Today, we recommend two stocks, one from the water management sector and another from the FMCG sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 30%. Effective water supply management is vital for India because of its huge population, reliance on agriculture, and growing water scarcity.
FMCG, India’s fourth-largest sector, has been experiencing consistent growth due to higher disposable income, an expanding youth demographic, supportive government policies, and increasing brand awareness among consumers. We also analysed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days
1. EMS Ltd
- Current price: ₹ 584
- Target price: ₹ 765
- Upside: 30.9%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
EMS Ltd. is a well-diversified, multidisciplinary EPC (engineering, procurement, and construction) company with over 14 years of experience. It primarily operates in the water and wastewater management segment, offering comprehensive EPC and O&M (operation and maintenance) services. The company also executes EPC projects in electrical transmission and distribution, building construction, and public infrastructure development.
Since April 2021, EMS Ltd. has completed 18 projects, with a current order book of over Rs 2,500 crore. Its operations span Rajasthan, Maharashtra, Uttar Pradesh, Bihar, West Bengal, and Uttarakhand. Since FY21, EMS Ltd. has undertaken a wide range of projects, including the supply, laying, jointing, testing, and commissioning of 1500 mm dia PCCP pipes in Kanpur; trenchless sewer line installations ranging from 150 mm to 1200 mm in Moradabad; and the construction of an 88 km sewerage network in Patna.
In FY25, the company reported revenue of Rs 965.83 crore, marking a 21.74% increase over FY24. Revenue has grown at a robust CAGR of 48.46% since FY22. EBITDA for FY25 reached Rs 251.16 crore, up 23.2% from Rs 203.84 crore in FY24, with a CAGR of 31% since FY22. Profit after tax stood at Rs 183.78 crore, reflecting a 20.3% year-on-year rise and a CAGR of 33% since FY22. EMS Ltd. maintains a strong financial position with a low debt-to-equity ratio of 0.09x as of FY25. In Q1 FY26, the company reported operating revenue of Rs 239 crore, up by 16% YoY.
EBITDA increased to Rs 56.4 crore, an increase of 7.4% from Rs 52.5 crore during the same period last year. PAT grew by 2.4% YoY from Rs 37.16 crore to Rs 38.06 crore in Q1 FY26. The marginal increase in PAT is attributed to the manufacturing segment, i.e., the newly acquired subsidiary, EMS Industries Private Limited, which is currently in its initial stage of operations and will generate a margin of approximately 10% in the future.
In June’25, the company received L1 status from UP Jal Nigam (Urban) for the work valued at Rs 288 crore. The company also received two letters of award for work valued at Rs 19.46 crore from Delta Bulk Shipping India Pvt Ltd for electrical works and Rs 98.8 crore from UP Jal Nigam (Urban) for the completion work of Nagar Nigam Ayodhya Sewerage Scheme District Part-II.
In the water and wastewater management space, EMS Ltd. is among the top 6-7 players in India by revenue. The sector’s total size is estimated at Rs 12 lakh crore, with Rs 4-5 lakh crore worth of projects already executed, indicating significant growth potential. The sector also benefits from annual budget allocations of approximately Rs 1 lakh crore from the central and state governments.
Risk Factor
The company’s growth is largely dependent on obtaining and successfully delivering government contracts. Any delays in project execution can negatively affect its revenue and profitability. Furthermore, since the company relies on government tenders, the risk of being blacklisted could significantly impact its future operations and cash flow.
2. Godrej Consumer Products Ltd
- Current price: ₹ 1,230
- Target price: ₹ 1,495
- Upside: 21.5%
- Time frame: 12-14 months.
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
This prominent FMCG company operates extensively across emerging markets, offering a diverse portfolio that includes soaps, hair colour, air fresheners, and household insecticides. It runs manufacturing units in several Indian states and union territories, such as Tamil Nadu, Madhya Pradesh, Meghalaya, Assam, Himachal Pradesh, Jammu and Kashmir, Puducherry, and Sikkim.
The company earns revenue from a broad mix of product categories and global markets, holding strong positions in both the hair care and household insecticide segments. With operations spanning 85 countries, it reaches over 1.2 billion consumers, particularly in regions like Latin America, Asia, and Africa. Its brand lineup features popular names such as Godrej Aer, Park Avenue, Goodknight, Cinthol, KamaSutra, and HIT.
In FY25, the company recorded a consolidated volume growth of 4%. Its total revenue reached Rs 14,680 crore, reflecting a 2% year-on-year increase, while EBITDA rose by 3.3% YoY to Rs 3,319 crore. The improvement in EBITDA margin was driven by strategic initiatives such as premiumization, more efficient advertising spending, and stronger realizations in global markets.
The company’s Indonesia operations remained steady, reporting a 5% growth in volume and a 9% increase in EBITDA, supported by expanded distribution and the successful launch of new products like Shampoo Hair Colour and HI Electrics. In Q1 FY 26, the company reported operating revenue of Rs 3,661.86 crore, up from Rs 3,331.58 crore, an increase of 10% YoY. PAT also grew slightly to Rs 452.45 crore from Rs 450.69 crore in Q1 FY25. Looking ahead, the company aims to reach 2 billion consumers by FY27.
It has also forayed into the pet food segment with a new brand, “Godrej Ninja,” backed by a planned investment of Rs 500 crore over the next five years. The move targets India’s growing pet care market, estimated at around Rs 6,000 crore, of which pet food contributes approximately Rs 5,000 crore.
Risk Factor
GCPL’s strong presence across Asia, Africa, and Latin America makes it vulnerable to supply chain disruptions, currency volatility, and geopolitical tensions, all of which could negatively impact its margins. In the near term, fluctuations in raw material costs, especially palm oil, may also put pressure on the company’s profitability.
Market Recap – 22nd September 2025
The Nifty 50 began Monday’s session on a weak note, opening at 25,238.10, down 88.95 points from its previous close of 25,327.05. It hit a low of 25,151.05 during the day before settling at 25,202.35, marking a decline of 124.70 points, or 0.49%. Despite the fall, the index continued to trade above its 20, 50, 100, and 200-day exponential moving averages. The BSE Sensex mirrored this bearish trend, opening lower at 82,151.07, a drop of 475.16 points, and closing at 82,159.97, down 466.26 points, or 0.56%.
Technical indicators showed moderate momentum, with the RSI at 58.19 for Nifty and 56.37 for Sensex, both comfortably below the overbought threshold of 70. The Bank Nifty also ended in the red, slipping 174.10 points, or 0.31%, to close at 55,284.75. The downturn was partly driven by market concerns following the U.S. government’s 20th September announcement of a sharp hike in the H1-B visa cost to USD 100,000, sparking uncertainty among skilled professionals.
Among sectoral performers, the Nifty Energy Index led the gainers, rising by 246.90 points, or 0.69%, to close at 35,992.65. Adani Power Ltd surged 20% following a 5-for-1 stock split and partial regulatory clearance from SEBI on earlier allegations. Other Adani Group stocks, such as Adani Total Gas Ltd, Adani Green Energy Ltd, and Adani Energy Solutions Ltd, also rallied, gaining up to 19.85%.
The Nifty Media Index ended higher by 7.85 points, or 0.48%, closing at 1,627.30, with notable gains from Zee Entertainment and Nazara Technologies, which rose to 2.97%. The Nifty Metal Index also saw mild gains, ending the day at 10,029.10, up 39.20 points, or 0.39%.
On the flip side, the Nifty IT Index was the worst performer of the session, falling by 1,078.10 points, or 2.95%, to close at 35,500.15. Among the major losers were Mphasis Ltd., which dropped 4.72%, along with LTIMindtree and Coforge, each shedding over 4.5%. The Nifty Pharma Index also registered a decline, ending at 22,365.75, down 320.85 points or 1.41%. Companies like Glenmark Pharma, Granules India, Laurus Labs, and Ipca Labs lost as much as 3.23%. Meanwhile, the Nifty Smallcap 50 Index also struggled, closing at 8,796.75, a drop of 112.95 points or 1.27%.
Asian markets were mostly positive on Monday. Japan’s Nikkei 225 gained 487.19 points or 1.07%, to finish at 45,533.00. China’s Shanghai Composite Index rose slightly by 8.49 points or 0.22%, to close at 3,828.58. South Korea’s KOSPI added 23.41 points or 0.67%, to settle at 3,468.65. However, Hong Kong’s Hang Seng Index declined by 175.10 points or 0.66%, ending at 26,370.00. As of 4:48 p.m. IST, U.S. Dow Jones Futures were down by 141.15 points or 0.31%, trading at 46,171.14.
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