have built strong consumer connections and high brand recall, posing a significant challenge. At the same time, the company is experiencing pricing pressures from unorganized players.
Additionally, raw materials and purchases of traded goods contribute 68% to 70% of total sales. Key input materials such as copper, aluminum, and steel are subject to price volatility, driven by geopolitical tensions and supply chain disruptions, which may impact profit margins. In Q1 FY26, performance in the fans segment was muted, mainly due to a decline in Table, Pedestal, and Wall-mounted (TPW) fans as the monsoon arrived earlier than usual in 2025.
Market Recap 08/09/2025
On Monday, the Nifty 50 opened on a positive note at 24,802.60, rising 61.60 points from its previous close of 24,741.00. It hit an intraday high of 24,885.50 and closed the day at 24,773.15, gaining 32.15 points, or 0.13%. It finished only below the 50-day EMA but stayed above the 20/100/200-day EMAs daily. The BSE Sensex followed a similar trajectory, rising 193.64 points after opening at 80,904.40 from its previous close and closing the day at 80,787.30, gaining 76.54 points or 0.09%. In terms of momentum, the Nifty 50’s Relative Strength Index (RSI) stood at 49.08, while the Sensex RSI was at 47.39, both remaining below the overbought threshold of 70. The Bank Nifty Index also followed the slightly positive trend and ended in green, rising 72.35 points, or 0.13%, to close at 54,186.90.
Among the major gainers, the Nifty Auto Index was the top gainer, closing at 27,189.2, up by 868.60 points, or 3.3%. Auto stocks, including Bharat Forge Ltd, Ashok Leyland, Samvardhana Motherson International Ltd, and Tata Motors Ltd, rose by up to 5.8%. The Nifty PSU Bank Index followed the gains, closing at 6,889.20, up by 33.5 points, or 0.49%. Indian Overseas Bank was the biggest gainer, increasing by 1.5%, followed by Central Bank of India, which also gained 1.5%, and Indian Bank, up 0.9%. The Nifty Realty Index also remains one of the top gainers, closing at 876.55, up by 4.05 points, or 0.46%.
The Nifty IT index fell the most during Monday’s trading session among the main losers. The index closed at 34,310.45, down -325.40 points, or -0.94%. The top loser, Persistent Systems Ltd, fell -2.4%. Other IT stocks, such as LTIMindtree Ltd, Tech Mahindra Ltd, and HCL Technologies Ltd, also fell up to -2.1%. At 6,217.05, the Nifty CPSE Index also ended the day lower, down -30.60 points, or -0.49%. Coal India Ltd., Oil India Ltd., Power Grid Corporation of India Ltd., and ONGC Ltd. are among the biggest losers, with their shares falling up to -1.4%.
On Monday, Asian markets displayed a bullish trend. Hong Kong’s Hang Seng Index ended the day higher at 25,628, jumping 210 points, or 0.82%. The Shanghai Composite Index closed at 3,826.84, climbing 14.33 points, or 0.37%, following the same trend. The KOSPI Index for South Korea ended the day in green at 3,219.59, up 14.47 points, or 0.45%. At 43,646, Japan’s Nikkei 225 Index also ended the day higher, up 627.25 points, or 1.44%. At 4:25 p.m. IST, the US Dow Jones Futures were up 77.43 points, or 0.17%, at 45,478.29.
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