In this article, we look at two stocks, one from the housing finance sector and the other from the cement sector, to buy for an upside potential of up to 30%, 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.
1. Housing and Urban Development Corporation Ltd
- Current price: ₹227
- Target price: ₹ 295
- Upside: 30%
- Time frame: 14-16 months
Why it’s recommended
HUDCO is the nodal agency for the government scheme of ‘Housing for All’ and is actively involved in action plan schemes such as “Jal Jeevan Mission, Pradhan Mantri Awas Yojna,” and more.
The company lends under these schemes and provides consultancy services for the appraisal of projects sanctioned under these schemes. During FY25, HUDCO recorded its highest ever sanctions and disbursement, with loan sanctions growing by 55.31% to Rs 1,27,952 crore, while loan disbursements increased by 122.59% to Rs 40,038 crore.
HUDCO’s interest income also increased by 33%, from Rs 7,653 crore in FY24 to Rs 10,200 crore in FY25. Additionally, HUDCO aims to achieve a long-term target of a Rs 3 lakh crore loan book by 2030 and a Rs 1.5 lakh crore loan book by FY26.
Its net interest margin (NIM including EBR) remained stable at 3.22% in FY25 as against 3.18% in FY24, and for the next 2 years, the management guided NIM of around 3.25% or 3.3%. HUDCO maintained a comfortable debt/equity ratio of 5.72x in FY25 as against 4.05x in FY24.
The company is also continuously working towards reducing its cost of funds. Those efforts are reflected in FY25, where cost of funds improved by around 35 basis points to 6.75% from 7.1% last year by tapping into different sources and timing the market efficiently.
HUDCO’s asset quality is improving, with its gross non-performing asset (GNPA) enhancing to 1.67% in FY25 as against 2.71% in FY24, whereas NNPA improved to 0.25% in FY25 vs 0.36% in FY24.
The provision coverage ratio remained at 85.44% in FY25. Additionally, the company is committed to resolving all kinds of NPAs in 18 months, and the management is positive about the company recovering around Rs 400 crore to Rs 500 crore from the resolution of the NPAs during FY26. Further, the company’s board of directors approved a final dividend of Rs 1.05 per equity share for FY25, with the dividend yield at 1.82%.
Previously, the company declared an interim dividend of Rs 2.05 per equity share and another interim dividend of Rs 1.05 per equity share, taking the total dividend to Rs 4.15 for FY25.
Risk Factor
HUDCO is primarily exposed to certain state governments and public agencies. Although regulatory relaxations were granted, any failure to reduce exposures within the stipulated timelines or breach of FRBM conditions might lead to regulatory penalties and higher risk weights. Furthermore, the company faces intense competition from various banks and financial institutions that have an edge over HUDCO in terms of cheap resource availability from CASA deposits.
2. ACC Ltd
- Current price: ₹ 1,957
- Target price: ₹ 2,620
- Upside: 34 %
- Time frame: 16-24 Months
Why it’s recommended
ACC Ltd., a subsidiary of Ambuja Cements and a part of the Adani Group, is one of India’s leading producers of cement and ready-mix concrete. The company operates 20 cement manufacturing units, over 100 concrete plants, and a wide network of channel partners, ensuring strong nationwide coverage and customer service.
In FY25, revenue from operations stood at Rs 21,762 crore, up by 9.03% YoY from Rs 19,959 crore in FY24. Profit after tax for FY25 stood at Rs 2,402 crore, up by 2.8% YoY from Rs 2,335 crore in FY24, while profit before tax rose to Rs 3,127 crore from Rs 2,757 crore in FY24. Cement revenue stood at Rs 20,504.43 crore as of FY25, growing by 9.1% from Rs 18,790.27 crore in FY24.
Moreover, cement and clinker sales volume rose to 42.2 million tons in FY25, up by 14.3% YoY from 36.9 million tons in FY24. As of FY25, RMC revenue stood at Rs 1,382.35 crore, growing by 7.2% from Rs 1,289.38 crore in FY24. Furthermore, the sales volume of ready-mix concrete rose to 2.86 million m³³ in FY25, compared to 2.52 million m³ in the prior year. Apart from financials, the company increased volumes by 14% YoY, supported by higher trade volumes and higher premium products, ensuring its market leadership.
ACC and Ambuja Cements together hold 73% of the trade cement market share, with a cement capacity of 100+ MTPA, and set up a target to achieve 140 MTPA capacity by FY28. To strengthen its dominance and consolidate the cement industry, Ambuja Cements made key acquisitions of Sanghi Industries, Penna Cement, and Orient Cement. On a consolidated basis, the capex for FY26 is estimated at around Rs 9,000–10,000 crore, which includes Rs 6,000 crore for expansion and Rs 2,500–3,000 crore for efficiency.
Risk factor
Rapid and frequent regulatory changes related to climate and environmental standards pose significant compliance risks. Additionally, the cement industry’s heavy dependence on natural resources like limestone and coal makes energy security vital for ACC, as rising energy costs pose a major operational and financial risk.
Also read: 20% upper circuit: Paper Stock rallies after reporting decent Q4 FY25 results
Market Recap May 23, 2025
On Friday, May 23, 2025, Indian equity markets staged a strong rebound, erasing the previous session’s losses and closing with solid gains across key indices. This upswing was fueled by renewed buying interest in heavyweight stocks, particularly in the FMCG and IT sectors, amid a supportive global environment and easing U.S. Treasury yields.
The benchmark Nifty 50 index climbed 243.45 points, or 0.99 percent, to end the day at 24,853.15. Similarly, the BSE Sensex advanced by 859.20 points, or 1.06 percent, settling at 81,811.19. The rally reflected improved investor sentiment, with both indices trading comfortably above their key support levels.
Sectoral performance was led by FMCG stocks, which attracted strong buying interest following robust quarterly results from key constituents. ITC, Varun Beverages, and Nestle India were among the top performers, pushing the Nifty FMCG index up by 1.54 percent. The Nifty IT index also registered a notable gain of 0.95 percent, with Infosys, TCS, and HCL Technologies contributing to the uptrend amid easing global tech concerns.
While large-cap stocks dominated the recovery, the broader markets also ended in the green, albeit with relatively modest gains. The Nifty 100 index rose by 0.92 percent to close at 25,453.00, and the Nifty 200 index edged up by 0.87 percent to finish at 13,817.85. This indicated selective participation from investors, with a preference for quality mid- and small-cap names.
On May 23, 2025, global markets ended on a mixed note. Japan’s Nikkei 225 rose 0.47 percent to close at 37,160.47, supported by gains in export-driven sectors. Hong Kong’s Hang Seng Index edged up 0.24 percent to 23,601.26, lifted by tech and financial stocks. In contrast, China’s Shanghai Composite fell 0.94 percent to 3,348.37 amid lingering concerns over economic growth and geopolitical tensions.
Overall, the Indian market’s performance signaled a return of confidence among investors, driven by domestic earnings optimism and a favorable shift in global bond yields. However, market participants are expected to tread carefully in the coming sessions, closely watching global macroeconomic cues and policy developments.
Stocks to watch out for on May 26
JSW Steel Ltd: Revenue from operations fell by 3% YoY and stood at Rs.45,049 crore. Profit after tax stood at Rs.1,501 crore, up by 14% YoY. The Board of Directors has recommended a Final Dividend of Rs. 2.80 per share.
Nandan Denim Ltd: Revenue from operations grew by 74% YoY and stood at Rs.1,050.26 crore. Profit after tax stood at Rs.10.63 crore, down by 61% YoY.
20 Microns Ltd: Revenue from operations grew by 7% YoY and stood at Rs.227.63 crore. Profit after tax stood at Rs.15.21 crore, up by 12% YoY.
Shilpa Medicare Ltd: Shilpa Biocare Pvt. Ltd., a wholly owned subsidiary of Shilpa Medicare Ltd., has partnered with Finland-based Orion Corporation to exclusively distribute, market, and sell its Recombinant Human Albumin in Europe.
Scarnose International Ltd: Revenue from operations grew by 440% YoY and stood at Rs.2.57 crore. Profit after tax stood at Rs.0.14 crore, up by 207% YoY.
Nexome Capital Markets Ltd: Revenue from operations grew by 43% YoY and stood at Rs.11.23 crore. Profit after tax stood at Rs.0.30 crore, down by 54% YoY.
Shreyans Industries Ltd: Revenue from operations grew by 5% YoY and stood at Rs.181.66 crore. Profit after tax stood at Rs.18.45 crore, up by 24% YoY.
Major companies that are announcing results on May 26
- Action Construction Equipment Ltd
- Akums Drugs and Pharmaceuticals Ltd
- Aurobindo Pharma Ltd
- Awfis Space Solutions Ltd
- Axiscades Technologies Ltd
- Bajaj Healthcare Ltd
- Balaji Amines Ltd
- Bayer CropScience Ltd
- Blue Dart Express Ltd
- Brainbees Solutions Ltd
- Capacite Infraprojects Ltd
- General Insurance Corporation of India
- Gillette India Ltd
- Goldiam International Ltd
- Hi-Tech Pipes Ltd
- Infibeam Avenues Ltd
- Jindal Drilling & Industries Ltd
- KEC International Ltd
- Laxmi Dental Ltd
- Lumax Industries Ltd
- Maharashtra Seamless Ltd
- Nazara Technologies Ltd
- Olectra Greentech Ltd
- Optiemus Infracom Ltd
- Panama Petrochem Ltd
- RateGain Travel Technologies Ltd
- Schneider Electric Infrastructure Ltd
- Sealmatic India Ltd
- Vadilal Industries Ltd-$
- Yatharth Hospital & Trauma Care Services Ltd
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