Today, we recommend two stocks, one from the capital goods (railway wagons) sector and another from the automobile sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 28%. The capital goods industry for railway wagons is critical to the Indian economy, driving industrial growth and supporting the logistics of core sectors like coal, steel, and cement.
Meanwhile, the Indian automobile industry serves as a vital driver of economic development, fueled by rising domestic demand, technological innovation, electrification trends, and expanding export opportunities across diverse vehicle segments. We also analysed the market’s performance on Friday to understand what may lie ahead for the stock indices in the coming days.
1. Jupiter Wagons Ltd
- CMP: Rs 319
- Target: Rs 410
- Upside: 28.4%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Jupiter Wagons Limited (JWL), founded in 1979, is a prominent player in the integrated mobility solutions space, offering a broad range of products. Its portfolio includes Freight Wagons, Locomotives, Commercial Vehicles, ISO Marine Containers, and critical components such as Couplers, Draft Gears, Bogies, CMS Crossings, Brake Discs, Brake Systems, Wheels, Axles, and Wheel Sets.
With five manufacturing units and full backward integration through its foundry operations, JWL serves diverse sectors like Indian Railways, Defence, Commercial Vehicles, Electric Light Commercial Vehicles (E-LCVs), and Logistics. As of the first quarter of FY26, the company reported a strong order book worth Rs 5,972 crore.
In Q1 FY26, JWL posted revenues of Rs 459 crore, a decline from Rs 879.8 crore in Q1 FY25. EBITDA for the quarter stood at Rs 60 crore, with a net profit of Rs 31 crore. The revenue dip was attributed to a shortage of wheelsets from the Railway Wheel Factory, particularly affecting 25-ton axle load wagons, which form a large portion of the company’s orders. Despite this temporary disruption, the management maintained its FY26 guidance of 10-15% revenue growth and EBITDA margins in the range of 14-15%.
Looking ahead, the company is scaling up its production capacity to 1,000 wagons per month starting Q2. Orders of approximately Rs 4,000 crore from Indian Railways and around Rs 7,000 crore from private sector clients are in the pipeline. JWL also signed an MoU with Pickkup to deploy 300 JEM TEZ electric vehicles by the end of the year, in alignment with the PM E-Drive initiative. In June 2025, JWL launched its first exclusive EV showroom in Bengaluru and aims to open 4-6 more by September 2025. The company plans to introduce two new electric LCVs in FY26 with 2-ton and 1-ton payload capacities.
The Brake Systems division is projected to exceed Rs 250 crore in revenue in FY26 and grow to Rs 300-500 crore in FY27. Meanwhile, wagon-related revenues are expected to stay in the Rs 4,000-4,500 crore range through FY26 to FY28. The Battery business alone is expected to generate Rs 200-300 crore by FY27, with combined battery and vehicle revenues reaching Rs 500-1,000 crore by FY28.
Risk Factor
The company secures significant orders from industrial clients, private logistics firms, and Indian Railways. However, these orders could be scaled down if there are changes in budget allocations. Additionally, any increase in raw material costs, especially steel, could adversely affect operational efficiency. The situation could worsen if project execution is delayed or if there’s a drop in customer demand, potentially putting pressure on the company’s profitability.
2. Bajaj Auto Ltd
- CMP: Rs 9,146.00
- Target: Rs 10,600
- Upside: 15.90%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Bajaj Auto, the flagship entity of the Bajaj Group, stands as a major producer of two- and three-wheelers, exporting its products to more than 79 countries. It is India’s second-largest motorcycle maker, the leading exporter of two-wheelers, and the world’s biggest manufacturer of three-wheelers. With five production facilities and a total annual capacity of 7.2 million vehicles, Bajaj Auto became the first company in its category to achieve a market capitalization exceeding Rs 2 trillion. The company maintains a well-diversified product lineup, a robust global presence, and ranks among the top five players in India’s electric two-wheeler market through its Chetak brand.
In Q1 FY26, Bajaj Auto reported revenue from operations of Rs 13,133.35 crore, reflecting a 10% YoY growth, fueled by strong export performance, commercial vehicles, premium motorcycles, and the Chetak electric scooter. The company recorded double-digit growth in Africa, Latin America, and Asia, and anticipates over 20% growth in exports in the coming years. EBITDA was at Rs 3,301.92 crore, and PAT at Rs 2,210.44 crore. During the quarter, the company sold 5,29,344 two-wheelers and 1,05,464 commercial vehicles in the domestic market.
Between July and September 2025, Bajaj Auto recorded domestic sales of 596,576 units in the two-wheeler segment and 144,217 units in the commercial vehicle category. The first quarter marked the eighth straight quarter in which commercial vehicle sales exceeded 100,000 units, underscoring the company’s dominant position in the electric three-wheeler (3W EV) segment during Q1 FY26.
In FY25, Bajaj Auto commanded a 75.7% share of the internal combustion engine (ICE) three-wheeler market and a 52.4% share in the ICE three-wheeler goods carrier segment. In Q1 FY26, Bajaj Auto captured over 35% of the e-auto market. Under the PLI scheme, the company has committed to investing Rs 1,000 crore over five years, with planned capex of Rs 600-700 crore in FY25-26, mainly for maintenance.
Risk factors
The automobile industry is closely intertwined with the country’s overall macroeconomic environment. Geopolitical developments, such as tariffs introduced under the Trump administration, can disrupt supply chains and drive up costs across the sector. Broader macro factors, including global inflation, shifting consumer preferences, material availability, and declining per capita income, can also influence demand by weakening purchasing power. The two-wheeler market, in particular, has become highly competitive, with players like Hero MotoCorp, Honda, Suzuki, and TVS Motors frequently introducing new models to strengthen their market positions.
Market Recap 17/10/2025
On Friday, the Nifty 50 opened on a muted note at 25,546.85, down 38.45 points from its previous close of 25,585.3. However, the index continued to move upwards, hitting a 52-week high of 25,781.5, crossing above the 25,750 level, before closing at 25,709.85, up 124.55 points, or 0.49%. The index remained above all key moving averages (20/50/100/200-day EMAs) on the daily chart, indicating strong technical support.
The BSE Sensex mirrored the Nifty’s trend, opening at 83,331.78, down 135.8 points from the previous close of 83,467.6. It followed a similar pattern to the Nifty 50, by rebounding from its subdued opening and also hit a 52-week high at 84,172.24, finally closing at 83,952.19, a gain of 484.53 points, or 0.58%. Both indices showed strong momentum, with RSI values for Nifty 50 at 69.34 and Sensex at 69.54, entering the overbought threshold of 70.
The Bank Nifty Index also ended in positive territory, increasing 290.8 points, or 0.51%, to 57,713.35, and also hit a 52-week high at 57,830.2. The rise was mainly due to relatively positive Q2 results, Steady foreign inflows (FIIs invested Rs 997.29 crore and DIIs purchased shares worth Rs 4,076.2 crore on Thursday), a boost in the investor sentiment from expectations around India-US trade talks, and positive global cues amid expectations of a US Federal Reserve rate cut.
Most of the indices ended in green on Friday. The Nifty FMCG Index was the biggest gainer, rising for the third consecutive session, gaining 1.37%, or 762.5 points, to 56,616.4. Stocks like Radico Khaitan Ltd, Emami Ltd, ITC Ltd, and Hindustan Unilever Ltd saw gains of up to 3.7%. The Nifty Healthcare Index also posted gains, advancing 0.76%, or 111.7 points, to 14,866.9.
Key stocks like Laurus Labs Ltd, Max Healthcare Institute Ltd, Torrent Pharmaceutical Ltd, and Dr Reddy’s Laboratories Ltd were up by 3.12%. The Nifty Consumer Durable Index followed the positive trend for the third consecutive session, closing at 39,018.55, up 0.69%, or 266.45 points. Whirlpool of India Ltd gained 11.84%, after the company had executed various agreements, while other consumer durable stocks, such as PG Electroplast Ltd and Havells India Ltd, saw gains of up to 3.4%.
The Nifty IT index was the major loser on Friday, declining 1.63% or -580.35 points, closing at 34,950.70. The shares of Wipro Ltd dropped the most, declining by -5.09% after posting subdued Q2 results; Mphasis Ltd, Infosys Ltd, and HCL Tech dropped up to -3.23%. The Nifty Media Index also fell on Friday, closing at 1,519.60, losing -24.10 points or -1.56%. Stocks including Tips Music Ltd, Zee Entertainment, Network 18 Media & Investments Ltd, and Saregama India Ltd emerged as the major laggards, dropping up to 3.91%. The Nifty Metal Index also ended in the red at 10,199.30, losing -87.95 points or -0.85%.
Asian markets followed an overall bearish sentiment on Friday. Japan’s Nikkei 225 lost -1.52%, losing -722.74 points, to close at 47,555. Hong Kong’s Hang Seng fell by -2.6% or -656.51 points, closing at 25,232, while China’s Shanghai Composite also declined -1.99% or -76.47, to 3,839.76. South Korea’s KOSPI Index rose slightly by 0.01% or 0.52, ending at 3,748.89. At 5:11 p.m. IST, U.S. Dow Jones Futures were down -0.13%, at 45,895.24, a drop of 60 points.
The broad indices ended this week with gains by rising for the third consecutive session, and hitting 52-week highs. The Nifty 50 gained 424.50 points or 1.68% this week, marking the third consecutive positive week for the index.
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