Today, we recommend two stocks, one from the renewable energy sector and another from the industrial gases & fuels sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 25%. India’s energy environment is undergoing an enormous transformation, with the renewable energy sector setting ambitious targets for a sustainable future and witnessing unprecedented development. At the same time, the nation’s growing industrial base and clean energy transition are significantly supported by the industrial gas and fuel sector. We also analyzed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
1. Castrol India Ltd
- Current price: ₹ 223
- Target price: ₹ 260
- Upside: 16.59%
- Time frame: 12-14 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Castrol India Limited is one of India’s top producers and distributors of industrial and automotive lubricants. It is a division of the BP Group’s Castrol Limited. In the Indian lubricant market, the company has a substantial market share of over 20%. Castrol provides reliable brands such as Castrol POWER1, Castrol MAGNATEC, Castrol EDGE, Castrol Activ, Castrol CRB, and Castrol GTX. Castrol India has three blending facilities and a vast distribution network that reaches more than 150,000 stores across the country.
In Q1FY25, operating revenue was Rs 1,422 crore, a 7% YoY increase over Q1FY24’s Rs 1,325 crore. The quarter’s profit after tax (PAT) was Rs 233 crore, an 8% YoY increase from Q1FY24’s Rs 216 crore. The automotive category, which accounts for 85% of the company’s operations, contributed more to the overall volume gain of 8% YoY. In Q1FY25, the company provided more than 63 million liters of volume.
It has a presence of over 148,000 locations across India. Castrol is still growing its presence in rural regions, now serving 40,000 workshops and retail establishments. Castrol India and Triumph, a motorcycle manufacturer, signed a supply contract for Castrol POWER1 (complete synthetic 2-wheeler oil). Castrol made considerable strides in increasing its industrial product line’s visibility and gaining new clients. It expanded its chemical management service (CMS) business to include a significant gearbox manufacturer. Furthermore, it is anticipated that the company’s involvement in IMTEX 2025 will generate opportunities from both current and potential clients.
Risk Factor
As a buyer of base oil, the company is primarily exposed to market risk concerning commodity pricing. The price of this commodity product can change significantly over short periods. Base oil prices typically follow the cycles of commodities. The majority of their operating costs are related to material purchases. The company hasn’t signed any contracts for commodity derivatives. It should be mentioned that while there are derivatives for crude oil, there are no direct derivatives for base oil.
2. GAIL (India) Ltd
- Current price: ₹183
- Target price: ₹230
- Upside: 25.68%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
GAIL (India) Limited, the leading natural gas company in India, was established in 1984 as a Maharatna PSU. It trades, transmission, LNG re-gasification, petrochemicals, city gas, E&P, and the production and transmission of LPG, and has a varied natural gas value chain. The domestic market share of GAIL in India is 15% for polyethylene in petrochemicals, 70% for gas transportation, and 50% for gas trading. Currently, the company runs 16,420 km of pipelines for natural gas. With five processing facilities, Gail has a total output capacity of 1.4 MMTPA and a gearbox capacity of 4.58 MMTPA for LPG.
The company’s FY25 sales stood at Rs 1,42,291 crore, a 7% increase over FY24’s revenue of Rs 1,33,499 crore. Gross EBITDA stood at Rs 20,643 crore, a 22% YoY increase from Rs 16,986 crore. Additionally, profit after tax rose 26% year over year to Rs 12,462.87 crore. The market value of GAIL reached Rs 1.60 trillion. In FY26, the management expects the company’s earnings before taxes to reach at least Rs 4,500 crore.
In FY25, the company recorded the highest-ever annual volume of petrol gearbox (127 MMSCMD) and total annual volume of LPG gearbox (4.478 MMTPA). Further, the business entered into a long-term agreement with Qatar for a volume of 0.75 MMTPA; supply for this agreement started in April 2025. Additionally, the KLL Dabhol Breakwater project was completed.
The gas transportation volume is projected to reach 138 to 139 MMSCMD in FY26. On April 18, 2025, MOPNG awarded GAIL 0.32 MMSCMD of additional well gas for LPG production, offsetting over half of the prior APM drop. It is anticipated that this would boost productivity and profitability. Further, GAIL anticipates spending more than Rs 10,000 crore on capital projects in FY26, including Rs 1,000 crore for net-zero projects and Rs 3,000 crore for pipelines and petrochemicals. The company’s operational CAPEX will remain between Rs 1,500 and Rs 1,600 crore, in addition to investments in CGD, LNG, and CBG projects.
Risk Factor
GAIL has entered into several long-term LNG import agreements, and the pricing formula for the majority of those contracts is based on the HH index, which is the US benchmark for natural gas prices. This exposes the marketing margins to price fluctuations, as GAIL may face pressure on profitability in the event of low crude oil prices.
Market Recap 14th July 2025
The Indian markets opened at 25,149.50, flat from the previous day’s closing of 25,149.85, and followed a bearish trend throughout the market hours on Monday. Nifty 50 touched the intraday low of 25,001.95. BSE Sensex also opened on a similar note at 82,537.87 and went to an intraday low of 82,010.38. The Nifty 50 closed at 25,082.30, down by -67.55 points, or -0.27%, with an RSI of 46.66, and remains below the 20-day EMA but above the 50/100/200 in the daily time frame. Whereas, the BSE Sensex closed at 82,253.46, down by -247.01 points, or -0.30%, with an RSI of 46.31, closing below the 20-day EMA but above the 50/100/200 in the daily time frame.
On Monday, sectoral indices showed mixed signals. The Nifty Realty index was among the major gainers, closing at 976.25, up by 13.35 points, or 1.39%. Stocks like Sobha Ltd, Godrej Properties, and Brigade Enterprises surged over 2%. Nifty Media was also among the top gainers, closing at 1,727.50, up by 23.20 points, or 1.36%. Stocks such as Zee Entertainment, Dish TV, and Network 18 Media rose by up to 4%. Nifty Smallcap 50 also rose 1.14%, or 102.90 points, to close at 9,164.20, with Neuland Laboratories rising 18.27%, Piramal Enterprises surging 6.23%, and Laurus Lab increasing 4.26%.
Whereas, the Nifty IT index was among the top losers, closing at 37,273.70, down by −419.55 points, or −1.11%. It has also witnessed a continuous decline for three consecutive trading sessions, falling below all 20/50/100/200-day EMAs on a daily basis. RSI also took a hit as it went to a monthly low of 37.20. Major laggards were Tech Mahindra, Wipro, Infosys, and TCS, falling more than 1% on Monday, weighing down the index.
In contrast, Asian markets showed a bullish trend on Monday. The Hang Seng index in Hong Kong rose 0.26%, or 63.75 points, closing at 24,203.32. China’s Shanghai index also rose by 9.47 points, or 0.27%, to settle at 3,519.65. South Korea’s Kospi index rose 0.82%, or 26.26 points, to end at 3202.03. The Thailand SET composite rose 1.94%, or 22.18 points, and closed at 1,143.31. The Indonesian Jakarta composite grew 0.70%, or 49.71 points, closing at 7,097.15 points. Meanwhile, Japan’s Nikkei 225 declined by -110.06 points, or -0.28%, to close at 39,459.62. In the US, Dow Jones Futures also declined -124.46 points, or -0.28%, to 44,247.05 on Monday.
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