2 Stocks to buy now for an upside of up to 31%; Recommended by Trade Brains Portal

Today, we recommend two stocks, one from the IT sector and another from the energy sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 31%. The Indian IT sector significantly contributes to its economic growth, global standing, and societal development; it accounts for a substantial portion of India’s GDP, drives innovation, and generates substantial employment opportunities.

The energy sector is critically important to India’s economy and energy security, playing a vital role in electricity generation, industrial processes, and household consumption, with the government aiming to increase its share in the energy mix significantly by 2030. We also analyze the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.

• Current price: ₹ 1,338
• Target price: ₹ 1,750 
• Upside: 31%
• Time frame: 16-24 Months

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

Why it’s recommended

Mahanagar Gas Limited, one of the leading City Gas Distribution (CGD) companies in India, was established in 1995 and provides a comprehensive range of services to fulfill the diverse demands of its customers in the Geographical Areas (GAs) in which it operates. More than 2.83 million PNG households and 1.11 million CNG vehicle users are served by its infrastructure, which comprises more than 7,460 km of pipeline and 385 CNG stations. For more than 30 years, MGL has been instrumental in building gas infrastructure and promoting gas use among various consumers in the Mumbai Metropolitan Region (MMR), which includes Mumbai, Urban Thane, Navi Mumbai, Kalyan, and other areas.

According to the company, revenue for FY25 was Rs 6,924 crore, up 10.87% from FY24’s Rs 6,245 crore. It has increased at a 34% CAGR over the last four years., The EBITDA was Rs 1,510 crore, and the gross profit was Rs 2,466 crore. The gross margin was Rs 16.51/SCM, which was more than the FY22 gross margin of Rs 13.61/SCM. The average sales realization was Rs 46.54/SCM, higher than FY21’s Rs 26.42/SCM. PAT has increased at a 14% CAGR over the last four years, reaching Rs 1,045 crore. ROE stood at 18.94% in FY25.

The company’s goal is to increase the number of PNG and CNG customers in every location. As more OEMs get ready to launch CNG-based vehicles, the market share of CNG will increase. The business intends to invest approximately Rs 1,300 crore in FY26 and Rs 150 crore in MGL’s subsidiary, UEPL. Approximately Rs 500 crore would be spent on PNG, including pipelines, and Rs 300 crore would be spent on CNG. There are plans to build 180 km of steel pipeline and 250 CNG filling stations in the next five years. The company is expanding into several energy-related subsegments and has made several acquisitions and collaborations to diversify into new markets or strengthen its existing ones.

In Q1 FY26, the company reported revenue from operations of Rs 2,282.07 crore, an increase of 24.55% YoY. The 3-year revenue grew at a 24.82% CAGR.  EBITDA increased by 12.8% YoY to Rs 533 crore. PAT rose by 10% to Rs 317.79 crore in Q1 FY26 from Rs 288.77 crore in Q1 FY25. For FY25, the RoE remained at 18.94%. 

Risk factor

The company’s project implementation is usually impacted by delays brought on by prolonged authorization processes. To expedite the process, more pipeline infrastructure and CNG station installations would be required. Additionally, it is challenging to set up new CNG stations in the company’s operational locations due to high prices and a shortage of suitable land.

• Current price: ₹ 5,040
• Target price: ₹ 6,350 
• Upside: 26% 
• Time frame: 12 months

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

Why it’s recommended

LTIM, which was founded in 1996, provides IT solutions in the areas of testing, analytics, artificial intelligence, cognitive services, infrastructure management, applications, development, and maintenance. With headquarters located in Mumbai, LTIM has offshore delivery centers in Bangalore, Chennai, Pune, and Mumbai in addition to global development centers in the US, Canada, Europe, South Africa, the Middle East, and Singapore. The collective skills of more than 84,000 talented and enterprising professionals located in more than 40 countries make up the company’s strength.

In Q1FY26, the company reported revenue of Rs 9,840.6 crore, up 7.6% YoY, and PAT of Rs 1,254.6 crore, up by 10.53% YoY. Free cash flow stood at Rs 761.4 crore, which was 60.7% of the PAT. The gross margin for Q1FY26 stood at 29.1%, whereas the EBITDA margin stood at 16.8%. The total amount of cash and investments is Rs 12,835.3 crore. The following represents LTIM’s revenue allocation by region: 74.4% comes from North America, 14.7% from Europe, and 11.0% from the rest of the world. With 83,889 people overall, the company has added 1,955 net employees year over year, with attrition of 14.4%.

For FY26, three projects have been given top priority by the company to increase sales and profitability. The first effort aims to transform sales by enhancing leadership; the second focuses on major deals powered by AI to boost sales; and the third is the Fit4Future program, which optimizes costs to boost profitability. To speed up the modernization of its IT infrastructure, the company has bolstered its partnership with Arenco Group, UAE, in recent months.

Additionally, it has worked with Google Cloud to use Agentic AI to drive business transformation. With 741 active clients as of March 2025, the company is shifting from discretionary to longer-tenure, efficiency-driven deals, and it received significant order inflows of $6 billion, up 6% YoY. The company remains robust, and management expects further large deal closures in the coming quarters, especially in retail.

Risk Factors

LTIM’s America division has consistently contributed over 70% to the total revenue, which shows customer and geographical concentration risk for the business. Any regulatory changes in the region could have a significant impact on operations and affect its profitability.

Market Recap August 11, 2025

The Nifty 50 had a muted start on Monday at 24,371.5, up 8.2 points from the previous close of 24,363.30. After six consecutive weeks of losses, the index recovered its losses and reached an intraday high of 24,600.85 and ended at 24,585, below both the 20-day and 50-day but above the 200-day EMA. By the close, the Nifty 50 had gained 221.75 points, or 0.91%.

The BSE Sensex mirrored this trend, increasing by 746.29 points, or 0.93%. It had its opening at 79,885 and settled at 80,604.08. The Nifty 50’s RSI was at 41.92, while it still held above the 200-day EMAs. The BSE Sensex RSI stood at 41.89, 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.

Almost all major indices ended in green on Monday. The Nifty PSU Bank Index was among the major gainers, closing at 7,032.7, up 151.45 points, or 2.2%. Indian Bank was the biggest gainer, increasing 3.6%, followed by Union Bank of India, which gained 2.9%, and Punjab National Bank, up 2.5%. The Nifty Realty Index followed the gains, closing at 890.4, up 16.25 points or 1.86%.

Stocks like Prestige Estates Projects gained 3.07%, followed by other stocks like Oberoi Realty Ltd, DLF Ltd, and Lodha Developers Ltd, which rose up to 2.5%. The Nifty Consumer Durables index was the only major loser on Monday’s trading session. It decreased by -272.10 points, or -0.72%, closing at 37,277. PG Electroplast shares continued to tank by -14.06% after cutting FY26 growth guidance. Amber Enterprises India Ltd was another major loser, falling by -6.01%, while Voltas Ltd declined by -4.58%.

Asian markets were broadly on a mixed note, with Hong Kong’s Hang Seng Index losing -41.82 points, or -0.17%, to close at 24,817. Whereas, the Shanghai Composite Index closed at 3,647.55, gaining 12.42 points, or 0.34%. South Korea’s KOSPI Index closed on a flatter note at 3,206.77, down -3.24 points, or -0.1%. However, Japan’s Nikkei 225 Index closed in the green at 41,820.48, gaining 761.33 points, or 1.82%. The US Dow Jones Futures were trading at 44,304.10, up  126.50 points, or 0.29%, as of 5:04 p.m. IST. 

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