In this article, we look at two stocks, one from the chemicals sector and another from the pharma sector, recommended by the Trade Brains Portal to buy for an upside potential of more than 22%. We also analyzed the market’s performance yesterday and looked at some stocks to watch out for today.
Tata Chemicals Ltd
- CMP: ₹ 905
- Target: ₹ 1,100
- Upside: 22%
- Time frame: 16 to 24 Months
Why it’s recommended
One of the largest chemical manufacturers in India, Tata Chemicals Ltd., is a division of the Tata Group and operates in two verticals: basic chemistry products and specialty products. Many of the top brands in the world’s glass, detergent, pharmaceutical, biscuit, bakery, and other sectors rely on the company’s basic chemistry product line for essential ingredients. TCL is the third-largest producer of soda ash and the sixth-largest producer of sodium bicarbonate worldwide. It also owns the largest saltworks in Asia. The corporation has 12 manufacturing facilities spread across 4 continents.
Tata Chemical’s key products are Soda ash, soda bicarbonate, cement, salt, marine chemicals, and crushed refined soda. With 13 million farmers spread over 80% of India’s districts, TCL’s specialized agro-science products provide agri-input solutions and crop protection. Additionally, the company is establishing a platform for solutions by collaborating with Indian research and development organizations (such as ISRO, CSIR-CECRI, and CMET) to create activities, cells, and recycling domestically.
With total installed capacities in soda ash at 10.91 lakh MTPA, bicarb at 2.90 lakh MTPA, salt at 16 lakh MTPA, cement at 5 lakh MTPA, prebiotics at 5,000 MTPA, and specialty silica at 10,800 MTPA, TCL’s operations in India are mostly situated in Gujarat, Maharashtra, Andhra Pradesh, and Tamil Nadu. Regarding foreign activities, TCL operates facilities in Kenya (soda ash lakh MTPA), the United Kingdom (bicarb—90,000 MTPA, salt lakh MTPA, pharma salt MTPA), and the United States (soda ash—25.4 lakh MTPA).
Over the fiscal years 2026–2028, the company is anticipated to spend more than Rs 3,500 crore on brownfield development of its soda ash production in Kenya and regular maintenance capital expenditures. The company spent almost Rs 2,000 crore on capital expenditures in FY25 and plans to spend a total of Rs 550–600 crore on sustaining capital expenditures in FY26. This is because the company intends to boost the prebiotics plant’s capacity for Rs 18 crore and expand its operations in Kenya by an additional 50,000 tons, which will cost roughly Rs 60 crore in FY26.
Risk factor
The soda ash division of Tata Chemicals is still subject to changes in global prices brought on by exchange rate swings, rivalry from foreign firms, etc. Although the global demand for soda ash increased in FY25, it was mostly driven by China (18%) and India (4.5%), with the rest of the world experiencing a 2.3% decline in demand. Furthermore, the demand-supply balance of the soda ash industry may be impacted by tariff uncertainties.
Sun Pharmaceutical Industries Ltd
- CMP: ₹ 1,667
- Target: ₹ 1,990
- Upside: 19%
- Time frame: 16-24 months
Why it’s recommended
Sun Pharma, with a presence in consumer healthcare, generics, and specialty products, is the top specialized generics firm in the world. In addition to being a top generic company in the US and emerging countries throughout the world, the company is the biggest pharmaceutical company in India. More than eighteen percent of the company’s sales come from dermatology, ophthalmology, and onco-dermatology products. Sun Pharma operates in more than 100 nations. With gross sales of Rs 52,041.2 crore in FY25, there was a 9% YoY increase. EBITDA stood at Rs 15,271.7 crore, up 17.3%, and adjusted net profit for FY25 was Rs 11,984.4 crore, a 14% growth YoY. For FY25, the company paid out a total dividend of Rs 16 per share, and it announced a final dividend of Rs 5.5 per share.
Formulation sales in India reached Rs 16,923 crore, an increase of 14% year over year. Global specialized sales were up 17% at US$1,216 million, while US formulation sales were up 3.6% at US$1,921 million. Formulation sales in emerging regions increased by 7% to US$ 1,114 million, while global formulation sales increased by 4.5% to US$ 847 million. Additionally, the company’s external sales for Q4 FY25 were Rs 533 crore, up 28%, and its API climbed by 11% to Rs 2,129.2 crore. For FY25, the business spent Rs 3,248.4 crore, or 6.2% of sales, on research and development. Its specialist R&D pipeline consists of eight new entities that are currently in the clinical stage. The company received approval for 542 ANDAs in the US, while 117 more are pending US approval. This comprises 33 provisional approvals. 13 NDAs are pending US FDA approval, but the portfolio also contains 57 approved NDAs. 9 ANDAs were submitted during the quarter, and 1 was received.
Ilumya, a global specialty pipeline for psoriatic arthritis, is currently in Phase 3, with H2CY25 marking the next milestone. SCD-044 for atopic dermatitis and psoriasis is presently in Phase 2 and will be completed during H1CY25, while fibromun for soft tissue sarcoma and glioblastoma is in Phases 3 and 2. The GL0034 for type 2 diabetes, completed during H2CY25 and MM-II for osteoarthritis pain is finished, with plans to engage in a commercialization partnership.
Risk factor
Authorities like the FDA have strong regulations governing the pharmaceutical business, and noncompliance can have major repercussions, including product recalls and fines. Lack of innovation or a small product line might hurt a pharmaceutical company’s market share and customer loyalty because they face fierce competition from both established enterprises and new entrants.
Market Recap June 03, 2025
The Indian markets opened in red today, with Nifty 50 opening at 24,786.30 and reaching an intraday low at 24,502.15. Similarly, BSE Sensex also opened lower at 81,492.50, and its day’s low was at 80,575.09. Nifty 50 closed at 24,542.50, losing -174.10 points or -0.70%, with an RSI of 50.64 and above the 50/100/200 EMA in the daily time frame, and BSE Sensex closed at 80,737.51, down by −636.24 points or -0.78%. This impact was amid heightened geopolitical issues, rising crude oil prices, and increased foreign fund outflows that led to market decline.
The Nifty Realty index was the top-performing index today, rising by 1.20%, or 11.65 points, closing at 982.90. Sobha Ltd. was the top gainer, growing by 5.38%, followed by Brigade Enterprises, which was up by 4.48%, and Prestige Estate Projects, which saw an increase of 3.01% as the company is set to launch housing projects worth Rs 42,000 crore. Nifty Media was also among the top performers today with a gain of 0.54%, or 9.35 points, closing at 1,726.10 points. Within the sector, PVR Inox was the top gainer by 2.19%, or 22.20 points, followed by DB Corp Ltd., up by 2.08%, and Zee Entertainment, up by 1.92%.
The Nifty Private Bank Index was the major loser today; it declined by -1.17%, or -323.75 points, and closed at 27,346.35. Yes Bank was the top laggard, which was dragged down by -10.40%, followed by IDFC First Bank, which fell by -2.53%. This fall comes after the pressure witnessed in the market amid the RBI’s monetary policy outcome scheduled on Friday, as a 25 bps rate cut is expected; still, uncertainty prevailed amongst the investors, leading to profit bookings.
Today, Asian markets opened higher, reacting positively to easing trade tensions between the two major economies, the United States and China. The Hang Seng index rose by 1.53%, or 354.52 points, closing at 23,512.49 points. The Shenzhen component index was up by 0.17%, or 16.54 points, and closed at 10,057.17 points. The Shanghai index increased by 0.43%, or 14.49 points, closing at 3,361.98. The Taiwan Weighted Index also gained by 0.59%, or 124.22 points, and stood at 21,126.93. The markets witnessed relief after the US government extended tariff exemptions on some major Chinese imports in sectors critical to American manufacturing, such as solar panel production. This move helped ease trade barriers and supported investor sentiments across the markets. Among the US markets, the Dow Jones Futures lost -0.4%, or 183 points, led by the downgrade of the US growth outlook by the OECD from 2.2% to 1.6% and the decline in 10-year Treasury note yield by 4 bps to 4.418%.
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