On this article, we take a look at two shares from the auto ancillaries sector and the opposite from the FMCG sector to purchase for an upside potential of greater than 15%, really useful by Commerce Brains Portal. Additional, we analyze the market’s efficiency yesterday and likewise take a look at some shares to be careful for at the moment.
Exide Industries
- CMP: ₹ 381
- Goal: ₹ 440
- Upside: 15.5%
- Timeframe: 12 months
Why it’s really useful
The lead-acid battery business is valued at $4.5 billion and is anticipated to develop at a CAGR of 9% for FY30. The first driver for that is the huge adoption of lead-acid batteries within the automotive business, particularly for autos like two-wheelers and business autos. With the automotive sector’s transformative shift towards EVs, India’s EV market is anticipated to develop at a CAGR of 49% from 2022 to 2030.
Massive enlargement of telecom with elevated demand for uninterrupted energy provide programs; the sector is rising at a charge of 9.4% and is anticipated to achieve $83.35 billion by 2030. The producers inside the battery business are gearing up for capex of Rs 11,000 crores to 12,000 crores from fiscal 2025 to 2027. The automotive business is projected to extend by 9-10% in FY26, pushed by two-wheeler and passenger car gross sales. The demand progress of 11-12% in knowledge facilities, railways, and the telecom sector will guarantee wholesome income progress for the lead-acid battery business.
In FY25, Exide Industries recorded a 4% improve of their complete income, from Rs 16,029 crores in FY24 to Rs 16,588 crores. EBITDA elevated by 1% from Rs 1,871 crores in FY24 to Rs 1,893 crores, rising at a CAGR of 8.7%. PBT elevated by 2% from Rs 1,410 crores to Rs 1,441 crores over the identical interval. On this fiscal 12 months, the corporate has invested round Rs 1,300 crores within the lithium-ion cell manufacturing undertaking and can be arising with a 6 GWh greenfield undertaking in Bengaluru, aiming to start business manufacturing by FY26.
The corporate has entered into the photo voltaic enterprise, rising considerably by 25-27% each quarter, constructing a Rs 1,200 crore enterprise by FY26. As a rising requirement of essential load (vs. backup energy) at banks, hospitals, and workplaces inside the knowledge facilities phase, the corporate expects 20% CAGR progress within the medium time period. In FY26, the corporate plans to enter the market segments of warehousing and logistics, e-commerce, and aviation, and expects the double-digit progress development to proceed.
Threat issue
The value volatility in lead and sulfuric acid has been a priority for a very long time as a consequence of provide chain disruptions and international geopolitical tensions. The uncooked materials costs have an effect on the manufacturing prices, as the typical value of lead surged to $1,953 per ton in 2025, impacting the profitability of battery producers and making a difficult situation inside the business. The expertise improve from lead-acid batteries to lithium-ion batteries, sodium-ion batteries, and solid-state batteries might contain larger upfront prices, as lithium-ion batteries and different alternate options are usually costlier, additional intensifying the aggressive strain on lead-acid batteries.
Colgate-Palmolive (India)
- CMP: ₹ 2589
- Goal: ₹ 3020
- Upside: 16.6%
- Timeframe: 12 Months
Why it’s really useful
The Indian toothpaste market reached $1,440 million in 2024. The market is anticipated to develop at a CAGR of 4.23% between 2025 and 2034, reaching $2,180 million by 2034. The oral care market is pushed by growing oral well being consciousness, elevated disposable revenue, and demand for premium dental merchandise. With the fast enlargement of distribution channels throughout the nation, an uptrend in toothpaste consumption is noticed. In FY25, the general income of toothpaste and oral well being amounted to $1.96 billion, and by way of per-person income, India generated $1.35 per particular person in FY25.
With the faster-than-ever evolving E-commerce sector, one of many key components in fueling the Indian toothpaste market progress. The e-commerce market, valued at $125 billion in FY24, is anticipated to achieve $325 billion by 2030, exhibiting a progress charge of 5-17%. The agricultural family’s each day utilization of toothpaste is 45%, and concrete utilization of toothpaste twice a day is barely 20%.
Colgate-Palmolive India Ltd. is among the largest oral care firms in India, having over 50% market share within the toothpaste class and distribution reaching over 6.5 million retailers. In FY25, Colgate-Palmolive reported web gross sales of Rs. 1,452 crore for Q3FY25, a progress of 4.7% year-on-year and CAGR of 8.3% in 2 years. For the 9 months, the corporate delivered web gross sales progress of 9.2% year-on-year at Rs. 4,547 crore as in comparison with Rs. 4,164 crore for a similar interval final 12 months. Web revenue after tax for the 9 months was Rs. 1,081.8 crore as in comparison with Rs. 943.8 crore, a progress of 14.6% year-on-year and CAGR of 17.7% in 2 years.
The corporate launched India’s largest oral well being initiative, the Oral Well being Motion, designed to supply customized AI-generated dental screening experiences. As per the corporate estimates, 272 million households purchase 1.5 tubes over 7 occasions in a 12 months, equating to 2.3 billion tubes purchased yearly. The corporate has began a brand new initiative to supply AI-ML-based suggestions to 1.7 million shops, enabling it to extend assortment by +14% over a two-year CAGR and ship sturdy enterprise progress, with transformed shops rising 1.2x larger versus the remaining.
Threat issue
There’s an pressing want for oral well being consciousness and methods in India, as 55% of rural Indians don’t brush each day, Indians change their toothbrush as soon as each 9 months, and over 80% of Indians don’t brush twice in a day. The decline in routine dental visits with age, notably after 35–44 years, signifies a considerable want for early intervention applications to determine lifelong oral hygiene practices. Furthermore, the Indian oral care and toothpaste market is extremely aggressive, with quite a few regional and native gamers providing reasonably priced alternate options to accentuate value competitors. Moreover, natural and ayurvedic merchandise have fragmented the market.
Market Recap: Might thirteenth
The markets at the moment opened on a constructive observe, with the Sensex rising over 500 factors in early commerce, with a cooling inflation charge of three.16%, the bottom since July 2019, and constructive macro indicators, hoping for elevated charge cuts from the Reserve Financial institution of India. BSE Sensex was up 513 factors, at 81,661, and the Nifty surged 152 factors, or 0.62 p.c, to commerce at 24,730, buying and selling above each 50 DMA and 200 DMA with RSI at 62.31 and shutting at 24,667, up by 88.55 factors, or 0.36 p.c. The BSE Sensex closed at 81,330 factors, up by 182 factors, or 0.22%. Financial institution Nifty fell by 140 factors, or -0.25%, closing at 54,801 factors.
The Nifty Metallic index has been the highest performer, closing at 9052, up by 217 factors (2.46%), adopted by Nifty Realty, closing at 881, up by 14.70 factors (1.7%) amid softer retail inflation within the US and India. India’s retail inflation inched down to three.16% in April, which exhibits that the RBI is targeted on progress. As there will probably be extra financial savings, a rise in disposable revenue will additional assist enhance the demand sooner or later.
The US CPI touched 2.3% in April, from 2.4% in March. The sectors reacted positively after the US introduced it will scale back tariffs on China to 30% from 145% for 90 days. Shares like SAIL, NALCO, LLOYD METALS, and JINDAL STAINLESS STEEL had been a number of the top-performing steel shares, and PRESTIGE, MACROTECH, and OBEROI had been a number of the top-performing realty shares.
Shares to be careful for on Might fifteenth
Muthoot Finance: The corporate has revealed its This autumn and FY25 outcomes. In FY25, their complete income from operations was Rs 19,662 crore, which has elevated by 35% from Rs 14,545 crore in FY24. Their web revenue for the interval is Rs 5,352, a rise of 20% year-on-year from Rs 4,467 crore.
Eicher Motors: In FY25, the corporate achieved its best-ever revenues, rising by 14.1% YoY to Rs 18,870 crores, and revenue after tax stood at Rs 1,362 crores, up by 27.3%. The corporate achieved 1 million Royal Enfield gross sales for the primary time. Their complete volumes stood at 1,002,893 models, a ten% improve YoY.
Tata Energy: Tata Energy noticed a income progress of 5% in FY25 to Rs 66,992 crore, up from Rs 63,272 crore in FY24. Their web revenue for the interval marginally grew by 12%, from Rs 4,280 crore to Rs 4,775.37 crore.
Jubilant FoodWorks: In FY25, the corporate reported a income of Rs 5,655 crore, a rise of 44% from Rs 8,141 crore in FY24. Nonetheless, their income have declined by 45%, from Rs 400 crore to Rs 217 crore, within the interval.
Main firms are saying outcomes at the moment
- JSW Power
- PB Fintech
- Patanjali Meals
- Abbott India
- Tube Investments of India Ltd
- Web page Industries
- Cochin Shipyard
- Godfrey Phillips India
- ITC Lodges
- Kaynes Expertise India
- Godrej Industries
- World Well being
- LIC Housing Finance
- Endurance Applied sciences
- Inventurus Information Options
- ZF Industrial Automobile Management Methods India
- CESC
- Crompton Greaves Shopper Electrical
- SKF India
- Vinati Organics
- Bikaji Meals Worldwide
- Jupiter Wagons
- Neuland Laboratories
- BLS Worldwide Providers
- Caplin Level Laboratories
- NCC
- LT Meals
- Bombay Burmah Buying and selling Company
- IFCI
- Balrampur Chini Mills
- G R Infraprojects
- Allied Blenders & Distillers
- Saregama India
- Arvind
- Gujarat Mineral Improvement Company
- Inox India
- Tega Industries
- Garware Technical Fibres
- P N Gadgil Jewellers
- South Indian Financial institution
- Welspun Enterprises
- Thangamayil Jewelry
- Websol Power System
- Pricol
About: Commerce Brains Portal is a inventory evaluation platform. Its commerce identify is Dailyraven Applied sciences Personal 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 fastidiously 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 buyers.
The put up 2 Shares to purchase now for an upside of as much as 16%; Beneficial by Commerce Brains portal appeared first on Commerce Brains.
