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On Wednesday, the Indian stock market closed on as lightly positive note. Benchmark indices managed to inch into the green after a day marked by choppy movements and selective sectoral strength. The Nifty 50 ended the day at25,212.05, rising slightly by16.25 points or 0.06%, while the BSE Sensex added 63.57 points or 0.08% to settle at 82,634.48.

On to the top stock picks for16 July, as recommended by some of India’s leading market experts.

Why it’s recommended: Capacity expansion and strategic acquisition, focus on premium products, cost efficiency and fuel optimization, and strong distribution network

Key metrics: P/E: 597.39.40, 52-week high: ₹385.65, volume: ₹42.90 crore

Technical analysis: Cup-with-handle pattern breakout on above average volume

Risk factors: Raw material and fuel price volatility, execution risk in integration, dependence on government spending

Buy at: ₹376.45

Target price: ₹435 in two to three months

Stop loss: ₹350

Why it’s recommended: Strong Parentage and Brand Trust, focus on affordable housing, wide network and agent base

Key metrics: P/E: 6.26, 52-week high: ₹ 821, volume: ₹312.78 crore

Technical analysis: Downward sloping trendline breakout

Risk factors: Pressure on Margins, Relatively Slower Growth vs. Peers

Buy at: ₹637

Target price: ₹720 in two to three months

Stop loss: ₹595

Buy above ₹522 and dips to ₹485, stop ₹475, target ₹574-595

Buy above ₹1,651 and dips to ₹1,620, stop ₹1,599 target ₹1,775-1,800

EMUDHRA: Buy above ₹822 and dips to ₹795, stop ₹785, target ₹865-885

Stop loss: ₹785

Current price: ₹135

Target price: ₹175 in 16-24 months

Stop loss: ₹110

Why it’s recommended: The ministry of railways has administrative authority for IRFC, a navratna public sector enterprise that was founded in 1986. Its primary responsibility is to raise money from the financial markets in order to finance the development or purchase of assets, which are then leased to Indian Railways. A number of other organizations in the industry, such as Rail Vikas Nigam Ltd (RVNL), RailTel, Konkan Railway Corp. Ltd (KRCL), and Pipavav Railway Corp. Ltd (PRCL), have received financial support from IRFC in addition to the railways. The company's assets under management (AUM) were valued at ₹4.6 trillion as of 31 March 2025.

IRFC's net interest income increased by 2.2% from ₹6,429 crore in 2023-24 to ₹6,569 crore in 2024-25. Additionally, its net interest margin improved somewhat, going from 1.38% to 1.42% over the prior year. IRFC approved ₹5,700 crore in loans for the fiscal year, including ₹700 crore for NTPC and ₹5,000 crore for NTPC Renewable Energy Ltd. Additionally, the company became the first bidder for ₹3,167 crore in funding for the construction of the Banhardih Coal Block in Jharkhand's Latehar district, and it signed a rupee term loan arrangement for ₹5,000 crore with NTPC REL.

The department of public enterprises granted the firm navratna status in 2024-25, and it hopes to soon obtain maharatna status. Additionally, under Indian Railways' General Purpose Waggon Investment Scheme (GPWIS), the IRFC board authorized funding to NTPC for 20 BOBR rakes on a finance lease basis up to ₹700 crore. In January 2025, a leasing agreement was also struck with NTPC Ltd for eight BOBR rakes, which were valued at over ₹250 crore. Additionally, IRFC and REMCL have signed a memorandum of understanding to jointly investigate financing alternatives for Indian Railways' renewable energy projects, including possible financing in the nuclear, thermal, and renewable energy domains.

Risk factor: The ministry of railways and its affiliates account for the entirety of IRFC's loan book. As of 31 March 2025, 37% consisted of advances for leased railway assets, 62% consisted of lease receivables from the ministry, and 1% consisted of loans to organizations such as NTPC and RVNL. The company is susceptible to changes in finance or policy because its expansion is directly linked to the ministry's investment plans for Indian Railways. Furthermore, IRFC is vulnerable to interest rate swings and shifts in investor sentiment due to its reliance on market borrowings.

Current price: ₹456

Target price: ₹550 in 16-24 months

Stop loss: ₹405

Why it’s recommended: One of the top mobility technology firms in the world, Sona BLW Precision Forgings Ltd (Sona Comstar) was founded in 1995. It designs, manufactures, and supplies systems and components for global mobility OEMs in both electrified and non-electrified powertrain segments. The company has three engineering competency centres, five R&D centres, and twelve manufacturing units.

India, the US, China, Serbia, and Mexico are among the five nations where it is present. North America accounts for 41% of the company's revenue, followed by India (29%), Europe (24%), Asia (6%), and the rest of the world (0.3%). Globally, Sona BLW holds an 8% market share in differential gears and a 5% market share in starter motors.

In 2024-25, the company reported revenue from operations of ₹3,546 crore, an increase of 11.3% from ₹3,185 crore in the previous year. Ebitda stood at ₹975 crore with a 27.5% Ebitda margin. Profit after tax increased by 16% to ₹600 crore from ₹518 crore in the previous year. Segment-wise revenue share from BEV rose from 29% to 36% in 2024-25. In 2024-25, the firm increased its global market share for starter motors from 4.2% to 4.4% and differential gears from 8.1% in CY2023 to 8.8% in CY2024. The company's net order book increased to ₹24,200 crore after securing orders totalling ₹4,700 crore.

For an enterprise value of ₹1,600 crore, the business signed a Business Transfer Agreement (BTA) with Escorts Kubota Ltd (Escorts) in 2024-25 to acquire its railway business. The deal was finalized on 1 June 2025. To collaborate on connected, autonomous, and electric technologies for AGVs, drones, and eVTOLs, the company has inked a memorandum of understanding (MOU) with the NMICPS Technology Innovation Hub on Autonomous Navigation Foundation at IIT Hyderabad (TIHAN-IITH) at CES 2025 in Las Vegas, USA. Through the production-linked incentive (PLI) scheme for the automobile and auto component industry in India, the company has obtained certification for another product, namely the hub wheel motor for electric two-wheelers.

Risk factor: Changes in commodity prices could have a significant effect on the company's manufacturing costs. Even while there are mechanisms in place to monitor and manage market risks, it is not always possible to fully predict, hedge, or lessen the impact of price volatility on the overall profitability of the business through cost pass-throughs or operational enhancements.

Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.

Raja Venkatraman is the co-founder of NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Its trade name is William O’Neil India Pvt. Ltd, and its Sebi registration number is INH000015543.

Investments in securities are subject to market risks. Read all the related documents carefully before investing.

Registration granted by Sebi and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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