Today, we recommend two stocks, one from the fertilisers sector and another from the financial services sector, as recommended by the Trade Brains Portal, to buy for an upside potential of more than 32%. The fertiliser sector plays a crucial role in the Indian economy by boosting agricultural productivity and supporting food security for the country’s vast population.
At the same time, the financial services sector is key to India’s economic growth, serving as a central mechanism for channelling domestic savings into productive investments. We also analysed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
1. Chambal Fertilisers & Chemicals Ltd
- Current price: Rs 516.05
- Target price: Rs 680
- Upside: 31.77%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s Recommended
Chambal Fertilisers and Chemicals Ltd, established in 1985, accounts for approximately 15% of India’s total urea production. It is a leading fertiliser supplier in key agricultural states, including Rajasthan, Madhya Pradesh, Punjab, and Haryana, and supports farmers across 11 states that span northern, eastern, central, and western India.
Chambal has an extensive distribution network comprising 22,000 village-level outlets, 2,200 dealers, and 15 regional offices. Among private-sector urea producers in India, the company holds the largest market share. It operates three advanced urea manufacturing plants in Gadepan, Rajasthan.
In FY25, Chambal reported revenue of Rs 16,646 crore and a profit after tax (PAT) of Rs 1,649 crore. Urea production rose to 34.62 lakh metric tons, up from 33.83 lakh metric tons in the previous year, while sales volumes increased to 34.71 lakh metric tons from 32.56 lakh metric tons in FY24. Additionally, it aims to scale its NPK (nitrogen, phosphorus, potassium) fertiliser segment by 2.5 times in FY26.
In Q1 FY26, Chambal reported revenue from operations of Rs 5,697.61 crore, up 16% year-on-year, while PAT grew by 22.5% YoY to Rs 549 crore. Sales volume for its P&K fertilisers, comprising DAP, MOP, NPK, and Triple Super Phosphate (TSP), stood at 4.21 lakh metric tons, a significant increase from 2.41 lakh metric tons in the same period last year, reflecting nearly 70% growth.
The company launched 13 new crop protection chemical (CPC) products, primarily weedicides and insecticides, and inaugurated a Crop Protection Laboratory in partnership with TERI (The Energy and Resources Institute). Through its joint venture IMACID in Morocco, Chambal produced 5.25 lakh metric tons and sold 4.35 lakh metric tons of product in FY25. The company is currently working on increasing IMACID’s phosphoric acid production capacity from 5 lakh metric tons to 7 lakh metric tons.
For its Technical Ammonium Nitrate (TAN) project, Chambal allocated Rs 300 crore in FY25 and plans to invest an additional Rs 1,200 crore in FY26. The TAN plant will have a production capacity of 2.4 lakh metric tons. Of the total project cost of Rs 900 crore, Rs 650 crore has already been spent, with the remaining Rs 250 crore to be utilised in FY26. The company expects revenue generation to begin in Q3/Q4 of FY26, with commercial operations starting by January 2026. The TAN facility is projected to operate at a capacity of 80-90%.
Chambal also plans to import 1.3 lakh metric tons of DAP and TSP for the upcoming Kharif season. The TAN project aligns with the company’s focus on margin enhancement. Strategic partnerships, product diversification, and volume growth support consistent margin performance in the CPC-SN segment. Early inventory buildup and competitive pricing have positioned Chambal strongly for the Kharif season.
Risk Factor
Chambal operates in a highly regulated sector. Changes in government policies, such as a reduction in subsidies without corresponding increases in product prices, and the implementation of stricter energy consumption norms under the 2015 Urea Policy (with further tightening expected by the end of FY25), could adversely impact the company’s operations and profitability.
2. Housing and Urban Development Corporation Ltd
- Current price: Rs 231.50
- Target price: Rs 295
- Upside: 27.43%
- Time frame: 14-16 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s Recommended
The Housing and Urban Development Corporation Ltd. (HUDCO) plays a pivotal role as the nodal agency for the government’s ‘Housing for All’ initiative, actively supporting flagship schemes such as the Jal Jeevan Mission and the Pradhan Mantri Awas Yojana. The company provides financing and consultancy services for projects approved under these programmes.
In FY25, HUDCO delivered record-breaking performance in both loan sanctions and disbursements. Loan approvals surged by 55.31% to Rs 1,27,952 crore, while disbursements rose sharply by 122.59% to Rs 40,038 crore. Interest income also witnessed robust growth of 33%, increasing to Rs 10,200 crore from Rs 7,653 crore in FY24.
The company’s net interest margin (NIM), including the external benchmark rate (EBR), remained stable at 3.22% in FY25, compared to 3.18% in FY24. Management has guided for an NIM range of 3.25%-3.3% over the next two years. HUDCO’s debt-to-equity ratio increased to 5.72x in FY25 from 4.05x in FY24. At the same time, its cost of funds declined by 35 basis points to 6.75%, down from 7.1%, driven by timely market interventions and a diversified funding strategy.
Asset quality improved significantly. The gross non-performing asset (GNPA) ratio declined to 1.67% in FY25 from 2.71% in FY24, while the net NPA (NNPA) ratio improved to 0.25% from 0.36%. HUDCO maintained a strong provision coverage ratio of 85.44%. The company has committed to resolving all NPAs within the next 18 months and expects recoveries of Rs 400-Rs 500 crore from NPA settlements in FY26.
In Q1 FY26, HUDCO reported a 143% YoY increase in loan sanctions, rising to Rs 34,224 crore from Rs 14,097 crore in Q1 FY25. Loan disbursements increased by 1.48% YoY to Rs 12,812 crore, while outstanding loans grew 30% YoY to Rs 1,34,410 crore. Interest income also rose 34% YoY to Rs 2,925 crore. Looking ahead, the company has set a long-term target of achieving a loan book of Rs 1.5 lakh crore by FY26 and Rs 3 lakh crore by 2030.
Risk Factors
HUDCO’s credit exposure is primarily concentrated among certain state governments and public sector agencies. Although regulatory provisions offer some flexibility, failure to reduce this exposure within stipulated timelines or violations of Fiscal Responsibility and Budget Management (FRBM) norms could attract penalties and heightened capital requirements. Additionally, HUDCO faces intense competition from banks and financial institutions that benefit from low-cost funding through CASA (current and savings account) deposits.
Market Recap 06/10/2025
On Monday, the Nifty 50 opened on a slightly positive note at 24,916.55, up 22.3 points from its previous close of 24,894.25. It touched an intraday high of 25,095.95 before closing below the 25,100-mark at 25,077.65, up by 183.4 points, or 0.74%. Technically, the index remained above all the 20/50/100 & 200-day EMAs on the daily chart. The BSE Sensex also reflected a similar trend, opening at 81,274.79, up 67.62 points from its previous close of 81,207.17. It traded in a similar pattern to the Nifty 50 and settled below the 81,800 level at 81,790.12, gaining 582.95 points, or 0.72%.
Momentum indicators showed moderate strength, with the RSI for Nifty 50 at 55.26 and for Sensex at 54.64, both well below the overbought level of 70 and near the oversold zone. Also, the Bank Nifty Index closed in positive territory, gaining 515.6 points, or 0.93%, to end at 56,104.85. The broad indices rose for the third consecutive session on Monday, driven by gains in financial stocks and healthy Q2 business updates.
The Nifty IT Index topped among the sectoral gainers, closing at 34,722.55, up 772.8 points or 2.3%. Major IT stocks, including Coforge Ltd, LTI Mindtree Ltd, TCS Ltd and Tech Mahindra, gained up to 3.1%. The Nifty Capital Markets Index followed next, with 86.75 points or a 2% gain, to close at 4,333.
The shares of BSE Ltd gained the highest, with a 6% increase, followed by Angel One Ltd, Motilal Oswal Ltd and Nuvama Wealth Management Ltd, which rose up to 2.9%. The Nifty India Digital Index also gained on Monday, closing at 8,996.25, up 178.6 points or 2%.
The Nifty Media Index was the major loser, closing at 1,590.4, down -14.50 points, or -0.90%. Tips Music Ltd dropped -1.78%, while other media stocks like PVR Inox Ltd, Saregama India and D B Corp Ltd slipped by up to -1.55%. The Nifty Metal index also followed the fall, declining by -91.60 points or -0.89%, closing at 10,185.5. Jindal Stainless Ltd, Jindal Steel Ltd, Tata Steel Ltd, and National Aluminium Company Ltd all fell by up to -3.46%. The Nifty CPSE index also fell -17.55 points or -0.27%, closing at 6,532.5.
Asian markets showed a mixed performance on Monday. Japan’s Nikkei 225 Index surged by 2,235.50 points, or 4.66%, closing at 48,005 after the ruling party selected Takaichi as its leader. In contrast, Hong Kong’s Hang Seng Index declined by 180.92 points, or 0.67%, ending at 26,960. Markets in China and South Korea remained closed for the day. As of 4:32 p.m. IST, U.S. Dow Jones Futures were trading at 46,882.25, up 123.97 points, or 0.27%.
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