Today, we recommend two stocks, one from the IT sector and another from the consumer services (travel & tourism) sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 35%. India’s IT-enabled services industry is expected to grow rapidly due to the country’s digital transformation and rising demand for cutting-edge technology like cloud computing and artificial intelligence.
The global travel and tourism industry is projected to maintain its growth momentum, fueled by factors such as rising disposable incomes, increasing travel demand, and the expanding appeal of leisure, business, and experiential travel. We also analyzed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. BLS International Services Ltd
- Current price: ₹ 360
- Target price: ₹ 481
- Upside: 33.61%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
BLS International serves governments and individuals in more than 70 countries and is one of the top two worldwide providers of visa, passport, consular, and citizen services. Its activities are divided into two primary segments: Digital Services (which accounts for 25% of its income) and Visa & Consular Services (75%). BLS is a renowned international partner with more than 20 years of expertise, and it presently serves 46 government clients. The company’s market share in the global visa outsourcing business, excluding the U.S., is 17% by value and 10% by volume as of 2024.
The company has delivered robust financial results, with consistently improving margins since FY21, supported by an asset-light model and negative working capital. From FY21 to FY25, revenue expanded at a CAGR of 46%, while EBITDA soared at a 100% CAGR. Net profit also grew sharply, posting an 81% CAGR during the same period. Profitability strengthened notably, with PAT margins rising from 10.5% in FY21 to 24.6% in FY25. By enhancing capital efficiency and shifting from a partner-led to a self-operated model, BLS significantly improved its EBITDA margin from 8.3% in FY21 to 28.7% in Q1FY26.
In Q1FY26, BLS recorded Rs 710.6 crore in operational revenue, marking a 44% YoY increase. EBITDA rose 53% YoY to Rs 204.2 crore, while PAT increased 50% YoY to Rs 181.0 crore. The company processed 11.4 lakh applications during the quarter, reflecting a 33.6% YoY rise in application volumes. The global travel and tourism sector is projected to grow at an 8% CAGR from 2024 to 2029, while the consular services market is expected to expand at a 32% CAGR over the same period.
Looking ahead, the management targets maintaining an annual revenue and profit growth rate of 20-25% over the next 3-4 years. As part of its inorganic expansion strategy, BLS acquired iDATA for Rs 720 crore in July 2024, enhancing its global presence and competitive positioning. Additionally, the company is diversifying into high-growth sectors, committing Rs 260 crore to invest in Citizenship Invest, a leading player in residency and citizenship-by-investment programs.
Risk Factor
The company is exposed to regulatory changes by the concerned governments of various countries. Inability to gain any new contracts or non-renewal of contracts at the end of the term could weaken the revenue of the company. Given its international operations, BLS International is exposed to fluctuations in foreign exchange rates. As a service provider handling sensitive visa application data, the company is exposed to potential cybersecurity threats, data breaches, and system vulnerabilities.
2. eMudhra Ltd
- Current price: ₹ 674
- Target price: ₹ 910
- Upside: 35.01%
- 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
Since 2008, eMudhra Ltd. has established itself as a global leader in secure digital transformation, specializing in identity-based solutions and trust services. The company has issued over 60 million digital identities, positioning it as India’s largest certifying authority. With a team of more than 850 employees across 11 offices and a network of over 1 lakh channel partners, eMudhra serves enterprise clients in over 35 countries, including operations in more than 21 nations.
eMudhra operates through two core segments: Solutions & Services, which contributes 80% of its revenue, and Trust Services, accounting for the remaining 20%. Its client base is well-diversified, with 45% of revenue coming from government contracts, 37% from enterprises, and the balance from the BFSI sector. Notably, eMudhra is the only Indian company offering a fully integrated platform encompassing identity, digital signing, cryptography, and certificate lifecycle automation. In the Trust Services segment, it retains its leadership in India, offering a full range of digital certificates, including digital signature, SSL/TLS, and S/MIME certificates.
In Q1FY26, the company’s international operations experienced a strong 70.7% YoY growth and now contribute 64% of total revenue. This surge was driven by new client acquisitions across key markets such as the U.S., the Middle East, India, and the Asia Pacific. During the quarter, eMudhra reported total income of Rs 150.6 crore, up 58.5% YoY, supported by increasing global demand.
Adjusted EBITDA rose 34.6% YoY to Rs 40.84 crore, representing a 4-year CAGR of 35%. Adjusted PAT stood at Rs 27.3 crore, a 44.6% increase YoY, with a healthy profit margin of 16.6% in Q1FY26. The company remains in a strong financial position, with no debt and a cash reserve of Rs 188.56 crore as of FY25.
Looking ahead to FY26, eMudhra plans to deepen its presence in the European Union. To strengthen its position in the U.S. market, the company has acquired Ikon and Two95, which are expected to enhance its market access and create cross-selling opportunities across its offerings.
Risk Factor
Despite its solid performance, eMudhra is still vulnerable to regulatory risks, given its dependence on licenses to issue digital certificates. Any failure to comply with changing regulations or audit standards, either in India or abroad, could adversely affect its operations. Additionally, the company faces stiff competition in the digital certificate segment from well-established global players like DigiCert, Entrust, Sectigo, and GlobalSign.
Market Recap 23/09/2025
The Nifty 50 began Tuesday’s session on a flat note, opening at 25,209, slightly up 6.65 points from its previous close of 25,202.35. It hit a low of 25,084.65 during the day before settling at 25,169.5, marking a decline of -32.85 points, or -0.13%. 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 82,147.37, a drop of -12.26 points, and closing at 82,102.1, down -57.87 points, or -0.07%.
Technical indicators showed moderate momentum, with the RSI at 56.79 for Nifty and 55.66 for Sensex, both comfortably below the overbought threshold of 70. The Bank Nifty ended in the green, gaining 225 points, or 0.41%, to close at 55,509.75. This was uplifted by the PSU banks drawing strong buying interest among investors. The broad indices traded lower today for the third straight session amid high volatility on the weekly expiry day on Tuesday.
Among sectoral performers, the Nifty PSU Bank Index led the gainers, rising by 80.15 points, or 1.1%, to close at 7,451.1. Canara Bank rose 2.6%. Other PSU bank stocks, such as State Bank of India, Union Bank of India, and Bank of Baroda, also rallied, gaining up to 1.8%.
The Nifty Metal Index ended higher by 99.95 points, or 1%, closing at 10,129, with notable gains from Hindustan Copper Ltd., which rose to 3.7%. Other metal stocks, such as Jindal Steel Ltd, JSW Steel Ltd, and Adani Enterprises, also gained by up to 3%. The Nifty Auto Index also saw decent gains, ending the day at 27,321.95, up 167.65 points, or 0.62%.
On the flip side, the Nifty FMCG Index was the worst performer of the session, falling by -725.2 points, or -1.3%, to close at 55,281.55. Among the major losers were Godrej Consumer Products Ltd., which dropped -3.3%, along with Radico Khaitan Ltd. and Britannia Industries Ltd., each shedding over -2.3%. The Nifty Realty Index also registered a decline, ending at 913.35, down -8.2 points or -0.9%. Companies like DLF Ltd, Anant Raj Ltd, and Sobha Ltd lost as much as -1.9%. Meanwhile, the Nifty IT Index also struggled, closing at 35,249, a drop of -251 points or -0.7%.
Asian markets were mostly mixed on Tuesday. Japan’s Nikkei 225 gained 447.85 points, or 0.99%, to finish at 45,493.66. China’s Shanghai Composite Index fell slightly by -6.74 points, or -0.18%, to close at 3,821.83. South Korea’s KOSPI added 17.54 points, or 0.51%, to settle at 3,456.19. However, Hong Kong’s Hang Seng Index declined by -185.02 points, or 0.7%, ending at 26,159.12. As of 4:20 p.m. IST, U.S. Dow Jones Futures were up by 12 points, or 0.026%, trading at 46,736.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
About: Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Private Limited, and its SEBI-registered research analyst registration number is INH000015729.
Investments in securities are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
