Today, we recommend two stocks, one from the waste management sector and another from the railways sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 30%. India’s railway infrastructure plays a vital role in the country’s development, acting as the backbone of transportation, enabling trade and commerce, supporting industrial growth, and generating employment.
Simultaneously, the domestic waste management sector is projected to grow at a CAGR of 7.21%, rising from USD 13.6 billion in 2025 to USD 19.26 billion by 2030. With more than 62 million tonnes of municipal solid waste produced each year, India ranks among the top ten waste-generating countries globally. We also analyzed the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
1. Ganesha Ecosphere
- Current price: ₹ 1,465
- Target price: ₹ 1,855
- Upside: 26%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Ganesha Ecosphere Limited, established in 1987, is one of India’s leading manufacturers of recycled polyester (rPET) fibre. In addition to producing recycled polyester staple fibre (RPSF), dyed yarn, and recycled spun yarn, the company has recently expanded into the production of rPET chips and rPET filament yarn. It operates an extensive collection network across India, with particular strength in the Northern and Southern regions, processing approximately 450 tonnes of PET bottle waste each day. With over three decades of industry experience, Ganesha Ecosphere has built a strong ecosystem that includes more than 300 suppliers across India and over 400 customers in more than 20 countries. The company currently operates six manufacturing facilities and recycles over 8.5 billion PET bottles annually.
The company’s revenue grew by 30.5% year-on-year, increasing from Rs 1,122.9 crore in FY24 to Rs 1,465.5 crore in FY25. Its EBITDA rose by 52.72% year-on-year, from Rs 137.9 crore to Rs 210.6 crore, with the EBITDA margin improving to 14.4% in FY25 compared to 12.3% in FY24. Profit after tax increased by 154% year-on-year, rising from Rs 40.6 crore in FY24 to Rs 103.1 crore in FY25. Ganesha Ecosphere is a prominent player in India’s PET plastic recycling sector, with an installed capacity of 196,440 tonnes and an annual PET waste conversion rate of more than 150,000 MTPA.
The company plans to expand its rPET granules capacity in Odisha to 67,500 MTPA by the first half of FY27. It also anticipates expanding its capacity in Warangal to 22,500 MTPA by the fourth quarter of FY26. Over the next two years, Ganesha Ecosphere intends to invest Rs 725 crore in capital expenditures. Of this amount, Rs 600 crore will be allocated to greenfield expansion in Odisha, and Rs 125 crore to brownfield development in Warangal, under Ganesha Ecopet Private Limited.
To strengthen the credibility of its raw material sourcing and enhance supply chain efficiency, the company has entered into a strategic joint venture with Race Eco Chain, holding a 49:51 share, to procure PET flakes through a statewide hub-and-spoke model.
Risk Factor
The company’s profitability is affected by the availability of PET waste and fluctuations in VPSF (Virgin Polyester Staple Fibre) prices, particularly during periods of price decline. While the cost of PET waste is determined by supply and demand dynamics, revenues from RPSF (recycled polyester staple fiber) are influenced by VPSF pricing, which is linked to the prices of crude oil and cotton. This limits the company’s ability to fully pass on increases in raw material costs to customers.
2. Rail Vikas Nigam Ltd
- Current price: ₹ 365
- Target price: ₹ 480
- Upside: 31%
- 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
Rail Vikas Nigam Limited (RVNL) was established in 2003 to transform India’s railway infrastructure, focusing on project execution and the development of transportation assets, including railway lines, electrification, bridges, and related systems. The company has been awarded Navratna status by the Department of Public Sector Enterprises (PSE), which signifies its strategic importance, profitability, and operational scale among public sector undertakings. RVNL operates through 30 project implementation units located across 25 regions in India. In addition, it has established two international project units, one in Dubai and another in the Maldives.
In FY25, the company reported revenue of Rs 19,923 crore, a decline of 8.9% compared to Rs 21,878.5 crore in FY24. Profit after tax also decreased by 17.3%, from Rs 1,550.87 crore to Rs 1,281.5 crore. This decline was mainly due to a delay in funding from the Ministry of Railways. However, the company expects improved margins in FY26 and projects a turnover similar to FY25 at around Rs 21,000 crore. As RVNL expands into new segments such as metro operations and maintenance, small-scale manufacturing, and international projects, its margins are expected to improve further.
RVNL is actively working to diversify its revenue streams and reduce reliance on the highly competitive EPC market. With metro projects increasing across India, the company is prioritizing railway infrastructure and metro system operation and maintenance. It is also part of a key joint venture in the development of the Vande Bharat train, with production scheduled to begin in June FY26.
The company expects positive cash flows from this project in the following year. On the order book front, RVNL expects its Bharat Net orders to increase from the current Rs 14,000 crore to between Rs 17,000 crore and Rs 18,000 crore in FY26, representing a growth of 20 to 25%. The company currently holds an order book worth Rs 1 lakh crore, with Rs 45,000 crore coming from Indian Railways and approximately Rs 55,000 crore from competitively bid projects.
Risk Factor
Since RVNL is not classified as a Zonal Railway, it does not have the authority to approve project plans, drawings, or related documentation. This limitation can result in delays, as approvals must be obtained from Zonal Railways for various aspects such as plan approvals and traffic block arrangements. Moreover, any changes made to the Railways’ approved plans during the execution phase may lead to further project delays.
Market Recap 25th July, 2025
The Nifty opened Friday’s trading session on a bearish note at 25,010.35, lower than the previous close of 25,062.35. It touched a low of 24,806.35 during the day and ended at 24,837, falling below both the 20-day and 50-day EMAs. By the close, the Nifty 50 had dropped 225.10 points, or 0.90%. The BSE Sensex mirrored this trend, declining by 721.08 points, or 0.88%, from its opening of 82,065.76 to settle at 81,463.09.
The Nifty 50’s RSI fell to 40.64, while it still held above the 100-day and 200-day EMAs. The BSE Sensex RSI also dropped to 40.83, staying well below the overbought level of 70. Although it slipped below the 20-day and 50-day EMAs, it managed to close above the 100-day and 200-day EMAs. This market decline was attributed to factors such as stalled US-India trade deal negotiations, persistent foreign investor selling, and global economic uncertainties. Market volatility increased as the India VIX rose by 0.55 points, or 5.15%, to close at 11.28.
Almost all major indices declined on Friday. However, the Nifty Healthcare index emerged as the top gainer, rising 0.7%, or 101.80 points, to close at 14,846.30. Leading contributors included Cipla Ltd, Torrent Pharmaceuticals, and Syngene International, each gaining over 3%. The Nifty Pharma index also performed well, ending at 22,662.70, up 121.65 points, or 0.5%, with Cipla and Torrent Pharma among the top performers.
The Nifty Media Index continued to decline for the fifth consecutive session, closing at 1,669.6, down 44.75 points, or 2.61%. Zee Entertainment was the biggest loser, dropping 4.4%, followed by Dish TV India Ltd, which fell 4.23%, and Network18 Media & Investments, down 3.75%. The Nifty Energy index decreased by 797.85 points, or 2.21%, closing at 35,250. Reliance Power hit the lower circuit, losing 5%. Jaiprakash Power Ventures Ltd was another major loser, falling 4.69%, while Adani Green Energy Ltd declined by 4.4%. Nifty Smallcap50 also declined, closing at 8,828.85, down 186.10 points, or 2.06%.
Asian markets were broadly on the weaker note, with Hong Kong’s Hang Seng Index losing 344.18 points, or 1.36%, to close at 25,323. Similarly, Japan’s Nikkei 225 Index closed in the red at 41,467, losing 359.34 points, or 0.87%. The Shanghai Composite Index closed at 3,593.66, losing 12.07 points, or 0.34%. South Korea’s KOSPI Index closed on a flat side at 3,196.05, up 5.6 points, or 0.18%.
The US Dow Jones Futures were trading at 44,776.55, up 86.63 points, or 0.19%, as of 4:30 p.m. IST. The Nifty 50 index decreased by 0.53% this week, driven by multiple factors, including a weak earnings season start, tariff worries due to the delays in the US-India trade agreement, and heightened selling activity by foreign investors.
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