On this article, we have a look at two shares, one from the Inventory/ Commodity Brokers sector and the opposite from the Auto Ancillaries-batteries sector to purchase for an upside potential of as much as 26%, advisable by the Commerce Brains Portal. Additional, we analyze the market’s efficiency yesterday and in addition have a look at some shares to be careful for right this moment.
- CMP: ₹ 762
- Goal: ₹ 880
- Upside: 15%
- Timeframe: 12 Months
Why it is suggested: Moitlal Oswal is a number one monetary companies firm and ranked No. 1 in QIP league with main offers from VBL, PNB, AngelOne, Financial institution of Maharashtra and extra. The corporate has diversified in varied segments together with retail and institutional broking, asset administration, personal fairness, wealth administration, loans in opposition to shares, margin financing, commodities broking, funding banking, enterprise capital administration, housing finance, and treasury investments.
The corporate at the moment holds 12.8 million energetic consumer base, an 83% improve YoY and NSE energetic purchasers was round 1+ million, a 15% rise YoY. The corporate crossed a serious milestone by servicing greater than 12 million prospects, comprising 7.8 million distinctive mutual fund folios and over 4.8 million distinctive broking accounts.
The belongings below recommendation stood at Rs 5.5 lakh crore, a 33% development YoY, and lending ebook stood at Rs 12,114 crore, a 7% development YoY. In FY25, the corporate registered the highest-ever web income of Rs 5,161 crore and PAT stood at Rs 2,016 crore, up 31% YoY. Their Internet price was at Rs 11,079 crore, a 27% development YoY.
They’ve 4 reportable segments: Wealth administration contributed 45% of income stood at Rs 2,339 crore, a 31% rise YoY, Capital markets contributed 11% of income stood at Rs 598 crore, a 37% rise YoY, Asset & Non-public Wealth Administration contributed 37% of income stood at Rs 1,912 crore, a 32% rise YoY, and Housing Finance contributed 7% of income stood at Rs 384 crore, a 13% improve YoY. Additional, their asset administration section surged 933% and web flows stood at Rs 48,450 crore and has pores and skin within the sport in treasury investments price Rs 10,000 crore.
The corporate holds a 3.2% market share in SIP and 4.3% share in Mutual fund product sales, 6.8% share in Mutual fund web gross sales. In wealth administration, their market share stood at 7.6% in money and eight.5% in F&O Premium. In asset & Non-public Wealth Administration, the AUM stood at Rs 2.8 lakh crore and Internet gross sales of Rs 65,000 crore in FY25 and centered on HNI & UHNI of Rs 5 crore. In Capital markets, the corporate accomplished 39 offers with a complete problem measurement of Rs 51,000 crore.
Their fairness contributed 7% to Whole Indian households belongings. As well as, the corporate expects a optimistic outlook for family financial savings and goals to extend their family financial savings from USD 13 trillion in FY25 to USD 125 trillion within the subsequent 25 years. Additional, different investments fund delivering better yields, expects to develop within the medium time period.
Additionally, the corporate expects robust development within the housing finance section within the subsequent 2-3 years in each AUM and profitability. In FY25, the corporate reached 2,500+ enterprise areas overlaying purchasers throughout 98% of the pin codes. Going forwards, the corporate plans to faucet into the potential wealth alternative of USD 2.5 trillion by FY27, attracting the billionaires, UHNI, and HNI.
Threat Issue
The capital markets trade is extremely regulated in nature, with greater margin necessities; not with the ability to fulfill the compliance necessities and the regulatory necessities could lead to hampering operations. Regardless of diversification, the corporate is uncovered to the volatility and cyclicality of the capital markets, which can have an effect on the profitability of the corporate.
Moreover, the brokerage trade goes by way of main adjustments, and the corporate additionally faces intense competitors from new-age brokers equivalent to Zerodha and Groww, which ends up in an aggressive pricing technique applied by low cost brokerages, which can pose a threat of shedding market share for the corporate.
- CMP: ₹ 1,013
- Goal: ₹ 1,280
- Upside: 26%
- Timeframe: 12 Months
Why it is suggested: Amara Raja Vitality & Mobility Restricted (ARE&M) is the flagship firm of the Amara Raja group, with greater than 4 many years of expertise and the 2nd largest producer of the lead-acid battery marketplace for industrial and diversified presence in four-wheelers and two-wheelers automotive purposes.
They provide a variety of vitality options, together with lithium-ion cell manufacturing, EV chargers, battery pack meeting, and lubricants. They’re a serious provider to sectors like telecom, railways, energy management, photo voltaic, and UPS, with key clientele like Maruti Suzuki, Tata Motors, Airtel, Mahindra, and so forth. The corporate has a portfolio of two prime automotive battery manufacturers like Amaron and Powerzone, with a presence of 1 lakh+ POS distribution community and exporting to over 50 international locations globally.
The corporate holds an 2.6 billion AH industrial battery capability as of 9M FY25. It operates 10 manufacturing amenities (together with 2 plastic models), with an annual capability of over 55 million models of automotive batteries. Within the state of artwork manufacturing amenities, the corporate has two segments: Mobility has 1 GWh annualised capability, and Stationary has 1 GWh annualised capability as of 9M FY25. They’ve one of many largest distribution networks available in the market, with over 1,000+ Energy Zone stores, 2,000+ prolonged service hubs, 550+ Amaron franchisees, 39 distribution factors, 1,00,000+ factors of sale, and 23 branches throughout India.
For 9M FY25, income from operations stood at Rs 9,786.3 crore, a development of 11.2% YoY, and revenue after tax stood at Rs 783.1 crore, which surged by 11.1%. PAT margins stood at 8%, remaining steady in comparison with 9MFY24. The corporate has introduced a capex of Rs 9,500 crore for GIGA cell plant, by way of an MOU signed with the federal government of Telangana.
This partnership is to construct E-positive vitality labs, in 262 acres of land for 16 GWH cell capability over the following 10 years. Additional, India’s electrification demand is anticipated to be 150GWh by 2030, by adopting Mobility Telecom and Information Centres, which brings rising alternatives to realize market share. This consists of Rs 50,000 crore monetary subsidies and excessive buyer pull for EVs.
As well as, a capex undertaking replace on lead acid battery consists of 1.5 Lac MTPA (Part I and Part II) State-of-the-art Superior Inexperienced subject Lead Acid Battery Recycling plant. Part I with 50K MTPA refinery capability(eventual capability of 1 Lac MTPA) industrial manufacturing commenced in December 2024. Battery breaking anticipated to start from Q1- FY26. For Tubular Battery Plant at ARGC, 1 Mn+ Battery/ Annum Superior Tubular Manufacturing plant. Business manufacturing is anticipated to start from This fall FY25/Q1 FY26.
The corporate proposes to take a position Rs 100-150 crore in Part I/II of the lead recycling facility at ARCSPL (Amara Raja Round Options Pvt Ltd) and Rs 2,000 crore by way of ARACT (Amara Raja Superior Cell Expertise Pvt Ltd) over the following 2.0-2.5 years. As well as, the corporate made Rs 500 crore final 12 months from the lithium-ion battery enterprise and expects to make Rs 550 crore this 12 months a rise of 10%.
Additional, the corporate expects a 20% leap in gross sales, which can stand at greater than Rs 1,400 crore in FY26, within the tubular lead-acid battery market after manufacturing begins. The corporate intends to take a position Rs 750 crore in lead acid and new vitality industries and anticipates a money outflow of Rs 1,000 crore for these divisions within the subsequent 12 months.
Threat Issue
Worth fluctuations in uncooked supplies like lead and sulfuric acid, attributable to provide chain disruptions and geopolitical tensions, proceed to problem the trade. Moreover, in 2025, the typical value of lead rose to $1,953 per ton, resulting in greater manufacturing prices and affecting revenue margins for battery producers.
Whereas upgrading from lead-acid batteries to lithium-ion, sodium-ion, or semiconductor batteries gives technological benefits, these alternate options sometimes contain greater preliminary prices, intensifying aggressive strain among the many gamers. The telecom section has been going by way of a transition part the place telecom suppliers have been migrating to Li-ion batteries reasonably than lead acid batteries for newly put in towers resulting from greater vitality density and longer life cycle, the corporate could face intense competitors on this sector.
Additionally learn: Defence shares buying and selling at a reduction of as much as 42%; Do you personal any?
Market Recap Might 20, 2025
The Indian market opened barely above on Tuesday, with the Nifty 50 opening at 24,996, barely above yesterday’s closing at 24,945. BSE Sensex opening at 82,116. All broad indices fell right this moment, and the Nifty dropped under the 25,000 mark. Nifty 50 closed at 24,683, down by 262 factors, or -1.05%, with an RSI of 57.97, under the overbought zone of 70, and was buying and selling above all 4 20/50/100/200 EMAs within the day by day timeframe. Whereas, the Sensex closed at 81,186, down by 873 factors, or -1.06%, with an RSI of 56.91, and was buying and selling above all 4 EMAs as properly.
Immediately all sectoral indices are in crimson, with no indices in inexperienced. Nifty Auto was among the many prime losers right this moment, it fell by 521 factors, or -2.17%, closing at 23,351, with Tube Funding of India being the largest laggard, down by 4.06%, stood at Rs 3,000 and Nifty Subsequent 50 dropped by 1,240 factors, or -1.84%, closing at 66,165, with Bajaj Holdings & Investments ltd is the largest loser, falling 7.45%, stood at Rs 13,973, it fell from its all time excessive of Rs 14,400. Nifty Midcap 50 was additionally among the many prime losers fell by -246 factors or -1.54% to fifteen,798. Immediately’s market noticed a fall right this moment submit Moody’s downgrade of the US credit standing, weak international cues, FII outflows hurting investor sentiments ,and revenue reserving in varied sectors like Auto and Protection.
Shares to be careful for on Might twenty first
Senores Prescribed drugs Restricted – The corporate, by way of its wholly owned subsidiary Senores Prescribed drugs Inc. USA, has signed an settlement right this moment to accumulate the USFDA-approved Abbreviated New Drug Utility (“ANDA”) for Enalapril Maleate Tablets 2.5mg, 5mg, 10mg, and 20mg from Wockhardt Restricted (“Wockhardt”).
United Breweries Ltd – The Firm, by getting into right into a leasing settlement, is growing its manufacturing capabilities by way of an extra facility from Ilios Breweries Non-public Restricted (‘Ilios’) within the State of Andhra Pradesh.
Johnson Controls-Hitachi Air Conditioning India Ltd – In FY25, income from operations grew by 44% to Rs 2,756.5 crore from Rs 1,919 crore in FY24, and Revenue for the 12 months rotated from a loss to Rs 59 crore in FY25.
Dixon Applied sciences – The corporate has reported Income from Operations of Rs 38,880 crore, a rise of 119% YoY from Rs 17,690 crore in FY24. Revenue after tax surged by 229% at Rs 1,233 crore YoY from Rs 375 crore in FY24. The board has accredited a remaining dividend of Rs 8 per fairness share for FY25, topic to the approval of the members of the Firm on the ensuing AGM.
Photo voltaic Industries India Ltd – For FY25, the corporate’s income from operations surged 24% to Rs 7,540 crore from Rs 6,069.5 crore in FY24 and Internet revenue grew by 47% to Rs 1,288 crore from Rs 876 in FY24. The corporate introduced Rs 15 per share remaining dividend for FY25.
State Financial institution of India – The Government Committee of the Central Board at SBI has accredited long run fund elevating in single / a number of tranches of as much as US$ 3 Billion by way of a public provide and/or personal placement of senior unsecured notes in US Greenback or every other main international forex throughout FY 2025-26.
J. Kumar Infraprojects Restricted – The corporate reported income from operations Rs 5,693 crore, surged by 17% from Rs 4,879 crore in FY24. Revenue after tax elevated by 19% to Rs 390.45 crore in FY25 from Rs 328 crore in FY24.
Gujarat State Fertilizers and Chemical substances – For FY25, the corporate’s income from operations elevated by 4% to Rs 9,534 crore from Rs 9,155 crore in FY24. Revenue after tax grew by 4.8% to Rs 591 crore from Rs 564 crore in FY24.
Main firms are asserting outcomes right this moment
- Oil and Pure Fuel Company
- Interglobe Aviation
- Energy Finance Company
- Mankind Pharma
- NTPC Inexperienced Vitality
- Rail Vikas Nigam
- Colgate Palmolive (India)
- Oil India
- IndusInd Financial institution
- UNO Minda
- Astral Restricted
- Nationwide Aluminium Firm
- Ircon Worldwide
- Trident
- Star Cement
- Va Tech Wabag
- HG Infra Engineering Ltd
- Gulf Oil Lubricants India
- GMM Pfaudler
- Moschip Applied sciences
- Interarch Constructing Options
- Geojit Monetary Companies
- Indusind Financial institution
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