Today, we recommend two stocks, one from the capital goods sector and another from the logistics sector, as recommended by the Trade Brains Portal, to buy for an upside potential of more than 32%. The capital goods sector serves as a powerful growth engine, supported by increased government spending on infrastructure and a strong focus on manufacturing, making it a promising area for investment.
Meanwhile, India’s logistics sector ranks among the largest globally and offers a vast addressable market. Serving as a backbone of economic growth, the sector integrates different parts of the economy and covers transportation, warehousing, and end-to-end supply chain solutions connecting suppliers with final consumers. We also analysed the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
1. Thermax Ltd
- Current price: Rs 3,200
- Target price: Rs 4,225
- Upside: 32.03%
- 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
Thermax Ltd, established in 1966, is a leading Indian engineering company providing integrated energy and environmental solutions. Its expertise spans heating, cooling, power generation, water treatment, air pollution control, and speciality chemicals, with a strong focus on clean energy, air, and water. The company has a global footprint with 34 international and 22 domestic offices, 16 manufacturing facilities (12 in India and 4 abroad), and more than 45 subsidiaries serving customers in over 90 countries.
Supported by a workforce of 7,854 employees, Thermax operates across Asia, Southeast Asia, the Middle East, Africa, Europe, and the Americas. Over the past five years, its total order book has expanded at a 15% CAGR, reaching Rs 10,693 crore in FY25, a 6% rise from Rs 10,111 crore in FY24.
In FY25, Thermax recorded operational revenue of Rs 10,389 crore, up 11% from Rs 9,323 crore in FY24, reflecting a five-year revenue CAGR of 17%. Profit after tax stood at Rs 627 crore, growing at a steady 25% CAGR during the same period. Segment-wise, FY25 sales increased by 15% in Chemicals, 12% in Industrial Products, 6% in Industrial Infrastructure, and 36% in Green Solutions.
In Q1 FY26, the company reported operating revenue of Rs 2,150 crore, while profit after tax rose to Rs 151.45 crore from Rs 109.42 crore in the previous quarter. The order book expanded to Rs 11,376 crore, a 6.4% QoQ increase from Rs 10,693 crore in Q4 FY25. Looking ahead, Thermax expects strong growth in its Chemicals business, targeting an order book of nearly Rs 250 crore in Q2. It also plans to diversify into coatings, sealants, and construction chemicals, alongside significant investments in R&D.
For FY26, Thermax anticipates its EBITDA margins to move into double digits. The company has recently entered into a strategic alliance with UK-based Vebro Polymers to cater to India’s rising demand for industrial and commercial flooring solutions. It has also partnered with Latin American firm Oswaldo Cruz Quimica to produce and market high-performance resins and polymers.
On the project front, Thermax plans to complete the bulk of its Rs 467 crore Flue Gas Desulphurization (FGD) project around Rs 350 crore worth by FY26, with the remaining Rs 100 crore scheduled for FY27. Additionally, it expects to deliver a Rs 315 crore Bio-CNG project by Q3 FY26.
Risk Factors
Thermax is exposed to the cyclical nature of the capital goods and engineering sectors, especially during periods of reduced infrastructure investment. Its global operations make it sensitive to fluctuations in commodity prices. Additionally, the company faces intense competition in specific segments such as packaged water treatment systems and low-capacity boilers.
2. Blue Dart Express Ltd
- Current price: Rs 5,673.5
- Target price: Rs 7,150
- Upside: 26%
- 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
Founded in 1983, Blue Dart Express Limited is South Asia’s leading air-integrated express logistics company, offering reliable and time-sensitive delivery solutions across India and globally. Serving a diverse clientele, from SMEs to large multinationals, Blue Dart ensures secure deliveries to over 56,400 locations across India. Its extensive infrastructure includes a fleet of over 33,000 vehicles (including 461 electric vehicles), 2,675 facilities, and a dedicated air network featuring six Boeing 757-200 and two Boeing 737 freighters.
A key part of the DHL eCommerce Solutions division, Blue Dart leverages DHL Group’s global network spanning over 220 countries and territories. In FY25, it handled 377 million domestic shipments and over 5.72 lakh international shipments, totalling more than 1.33 million tonnes.
The company offers a wide range of express services, including Time-Definite (Domestic Priority 1030/1200, Apex 1200), Day-Definite (Air, Surface, and eCommerce), and Temperature-Controlled Logistics (TCL) solutions for critical supply chain needs.
Blue Dart Express delivered a strong financial performance in Q1 FY26, reporting revenue from operations of Rs 1,441.9 crore and a profit after tax of Rs 48.8 crore. The company saw robust volume growth during the quarter, handling 94.1 million parcels and over 340,068 tonnes, marking a sequential improvement in both metrics.
Growth was broad-based, with the B2C (e-commerce) segment expanding by an impressive 20% year-on-year, while the B2B segment recorded a steady growth of 2.4%, reflecting sustained demand, especially in the fast-growing e-commerce sector.
Continuing its focus on long-term growth and efficiency, Blue Dart is making strategic investments in infrastructure. A major highlight was the inauguration of India’s largest integrated operating facility at Bijwasan, New Delhi, which is expected to significantly enhance service capabilities and operational scale. The company also expanded its air network by adding Guwahati as a direct flying destination, further strengthening its presence in the underpenetrated yet economically vital Northeast India region.
Risk Factors
As a logistics provider with both air and ground operations, Blue Dart is highly sensitive to fuel price fluctuations, which can significantly impact operating costs. Additionally, expenses tied to foreign currencies, such as aviation fuel and international operations, make the company vulnerable to currency volatility. In the international air cargo market, foreign carriers dominate 94-95% of total volumes, while Indian airlines largely depend on the limited belly space in passenger aircraft. This low domestic participation increases exposure to supply chain disruptions and geopolitical risks, while also limiting competitiveness.
Market Recap 26/09/2025
On Friday, the Nifty 50 opened on a negative note below the 25,000 level at 24,818.55, down -72.3 points from its previous close of 24,890.85. It touched an intraday low of 24,629.45 before closing below the 25,000-mark at 24,654.7, down by -236.15 points, or -0.95%. Technically, the index remained only above the 200-day EMA on the daily chart, but it went below the 20, 50 & 100-day EMAs. The BSE Sensex also reflected a negative trend, opening at 80,956.01, down -203.67 points from its previous close of 81,159.68.
It traded in a similar pattern to the Nifty 50 and settled below the 81,000 level at 80,426.46, marking a decline of -733.22 points, or -0.90%. Momentum indicators showed moderate strength, with the RSI for Nifty 50 at 39.31 and for Sensex at 38.85, both well below the overbought level of 70. The Bank Nifty Index closed in negative territory, losing -586.85 points, or -1.07%, to finish at 54,389.35. The broad indices declined for the sixth consecutive session on Friday amid high volatility caused by weak investor sentiment.
All of the sectoral indices ended in the red on Friday. The Nifty Smallcap 50 Index was the major loser, closing at 8,434.8, down -228.35 points, or -2.6%. Laurus Labs Ltd dropped -7.2%, while other small-cap stocks like Neuland Labs Ltd, HFCL Ltd and Hindustan Copper slipped by up to -5.8%. Nifty IT index also followed the fall, declining by -846.3 points or -2.5%, closing at 33,702. Oracle Financial Services, Coforge Ltd, and Persistent Systems Ltd all fell by up to -4.4%. Nifty India Defence index also fell -184.8 points or -2.3%, closed at 7,949.8.
Asian markets were also on a bearish trend on Friday. Hong Kong’s Hang Seng Index declined by -356.48 points, or -1.35%, to close at 26,128.2. Whereas, China’s Shanghai Composite Index was down at 3,828.10, losing -25.19 points, or -0.65%. South Korea’s KOSPI Index closed lower at 3,386.05, down -85.06 points, or -2.45%. On the other hand, Japan’s Nikkei 225 Index declined -399.94 points, or -0.87%, finishing at 45,355. As of 4:12 p.m. IST, US Dow Jones Futures were trading at 46,329, down 61 points, or 0.13%. This week, the Nifty index declined by -2.5%, or -631.8 points, closing below the 25,000 level.
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