Today, we recommend two stocks, one from the consumer services (Travel & Tourism) sector and another from the power sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 30%. The global travel and tourism industry is projected to maintain its growth momentum, fueled by factors such as rising disposable incomes, increasing travel demand, and the expanding appeal of leisure, business, and experiential travel.
Meanwhile, the Indian power sector is witnessing robust growth, driven by rising electricity demand, the rapid expansion of renewable energy, and continuous infrastructure development. We also analysed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
1. BLS International Services Ltd
- Current price: ₹ 368
- Target price: ₹ 481
- Upside: 30.7%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
BLS International is among the top two global providers of visa, passport, consular, and citizen services, serving governments and individuals across more than 70 countries. Its operations fall under two main segments: Visa & Consular Services (which contributes 75% to its revenue) and Digital Services (25%). With over 20 years of experience, BLS is a trusted global partner and currently works with 46 government clients. As of 2024, the company holds a 17% market share (by value) and a 10% share (by volume) in the global visa outsourcing market, excluding the U.S.
The company has demonstrated strong financial performance with steadily improving margins since FY21 and follows an asset-light, negative working capital business model. Between FY21 and FY25, revenue grew at a CAGR of 46%, while EBITDA surged at a 100% CAGR. PAT also saw rapid growth, rising at an 81% CAGR over the same period. Profit margins improved significantly, with PAT margins increasing from 10.5% in FY21 to 24.6% in FY25. BLS boosted its EBITDA margin from 8.3% in FY21 to 28.7% in Q1FY26 by focusing on capital efficiency and transitioning from a partner-led to a self-operated model.
In Q1FY26, BLS recorded Rs 710.6 crore in operational revenue, marking a 44% YoY increase. EBITDA rose 53% YoY to Rs 204.2 crore, while PAT increased 50% YoY to Rs 181.0 crore. The company processed 11.4 lakh applications during the quarter, reflecting a 33.6% YoY rise in application volumes. The global travel and tourism sector is projected to grow at an 8% CAGR from 2024 to 2029, while the consular services market is expected to expand at a 32% CAGR over the same period.
Looking ahead, management aims to sustain a 20-25% annual growth rate in revenue and profit over the next 3-4 years. As part of its inorganic growth strategy, BLS acquired iDATA for Rs 720 crore in July 2024, strengthening its global footprint and market position. The company is also diversifying into fast-growing sectors, investing Rs 260 crore in Citizenship Invest, a prominent firm in residency and citizenship programs.
Risk Factor
The company is exposed to regulatory changes by the concerned governments of various countries. Inability to gain any new contracts or non-renewal of contracts at the end of the term could weaken the revenue of the company.
2. Tata Power Company Ltd
- Current price: ₹ 383
- Target price: ₹ 475
- Upside: 23.9%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Tata Power Co. Ltd., established in 1910, is India’s largest vertically integrated power company. It has a proven track record across various segments, including transmission, energy trading, distribution, and generation through renewable, thermal, and hydro generation, as well as emerging energy solutions. The company has a global footprint, operating in 7 countries and 21 Indian states.
As of Q1 FY26, its total power capacity-both operational and under development-stood at 26,026 MW. This includes 17.16 GW from renewable sources (with 10.19 GW under construction) and 8.9 GW from thermal power. Tata Power operates 7 distribution companies (Discoms), catering to 12.9 million customers.
In Q1 FY26, the company reported operational revenue of Rs 17,464 crore, reflecting a 3.9% increase YoY and a 0.8% rise QoQ. EBITDA grew by 17.3% YoY to Rs 3,930 crore, while PAT reached Rs 1,262 crore, up 6.1% YoY. During the quarter, Tata Power recorded its highest-ever rooftop solar installations, with 45,500 systems and a combined capacity of 270 MWp.
Its solar EPC segment also delivered a record 652 MW in large-scale utility projects. Additionally, the company partnered with Tata Motors on a 131 MW wind-solar hybrid project to supply green energy for manufacturing operations. Notably, residential rooftop installations grew to 64% of total installations in Q1 FY26, up from 29% in Q1 FY25.
The company currently operates 4,659 circuit kilometres of transmission lines, with another 2,414 circuit kilometres under development. As of Q1 FY26, Tata Power has installed 5,571 public EV charging stations across 620 cities and towns. Following the completion of ongoing projects, renewable energy will account for 66% of its total capacity, with solar energy contributing 18%.
Risk Factors
Tata Power carries a moderate level of leverage and faces significant debt obligations in the short to medium term. The company has also planned substantial capital expenditures of approximately Rs 20,000 crore for FY26, primarily targeting renewable energy, pumped hydro storage, and transmission infrastructure. This raises concerns over execution risks and exposure to fluctuations in equipment costs.
Market Recap 25th August 2025
Monday’s trading session started on a positive note, and the broader indices ended the day in the green. The Nifty 50 had a positive opening at 24,949.15, up 79.05 points from its previous close of 24,870.10. It closed the day at 24,967.75, finishing above all four 20/50/100/200-day EMAs. By the end of the session, the Nifty 50 had gained 97.65 points, or 0.39%.
The BSE Sensex followed a similar trajectory, gaining 329.05 points, or 0.40% from the previous week’s closing. It opened at 81,501.06 and settled at 81,635.91. In terms of momentum, the Nifty 50’s Relative Strength Index (RSI) stood at 53.48 while the Sensex RSI was at 52.38, both remaining below the overbought threshold of 70. The Bank Nifty Index ended in the red at 55,139.30, losing -10.10 points, or -0.02%.
The Nifty IT Index was the top gainer, closing at 36,280, up by 839.25 points, or 2.4%. Infosys Ltd led the gains with a 3% increase, followed by other IT stocks, including TCS Ltd, which gained 2.8%, and HCL Tech Ltd, which rose by 2.6%. The Nifty Realty Index followed the gains, closing at 916.45, up by 6.8 points, or 0.8%. Sobha Ltd was the biggest gainer, increasing by 1.9%, followed by DLF Ltd, which gained 1.2%, and Raymond Ltd, up 1.1%.
The Nifty Media index fell the most during Monday’s trading session and remained among the major losers. The index closed at 1,626.25, down -27.70 points, or -1.7%. The top loser, Nazara Technologies Ltd, fell 3.5%, followed by Zee Entertainment Ltd, which fell 2.6%, and PVR Inox Ltd, which fell 2%. The Nifty PSU Bank Index was another major loser, closing at 6,980.35 after dropping -17.75 points, or -0.3%. Union Bank of India, Canara Bank, Bank of Maharashtra and Central Bank of India are among the biggest losers, with their shares falling up to 1.3% on Monday.
Monday saw a positive trend in Asian markets, with Hong Kong’s Hang Seng Index closing at 25,829.91, up 490.77 points, or 1.94%. Additionally, the Shanghai Composite Index ended the day higher, closing at 3,883.56, up 57.80 points, or 1.51%. The KOSPI Index of South Korea ended the day at 3,209.86, up 41.13 points, or 1.3%. Japan’s Nikkei 225 Index ended the day marginally higher, up 174.53 points, or 0.41%, at 42,807.82. At 4:34 p.m. IST, the US Dow Jones Futures were down -105 points, or -0.23%, at 45,610.
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