With over 62 million tonnes of municipal solid waste generated annually, India ranks among the top 10 waste-producing countries worldwide. We also analyze the market’s performance on Wednesday to understand what may lie ahead for the stock indices in the coming days.
Stocks to trade today, recommended by Trade Brains Portal for 31 July:
Havells India Ltd (Current price: ₹ 1,529)
- Target price: ₹ 1,850 in 16-24 months
- Stop-loss: ₹ 1,365
- Why it’s recommended: Havells India Ltd., one of the top companies in the consumer electrical products sector, was founded in August 1983 and has since grown into a diversified FMEG and consumer durables business with operations in over 70 countries. With 16 manufacturing facilities and a dealer network of over 19,400, it offers a broad range of products across 20 verticals. Havells reported a 17.15% YoY increase in revenue to ₹21,778 crore and a 15.7% increase in net profit to ₹1,470.24 crore in FY25. Strong execution and an increase in market share allowed the company to sustain its mid-teen growth trajectory in spite of muted customer demand.
Havells has a wide range of products, including offerings in motors, solar panels, pumps, and electrical consumer durables (ECDs), as well as switchgear, cables, lights, and fixtures. Through its brands, Havells, Lloyd, Standard, Reo, Havells Crabtree, and Havells Studio, the company serves a broad spectrum of industries and consumer segments. Havells’ wide range of brands allows it to satisfy a variety of consumer needs while preserving a significant presence in both the mainstream and luxury markets.
Complete product accountability, technology ownership, and consumer-centric innovation are the main pillars of Havells’ R&D strategy. The company filed 211 design registrations and 77 patent applications in FY25, investing ₹258 crore in R&D to improve internal capabilities, upgrade infrastructure, and fortify intellectual property. The Q-TRON MCCB, Lloyd Stunnair Air Conditioner, IE4 motors, and the Vita Dlight line are recent innovations that demonstrate Havells’ emphasis on cutting-edge, energy-efficient solutions that are adapted to changing customer demands.
For Q1 FY26, the company reported net revenue of ₹5,438 crore, a decline of 6.2% YoY. EBITDA stood at ₹576 crore, down by 9.8% YoY. PBT fell by 14.1% to ₹553 crore, and PAT also witnessed a fall by 14.3% at ₹411 crore. This was mainly due to the tepid summer this year and subdued consumer demand, leading to a decline in cooler products.
- Risk Factors: The company’s operations heavily depend on raw materials, which make up approximately 68 to 70% of its total revenue. Copper, stainless steel rods and strips, G.I. wires, PVC, DOP, and aluminium are important raw materials. The company’s profit margins may be affected by fluctuations in the prices of various commodities. Additionally, a global economic downturn or a slowdown in GDP growth in India could lead to reduced demand for electrical products.
Gravita India Limited (Current price: ₹ 1,901)
- Target price: ₹2,250 in 12 months
- Stop-loss: ₹ 1,726
- Why it’s recommended: Established in 1992, Gravita India Ltd. is a world leader in manufacturing and recycling, running state-of-the-art facilities for plastic granules, aluminum alloys, lead metal, and goods throughout India. With 33 yards, more than 1,900 touchpoints, and more than 287,000 MT of scrap collected, the company boasts a strong procurement network. With a robust global presence in Asia, Africa, the Middle East, Europe, and America, Gravita serves a wide range of customers in 34 countries and procures raw materials at affordable costs.
With volumes, sales, EBITDA, and PAT increasing by 20%, 22%, 22%, and 31% YoY, respectively, Gravita demonstrated success in FY25. Value-added items made up 46% of the company’s revenue, while scrap from domestic sources increased by 60%. With 68% coming from India and 32% from foreign markets, revenue increased 22.4% year over year from ₹3,161 crore in FY24 to ₹3,869 crore in FY25. PAT increased from ₹239 crore to ₹312 crore, a 30.5% YoY growth.
The company aims to increase its capacity in turnkey solutions, lead, aluminium, plastic, rubber, and new sectors like paper, steel, and lithium-ion. With more than 50% coming from value-added products and more than 30% from the non-lead category, Gravita hopes to achieve over 25% volume CAGR, 35% profitability growth, and 25% return on invested capital by 2029. Gravita, which has four key recycling verticals and 12 recycling units, achieved 3.34 lakh MTPA in FY25 and is expected to surpass 700,000 MTPA and has more than ₹1,500 crore capex planned by FY28. It has a healthy order book with more than 60,000 MT.
The company reported strong quarterly results. The revenue increased by 15% YoY, at ₹1,040 crore in Q1 FY26. EBITDA rose by 22% YoY, stood at ₹111.70 crore, and the EBITDA margin increased to 10.74% in Q1 from 10.46% in the previous quarter. The profit after tax surged by 39% YoY to ₹93.26 crore, and the PAT margin at 8.97%. The company generated 26% of its revenue and 25% of its profits from overseas business, respectively.
- Risk Factors: Both organized and unorganized companies compete fiercely with Gravita in the domestic lead alloy manufacturing market, which may put pressure on prices. Additionally, the business faces regulatory risks because lead is a toxic metal, and recycling it requires environmentally delicate procedures. Its operations and profitability may be impacted by any unfavourable changes in governmental regulations or more stringent environmental standards.
Market Recap
The Nifty 50 traded on a flat note on Wednesday, beginning at 24,890, which was higher than its previous finish of 24,821, indicating a slightly bullish start. After hitting the day’s low of 24,772, it closed below the 20- and 50-day EMAs at 24,855. At the end of the day, the Nifty 50 was up 33.95 points, or 0.14%.
The BSE Sensex followed the same pattern, closing at 81,481.8 after rising 0.18%, or 143.91 points. The index is now trading below the 20 and 50-day EMAs after remaining above the 100- and 200-day EMAs with a day’s low of 81,187. The Nifty 50 RSI held steady at 43.25 on Wednesday, as the Nifty ended above the 100 and 200 EMAs. At 43.19, the BSE Sensex RSI also closed well below the 70-point overbought line. Lower market volatility was indicated by the India VIX’s small decrease of -0.32 points, or -2.78%, to 11.20 on Wednesday.
Additionally, the sectoral indices displayed mixed signals. The Nifty Infrastructure index was the largest gainer, closing at 9,151 after rising 46.55 points, or 0.5%. Gains of up to 4.85% were recorded in major companies such as NTPC Ltd, Ambuja Cements Ltd, Cummins India Ltd, and Larsen & Toubro Ltd. The Nifty IT index, which ended the day up 108.45 points, or 0.31%, at 35,481, was also one of the top gainers. Coforge Ltd, LTIMindtree Ltd, Mphasis Ltd, and Tech Mahindra Ltd were the biggest performers, with gains of up to 2%.
However, the Nifty Realty Index closed at 917.65, down -8.85 points, or -0.96%. Heavyweights like Brigade Enterprises Ltd., DLF Ltd., Godrej Properties Ltd., and Oberoi Realty Ltd. fell more than 1%, which caused the index to decrease. The Nifty Media Index was another big loser, closing at 1,624.80, down -12.95 points, or -0.79%.
On Wednesday, Asian markets saw a mixed trend. At 25,142, Hong Kong’s Hang Seng fell -382.45 points, or -1.52%. On the other hand, South Korea’s Kospi ended the day at 3,254.47, up 23.90 points, or 0.73%. The Nikkei 225 in Japan fell -45.55 points, or -0.11%, to close at 40,629. In contrast, Shanghai’s Composite Index ended the day at 3,615.72, up 0.17%, or 6.01 points. At 4:39 p.m. Dow Jones Futures were up 50.27 points, or 0.11%, on the US stock exchange at 44,682.26.
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