2 Stocks to buy now for an upside of up to 23%; Recommended by Trade Brains Portal

Today, we recommend two stocks, one from the shipbuilding sector and another from the auto components sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 23%.

The Indian shipbuilding sector is crucial for the national economy by boosting trade, enhancing national security, creating significant employment and multiplier effects in related industries, and contributing to the Blue Economy through port-led development and indigenous vessel construction.

Meanwhile, the lead-acid battery sector is vital to the Indian economy, supporting sectors like automotive, telecommunications, and renewable energy through affordable energy storage and backup power. We also analyzed the market’s performance on Thursday to understand what may lie ahead for the stock indices in the coming days.

1. Exide Industries Ltd

• Current price: ₹ 394
• Target price: ₹ 485
• Upside: 23%
• Time frame: 12 months

To view the report for the stock mentioned above or explore other stock recommendations, click here

Why it’s recommended

Exide Industries Ltd. is a leading Indian battery manufacturer offering a comprehensive range of lead-acid and lithium-ion batteries used across automotive, industrial, and renewable energy sectors. Its products cater to vehicles, including cars, two-wheelers, and trucks, as well as applications in inverters, UPS systems, telecom, railways, mining, and defence.

The company provides batteries with capacities from 2.5 Ah to 20,000 Ah. With operations in over 63 countries and 11 manufacturing units located throughout India, Exide expanded its reach in FY25 by adding over 14 distributors and entering 13+ new regions in the automotive segment. In the industrial sector, it secured 28+ new accounts across 20+ regions.

In FY25, Exide reported standalone revenues of Rs 16,588.11 crore, marking a 3.4% year-on-year increase. Its net profit stood at Rs 1,076.93 crore, increasing by 2.27% YoY. The company continues to maintain a zero debt-to-equity ratio and continues to generate robust operational cash flows, recording Rs 1,298 crore in FY25.

In the first quarter of FY2025-26, operating revenue reached Rs 4,695.12 crore, reflecting a 5.8% year-on-year increase and an 8.3% rise compared to the previous quarter. The EBITDA margin improved to 12%, up from 11% in Q1 FY25, driven by stronger pricing, a more favourable product mix, and cost optimization initiatives implemented across manufacturing facilities.

Additionally, Exide acquired full ownership of Exide Energy Solutions Ltd. (EESL) to establish a greenfield facility with a total planned capacity of 12 GWh, developed in two phases of 6 GWh each. This Rs 3,602 crore investment supports the company’s strategy of delivering complete energy storage solutions “from molecule to megawatt”.

The company has invested an additional Rs 300 crore in Q1 FY26 and Rs 100 crore in July 2025 into EESL. It also partnered with SVOLT Tech Solutions, a leading lithium-ion cell producer, to develop a turnkey Li-ion cell manufacturing plant. As part of Phase 1, the company plans to scale production through four additional lines, adding another 6 GWh in capacity. These initiatives aim to position Exide strongly within the fast-evolving battery market.

India, being one of the world’s largest automotive markets, is projected to have a battery demand of 120 GWh by 2030, driven by government incentives like the auto PLI scheme, state EV policies, and subsidies. According to ICRA, electric vehicle (EV) sales penetration by 2030 is expected to reach 25% for two-wheelers, 40% for three-wheelers, 30% for buses, 15% for passenger vehicles, and 12-16% for light commercial vehicles. These trends present significant growth opportunities for Exide.

Risk Factor

Exide faces stiff competition in the lead-acid battery segment from organized players like Amara Raja and HBL Engineering, as well as a large number of unorganized players. The company is also subject to stringent environmental regulations due to its reliance on hazardous raw materials such as lead, sulfuric acid, and lithium. Furthermore, price volatility in key materials like antimony and lead, both of which have surged in recent months, could pressure its profit margins.

2. Mazagon Dock Shipbuilders Ltd

• Current price: ₹ 2,629
• Target price: ₹ 3,250
• Upside: 23.6%
• Time frame: 12 months

To view the report for the stock mentioned above or explore other stock recommendations, click here

Why it’s recommended

Mazagon Dock Shipbuilders Ltd., established in 1774 with a modest dry dock and incorporated as a private entity in 1934, is India’s only public sector defense shipyard that constructs both destroyers and submarines. The company possesses state-of-the-art facilities with the capacity to build up to 11 submarines and 10 warships simultaneously.

Between 2014 and 2025, Mazagon delivered seven destroyers, completing one approximately every 18 months. Its operations are split into two segments, with the shipbuilding division housing three dry docks, three wet basins, three large slipways, six small slipways, and a massive 300-tonne crane.

In FY25, the company achieved record revenue of Rs 11,432 crore, marking a 21% year-on-year growth from Rs 9,467 crore in FY24. Profit after tax rose by 25% to Rs 2,413.5 crore from Rs 1,937 crore the previous year. Earnings per share (EPS) for the fiscal year stood at Rs 59.83, while EBITDA margins improved to 28.24% from 26.93% in FY24.

In Q1 FY26, revenue rose 11.4% to Rs 2,625.6 crore from Rs 2,357 crore in Q1 FY25, with quarterly profit reaching Rs 422 crore. EPS for the quarter came in at Rs 11.21. The company has set medium-term guidance of 15% profit before tax margins and expects 8-10% CAGR revenue growth in the coming years.

Looking ahead, Mazagon Dock is anticipating the award of new P-75 submarine contracts, with an estimated value of Rs 30,000-Rs 40,000 crore. The larger P-75(I) submarine deal is expected to be signed in FY26. Currently, the company’s order book stands at Rs 32,260 crore, and once the P-75 contracts are finalised, the order book could exceed Rs 1.25 lakh crore, significantly enhancing profitability and margin potential.

Mazagon Dock has also acquired land from the port authority for building smaller vessels. For this expansion, it plans a capital expenditure of approximately Rs 4,000 crore. Additionally, 10% of the new submarine contract value (P-75 AS) is expected to begin contributing to revenue from FY28. Of the existing order book, around Rs 24,000 crore is expected to be recognised over the next two years.

Risk Factor

Delays in deliveries could significantly harm the company’s reputation, operations, and financial health. Additionally, poor-quality work by subcontractors may negatively impact the company’s business performance, reputation, and financial results. The unavailability of essential imported raw materials, combined with exchange rate volatility and fluctuating prices, may also weaken the company’s competitive advantage.

Market Recap: August 28, 2025 

Thursday’s trading session began on a bearish note, with broader market indices ending in the red in two consecutive trading sessions. The Nifty 50 opened weak at 24,695.80, down -16.25 points from the previous close of 24,712.05, and slipped further to close at 24,500.90. This marked a decline of -211.15 points, or -0.85%, with the index finishing below the 20-day, 50-day, and 100-day EMAs but still holding above the 200-day EMAs on the daily chart.

The BSE Sensex mirrored the downward trend, opening at 80,754.66 and closing at 80,080.57, registering a decline of -705.97 points, or -0.87%. Momentum indicators also reflected weakening sentiment, with the Nifty 50’s Relative Strength Index (RSI) at 40.79 and the Sensex RSI at 39.63, both comfortably below the overbought threshold of 70.

The Bank Nifty Index was not spared either, closing at 53,820.35 after shedding 630.10 points, or -1.16%. Investors have negative sentiment, which was largely attributed to the 50% tariff imposed on India, which has already come into effect on 27th August 2025. 

The majority of the sectoral indices ended the day in the red, except for a few gainers. The Nifty Consumer Durable Index was the top gainer, closing at 38,534.60, up by 214.25 points, or 0.56%. Kalyan Jewellers India led the gains with a 2.36% increase, followed by other consumer durable stocks, including Bata India, which gained 1.35%, and Whirlpool of India Ltd, which rose by 1.29%. 

Among the major losers, the Nifty IT index plunged the most on Thursday’s trading session. The index decreased by -574.45 points, or -1.59%, closing at 35,488.75. HCL Technologies Ltd was the major loser, dropping 2.88%; TCS declined 2.5%, and Infosys Ltd fell 2.4%. Another major laggard was the Nifty Smallcap 50 Index, which closed at 8,297.55, losing -131.15 points, or -1.56%. Major losers include Poonawalla Fincorp Ltd, CESC Ltd, and Multi Commodity Exchange, whose shares declined by up to 5.10%. 

In contrast, Asian markets were broadly positive on Thursday, with the Shanghai Composite Index closing at 3,843.60, gaining 43.25 points, or 1.13%. South Korea’s KOSPI Index closed at 3,196.32, up 9.16 points, or 0.29%. Japan’s Nikkei 225 Index also closed on a bullish note at 42,789.00, gained 268.73 points, or 0.63%. On the other hand, Hong Kong’s Hang Seng Index ended at 25,014.00, losing -187.76 points, or -0.75%. The US Dow Jones Futures were trading at 45,645.56, up 80.33 points, or 0.18%, as of 4:52 p.m. IST. 

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