Today, we recommend two stocks, one from the renewable energy sector and another from the financial services sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 23%. India’s energy landscape is changing dramatically, with the renewable energy industry setting ambitious targets for a sustainable future and experiencing unprecedented growth.
While the financial services industry in India is a prime example of the country’s economic growth and potential. Up until 2035, the industry will expand quickly due to factors like growing earnings, increased government emphasis on financial inclusion, and digital use. We also analyzed the market’s performance on Thursday to understand what may lie ahead for the stock indices in the coming days.
1. JSW Energy Ltd
- Current price: ₹529
- Target price: ₹625
- Upside: 18.14%
- 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
One of India’s top private sector power producers, JSW Energy Ltd., is a part of the JSW Group, which is well-known in several industries, including energy, infrastructure, cement, and sports. With a diverse portfolio of assets in power generation, transmission, and trading, JSW Energy has established its presence throughout the power industry’s value chains. In FY2000, JSW Energy commenced its commercial activities by commissioning its two 130 MW thermal power plants located in Vijayanagar.
To reach a total power generation capacity of 30 GW by 2030, the company is now constructing several power projects totalling 12.8 GW. With wind at 6,009 MW, hydro at 1,631 MW, solar at 5,611 MW, and hybrid at 5,242 MW, the company’s overall renewable energy capacity stood at 18,493 MW as of Q1 FY26. Of the total renewable capacity, operational capacity is at 7,110 MW, and under construction at 11,383 MW.
In FY25, it commissioned 1.3 GW of organic wind capacity, the most in the industry. This amounts to almost one-third of India’s 4.2 GW wind capacity expansion. It also signed a PPA with WBSEDCL for a greenfield 1.6 GW supercritical plant, acquired the 3.6 GW KSK Mahanadi Plant via the NCLT route, and completely commissioned the Utkal 700 MW. On April 25, the business completed the acquisition of a 4.7 GW RE platform with an operating capacity of 1.34 GW from O2 Power. To speed up growth, it has raised Rs 5,000 crore in growth capital through QIP from renowned institutional investors.
Approximately Rs 130,000 crore would be spent on additional capital throughout FY2026–FY2030. The company’s generating capacity increased from 4,559 MW in FY21 to 10,875 MW in FY25, representing a 24% CAGR. By FY30, it intends to increase the generation capacity to 30,000 MW. It is also targeting to reach 40 GWh of energy stored by FY30. The company reported outstanding financial performance for FY25, with its operating revenue rising 2.3% year over year from Rs 11,486 crore in FY24 to Rs 11,745 crore in FY25. Its net profit increased 14.9% year over year, from Rs 1,725 crore in FY24 to Rs 1,983 crore in FY25.
In Q1 FY26, the company reported revenue from operations of Rs 5,411 crore, a surge of 78% YoY from Rs 3,043 crore during the same period the previous year. EBITDA at Rs 3,057 crore surged by 93% YoY, driven by organic renewable capacity additions and contribution from the Mahanadi plant and O2 Power. Profit after tax surged by 42% YoY at Rs 743 crore, and Cash PAT at Rs 1,579 crore grew by 65% YoY.
Risk Factor
JSW Energy faces project execution risks for delays in transmission infrastructure and land acquisition. Furthermore, it is dependent on state distribution companies in Andhra Pradesh, Karnataka, Haryana, Himachal Pradesh, Maharashtra, Madhya Pradesh, Punjab, Uttar Pradesh, Rajasthan, and Telangana, exposing it to counterparty credit risks because of the diverse credit profiles of various DISCOMs.
2. Power Finance Corporation Ltd
- Current price: ₹ 416
- Target price: ₹ 513
- Upside: 23.31%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
The company is a Schedule-A Maharatna CPSE, a leading non-banking financial corporation in the country, which was incorporated on July 16th, 1986. It is the largest NBFC player by net worth and holds 20% of the market share. It is the most profitable NBFC in India as of FY25. The company offers a range of loans that cater to the demands of the power industry, including short-term and long-term loans, equipment lease finance, and transitional financing services for a range of power projects in the transmission, distribution, and production sectors.
The PFC group loan asset book stood at Rs 11,34,347 crore and registered a growth of 13% in Q1FY26. On a standalone basis, it touched Rs 5,49,786 crore in loan assets, growing at 16% YoY. Interest income for Q1FY26 stood at Rs 13,739 crore and grew at 16.6% YoY, whereas PAT stood at Rs 4,502 crore, registering 21% YoY growth.
The company recorded a yield of 10.01% on its earning assets as of Q1FY26, whereas the cost of funds stood at 7.40%. It resulted in a spread at the guided range of 2.61% and recorded a NIM of 3.68%, 13 bps higher than Q1FY25. The company gave a guidance range for a spread of around 2.5% for the full year FY26. It grew the renewable book grew more than doubled in the last 5 years, standing at Rs 81,031 crore, and grew 35% YoY.
The company recorded a net NPA of 0.38% in Q1FY26, higher compared to 0.87% as of Q1FY25. Moreover, it has been successful in decreasing the NPA ratio since FY19, which used to be very high at 4.55% in FY19. Its net worth stood at Rs 95,061 crore as of 30 June 2025, registering a notable growth of 14.2% YoY. The capital adequacy ratio for Q1FY26 is at 22.37%, well above the minimum regulatory requirements.
The company has been proactively fast-tracking its stage 3 asset resolution. Sinnar Thermal Power Project, which was part of Stage 3 Assets, with an outstanding amount of Rs 3,000 crore, is a 1,350-megawatt coal-based plant. It is being resolved under NCLT. Whereas, India Power Haldia, with an outstanding amount of Rs 959 crore, is a 450-megawatt coal-based plant, which is also being resolved under NCLT.
A final dividend of Rs 2.05 per share was announced by the company, and the total dividend for FY25 stood at Rs 15.80 per share, which includes the cumulative interim dividend of Rs 13.75 per share that was previously paid.
Risk Factor
The company is exposed to concentration risk as it relies on the power sector. It is also vulnerable to counterparty risk of private sector power players, as they are exposed to historical asset quality risks due to issues around fuel availability, challenges with passing on fuel price increases, and the absence of long-term power purchase agreements.
Market Recap August 14, 2025
The Nifty 50 had a muted start on Thursday at 24,607, down -12 points from the previous close of 24,619. The index was trading on a flattish trend throughout the day and ended at 24,631, sustaining above the 24,600 level. The index closed below both the 20-day and 50-day EMAs but above the 100-day and 200-day EMAs. By the close, the Nifty 50 had gained 11.95 points, or 0.05%.
The BSE Sensex mirrored this trend, increasing marginally by 57.75 points, or 0.07%. It had its opening at 80,625 and settled at 80,597.6. The Nifty 50’s RSI was at 44.54, while it still held above the 200-day EMAs. The BSE Sensex RSI stood at 43.12, staying well below the overbought level of 70. Although it slipped below the 20-day, 50-day, and 100-day EMAs, it managed to close above the 200-day EMAs. The Bank Nifty Index ended in the green, closing at 55,341.8, gaining 160.40 points, or 0.29%.
The sectoral indices ended on a mixed note on Thursday. The Nifty Consumer Durable Index was the top gainer, closing at 37,329.6, up by 278.15 points, or 0.75%. Kalyan Jewellers India Limited was the biggest gainer, increasing 3.5%, followed by Blue Star Ltd., which gained 1.7%, and Dixon Technologies Ltd, up 1.5%. The Nifty IT Index followed the gains, closing at 34,833, up 140.25 points, or 0.4%. Tech stocks like Wipro Ltd gained 2.1%, followed by other IT stocks like Infosys Ltd, Coforge Ltd, and Mphasis Ltd, which rose by up to 1.48%. The Nifty Finance Index was also among the top gainers, closing at 26,333, up by 95 points or 0.36%.
Among the major losers, the Nifty Metal index plunged the most on Thursday’s trading session, primarily due to profit booking after ending in the green for the past three consecutive sessions. The index decreased by -129.70 points, or -1.39%, closing at 9,216.2. NMDC Ltd was the major loser, dropping 4.4%, followed by Tata Steel Ltd, SAIL, and Jindal Steel & Power Ltd, which declined by up to 3%. Another major laggard was the Nifty Oil & Gas Index, which closed at 10,997.3, losing -101.50 points, or 0.91%. Major losers include Hindustan Petroleum Corporation Ltd, Aegis Logistics Ltd, Mahanagar Gas Bank Ltd, and Indian Oil Corporation Ltd, whose shares declined by up to 4%.
Asian markets were broadly on a negative note, with Hong Kong’s Hang Seng Index dropping -132.67 points, or -0.52%, to close at 25,481. Whereas the Shanghai Composite Index closed at 3,666.44, losing 17.02 points, or 0.46%. However, South Korea’s KOSPI Index closed on a slightly muted note at 3,225.66, up 1.29 points, or 0.04%. Japan’s Nikkei 225 Index also closed in the red at 42,693, losing -581.67 points, or -1.36%. The US Dow Jones Futures were trading at 44,955.47, up 33.2 points, or 0.07%, as of 4:40 p.m. IST.
This week, the Nifty index remained positive, regaining last week’s losses, up by 0.47%, or 116.35 points, closing above the 24,600 level. On Tuesday, the inflation fell and reported an 8-year low of 1.55%. However, the market players are awaiting more signals from the US-Russian negotiations. The summit between U.S. President Donald Trump and Russian President Vladimir Putin, set to take place in Alaska on August 15, aims to establish a ceasefire in the Ukraine crisis, which has persisted for over three years.
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