Today, we recommend two stocks, one from the NBFC-Housing Finance sector and another from the Healthcare sector, recommended by the Trade Brains Portal, to buy for an upside potential of up to 25%. We also analyzed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days
1. Bajaj Housing Finance Ltd
- Current price: ₹ 120
- Target price: ₹150
- Upside: 25%
- Time frame: 16-24 Months
Why it’s recommended:
Registered with the National Home Bank (NHB), Bajaj Housing Finance Limited (BHFL) is a non-deposit home finance company that started lending in 2017. As of March 31, 2025, Bajaj Finance has a significant 88.75% ownership in Bajaj Housing Finance, which is a subsidiary of Bajaj Finance Ltd. With an emphasis on a low-risk, medium-return portfolio, it provides developer financing, lease rental discounting, house loans, and loans secured by real estate. As of Q4 FY25, BHFL operates 216 branches in 22 states, union territories, and 174 other places.
Additionally, 56.2% of BHFL’s AUM originates from the house loans category, followed by loans secured by real estate (10.7%), lease rental discounting (19.1%), developer finance (12.5%), and others (1.5%) in FY25.
The company’s AUM increased from ₹91,370 crore in FY24 to ₹114,684 crore in FY25, representing a 26% YoY gain in the financials section. From ₹11,393 crore in Q4 FY24 to ₹14,254 crore in Q4 FY25, disbursements grew by 25% year over year. Reduced operational expenditures: the OPEX-to-NTI ratio improved from 24.0% in FY24 to 20.8% on a full-year basis. Loan disbursements climbed 25% year over year to ₹14,254 crore in FY25, while total income increased 25.7% year over year to ₹9,576 crore.
The year’s profit after tax was ₹2,163 crore, a 25% increase. Strong cost management is demonstrated by the operating expense (OPEX) ratio, which has significantly decreased from 74.6% in FY18 to 20.8% in FY25. The return on equity increased from 7.8% in FY21 to 13.4% in FY25. With a provision coverage ratio of 60% and gross non-performing assets (NPAs) of only 0.11%, asset quality is still strong. At 4% in Q4FY25, the net interest margin is still strong and steady.
The medium-term forecast for AUM growth for the future was between 24 and 26 percent. From 21.7%, the OPEX to NTI ratio will drop to 14–15%. The current GNPA of 0.29% was 40–60 basis points below the asset quality forecast. The credit cost will drop from 0.12% to 20–25 basis points. However, as of Q4 FY25, the provisioning coverage ratio is dropping from 60.3% to 40–50%. Return on assets, which was 2.4%, will stay below the present levels of 2-2.2%, and return on equity, which was 12.1%, will rise to 13-15% for the medium-term forecast. 5.2 times was the leverage ratio as of March 31, 2025, and it is expected to reach 7-8 times in the medium term.
Risk Factor:
Particularly in the affordable housing market, the housing financing sector is extremely competitive. If BHFL is compelled to reduce rates, it may experience pressure on its lending margins and market share. With a sizable amount of its operations focused in four states and the New Delhi area, the corporation also faces the danger of geographic concentration.
2. Dr. Lal PathLabs Ltd
- Current price: ₹ 2,910
- Target price: ₹ 3,380
- Upside: 16%
- Time frame: 16-24 Months
Why it’s recommended:
Dr. Lal PathLabs was established in 1949 and offers diagnostic and associated medical services and tests all over India. Through its integrated, nationwide network, the company provides patients and healthcare practitioners with a wide range of diagnostic services for core testing, patient diagnosis, and the prevention, monitoring, and treatment of diseases and other health conditions. As of FY25, the company operated 298 clinical laboratories, 6,607 patient service centers (PSCs), and 12,365 pick-up points (PUPs). They offer 1,455 radiology and cardiology tests, 3,172 pathology tests, and 385 test panels.
The firm operates in more than 23 countries, collaborates with more than 150 hospitals and labs, and conducts more than 700 tests daily. Dr. Lal’s logistics are supported by over 280 satellite laboratories, over 36 NABL (National Accreditation Board for Laboratories) accreditations, a workforce of over 1,800 personnel, and more than 250 physicians.
In FY25, the company’s revenue of Rs 2,461 crore was 10.5% more than FY24’s sales of Rs 2,227 crore. With a margin of 28.3%, EBITDA grew 14.2% to Rs 696 crore from Rs 609 crore in FY24. With a 20% margin, PAT increased from Rs 362 crore in FY24 to Rs 492 crore, a 35.9% increase. By strategically developing the test portfolio and steadily increasing patient volumes and samples, the management was able to oversee an 11–12% growth in revenue for FY26. EBITDA margin of roughly 27% for FY26 since the company plans to hire additional staff, strengthen digital platforms, invest in new regions, especially South and West India, and more
To make patients’ lives easier, Dr. Lal PathLabs is always working to grow its digital platforms with initiatives like its own AI-based Recommendation Engine. Dr. Lal PathLabs is adamantly trying to expand the testing’s reach. The company is actively developing its expertise in specialized fields such as genomics, reproductive diagnostics, autoimmune illnesses, and other advanced tests.
The company expanded its foothold in Tier-3 and Tier-4 markets by establishing 18 new labs throughout the year, in addition to strengthening its network in metro and Tier-1 cities and continuing to expand its presence throughout Tier-3 and Tier-4 cities, primarily in the North and East. The acquisition of Suburban Diagnostics in 2021 will help to broaden the scope and reach of Dr. Lal’s company. The company is focusing on volume-led growth by increasing the number of patient visits and tests per patient portfolio. The business is actively looking for any M&A opportunities to grow inorganically and leverage its strong brand identification as awareness of proactive healthcare and early diagnosis rises.
Risk Factor:
Any failure to maintain accuracy and precision due to inadequate maintenance, errors in the testing process, a lack of handling techniques, or human error could affect the company’s services’ integrity and accuracy. Dr. Lal PathLabs may face fierce competition and pricing pressure due to the fragmented diagnostics market and the numerous unorganized businesses offering similar tests and diagnostic services.
Market Recap 18th June, 2025
Since the benchmark indexes were still under pressure due to persistent geopolitical uncertainties that kept investors on edge, the Indian markets opened the day weaker and continued to lag throughout the trading hours on Wednesday. In addition, investors are cautious pending the US Fed’s conclusion. The Nifty 50 reached an intraday high of 24,947.5 after opening at 24,788. Similar to this, the BSE Sensex began at 81,314.62 and reached an intraday high of 81,859. In the daily time period, the Nifty 50 slipped below the 20-day EMA but above the 50/100/200, closing at 24,812, down -41.35 points, or -0.17%, with an RSI of 52.17. In contrast, the BSE Sensex finished below the 20-day EMA but above the 50/100/200 in the daily time frame at 81,444.6, down -138.6 points, or -0.17%, with an RSI of 51.2.
Wednesday’s biggest gainer was the Nifty Consumer Durable index, which closed the day at 36,992, up 290 points, or 0.79%. The index rose as a result of gains of up to 3% from Whirlpool of India, Amber Enterprises, Titan Company, and Kalyan Jewellers. The Nifty Private Bank Index closed at 27,776 after gaining 109 points, or 0.39%, to follow the lead. Of the private banks, IndusInd Bank had the most profits, rising up to 6% as the global brokerage firm Nomura raised the stock to a “buy” recommendation, which caused the shares to soar. Federal Bank, RBL Bank, and Bandhan Bank all saw gains of up to 5%.
One of the worst losers was the Nifty IT index, which ended the day at 39,030, down -325 points, or -0.83%. The index fell as a result of the biggest firms, such as Oracle Financial Services, TCS, LTI Mindtree, and HCL Technologies, plunged up to 2%.
The Asian markets traded mixed on Wednesday, as the tensions between the Iran-Israel war escalated. The US President is considering launching a military strike against Iran, demanding the country’s leader Ayatollah Al Khamenei to surrender. This triggered speculation among investors about the heightened involvement of the USA in the Iran-Israel war. The Hang Seng index in Hong Kong fell -1.12%, or -269.61 points, to close at 23,710.69, while the Kospi index in South Korea continued its upward trend, rising 0.74%, or 21.89 points, to close at 2,972.19. Japan’s Nikkei 225 closed at 38,885.15, up 348.41 points, or 0.9%.
The Shenzhen index ended the day at 10,175.59, up by 24.16 points, or 0.24%. China’s Shanghai index remained flat at 3,388.81, up 0.04% or 1.40 points. In the US markets, the Dow Jones Futures contract added 76 points or 0.2%, at 42,632 as it is widely anticipated by the Fed to leave the interest rates unchanged on Wednesday.
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