Today, we recommend two stocks, one from the oil and gas sector, which continues to benefit from stable energy demand, and another from the green energy sector, which is gaining traction amid the global push for sustainability.
Stocks to trade today, recommended by Trade Brains Portal for 1 July:
Chennai Petroleum Corporation Ltd -Current price: ₹ 681
- Target price: ₹ 810 in 12 Months
- Stop-loss: ₹ 610
- Why it’s recommended: Chennai Petroleum Corporation Limited (CPCL), formerly Madras Refineries Limited (MRL), is an Indian oil refining company headquartered in Chennai, Tamil Nadu. It was established in 1965 as a joint venture between the Government of India, AMOCO (an American oil company), and the National Iranian Oil Company (NIOC). CPCL has since evolved into a key player in India’s energy sector. It operates primarily as a subsidiary of Indian Oil Corporation Ltd. (IndianOil), which holds a majority stake of 51.89%. In FY25, the company’s crude production was 10.45 MMT, 99.5% of installed capacity. The company manufactures lubricants, additives, and petroleum products. Additionally, it supplies other sectors with high-quality feedstock such as propylene, better kerosene, butylenes, naphtha, paraffin wax, and sulfur.
Pharma-grade hexane, a new product the company launched in FY25, is expected to expand into new markets. It also retains the capacity to produce food-grade hexane. In FY25, the highest volume was attained by hexane, MTO, and lean butane for the company. The company spent ₹673 crore on capital expenditures in FY25. Its capital expenditures for maintenance remained between ₹200-250 crore. Its total capital expenditure for the next two years is projected to be between ₹700-800 crore, with maintenance capital expenditures falling within the same range ( ₹250 to ₹300 crore). The company has been paying a consistent dividend to its shareholders. The Board of Directors of the Company has recommended an Equity Dividend (Final) of 50% for FY25, i.e., ₹5 per equity share of face value ₹10 each on the paid-up share capital.
As IOCL is involved in the same industry, the company benefits from operational synergies, such as pooled crude oil sourcing through IOCL and the parent company’s bulk purchase. Additionally, more than 90% of CPCL’s output is purchased by IOCL, which meets the parent company’s product needs in South India.
Risk factors: The company is exposed to crude oil volatility, especially during scenarios like war or geopolitical tensions. The company is highly sensitive to gross refining margins, which may impact the company’s operating performance. Government decisions and policies, such as the levying of windfall taxes and tighter regulations, pose constant risks to the company.
Also Read: India Inc’s strong start to FY26 faces reality check on earnings breadth, valuations
JSW Energy Ltd – Current price: ₹ 522
- Target price: ₹625 in 12-14 Months
- Stop-loss: ₹ 470
- Why it’s recommended: The company is one of the leading private sector power producers in India and part of the JSW Group. It has a significant presence in sectors such as energy, infrastructure, cement, and sports, among others. JSW Energy has established its presence across the value chains of the power sector with diversified assets in power generation, transmission, and trading. It began its commercial operations in FY2000, with the commissioning of its 2×130 MW thermal power plant at Vijayanagar. It commissioned 1.3 GW of organic wind capacity during the year, which is the highest in the sector, about one-third of India’s wind capacity addition of 4.2 GW.
The company’s generation capacity has grown with a CAGR of 24%, from 4,559 MW in FY21 to 10,875 MW in FY25. It is planning to triple the generation capacity to reach 30,000 MW by FY30. Total net generation from the thermal assets segment was up 22% YoY at 6.2 BUs, driven by the contribution from KSK Mahanadi, commissioning of Utkal Unit-2, and higher LT volumes at Vijayanagar. As of Q4 FY25, the company’s total renewable energy capacity was 12,527 MW, with wind at 5,009 MW, hydro at 1,631 MW, solar at 3,589 MW, and hybrid at 2,298 MW. The company generated 32,383 MU of electricity in FY25, which is 16% higher than FY24. In Q4FY25, total revenue increased 21% YoY to ₹3,497 crore while EBITDA at ₹1,512 crore was up 17% YoY. The company generated PAT of ₹408 crore, up by 16% YoY, while cash profit for the quarter at ₹744 crore increased by 8% YoY.
The company is presently constructing various power projects to the tune of 12.8 GW, with a vision to achieve a total power generation capacity of 30 GW by 2030. The company expects cumulative incremental capex of ₹1,30,000 crore over FY2026-30. The company is targeting to increase energy storage capacity to 40 GWh.
- Risk factors: The company is exposed to execution risks such as delays in land acquisition and transmission connectivity. The company has aggressive capex plans, which may increase debt leverage levels over the medium term. It is also vulnerable to counterparty credit risks due to the exposure of the state discoms of Andhra Pradesh, Karnataka, Haryana, Himachal Pradesh, Maharashtra, Madhya Pradesh, Punjab, Uttar Pradesh, Rajasthan, and Telangana, which have weak to moderate credit profiles.
Also Read: Nykaa’s premium bet: A smart strategy if it delivers
Market Recap
The Nifty 50 had a gap-up start to the day, opening at 25,661.65, up 23.85 points, or 0.09%, from the closing price of 25,637.80 of the previous day. The index declined by -120.75 points, or -0.47%, on Monday, with a day-high of 25,669.35 in the morning and closing at 25,517.05. The RSI was at 63.84, below the overbought zone of 70, and the Nifty closed above all four of the 20/50/100/200-day EMAs on the daily chart. Sensex concluded the day at 83,606.46, down -452.44 points, or -0.54%, with an RSI of 62.51.
The Nifty PSU Bank, which closed at 7,202.40, up 186.90 points or 2.66%, was among the top gainers. Major stocks like Bank of Maharashtra, which soared 5.2%, and Punjab National Bank, and Bank of Baroda, which jumped more than 3%, and other stocks, including Union Bank of India, Canara Bank, and Punjab & Sind Bank, which increased more than 2%, lifted the index on Monday.
Additionally, the Nifty India Defence Index gained 82.05 points, or 0.93%, to close at 8,870.40. Top gainers of this index were Zen Technologies, Bharat Dynamics, Data Patterns (India), and Mazagon Dock Shipbuilders, increasing by more than 2% on Monday.
Also Read: FY25 dividend payouts: Cash-rich BFSI and IT companies dominate
The Nifty Private Bank Index fell -251.50 points, or -0.88%, and closed at 28,254.60 points. Major stocks like Axis Bank, which declined -2.1%; Kotak Mahindra Bank; and ICICI Bank, which declined by more than 1%, on Monday.
Asian markets on Monday showed mixed signals. Hong Kong’s Hang Seng also declined -211.87 points, or 0.88%, to 24,072.28. The Kospi in South Korea closed at 3,071.70, up 0.52%, or 15.76 points. Japan’s Nikkei 225 climbed up 336.60 points, or 0.83%, settling at 40,487.39 points, registering the best monthly performance since February 2024. Shanghai’s Composite Index closed the day higher at 3,444.43, up 20.20 points, or 0.59%. At 5:00 p.m., Dow Jones Futures were up 271.03 points, or 0.62%, on the US stock exchange at 44,090.30.
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