In the present day, we suggest two shares, one from the shipbuilding sector and one other from the auto parts sector, really helpful by the Commerce Brains Portal, to purchase for an upside potential of greater than 23%.
The Indian shipbuilding sector is essential for the nationwide financial system by boosting commerce, enhancing nationwide safety, creating vital employment and multiplier results in associated industries, and contributing to the Blue Economic system via port-led improvement and indigenous vessel building.
In the meantime, the lead-acid battery sector is important to the Indian financial system, supporting sectors like automotive, telecommunications, and renewable vitality via reasonably priced vitality storage and backup energy. We additionally analyzed the market’s efficiency on Thursday to grasp what could lie forward for the inventory indices within the coming days.
- Present value: ₹ 394
- Goal value: ₹ 485
- Upside: 23%
- Timeframe: 12 months
To view the report for the inventory talked about above or discover different inventory suggestions, click on right here
Why it’s really helpful
Exide Industries Ltd. is a number one Indian battery producer providing a complete vary of lead-acid and lithium-ion batteries used throughout automotive, industrial, and renewable vitality sectors. Its merchandise cater to automobiles, together with automobiles, two-wheelers, and vehicles, in addition to purposes in inverters, UPS programs, telecom, railways, mining, and defence.
The corporate offers batteries with capacities from 2.5 Ah to twenty,000 Ah. With operations in over 63 international locations and 11 manufacturing items situated all through India, Exide expanded its attain in FY25 by including over 14 distributors and getting into 13+ new areas within the automotive section. Within the industrial sector, it secured 28+ new accounts throughout 20+ areas.
In FY25, Exide reported standalone revenues of Rs 16,588.11 crore, marking a 3.4% year-on-year enhance. Its web revenue stood at Rs 1,076.93 crore, growing by 2.27% YoY. The corporate continues to take care of a zero debt-to-equity ratio and continues to generate sturdy operational money flows, recording Rs 1,298 crore in FY25.
Within the first quarter of FY2025-26, working income reached Rs 4,695.12 crore, reflecting a 5.8% year-on-year enhance and an 8.3% rise in comparison with the earlier quarter. The EBITDA margin improved to 12%, up from 11% in Q1 FY25, pushed by stronger pricing, a extra beneficial product combine, and value optimization initiatives applied throughout manufacturing amenities.
Moreover, Exide acquired full possession of Exide Power Options Ltd. (EESL) to determine a greenfield facility with a complete deliberate capability of 12 GWh, developed in two phases of 6 GWh every. This Rs 3,602 crore funding helps the corporate’s technique of delivering full vitality storage options “from molecule to megawatt”.
The corporate has invested an extra Rs 300 crore in Q1 FY26 and Rs 100 crore in July 2025 into EESL. It additionally partnered with SVOLT Tech Options, a number one lithium-ion cell producer, to develop a turnkey Li-ion cell manufacturing plant. As a part of Section 1, the corporate plans to scale manufacturing via 4 further traces, including one other 6 GWh in capability. These initiatives purpose to place Exide strongly inside the fast-evolving battery market.
India, being one of many world’s largest automotive markets, is projected to have a battery demand of 120 GWh by 2030, pushed by authorities incentives just like the auto PLI scheme, state EV insurance policies, and subsidies. In keeping with ICRA, electrical car (EV) gross sales penetration by 2030 is anticipated to succeed in 25% for two-wheelers, 40% for three-wheelers, 30% for buses, 15% for passenger automobiles, and 12-16% for gentle business automobiles. These tendencies current vital development alternatives for Exide.
Danger Issue
Exide faces stiff competitors within the lead-acid battery section from organized gamers like Amara Raja and HBL Engineering, in addition to numerous unorganized gamers. The corporate can also be topic to stringent environmental laws as a consequence of its reliance on hazardous uncooked supplies resembling lead, sulfuric acid, and lithium. Moreover, value volatility in key supplies like antimony and lead, each of which have surged in latest months, may strain its revenue margins.
- Present value: ₹ 2,629
- Goal value: ₹ 3,250
- Upside: 23.6%
- Timeframe: 12 months
To view the report for the inventory talked about above or discover different inventory suggestions, click on right here
Why it’s really helpful
Mazagon Dock Shipbuilders Ltd., established in 1774 with a modest dry dock and integrated as a personal entity in 1934, is India’s solely public sector protection shipyard that constructs each destroyers and submarines. The corporate possesses state-of-the-art amenities with the capability to construct as much as 11 submarines and 10 warships concurrently.
Between 2014 and 2025, Mazagon delivered seven destroyers, finishing one roughly each 18 months. Its operations are break up into two segments, with the shipbuilding division housing three dry docks, three moist basins, three massive slipways, six small slipways, and a large 300-tonne crane.
In FY25, the corporate achieved report income of Rs 11,432 crore, marking a 21% year-on-year development from Rs 9,467 crore in FY24. Revenue after tax rose by 25% to Rs 2,413.5 crore from Rs 1,937 crore the earlier yr. Earnings per share (EPS) for the fiscal yr stood at Rs 59.83, whereas EBITDA margins improved to twenty-eight.24% from 26.93% in FY24.
In Q1 FY26, income rose 11.4% to Rs 2,625.6 crore from Rs 2,357 crore in Q1 FY25, with quarterly revenue reaching Rs 422 crore. EPS for the quarter got here in at Rs 11.21. The corporate has set medium-term steering of 15% revenue earlier than tax margins and expects 8-10% CAGR income development within the coming years.
Trying forward, Mazagon Dock is anticipating the award of latest P-75 submarine contracts, with an estimated worth of Rs 30,000-Rs 40,000 crore. The bigger P-75(I) submarine deal is anticipated to be signed in FY26. Presently, the corporate’s order e-book stands at Rs 32,260 crore, and as soon as the P-75 contracts are finalised, the order e-book may exceed Rs 1.25 lakh crore, considerably enhancing profitability and margin potential.
Mazagon Dock has additionally acquired land from the port authority for constructing smaller vessels. For this enlargement, it plans a capital expenditure of roughly Rs 4,000 crore. Moreover, 10% of the brand new submarine contract worth (P-75 AS) is anticipated to start contributing to income from FY28. Of the present order e-book, round Rs 24,000 crore is anticipated to be recognised over the following two years.
Danger Issue
Delays in deliveries may considerably hurt the corporate’s fame, operations, and monetary well being. Moreover, poor-quality work by subcontractors could negatively affect the corporate’s enterprise efficiency, fame, and monetary outcomes. The unavailability of important imported uncooked supplies, mixed with alternate price volatility and fluctuating costs, may additionally weaken the corporate’s aggressive benefit.
Market Recap: August 28, 2025
Thursday’s buying and selling session started on a bearish notice, with broader market indices ending within the crimson in two consecutive buying and selling periods. The Nifty 50 opened weak at 24,695.80, down -16.25 factors from the earlier shut of 24,712.05, and slipped additional to shut at 24,500.90. This marked a decline of -211.15 factors, or -0.85%, with the index ending under the 20-day, 50-day, and 100-day EMAs however nonetheless holding above the 200-day EMAs on the each day chart.
The BSE Sensex mirrored the downward pattern, opening at 80,754.66 and shutting at 80,080.57, registering a decline of -705.97 factors, or -0.87%. Momentum indicators additionally mirrored weakening sentiment, with the Nifty 50’s Relative Energy Index (RSI) at 40.79 and the Sensex RSI at 39.63, each comfortably under the overbought threshold of 70.
The Financial institution Nifty Index was not spared both, closing at 53,820.35 after shedding 630.10 factors, or -1.16%. Buyers have unfavorable sentiment, which was largely attributed to the 50% tariff imposed on India, which has already come into impact on twenty seventh August 2025.
The vast majority of the sectoral indices ended the day within the crimson, aside from a number of gainers. The Nifty Client Sturdy Index was the highest gainer, closing at 38,534.60, up by 214.25 factors, or 0.56%. Kalyan Jewellers India led the positive aspects with a 2.36% enhance, adopted by different shopper sturdy shares, together with Bata India, which gained 1.35%, and Whirlpool of India Ltd, which rose by 1.29%.
Among the many main losers, the Nifty IT index plunged probably the most on Thursday’s buying and selling session. The index decreased by -574.45 factors, or -1.59%, closing at 35,488.75. HCL Applied sciences Ltd was the foremost loser, dropping 2.88%; TCS declined 2.5%, and Infosys Ltd fell 2.4%. One other main laggard was the Nifty Smallcap 50 Index, which closed at 8,297.55, dropping -131.15 factors, or -1.56%. Main losers embrace Poonawalla Fincorp Ltd, CESC Ltd, and Multi Commodity Trade, whose shares declined by as much as 5.10%.
In distinction, Asian markets have been broadly constructive on Thursday, with the Shanghai Composite Index closing at 3,843.60, gaining 43.25 factors, or 1.13%. South Korea’s KOSPI Index closed at 3,196.32, up 9.16 factors, or 0.29%. Japan’s Nikkei 225 Index additionally closed on a bullish notice at 42,789.00, gained 268.73 factors, or 0.63%. Then again, Hong Kong’s Grasp Seng Index ended at 25,014.00, dropping -187.76 factors, or -0.75%. The US Dow Jones Futures have been buying and selling at 45,645.56, up 80.33 factors, or 0.18%, as of 4:52 p.m. IST.
Disclaimer
The views and funding ideas expressed by funding specialists/broking homes/score companies on tradebrains.in are their very own, and never that of the web site or its administration. Investing in equities poses a threat of monetary losses. Buyers should subsequently train due warning whereas investing or buying and selling in shares. Commerce Brains Applied sciences Non-public Restricted or the creator should not chargeable for any losses triggered because of the choice primarily based on this text. Please seek the advice of your funding advisor earlier than investing.
About: Commerce Brains Portal is a inventory evaluation platform. Its commerce title is Dailyraven Applied sciences Non-public Restricted, and its SEBI-registered analysis analyst registration quantity is INH000015729.
Investments in securities are topic to market dangers. Learn all of the associated paperwork rigorously earlier than investing.
Registration granted by SEBI and certification from NISM by no means assure efficiency of the middleman or present any assurance of returns to traders.
