Today, we recommend two stocks, one from the construction sector and another from the textile sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 40%. We also analyzed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
NCC Ltd
- Current price: ₹ 225
- Target price: ₹ 295
- Upside: 31%
- Time frame: 12 Months
Why it’s recommended:
The company was established in 1978 and is one of the largest listed construction companies in terms of revenue. Buildings, transportation, water and the environment, electricity transmission and distribution, irrigation, mining, and railroad projects are among its business ventures. With its headquarters in Hyderabad, it has a presence throughout nine cities in India, including Ahmedabad, Bengaluru, Chennai, Delhi, Lucknow, Mumbai, Pune, Kolkata, and Patna. With customers like BMC, NHAI, Airport Authority of India, Adani, RVNL, Coal India, and others, it has a robust clientele. Through its subsidiaries in Muscat and Dubai, the company maintains a presence in the Middle East in addition to completing projects throughout India.
In FY25, the company reported total revenue of Rs 22,355 crore, a 6.6% YoY growth and PAT of Rs 868 crore, a 17% YoY increase. With an increase of 18.4% YoY, it has registered the biggest order book ever, totaling Rs 71,568 crore. Additionally, the company received orders totaling Rs 32,888 crore in FY25, which is 50% more than the company had previously predicted. The company’s EBITDA of Rs 1918 crore is an 8.4% YoY increase. Building the middle-mile network was the focus of two work orders that NCC obtained from BSNL in FY25 for the BharatNet project, one of the company’s biggest single-project wins. In addition, the company has obtained orders from the Andhra Pradesh state for the construction of residential blocks, infrastructure development, and the high court, totaling between Rs 9,000 crore and Rs 9,500 crore.
According to management’s projection for FY26, the company is aiming for an order inflow of between Rs 22,000 and Rs 25,000 crore, guided by a robust pipeline and ongoing sectoral demand. Additionally, the company anticipates maintaining a 10% increase in revenue with steady margins between 9.0% and 9.25% due to its continued emphasis on operational efficiency and cost optimization. Compared to the Rs 250 crore allocated for regular projects in FY25, it has incurred a capex of Rs 305 crore. In FY26, it projects a capital expenditure of Rs 750 crore, of which about Rs 280 crore would be allocated to the smart meter project and approximately Rs 300 crore to TBM machines.
Risk Factor:
The company is subject to working capital management risk because of the length of the company’s working capital cycle. Since the organization depends on the recovery of debtors, including unbilled revenue, it also bears counterparty risk. Long-term initiatives also make it susceptible to implementation problems. This risk includes things like delayed construction, disruptions or delays in the raw material supply, delayed land acquisition, unforeseen cost hikes, and cost overruns.
Vedant Fashions Ltd
- Current price: ₹ 783
- Target price: ₹ 1,110
- Upside: 41%
- Time frame: 16-24 Months
Why it’s recommended
Vedant Fashions, which was established in 2002, leads the market for men’s Indian wedding and celebration wear based on sales and profits. The company operated 662 Exclusive Brand Outlets (EBOs) in 244 Indian cities and towns and 16 EBOs in 12 foreign countries in the USA, UAE, Canada, and the UK as of FY25. Its total retail area was 1.79 million square feet. Among its well-known brands are Manyavar, Twamev, Diwas, and Mebaz. Additionally, the company is expanding its presence in women’s Indian wedding and celebration attire through Mohey, the largest brand in terms of outlets with a pan-India reach.
In FY25, the company’s income from operations increased 1.4%, from Rs 1,367.5 crore in FY24 to Rs 1,386.5 crore; EBITDA was at Rs 646.4 crore with a margin of 46.6%, and PAT was at Rs 388.5 crore with a margin of 28%. Client sales increased by 2.2% to around Rs 1,893 crore in FY25. Muted consumer demand and the fact that there were almost no wedding dates nationwide in Q1 of FY25 had a big effect on the company’s profitability in FY25. However, over the nine months from July to March of FY25, like-to-like (L2L) sales climbed 2.9%, and retail sales increased 9.3%. The business opened more than 1.8 lakh square feet gross in FY25, not including current markets.
The company’s primary goals for FY26 are to increase like-for-like sales and open a respectable number of shops before the year ends. The management is concentrating on Manyavar shops to add Mohey flagships in the form of EBO, and the brand Mohey currently occupies about 2.5 lakh square feet. In the third quarter of FY26, the management anticipates a respectable increase in retail sales. The business pledges to sign OC shops with reasonable rent and excellent output. In order to reinvest in the expansion of retail outlets, the company anticipates a decrease in retail inflation in the first or second quarter of FY26. The goal is to add extremely high-quality net retail space to the business.
Risk Factor
The company may face fierce competition from established and upcoming businesses in the ethnic and wedding dress sectors, which might affect its market share and pricing power. Festivals, weddings, and other joyous events are important economic generators. Uneven sales and profitability may result from seasonal variations and adjustments to the timing or scope of such occurrences.
Market Recap: June 17th, 2025
The benchmark indices remained under pressure as geopolitical uncertainties continued to worry investors and make them cautious after the US president warned Iran over the ongoing conflict, saying Tehran should have signed a nuclear deal with the US. The Indian markets opened on a positive note and stayed in the red throughout the market hours. The Nifty 50 reached an intraday high of 24,982.05. It began the day at 24,977.85. Similar to this, the BSE Sensex began at 81,869.47, reached an intraday high of 81,890.15, and broke the 20-day EMA and RSI of 52.24. With a daily time frame trading above the 20/50/100/200 EMA and an RSI of 53.26, the Nifty 50 closed at 24,853.40, down -93.10 points, or -0.37%, whereas the BSE Sensex closed at 81,583.30, down by -212.85 points, or -0.26%.
The IT index closed at 39,356.10, up 283.05 points, or 0.72%, making it the only sectoral gainer today. Gains of up to 2 percent were reported by the biggest companies, including Tech Mahindra, LTI Mindtree, Infosys Ltd., and Persistent Systems. The Nifty Pharma index ended the day at 21,622.80, down -416.65 points, or -1.89%, making it the biggest loser of the day. Following the decline, the Nifty Healthcare index closed at 14,138.65, down -1.79%, or -257.45 points. In both indices, Granules India Ltd., Lupin Ltd., Natco Pharma Ltd., Aurobindo Pharma Ltd., and Laurus Pharma experienced losses of up to 4%.
Tensions in the Middle East and international trade increased as the Israel-Iran dispute intensified, prompting investors to evaluate the market as US President Donald Trump called on everyone to leave Tehran right now. The US president also departed the G7 summit the day before because of the tensions in the Middle East. Tuesday’s opening of Asian markets was neutral. The Kospi index in South Korea continued its upward trajectory, climbing 0.12%, or 3.64 points, to close at 2,950.3, while the Hang Seng index in Hong Kong dipped -0.34%, or -80.69 points, to close at 23,980.3 in the Asia-Pacific markets. Japan’s Nikkei 225 ended the day up 225.41 points, or 0.59%, at 38,536.74. The Shanghai index dropped -1.32 points, or -0.04%, to close the day at 3,387.4.
