In this article, we look at two stocks from the auto ancillaries-batteries sector and the other from the power generation & distribution sector to buy for an upside potential of more than 20%, recommended by the Trade Brains Portal. Further, we analyze the market’s performance yesterday and also look at some stocks to watch out for today.
Amara Raja Energy & Mobility Ltd
- Current price: ₹ 1,050
- Target price: ₹ 1,280
- Upside: 22%
- Time frame: 12 Months
Why it’s recommended
Amara Raja Energy & Mobility Limited (ARE&M), the flagship company of the Amara Raja group, is one of the largest players in lead-acid batteries for applications in industrial and automotive. The company exports to over 50 countries globally under the brand names ‘Amaron,’ ‘PowerZone,’ ‘Elito,’ and ‘Quanta.’ ARE&M is a major supplier to telecom, railways, power control, solar, and UPS.
It is the largest exporter of automotive batteries and also a market leader in the telecom sector with its industrial batteries. It has 7 battery manufacturing plants in 2 locations, with an annualized capacity of 55 million automotive segments. It has 2 facilities for its new energy business with an estimated total of 2 GWh annualized capacity.
The company has a robust clientele base, including clients like Tata Motors, Maruti Suzuki, Airtel, Infosys, Mahindra & Mahindra, Indus Towers, etc. The company has a vast distribution network that includes more than 100,000 points of sale, over 1,000 Power Zone retail locations, 2,000 extensive service hubs, and 23 branches throughout India.
For 9M FY25, the company has reported total revenue of Rs 9,786.3 crore, an increase of 11% YoY, and profit after tax of Rs 783.1 crore, which surged by 11% for the same period. PAT margins stood at 8%. Revenue from lead-acid batteries stood at Rs 9,442.17 crore as of 9MFY25, up by 12.5% YoY. The company’s lithium-ion battery division is expected to bring in Rs 550 crores in FY25.
The company is setting up its lead-acid battery recycling plant in Tamil Nadu with a capacity of 1.5 lakh MTPA, which will commence operations from Q1FY26. The company expects an outflow of Rs 1,000 crore for the lead acid and new energy business divisions in the upcoming year, and it wants to invest Rs 750 crore in lead acid and new energy businesses.
Further, the company signed an MoU with the Telangana government and announced a Rs 9,500 capex for setting up an E-Positive Energy Lab on 262 acres of land. In addition, India’s electrification demand is expected to be 150 GWh by 2030, an emerging opportunity for Amara Raja Energy and a surge of customer pull for EVs.
Risk Factors
There is high competitive intensity from the automotive and telecom industries due to the upgradation to Li-ion batteries from lead-acid batteries for newly installed towers, due to higher energy density and longer life cycle. The company also has geographic concentration risk, as it operates in Andhra Pradesh, which may restrict distribution logistics.
Price fluctuations in lead and sulfuric acid have been a concern due to the disturbance of the supply chain and geopolitical stress. The price of raw materials affects production costs because the average price of lead increased to $1,953 per ton in 2025, which has an impact on the profit and creates a difficult scenario in the industry.
Tata Power
Current price: ₹ 401
Target price: ₹ 460
Upside: 14%
Time frame: 12 Months
Why it’s recommended
Tata Power is one of the largest vertically integrated power companies, serving in thermal, coal & hydro generation, renewables, transmission, and distribution. Tata Power is a market leader in solar rooftop EPC, with a 13.1% market share. Rooftop solar has grown at a 17% CAGR between 2019 and 2023. India has 14.5 GW of installed solar rooftop capacity.
In FY25, their total capacity of power generation stood at 25.668 GW, with 16.8 GW capacity from clean & green energy and 8.9 GW from thermal energy generation. Further, split into sub-segments: thermal (8.86 GW), wind (1.034 GW), hydro (0.88 GW), solar (4.516 GW), clean & green energy accounts (9.935 GW) under construction, and waste heat recovery accounts (0.443 GW). Their power transmission lines were at 4,633 Ckm and 2,414 Ckm under construction. As of FY25, the company has 12.8 million customers in distribution and 5,488 public EV charging points across 600+ cities.
In FY25, the company crossed the milestone of achieving Rs 5,197 crore in PAT (before exceptional items), a 26% growth YoY, and operational segment revenue stood at Rs 69,167 crore, a 4% growth YoY.
The thermal segment contributed 28.5% of segment revenue, standing at Rs 19,739 crore; renewables contributed 14% of segment revenue, standing at Rs 9,876 crore; transmission contributed 56.5% of segment revenue, standing at Rs 39,120 crore; and others (0.6%) contributed Rs 431 crore. They achieved the highest-ever EBITDA in FY25, which stands at Rs 14,468 crore, a growth of 14% YoY.
The company has a 3rd-party solar rooftop order book of Rs 1,036 crore. Tata Power is also expanding its EV charging stations rapidly; it is currently covering 641 cities with 5,488 public charging points, 1,36,777 home chargers, and 1,238 bus charge points.
Internationally, the company operates in Georgia with 187 MW, Zambia with 120 MW, Indonesia with 54 MW, and 126 MW capacity in Bhutan, and the pipeline it holds has 600 MW capacity in Bhutan. In New-age energy solutions, the company integrated a 4.9 GW capacity in module manufacturing.
Further, the company signed an MoU for the Pumped Hydro Project to develop 2.8 GW of power capacity. It has signed an MoU with OREDA to accelerate rooftop solar power adoption among residential customers under the PM Surya Ghar program. In FY25, Tata Power marked a major milestone with 1.5 lakh rooftop solar installations.
The company benefits from government schemes such as the PMSGY SCHEME to enhance 1 crore households with solar rooftops with a budget allocation of Rs 11,000 crore in FY25 and Rs 20,000 crore for FY26 due to cheap loans at an ROI of 7%. Also, Tata Power targets 3 million households for the next 3 years. With several developments in power generation, Tata Power is well-established to capitalize on this opportunity to increase its market share and profitability.
Risk Factor
The company’s solar EPC business is exposed to interest rate fluctuations, as the loans availed by the projects under Tata Power are floating-rate loans, and lenders can reset interest rates annually. The proportion of floating-rate loans stands at 50% of total funds availed as of March 31, 2024. Tata Power faces regulatory risk, which can impact the market dynamics. Also, the company faces counterparty credit risk, as almost half the operational portfolio is contracted with discoms having a weak-to-moderate credit profile.
Market Recap May 26, 2025
On Monday, May 26, 2025, Indian equity markets continued their upward trajectory, marking the second consecutive session of gains. The benchmark Nifty 50 index rose by 148.00 points, or 0.60%, to close at 25,001.15, while the BSE Sensex advanced 455.37 points, or 0.56%, ending at 82,176.45.
Investor sentiment was bolstered by positive domestic cues, including robust earnings reports and the early onset of the monsoon season. Additionally, global factors such as the U.S. administration’s decision to extend the deadline for imposing tariffs on European Union imports contributed to the optimistic market outlook.
Sectoral indices reflected a broad-based rally, with the Nifty Auto index leading the gains by climbing 1.05%, driven by positive sales data and favorable monsoon forecasts. The Nifty IT Index followed closely, rising 1.02%. The Nifty FMCG index also posted a significant gain of 0.97%, supported by increased demand in the housing sector.
In the broader markets, the Nifty Midcap 100 index advanced by 0.67% to close at 57,067.25, while the Nifty 200 index rose by 0.58% to finish at 13,898.20. This indicates sustained investor interest beyond large-cap stocks, with mid-and small-cap segments continuing to attract attention.
On the global front, Japan’s Nikkei 225 index closed 1.00% higher at 37,531.53, supported by easing trade tensions and positive corporate developments. Conversely, Hong Kong’s Hang Seng Index declined by 1.35% to 23,282.33, and China’s Shanghai Composite Index edged down by 0.05% to 3,346.84, amid concerns over economic growth and geopolitical uncertainties.
Overall, the Indian stock market’s performance on May 26 reflected a resurgence in investor confidence, underpinned by favorable domestic and international developments. Market participants are expected to monitor upcoming economic data and global cues to gauge the sustainability of the current uptrend.
Stocks to watch out for on May 27
Snowman Logistics Ltd: Revenue from operations rose by 6% YoY and stood at Rs.137.34 crore. Profit after tax stood at Rs.3.9 crore, up by 82% YoY.
Sundaram Finance Ltd: Revenue from operations rose by 17% YoY and stood at Rs.1,843.93 crore. Profit after tax stood at Rs.545.85 crore, up by 8% YoY. The Board of Directors has recommended a final dividend of Rs.21 per share (210% dividend).
Morgan Ventures Ltd: Revenue from operations rose by 14% YoY and stood at Rs.12.41 crore. Profit after tax stood at Rs.6.70 crore, up by 40% YoY.
Continental Securities Ltd: Revenue from operations rose by 70% YoY and stood at Rs.0.73 crore. Profit after tax stood at Rs.0.31 crore, up by 63% YoY. The Board of Directors has recommended a final dividend of Rs.0.05 per share.
Lumax Industries Ltd: Revenue from operations rose by 24% YoY and stood at Rs.929.26 crore. Profit after tax stood at Rs.43.97 crore, up by 22% YoY. The Board of Directors has recommended a final dividend of Rs.35 per share (350% dividend).
Shilpa Medicare Ltd: Revenue from operations rose by 27% YoY and stood at Rs.140.23 crore. Profit after tax stood at Rs.14.50 crore, down by 41% YoY.
Orchid Pharma Ltd: Revenue from operations rose by 5% YoY and stood at Rs.241.37 crore. Profit after tax stood at Rs.22.29 crore, down by 33% YoY.
Major companies announcing results today
- Life Insurance Corporation of India
- Bosch
- Info Edge India
- Bharat Dynamics
- NMDC
- Procter and Gamble Hygiene and Health Care
- Gujarat Fluorochemicals Limited
- ITI
- Hindustan Copper
- EID Parry (India)
- Techno Electric & Engineering Company Ltd
- Minda Corporation
- Medplus Health Services
- NMDC Steel
- JK Lakshmi Cement
- TTK Prestige
- Triveni Engineering and Industries
- Rashtriya Chemicals and Fertilisers
- Time Technoplast
- Zinka Logistics Solutions
- Esab India
- Sansera Engineering
- V2 Retail
- Rattanindia Enterprises
- Supriya Lifescience
- Unimech Aerospace and Manufacturing
- Sky Gold and Diamonds
- Diamond Power Infrastructure
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