Today, we recommend two stocks, one from the IT sector and another from the recycling sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 43%. The recycling industry is experiencing a massive tailwind due to structural changes from the government on regulations, rapid urbanisation, and an increase in participation by formal players.
Meanwhile, the Indian power sector is witnessing robust growth, driven by rising electricity demand, the rapid expansion of renewable energy, and continuous infrastructure development. We also analysed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. Gravita India Limited
- Current price: ₹ 1,569.8
- Target price: ₹ 2,250
- Upside: 43%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Founded in 1992, Gravita India Ltd. is a global leader in manufacturing and recycling, operating state-of-the-art facilities across India for aluminium alloys, lead products, and plastic granules. The company has built a strong procurement network with 33 collection yards, over 1,900 touchpoints, and more than 287,000 metric tons of scrap collected. Gravita maintains a solid international footprint, catering to customers in 34 countries across Asia, Africa, the Middle East, Europe, and the Americas, while sourcing raw materials at competitive prices.
In FY25, the company delivered robust growth, with 20% YoY volume growth, whereas revenue grew by 22% YoY. EBITDA and PAT rose by 22% and 31% YoY, respectively. Value-added products contributed 46% of total revenue, and scrap sourcing from within India surged by 60%. Total revenue grew by 22.4% YoY from Rs 3,161 crore in FY24 to Rs 3,869 crore in FY25, with domestic operations accounting for 68% and international markets contributing the remaining 32%. PAT climbed 30.5% YoY, increasing from Rs 239 crore to Rs 312 crore.
In Q1 FY26, the company reported operating revenue of Rs 1,040 crore, up from Rs 908 crore during the same period last year, a surge of 15% YoY. EBITDA rose by 22.4% YoY to Rs 111.70 crore, and PAT increased to Rs 93.26 crore, a growth of 39% YoY. The company achieved volume growth of 12% YoY and further aims for capacity expansion, reaching 7 lakh+ MTPA by FY28 and increasing capex to Rs 1,500+ crore by FY28.
Gravita India Ltd. plans to expand its capacity across major segments, including turnkey solutions, lead, aluminium, plastic, and rubber, while also entering emerging areas such as paper, steel, and lithium-ion recycling.
The company aims to drive growth with over 50% of revenue coming from value-added products and more than 30% from non-lead segments. By 2029, Gravita is targeting a CAGR of over 25% in volumes, 35% growth in profitability, and a 25% return on invested capital. With 4 core recycling verticals and 12 recycling facilities, Gravita reached a capacity of 3.34 lakh MTPA (metric tons per annum) in FY25 and is projected to exceed 700,000 MTPA by FY28. The company also maintains a strong pipeline, with a healthy order book of over 60,000 MT.
Risk Factor
Gravita operates in a highly competitive domestic market for lead alloy manufacturing, facing challenges from both organised and unorganised players, which could result in pricing pressures. The company is also exposed to regulatory risks due to the hazardous nature of lead, as its recycling involves sensitive environmental processes. Any adverse changes in government policies or the introduction of stricter environmental regulations could potentially affect Gravita’s operations and profitability.
2. Tata Power Company Ltd
- Current price: ₹ 388.65
- Target price: ₹ 475
- Upside: 22%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Founded in 1910, Tata Power Co. Ltd. is India’s largest fully integrated power company, with a strong presence across the power value chain spanning generation (renewable, thermal, and hydro), transmission, distribution, energy trading, and new energy solutions. The company operates across 21 Indian states and has a presence in 7 countries worldwide.
As of Q1 FY26, Tata Power’s total installed and under-development capacity stood at 26,026 MW, comprising 17.16 GW from renewable energy sources (including 10.19 GW currently under construction) and 8.9 GW from thermal power. The company also runs seven power distribution companies, serving a customer base of 12.9 million.
In Q1 FY26, the company reported operational revenue of Rs 17,464 crore, reflecting a 3.9% increase YoY and a 0.8% rise QoQ. EBITDA grew by 17.3% YoY to Rs 3,930 crore, while PAT reached Rs 1,262 crore, up 6.1% YoY. During the quarter, Tata Power recorded its highest-ever rooftop solar installations, with 45,500 systems and a combined capacity of 270 MWp. Its solar EPC segment also delivered a record 652 MW in large-scale utility projects. Additionally, the company partnered with Tata Motors on a 131 MW wind-solar hybrid project to supply green energy for manufacturing operations.
Notably, residential rooftop installations grew to 64% of total installations in Q1 FY26, up from 29% in Q1 FY25. In Q1FY26, 16.5 GW were added, whereas in June 2025 alone, 9.3 GW were added. Renewable energy accounted for 88% of capacity additions in India during Q1FY26. PAT contribution from the renewable energy segment stood at Rs 531 crore, up by 94.51% YoY in Q1FY26.
The company currently operates 4,659 circuit kilometres of transmission lines, with another 2,414 circuit kilometres under development. As of Q1 FY26, Tata Power has installed 5,571 public EV charging stations across 620 cities and towns. Following the completion of ongoing projects, renewable energy will account for 66% of its total capacity, with solar energy contributing 18%. In September, the company announced that it is collaborating with Suzlon to co-develop 838 MW capacity wind energy projects.
Risk Factors
Tata Power maintains a moderate level of financial leverage and is facing sizable debt repayments over the short to medium term. Additionally, the company has outlined major capital expenditure plans of around Rs 20,000 crore for FY26, focusing mainly on renewable energy projects, pumped hydro storage, and transmission infrastructure. These large-scale investments bring potential execution risks and make the company vulnerable to fluctuations in equipment and project costs.
Market Recap 30/09/2025
On Tuesday, the Nifty 50 opened on a slightly positive note at 24,691.95, up 57.05 points from its previous close of 24,634.9. It touched an intraday low of 24,587.7 before closing below the 24,650-mark at 24,611.1, down by -23.8 points, or -0.097%. Technically, the index remained only above the 200-day EMA on the daily chart, but it remained below the 20, 50 & 100-day EMAs. The BSE Sensex also reflected a similar trend, opening at 80,541.77, up 176.83 points from its previous close of 80,364.94.
It traded in a similar pattern to the Nifty 50 and settled below the 80,300 level at 80,267.62, marking a decline of -97.32 points, or -0.12%. Momentum indicators showed moderate strength, with the RSI for Nifty 50 at 38.13 and for Sensex at 37.57, both well below the overbought level of 70 and near the oversold zone.
However, the Bank Nifty Index closed in positive territory, gaining 174.85 points, or 0.32%, to end at 54,635.85. The broad indices declined for the eighth consecutive session on Tuesday as the investors remained cautious ahead of the RBI’s bi-monthly policy review held on October 1.
The Nifty PSU Index topped among the sectoral gainers, closing at 7,526.75, up 136 points or 1.8%. Major PSU Banking stocks, including Bank of India, Indian Bank, Central Bank of India and Punjab National Bank, gained up to 3.9%. The Nifty Metal Index followed next, with 115.05 points or a 1.2% gain, to close at 10,038.15.
The shares of National Aluminium Company gained the highest, with a 4.9% increase, followed by Hindustan Zinc Ltd, Hindustan Copper Ltd, and Vedanta Ltd, which rose up to 3.5%. The Nifty Auto Index also gained on Tuesday, closing at 26,542.35, up 105.8 points or 0.4%.
The Nifty Media Index was the major loser, closing at 1,542.95, down -19.15 points, or -1.23%. Nazara Technologies dropped -4.3%, while other media stocks like PVR Inox Ltd, Tips Music Ltd and Dish TV India Ltd slipped by up to -2.3%. The Nifty Consumer Durables index also followed the fall, declining by -327.35 points or -0.87%, closing at 37,114.5. Dixon Technologies (India) Ltd, Amber Enterprises India Ltd, and Voltas Ltd all fell by up to -2.13%. The Nifty Realty index also fell -7.15 points or -0.82%, closing at 867.60.
Asian markets were on a mixed trend on Tuesday. Hong Kong’s Hang Seng Index gained by 248.12 points, or 0.92%, to close at 26,871. 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 3,424.60, down -6.61 points, or -0.19%. Japan’s Nikkei 225 Index also declined -60.75 points, or -0.14%, ending at 44,983. As of 4:32 p.m. IST, US Dow Jones Futures were trading at 46,236.67, down -79.4 points, or -0.17%.
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