Today, we recommend two stocks, one from the retail sector and another from the IT sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 32%. India, the world’s fifth-largest retail market, is poised for growth driven by rising consumer spending, urbanisation, higher purchasing power, and increasing connectivity in rural areas.
Moreover, the IT & BPM sector has emerged as a major driver of growth for the Indian economy, playing a vital role in boosting the country’s GDP and supporting public welfare. We also analysed the market’s performance on Thursday to understand what may lie ahead for the stock indices in the coming days.
1. Trent Ltd
- CMP: Rs 4665.2
- Target: Rs 6,200
- Upside: 32.9%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Trent Limited, established in 1998 and a part of the Tata Group, operates a broad retail network of 1,101 stores across 242 cities, including two in Dubai and three elsewhere in the UAE. Its key retail formats include Westside, a prominent fashion retailer with 261 stores in 86 cities, covering over 5.5 million square feet; Zudio, a value-focused fashion brand with 806 stores across 235 cities, occupying more than 8 million square feet; and Trent Hypermarket (Star), which runs 77 outlets offering food and everyday essentials. Collectively, these brands cater to over 18 million members of the WestStyle Club, providing a wide array of fashion and lifestyle products across various customer segments.
In Q1 FY26, Trent Limited posted a revenue of Rs 4,883.5 crore, marking a 19% YoY increase from Rs 4,104.4 crore in Q1 FY25. Operating EBIT rose 21% YoY to Rs 547 crore, while profit after tax grew by 8.5% to Rs 424.7 crore. During the quarter, the company expanded its store network, growing Westside outlets to 248 from 228 in the same period last year.
Star stores rose to 77 from 72 YoY, and Zudio continued its strong expansion, reaching 766 locations, up from 559 a year earlier. Trent opened four new Westside stores in Mumbai, Dehradun, Lucknow, and Vijayawada and launched six new Zudio outlets in Ghaziabad, Thrissur, Chennai, Nagpur, Pune, and Delhi.
Emerging categories like beauty & personal care, innerwear, and footwear continue to gain momentum with customers, now contributing over 21% of the company’s revenue. The company’s Star business continued its growth trajectory, reaching a total of 77 stores with the addition of 2 new outlets in Q1 FY26. The company’s standalone revenue for Q2 FY26 grew by 17% YoY, reaching Rs 5,002 crore, from Rs 4,260 crore in Q2 FY25.
In Q2 FY26, 13 Westside stores were opened, and 40 Zudio stores were opened. India’s retail market is valued at Rs 89 lakh crore in 2025 and is projected to grow to Rs 190 lakh crore by 2034. And India’s fashion and lifestyle sector, currently valued at Rs 13 Lakh crore in 2025, is expected to reach Rs 18 Lakh crore by 2028, growing at a CAGR of 10-12%.
Risk Factor
Some of the company’s owned non-apparel formats, along with those run through joint ventures, continue to operate at a loss. The company encounters intense competition from both the unorganized sector and established players in the organized retail space, including physical stores and e-commerce platforms. Additionally, it remains vulnerable to downturns in discretionary consumer spending, which could lead to reduced market share and challenges in managing inventory.
2. Infosys Ltd
- CMP: Rs 1,509.3
- Target: Rs 1,710
- Upside: 13.3%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Founded in 1981, Infosys Ltd is a global leader in digital services, consulting, and technology outsourcing, specializing in AI, cloud, and industry-specific digital solutions across more than 59 countries. As of Q1 FY26, the company supports 1,861 active clients in shaping and implementing their digital transformation and AI strategies. With over four decades of experience in managing operations and systems for global enterprises, Infosys has built a robust workforce exceeding 323,000 professionals. The company’s market capitalization stands at around USD 75.80 billion.
In Q1 FY26, Infosys reported operating revenue of Rs 42,279 crore, reflecting a 7.5% YoY increase from Rs 39,315 crore in Q1 FY25. Operating profit grew by 6.2% YoY to Rs 8,803 crore, with an operating margin of 20.8%. Net profit for the quarter rose 8.7% to Rs 6,921 crore, up from Rs 6,368 crore in the same period last year.
The company generated a robust free cash flow of USD 884 million, equivalent to 109.3% of its net profit, and anticipates free cash flow for FY26 to exceed 100% of net profit. Infosys also secured 28 large deal wins during the quarter, totaling USD 3.8 billion in contract value, with 55% attributed to new business.
In Q1 FY26, Infosys signed a total of 28 deals across various sectors, including 9 in Communications, 6 in Energy, Utilities, Resources & Services (EURS), 5 in Manufacturing, 4 in Financial Services, and 2 each in Hi-Tech and Retail. Regionally, 20 deals were secured in the Americas, 6 in Europe, and 2 in the Rest of the World (ROW). Return on equity improved by 140 basis points, reaching 30.4%.
The company revised its FY26 revenue growth guidance to a range of 1% to 3%, while maintaining its operating margin forecast at 20% to 22%. The quarter closed with a workforce of 323,788 employees, with attrition slightly increasing to 14.4%. For FY25, Infosys declared a total dividend of Rs 43 per share, which includes an interim dividend of Rs 21 per share. The total dividend payout ratio, covering both interim and final dividends, stands at 51.6%.
Risk Factors
Reduced discretionary spending by large clients has affected revenue growth in the IT sector over the past two financial years, particularly in traditional outsourcing services. As a major player in IT outsourcing, Infosys faces strong competition from domestic peers like Tata Consultancy Services Ltd (TCS), HCL Technologies Ltd, and Wipro Ltd, as well as global firms such as Capgemini, Cognizant, and Accenture. The decline in IT spending and contract values from global clients has further intensified competition.
Market Recap 09/10/2025
On Thursday, the Nifty 50 started the day positively at 25,074.3, rising 28.15 points from its previous close of 25,046.15. It reached an intraday high of 25,199.25 before closing just below the 25,200 mark at 25,181.8, up 135.65 points or 0.54%. The index stayed above its 20, 50, 100, and 200-day EMAs on the daily chart. Similarly, the BSE Sensex opened at 81,900, gaining 126.34 points from its prior close of 81,773.66.
It followed a pattern akin to the Nifty 50, closing below 82,200 at 82,172.1, up 398.44 points, or 0.49%. Momentum indicators showed moderate strength, with the RSI for Nifty 50 at 58.03 and Sensex at 57.91, both comfortably below the overbought threshold of 70. Additionally, the Bank Nifty Index ended in positive territory, rising 173.8 points, or 0.31%, to close at 56,192.05.
On Thursday, all sectoral indices closed higher, with no significant underperformers. Leading the gains was the Nifty Metal Index, which jumped 219.65 points, or 2.17%, to finish at 10,356.20, fueled by a rise in global copper prices. Hindustan Copper led the sector’s rally, gaining 6.4%, while other top performers included Hindustan Zinc Ltd, Lloyds Metals & Engineers Ltd, Steel Authority of India Ltd, and NMDC Ltd, each rising up to 4.43%.
The Nifty IT Index also saw strong gains, climbing 396.30 points, or 1.12%, to close at 35,628.50, boosted by positive sentiment ahead of TCS’s earnings report. Key technology stocks such as HCL Technologies Ltd, LTIMindtree Ltd, Persistent Systems Ltd, and Oracle Financial Services Ltd gained as much as 2.29%.
Meanwhile, the healthcare and pharmaceutical sectors also witnessed positive momentum. The Nifty Healthcare Index gained 154.2 points, or 1.07%, to end at 14,593.5, while the Nifty Pharma Index advanced 228.85 points, or 1.05%, closing at 21,936.2. Both indices reacted positively to reports suggesting that the Trump administration may not impose tariffs on generic medicines, offering a boost in sentiment and relief to investors.
Asian markets showed mixed but mostly positive momentum on Thursday. Taiwan’s Weighted Index rose 238.24 points, or 0.88%, closing at 27,301.92, while Japan’s Nikkei 225 gained 845.45 points, or 1.77%, finishing at 48,580.44. The Shanghai Stock Exchange also saw an increase of 51.20 points, or 1.32%.
However, Singapore’s Straits Times Index dipped 15.8 points, or 0.35%, ending at 4,440.5, and Hong Kong’s Hang Seng Index fell 76.87 points, or 0.29%, closing at 26,752.59. As of 4:54 p.m. IST, US Dow Jones Futures were flat at 46,866, with investors cautious amid expectations of further Fed rate cuts and ongoing concerns over the US government shutdown, now in its eighth day.
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