Today, we recommend two stocks, one from the retail sector and another from the FMCG sector, as recommended by the Trade Brains Portal, for a potential upside of more than 21%. India is the world’s fifth-largest global destination in the retail space. The retail industry in India is set to grow due to several factors, such as increasing purchasing power, increasing urbanization, connected rural consumers, and increasing consumer spending.
On the other hand, the FMCG sector is poised for growth, driven by tailwinds such as rising disposable incomes, increasing rural consumption, government support, and the ongoing shift from unbranded to branded products. We also analyzed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. Trent Ltd
- Current price: Rs 5,150
- Target price: Rs 6,250
- Upside: 21.36%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Trent Limited was started in 1998, which is a part of the Tata Group and now operates a diverse retail portfolio across 1,043 stores and 13.6 million sq. ft. of retail space in 242 cities, including 2 in Dubai. Its key brands include Westside, a leading fashion retail chain with 248 stores in 86 cities with an area of more than 5.5 million sq. ft. in total.
Zudio, a value fashion brand with 766 stores in 235 cities covering over 8 million sq. ft. in total, and Trent Hypermarket, having brand name “Star”, with 77 stores in 10 cities and more than 1.3 million sq. ft. area in total, focusing on food and daily essentials. Together, they serve over 18 million WestStyle Club members, offering a wide range of fashion and lifestyle products for all segments.
In Q1 FY26, the company reported a revenue of Rs 4,883.5 crore, a growth of 19% YoY compared to Rs 4,104.4 crore in Q1 FY25. Operating EBIT grew by 21% YoY to Rs 547 crore, and PAT stood at Rs 424.7 crore, an 8.5% surge YoY. During Q1 FY26, the company expanded its portfolio to 248 Westside brand stores, up from 228 in Q1 FY25.
Star Banner store count stood at 77 in Q1 FY26, up from 72 in Q1 FY25, while Zudio stores were at 766, compared to 559 in Q1 FY25. The company has launched 4 stores in Mumbai, Dehradun, Lucknow, and Vijayawada, while in Zudio, the company launched 6 stores in Ghaziabad, Thrissur, Chennai, Nagpur, Pune, and Delhi.
Emerging categories such as beauty & personal care, innerwear, and footwear have continued to gain traction with customers, which contribute to over 21% of the company’s revenue. The company’s star business continued to grow and now totals 77 stores, including the addition of 2 stores in Q1 FY26.
The company’s star business reported a revenue of Rs 869 crore in Q1 FY26, compared to Rs 815 crore in Q1 FY25. Star Business owns brands like Star, Fabsta, Klia, Smartle, and Zudio, which constitute 73% of the total sales. It has been increasing the share of the private labels’ contribution to the revenue.
India’s retail market is valued at Rs 89 lakh crore in 2025 and is projected to grow to Rs 190 lakh crore by 2034. On the other hand, India’s fashion and lifestyle sector is currently valued at Rs 13 Lakh crore in 2025 and is expected to reach Rs 18 Lakh crore by 2028, growing at a CAGR of 10-12%.
Risk factors
The performance of some of the owned non-apparel formats, as well as those operated through JVs, continues to incur losses. The company faces stiff competition due to the unorganized segment, along with competition from various organized players in the brick-and-mortar and online segments. It is also exposed to any slowdown in discretionary spending, which may lead to a loss in inventory.
2. Bikaji Foods International Ltd
- Current price: Rs 799
- Target price: Rs 930
- Upside: 16.40%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Bikaji Foods International Ltd was founded in 1986 in Bikaner, Rajasthan. It produces namkeen, sweets, papad, western snacks, chips, and cookies. It is among the largest packaged sweets producers as well as the second-largest handmade papad maker. It has 9 manufacturing units and a capacity of 3,25,320 MT, while its distribution spans 35 Indian states, covering 3.26 lakh direct retail outlets and 12.34 lakh overall reach. As of Q1 FY26, Bikaji exports to over 43 countries worldwide.
In Q1 FY26, the company reported revenue from operations of Rs 652.7 crore, up by 14.18% YoY, and EBITDA grew 5.1% YoY to Rs 96.3 crore with an EBITDA margin of 14.8%. PAT stood at Rs 58.5 crore, up 1.3% YoY, with a PAT margin of 9%. Ethnic snacks grew by 11.2% YoY to Rs 462.5 crore, while packaged sweets grew by 3.1% YoY to Rs 40.8 crore. Western Snacks grew by 4.2% YoY to Rs 56.4 crore, and Papad grew by 5.8% YoY to Rs 35.4 crore in Q1 FY26. It registered volume growth of 7.5% YoY, which stood at 33,213 tonnes in Q1 FY26, compared to 30,884 tonnes in Q1 FY25. Ethnic snacks contribute 75.3% of the total revenue as of Q1 FY26.
Exports recorded a stunning performance in Q1 FY26, which registered growth of 60.8% YoY to Rs 29.6 crore. The company has been awarded a Production Linked Incentive (PLI) of approximately Rs 261 crore by the Indian Government, to be received over a period of six years. Additionally, they have a separate PLI for exports, which will reimburse up to Rs 23 crore for international advertising over the same six-year period.
The company’s retail business showed stunning growth in Q1 FY26, standing at Rs 21.2 crore, registering a growth of 291.3% YoY. In FY25, the company acquired 53.02% of Hazelnut Factory Food Products Private Limited, which is set to open around 19-20 stores largely in UP and MP areas by the end of this year. The company plans to add 50,000 outlets annually, targeting over 4.5 lakh direct outlets in three years.
It also aims to raise capacity utilisation from 45-46% to around 70% over the next 3-4 years. Bikaji Foods is set to enter into a JV with C.G. Foods Nepal Ltd in the next 3-5 years, which aims to establish a business in Nepal that will manufacture, trade, and market snacks, namkeen, bhujia, papad, and packaged sweets. The company is targeting to double its export business over the next 3-4 years.
Risk factors
It is exposed to intense competition as it operates in a fragmented and unorganised food industry. It faces competition from local manufacturers as well as established players such as Haldiram, Pepsi, ITC, and Balaji Wafers. It is also vulnerable to raw material prices like pulses, edible oil, laminates, etc, which may hamper the profitability of the company. It reported slower revenue growth in Eastern India, especially in Bihar, compared to other regions.
Market Recap 16/09/2025
On Tuesday, the Nifty 50 opened on a flat note at 25,073.6, rising just 4.4 points from its previous close of 25,069.2. It reached an intraday high of 25,261.4 before ending the session at 25,239.1, registering a gain of 169.9 points or 0.68%. From a technical standpoint, the index continued to trade above its key EMAs of 20/50/100/200-day on the daily chart. The BSE Sensex mirrored this flat start, opening at 81,852.11, and rose just 66.37 points higher than its prior close of 81,785.74.
It moved within a similar range as the Nifty 50 before closing at 82,380.69, up by 594.95 points or 0.73%. Momentum indicators showed moderate strength, with the Relative Strength Index (RSI) for the Nifty 50 at 63.84 and for the Sensex at 63.11, both staying below the overbought threshold of 70. Meanwhile, the Bank Nifty Index also ended in positive territory, advancing by 259.75 points or 0.47% to close at 55,147.6.
Most sectoral indices ended in the green on Tuesday, with very few showing any losses. Leading the gains was the Nifty Auto Index, which surged 385.75 points, or 1.4%, to close at 27,146.4. Balkrishna Industries Ltd advanced 2.6%, while other auto stocks like MRF Ltd, Mahindra & Mahindra Ltd, Bharat Forge Ltd, and Maruti Suzuki India Ltd also posted gains of up to 2.4%.
The Nifty Realty Index added 9.7 points, or 1.1%, to settle at 915.35. Notable performers included Prestige Estates Projects Ltd, The Phoenix Mills Ltd, DLF Ltd, and Godrej Properties Ltd, each rising as much as 1.9%. The Nifty Infrastructure Index also recorded moderate gains, climbing 93.05 points, or 1%, to finish at 9,190.65.
The Nifty FMCG Index was the only major loser, closing at 56,398.65, down -152.7 points or -0.3%. Stocks such as Godrej Consumer Products Ltd fell by -2.2%, while Varun Beverages Ltd and Dabur India Ltd plunged by up to -1.9%.
Asian markets mostly ended on a positive note on Tuesday. China’s Shanghai Composite Index remained nearly unchanged, inching up by 1.37 points or 0.04% to close at 3,861.87. In contrast, Hong Kong’s Hang Seng Index saw a slight dip, falling 11.56 points or 0.04% to finish at 26,435. South Korea’s KOSPI Index recorded strong gains, rising 42.31 points or 1.23% to close at 3,449.62. Japan’s Nikkei 225 Index also moved higher, adding 236.88 points or 0.53% to end the day at 45,005. Meanwhile, as of 4:48 p.m. IST, US Dow Jones Futures were trading marginally higher at 45,907.95, up 24.5 points or 0.05%.
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