Today, we recommend two stocks, one from the IT sector and another from the recycling sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 30%. India’s IT-enabled services industry is expected to grow rapidly due to the country’s digital transformation and rising demand for cutting-edge technology like cloud computing and artificial intelligence.
On the other hand, the recycling industry is experiencing a massive tailwind due to structural changes from the government on regulations, rapid urbanization, and an increase in participation by formal players. We also analyzed the market’s performance on Wednesday to understand what may lie ahead for the stock indices in the coming days.
1. Gravita India Limited
- Current price: ₹ 1,729
- Target price: ₹ 2,250
- Upside: 30.2%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Established in 1992, Gravita India Ltd. is a world leader in manufacturing and recycling, operating advanced facilities for aluminum alloys, lead metal and products, and plastic granules throughout India. With 33 yards, more than 1,900 touchpoints, and more than 287,000 MT of scrap collected, the organization boasts a strong procurement network. With a robust global presence in Asia, Africa, the Middle East, Europe, and America, Gravita serves a wide range of customers in 34 countries and procures raw materials at affordable costs.
In FY25, Gravita demonstrated strong performance with volumes, revenue, EBITDA, and PAT increasing by 20%, 22%, 22%, and 31% YoY, respectively. Value-added items made up 46% of the company’s revenue, while scrap from domestic sources increased by 60%. Revenue increased 22.4% year over year from Rs 3,161 crore in FY24 to Rs 3,869 crore in FY25, with 68% coming from India and 32% from foreign markets. PAT increased from Rs 239 crore to Rs 312 crore, a 30.5% YoY growth.
In Q1 FY26, the company reported operating revenue of Rs 1,040 crore, up from Rs 908 crore during the same period last year, a surge of 15% YoY. EBITDA rose by 22.4% YoY to Rs 111.70 crore, and PAT increased to Rs 93.26 crore, a growth of 39% YoY. The company achieved volume growth of 12% YoY and further aims for capacity expansion, reaching 7 lakh+ MTPA by FY28 and increasing capex to Rs 1,500+ crore by FY28.
The company aims to increase its capacity across key verticals such as turnkey solutions, lead, aluminum, plastic, rubber, and emerging sectors like paper, steel, and lithium-ion. With more than 50% coming from value-added products and more than 30% from the non-lead category, Gravita hopes to achieve over 25% volume CAGR, 35% profitability growth, and 25% return on invested capital by 2029. Gravita, which has four key recycling verticals and 12 recycling units, achieved 3.34 lakh MTPA in FY25 and is expected to surpass 700,000 MTPA by FY28. Its healthy order book stands at over 60,000 MT.
Risk Factor
Gravita faces significant competition in the domestic lead alloy manufacturing space from both organized and unorganized players, which could lead to pricing pressure. Additionally, the company faces regulatory risks because lead is a toxic metal, and recycling it requires environmentally delicate procedures. Its operations and profitability may be impacted by any unfavorable changes in governmental regulations or more stringent environmental standards.
2. eMudhra Ltd
- Current price: ₹ 753
- Target price: ₹ 910
- Upside: 21%
- 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
eMudhra Ltd., a global leader in the secure digital transformation industry since 2008, focuses on identity-based solutions and trust services. Over 60 million digital identities have been issued by the company, making it the biggest certifying authority in India. In addition to serving enterprise clients in more than 21 countries, eMudhra has over 850 employees spread across 11 offices and over 1 lakh channel partners, catering to clients in more than 35 countries.
eMudhra operates through two primary business segments: Solutions & Services, which generates 80% of its revenue, and Trust Services, which contributes the remaining 20%. It has a healthy customer mix of government contributing 45% of the revenue, 37% by enterprises, and the rest by the BFSI sector.
It stands out as the only Indian company offering an integrated platform that combines identity, digital signing, cryptography, and certificate automation. In the Trust Services space, eMudhra maintains its leadership in the Indian market by offering a comprehensive suite of digital certificates, including digital signature, SSL/TLS, and S/MIME certificates.
In Q1FY26, eMudhra’s international business saw a robust year-on-year growth of 70.7%, now accounting for 64% of the company’s total revenue. This quarter posted solid growth due to new client wins across the US, the Middle East, India, and the Asia Pacific. In Q1FY26, eMudhra reported a total income of Rs 150.6 crore, marking a 58.5% YoY increase, fueled by strong global demand for its services and solutions.
Adjusted EBITDA grew 34.6% YoY to Rs 40.84 crore, reflecting a healthy 4-year CAGR of 35%. The company’s adjusted PAT reached Rs 27.3 crore, up 44.6% YoY, with a solid profit margin of 16.6%. eMudhra continues to maintain a strong financial position, remaining debt-free with a cash balance available of Rs 188.56 crore as of FY25.
Looking ahead to FY26, the company aims to further expand its footprint in the European Union. To bolster its presence in the U.S. market, eMudhra made strategic acquisitions of Ikon and Two95, enhancing its market reach and enabling cross-selling opportunities across its product and service portfolio.
Risk Factor
Despite its strong performance, eMudhra remains exposed to regulatory risks due to its reliance on licenses for issuing digital certificates. Non-compliance with evolving regulations or audit requirements in India or international markets could potentially impact its operations. The company also faces competition from established global players such as DigiCert, Entrust, Sectigo, and GlobalSign, particularly in the digital certificate space.
Market Recap 20th August, 2025
The broader indices rebounded in the afternoon session, ending in positive territory on Wednesday. The Nifty 50 opened at 24,965.8, down 14.85 points from its previous close of 24,980.65. However, the index extended its rally for the third consecutive session this week, hitting an intraday high of 25,088.7 and crossing the key 25,000 mark. It closed the day at 25,050.55, finishing above all four 20/50/100/200-day EMAs. By the end of the session, the Nifty 50 had gained 69.9 points, or 0.28%. The BSE Sensex followed a similar trajectory, rising 213.45 points, or 0.26%, after opening at 81,671.47 and settling at 81,857.8.
In terms of momentum, the Nifty 50’s Relative Strength Index (RSI) stood at 56.99, while the Sensex RSI was at 55.23, both remaining below the overbought threshold of 70. In contrast, the Bank Nifty Index ended in negative territory, slipping 166.65 points, or 0.30%, to close at 55,698.5. On the geopolitical front, tensions appeared to ease as India and China reached an agreement on Tuesday to resume direct flights and enhance trade and investment ties.
The majority of the sectoral indices ended the day in green, except for a few losers. The Nifty IT Index was the top gainer, closing at 35,690, up by 933.35 points, or 2.69%. IT stocks, including Infosys Ltd, Mphasis Ltd, Coforge Ltd, and TCS Ltd, rose up to 4%. The Nifty FMCG Index followed the gains, closing at 56,664.05, up by 777.40 points, or 1.39%. Emami Ltd was the biggest gainer, increasing by 4.1%, followed by Britannia Ltd, which gained 3.7%, and Colgate-Palmolive Ltd, up 3.7%. The Nifty Realty Index remains one of the top gainers, closing at 913.85, up by 9.55 points, or 1.06%.
Among the major losers, the Nifty Media index plunged the most on Wednesday’s trading session. The index decreased by -33.05 points, or -1.98%, closing at 1,638.45. Nazara Technologies Ltd was the major loser, dropping 12.9%, after the Indian government announced a potential ban on all forms of online money gaming.
Other media stocks, including PVR Inox Ltd, Network 18 Media & Investments, and Sun TV Network Ltd, declined by up to 1%. Another major laggard was the Nifty Pharma Index, which closed at 21,969.5, losing -97.25 points, or -0.44%. Major losers include Aurobindo Pharma Ltd, Lupin Ltd, Abbott India Ltd, and Divi’s Laboratories Ltd, whose shares declined by up to 4%.
Asian markets showed a mixed trend on Wednesday, with Hong Kong’s Hang Seng Index ending nearly flat at 25,138.0, gaining 15 points, or 0.06%. Whereas, the Shanghai Composite Index closed at 3,766.21, gaining 38.92 points, or 1.03%. However, South Korea’s KOSPI Index closed in the red at 3,130.09, down -21.47 points, or -0.69%. Japan’s Nikkei 225 Index also closed in the red at 42,916, down -630.29 points, or -1.47%. The US Dow Jones Futures were trading at 44,895.81, up -26.46 points, or -0.06%, as of 4:50 p.m. IST.
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