Today, we recommend two stocks, one from the real estate sector and another from the pharmaceutical sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 40%. A vital pillar of the Indian economy, the real estate industry makes a substantial contribution to both GDP and employment in the country.
Meanwhile, India’s pharmaceutical industry plays a crucial role in both the national economy and global healthcare, contributing to innovation, strong export performance, and a solid domestic manufacturing base. We also analysed the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
1. Dr Reddy’s Laboratories Ltd
- Current price: Rs 1,314
- Target price: Rs 1,550
- Upside: 18%
- 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 1984 and headquartered in Hyderabad, Dr. Reddy’s Laboratories Ltd is a global pharmaceutical company offering a diverse range of products and services. Its operations span key areas such as active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars, and over-the-counter (OTC) medicines.
The company has a strong presence in therapeutic segments like gastroenterology, cardiovascular, diabetes, oncology, pain management, and dermatology, with over 440+ products registered in the Indian market. A major player in the API sector, Dr Reddy’s supplies over 80 countries and has a robust portfolio of more than 329 ANDA filings and approved dossiers.
In Q1 FY26, the company posted operating revenue of Rs 8,545 crore, marking an 11% year-over-year increase. EBITDA rose by 5% to Rs 2,278 crore, maintaining a margin of 26.7%. Net profit stood at Rs 1,418 crore, reflecting a 2% increase with a PAT margin of 17%. The return on capital employed (RoCE) held steady at 22%, and the company reported a net cash surplus of Rs 2,922 crore. For FY26, R&D spending is projected to be between 7% and 7.5% of total sales.
Strategic collaborations have also been a focus. Dr Reddy’s extended its alliance with Alvotech in Q1 to jointly develop, manufacture, and commercialise a biosimilar version of Keytruda (pembrolizumab). It also strengthened its partnership with Sanofi by launching Beyfortus (Nirsevimab), an RSV preventive treatment, in India. The company filed one new ANDA with the USFDA during the quarter and launched five generic drugs globally.
It currently has 73 filings pending with the USFDA, including 70 ANDAs (43 Para IVs and 22 First-to-Files) and three NDAs under the 505(b)(2) pathway. New Product launches included 13 in Europe, 26 across emerging markets, and 5 in India, in collaboration with ALK-Abello, featuring products like Sensimune and Beyfortus. Additionally, the PSAI division submitted 12 Drug Master Files (DMFs) globally.
Risk Factor
Dr Reddy’s operates under the stringent oversight of regulatory bodies such as the US FDA, US SEC, and US DoJ. Any failure to comply with quality and manufacturing standards could result in regulatory actions like inspection observations, warning letters, or penalties, potentially affecting business operations and financial performance. Furthermore, the company is exposed to significant risk in the US generics market, where fierce competition and continued pricing pressure remain major challenges.
2. Brigade Enterprises Ltd
- Current price: ₹ 945.60
- Target price: ₹ 1,325
- Upside: 40.1%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
The Brigade Group is one of India’s top real estate developers, founded in 1986. In addition to producing numerous well-known structures across various sectors, including residential, office, retail, hotel, and educational, it has transformed the skylines of Bengaluru, Chennai, Hyderabad, Mysuru, Kochi, Trivandrum, and GIFT City, among other Indian cities. The company has built over 300 structures totalling over 100 million square feet of floor space.
In FY25, real estate pre-sales hit a record Rs 7,847 crore (up 31% YoY), with collections at Rs 7,250 crore (up 23%). The company sold 7.05 mn sq ft, and net operational cash flow rose 36% to Rs 2,135 crore. Leasing revenue grew 24% to Rs 1,165 crore. The company is expanding beyond Bengaluru into key markets like Hyderabad and Chennai. In FY25, it launched 11.5 million sq ft of projects (9.5 million residential) with a GDV of Rs 13,500 crore. For FY26, it has a strong pipeline of ~16 million square feet across residential, commercial, and hospitality and 26 million square feet of ongoing projects.
For Q1 FY26, revenue from operations stood at Rs 1,281.14 crore, registering an 18.9% YoY growth compared to Rs 1,077.72 crore in Q1 FY25. EBITDA increased by 14%, rising from Rs 328 crore in Q1 FY25 to Rs 375 crore in Q1 FY26. The company’s PAT surged by 96%, growing from Rs 80.5 crore to Rs 157.9 crore over the same period.
As of Q1 FY26, the real estate segment, contributing 67% to the company’s total revenue, recorded a 3% YoY increase in presales, reaching Rs 1,118 crore, with a presales volume of 0.95 million square feet. The average realisation stood at Rs 11,782 per sq ft, up 24% YoY, driven by strong demand in premium projects. The leasing portfolio maintained a steady performance, with occupancy rising from 8.47 million square feet to 8.56 million square feet in Q1 FY26. Leasing revenue came in at Rs 300 crore, reflecting a 15% increase over Q1 FY25.
The company’s hospitality arm, Brigade Hotel Ventures Ltd, completed its listing on NSE/BSE. It reported hospitality revenue of Rs 141 crore in Q1 FY26, marking a 19% YoY growth. Total collections during the quarter stood at Rs 1,728 crore, representing an 8% increase compared to Q1 FY25. Recently, the company signed a Joint Development Agreement for a Residential Development in East Bengaluru. It spans around 10.75 acres, with a saleable area of 2.5 million square feet, with a GDV of Rs 2,500 Crore.
Risk Factor
Brigade’s strong dependence on the Bengaluru real estate market is evident, with 79% of its saleable area in ongoing real estate projects located in the city as of FY25. This concentration exposes the company to region-specific demand slowdowns and regulatory challenges. Additionally, its expanding project portfolio increases exposure to execution and market risks. The company also remains vulnerable to the inherent cyclicality of the real estate sector.
Market Recap 12/09/2025
On Friday, the Nifty 50 opened on a bullish note at 25,074.45, up by 68.95 points from its previous close of 25,005.50. It touched an intraday high of 25,139.45 before settling at 25,114.00, marking a gain of 108.50 points, or 0.43%. Technically, the index closed above all four key exponential moving averages (20/50/100/200-day) on the daily chart.
The BSE Sensex mirrored this positive movement, opening higher at 81,758.95, up 210.22 points from its previous close of 81,548.73. It continued to rise through the session, closing at 81,904.70, gaining 355.97 points, or 0.44%. Market sentiment remained upbeat, supported by investor optimism over a potential US Federal Reserve rate cut and easing US-India trade tensions.
Momentum indicators reflected moderate strength, with the Nifty 50’s RSI at 61.00 and the Sensex RSI at 59.37, both well below the overbought mark of 70. The Bank Nifty Index also ended in the green, advancing 139.70 points, or 0.26%, to close at 54,809.30.
Most sectoral indices ended in the green, with a few exceptions. The Nifty CPSE Index emerged as the top gainer, rising 65.65 points, or 1.04%, to close at 6,402.3. Cochin Shipyard Ltd surged 5.72%, while other CPSE stocks such as Bharat Electronics Ltd, NLC India Ltd, and NHPC Ltd recorded gains of up to 3.67%.
The Nifty Metal Index followed closely, closing at 9,883.6, up 90.65 points, or 0.93%. Hindustan Copper Ltd led the sector, jumping 12.66% after announcing plans to acquire new copper deposits in India and abroad. Hindustan Zinc Ltd gained 3.74%, and Vedanta Ltd added 3.02%. The Nifty PSE Index also posted strong gains, ending at 9,658.65, up 67.95 points, or 0.71%.
On the flip side, the Nifty FMCG Index was the session’s biggest loser, closing at 56,557.15, down -403.45 points, or -0.71%. Hindustan Unilever Ltd fell by -1.58%, while Godrej Consumer Products Ltd, Patanjali Foods Ltd, and Varun Beverages Ltd slipped up to -1.33%. The Nifty Media Index also declined, ending at 1,621.05, down -6.40 points, or -0.39%. Notable laggards included PVR Inox Ltd, Saregama India Ltd, Sun TV Network Ltd, and Tips Music Ltd, with losses of up to -1.31%. The Nifty PSU Bank Index dipped -19.10 points, or -0.27%, to close at 7,057.05.
Asian markets displayed bullish sentiment on Friday. Hong Kong’s Hang Seng Index closed at 26,391.00, up 304.68 points, or 1.15%. South Korea’s KOSPI Index advanced 51.34 points, or 1.51%, to end at 3,395.54. Japan’s Nikkei 225 Index also gained 405.50 points, or 0.91%, to finish at 44,778.00. In contrast, China’s Shanghai Composite Index slipped -4.71 points, or -0.12%, to close at 3,870.60. As of 4:36 p.m. IST, US Dow Jones Futures were trading lower by -84.02 points, or -0.18%, at 46,023.98. This week, the Nifty gained 1.51%, or 373 points, closing above the 25,100 level.
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