Today, we recommend two stocks, one from the jewellery sector and another from the Water Management sector, as recommended by the Trade Brains Portal, to buy for an upside potential of more than 45%. The global jewellery industry is expected to grow at a CAGR of 5.1% between 2024 and 2032, expanding from USD 232.94 billion to USD 242.79 billion. This growth will be driven by rising demand for gold jewellery, increasing disposable incomes, and a growing emphasis on fashion and personal style.
In parallel, India’s water management sector is witnessing strong momentum, driven by surging demand due to rapid population growth, accelerated industrialisation, and swift urbanisation. These trends are further amplified by the impacts of climate change and escalating water scarcity, underscoring the urgent need for sustainable water solutions. We also analysed the market’s performance on Wednesday to understand what may lie ahead for the stock indices in the coming days.
1. Kalyan Jewellers India Ltd
- Current price: Rs 465
- Target price: Rs 675
- Upside: 45%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s Recommended
Kalyan Jewellers is a prominent jewellery retailer in India, holding a 7% market share in the organised jewellery segment and maintaining a strong presence for over three decades. It ranks among the leading jewellery retailers in the country, operating showrooms across 23 states and Union Territories. As of June 30, 2025, the company operated 368 stores in India, covering a total retail space of over 883,200 sq ft. This includes 287 Kalyan stores and 81 Candere outlets, its lightweight and affordable jewellery brand. Internationally, the company has expanded its footprint with 36 showrooms in the Middle East and 2 in the USA.
In Q1 FY26, the company reported revenue from operations of Rs 7,268.50 crore, reflecting a 31% year-on-year growth compared to Rs 5,572.80 crore in Q1 FY25. Kalyan Jewellers has achieved a CAGR of 31% since FY21. The company posted a PAT of Rs 264.1 crore for the quarter, marking a 49% year-on-year increase, with PAT growing consistently at a CAGR of 41% since FY20.
The company’s domestic business continues to deliver strong performance, generating revenue of Rs 6,142.2 crore in Q1 FY26, a 31% year-on-year rise, while PAT grew 55% to Rs 256.5 crore. Regionally, South India contributed Rs 3,116.2 crore in revenue, a 30% year-on-year growth, while non-South regions reported Rs 3,026.1 crore, up 33% year-on-year. The Middle East operations also recorded steady growth, with revenue reaching Rs 1,026.5 crore in Q1 FY26, a 27% year-on-year increase.
The company’s expansion strategy is being driven through franchised showrooms under the FOCO (Franchisee Owned, Company Operated) model, facilitating rapid and capital-efficient growth across India and the Middle East. This model also enhances the company’s overall return profile.
Looking ahead, the management has outlined plans to open 446 showrooms in India, 46 in the Middle East, and 233 Candere outlets (originally launched as an online business) by 2027. Additionally, the company aims to scale the number of FOCO model showrooms to 471 by 2027.
Risk Factors
A significant portion of Kalyan Jewellers’ revenue is derived from the Indian market, making it susceptible to domestic economic fluctuations, regulatory changes, and volatility in gold prices. Furthermore, the jewellery retail industry remains highly fragmented, facing intense competition from organised players such as Tanishq and Senco Gold, as well as numerous unorganised retailers. Frequent fluctuations in global gold prices can affect consumer sentiment, impact inventory valuations, and exert pressure on profit margins.
2. Va Tech WaBag
- Current price: Rs 1,428
- Target price: Rs 1,920
- Upside: 34.5%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s Recommended
VA Tech Wabag Ltd, founded in 1924, is the third-largest water technology company globally. It offers sustainable water and wastewater treatment solutions to both industrial and municipal sectors. The company employs over 1,600 water professionals and serves nearly 96 million people across more than 25 countries. Since 1995, Wabag has built over 1,500 treatment facilities and, through partnerships with R&D institutions in Europe and India, holds over 125 patents. As of Q1 FY26, the company reported a strong order book of Rs 15,777 crore, marking a 15% year-on-year increase.
In Q1 FY26, revenue stood at Rs 734 crore, reflecting 17.2% year-on-year growth. EBITDA grew by 17.5% YoY to Rs 95.6 crore, while PAT rose 19.6% YoY to Rs 65.8 crore. During the quarter, 43% of revenue came from international markets, while 57% was domestic.
The company secured order inflows of approximately Rs 2,583.4 crore and remained the preferred bidder for projects worth Rs 3,500 crore. Notably, Q1 FY26 marked the 10th consecutive quarter of being net cash positive, highlighting improved financial stability. A key highlight was securing a Rs 2,037.9 crore order for a 300 MLD desalination plant in Saudi Arabia.
Looking ahead, the company aims to maintain a healthy 3x order book-to-revenue ratio, achieve 15-20% annual revenue growth, sustain EBITDA margins between 13-15%, and deliver a RoCE above 20% and ROE above 15%. Over the next 4-5 years, Wabag targets a 70:30 revenue mix between municipal and industrial segments and an equal 50:50 split between domestic and international markets. Management has provided positive medium-term guidance, focusing on strong execution and profitability with 3-4 years of order book visibility.
Risk Factors
The company’s significant exposure to global markets makes it vulnerable to currency fluctuations. Moreover, with 95% of its business dependent on government contracts, it faces risks related to project delays, slow execution, and prolonged working capital cycles. Its financial performance and order inflow are also susceptible to geopolitical risks, regulatory changes, and economic slowdowns, particularly in key regions like the US, the Middle East, and Europe. Additionally, Wabag operates within a cyclical infrastructure sector and faces stiff competition from smaller regional players.
Market Recap 01/10/2025
On Wednesday, the Nifty 50 opened on a slightly positive note at 24,620.55, up 9.45 points from its previous close of 24,611.1. It touched an intraday high of 24,867.95 before closing below the 24,850-mark at 24,836.3, up by 225.2 points, or 0.92%. Technically, the index remained above the 100 & 200-day EMAs on the daily chart, but it remained below the 20 & 50-day EMAs. The BSE Sensex reflected a reverse trend on opening, at 80,173.24, down -94.38 points from its previous close of 80,267.62.
Later, it traded in a similar pattern to the Nifty 50 and settled above the 80,950 level at 80,983.31, marking an increase of 715.7 points, or 0.89%. Momentum indicators showed moderate strength, with the RSI for Nifty 50 at 47.23 and for Sensex at 46.41, both well below the overbought level of 70 and near the oversold zone.
Also, the Bank Nifty Index closed in positive territory, gaining 712.1 points, or 1.30%, to end at 55,347.95. The broad indices rebounded on Wednesday after declining for the eighth consecutive session, as firm buying interests were seen in the banking, financial services, auto and pharma stocks. The investors’ sentiments boosted on the RBI’s decision to keep the repo rate unchanged, leaving room for further rate cuts.
On Wednesday, most of the sectors remained positive throughout the season. The Nifty Media Index topped among the sectoral gainers, closing at 1,604.25, up 61.3 points or 4%. Sun TV network surged 79.45 points or 15.2%. Other major Media stocks, including Nazara Technologies Ltd, PVR Inox Ltd, and Zee Entertainment, gained up to 8.9%.
The Nifty Private Bank Index followed next, with 522.15 points or a 2% gain, to close at 26,984.6. The shares of Kotak Mahindra Bank gained the highest, with a 3.5% increase, followed by Axis Bank Ltd, Yes Bank Ltd, and ICICI Bank Ltd, all rose up to 2.5%. The Nifty Financial Services Index also gained on Wednesday, closing at 26,382.2, up 360.1 points or 1.4%.
The Nifty PSU bank Index was the only loser, closing at 7,499.2, down -27.55 points, or -0.4%. Indian Bank dropped -1.8%, while other PSU bank stocks like State Bank of India, Central Bank of India and Punjab National Bank, slipped by up to -1%.
Asian markets were on a positive trend on Wednesday. Hong Kong’s Hang Seng Index gained by 232.68 points, or 0.87%, to close at 26,855.56. Similarly, China’s Shanghai Composite Index was up at 3,882.78, gaining 20.25 points, or 0.52%. On the other hand, South Korea’s KOSPI Index closed at 3,455.83, up 31.23 points, or 0.91%.
Japan’s Nikkei 225 Index declined -381.78 points, or -0.85%, ending at 44,550.85. As of 4:32 p.m. IST, US Dow Jones Futures were trading at 46,454, down -235 points, or -0.5%, as investors responded to the first government shutdown in almost seven years, market uncertainty grew due to potential delays in economic data and rising concerns about fiscal policy.
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