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On Tuesday, the Nifty 50 dropped 0.70% to close at 24,826.20 points due to a mix of global and domestic pressures. Weak global cues, particularly concerns over US fiscal and trade policies, weighed on investor sentiment. Selling pressure at home near the resistance zone and the previous supply zone also dragged the market.

Sectoral declines in IT, banking/financials, auto, and FMCG stocks further dragged the index down. Overall, caution ahead of key economic events and global uncertainty contributed to the market’s downturn.

Here are the top stock picks for today as recommended by some of India’s top market experts.

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● Why it’s recommended: Strategic expansion and diversification, recognition, and market position

● Key metrics: P/E: 24.17, 52-week high: ₹900.00, volume: ₹ 51.69 crore

● Technical analysis: Reclaimed 100-DMA

● Risk factors: Raw material price volatility, intense industry competition

● Buy at: ₹ ₹ 783.5

● Target price: ₹ 890 in three months

● Stop loss: ₹ 745

● Why it’s recommended: Leadership in soda ash and specialty chemicals, focus on sustainability, and green chemistry

● Key metrics: P/E: 67.23, 52-week high: ₹ 1,247, volume: ₹ 157.19 Ccrore

● Technical analysis: Horizontal trendline breakout

● Risk factors: Commodity price volatility, global demand uncertainty

● Buy at: ₹ 900

● Target price: ₹ 1,010 in three months

● Stop loss: ₹ 849Also Read: UBS flags India's high-risk premium despite recent equities upgrade 

It has over 28 owned factories and 2 lighthouse factories in India that produce 75 billion units annually. The company has 19 brands with over ₹1,000 crore in annual sales, with 3 brands moving close to the annual ₹1,000 crore sales mark.

The company achieved a revenue from operations of ₹63,121 crore, a growth of 2% YoY, as of FY25. EBITDA as of FY25 stood at ₹15,868 crore, as compared to ₹15,474 crore in FY24, a growth of 2.5% YoY. Profit after tax stood at ₹10,671 crore, a growth of 3.7% YoY. 

The company is going through a journey towards the premiumization of its brand portfolio. This premiumization trend leads to an increase in acquisitions of key premium brands. HUL has finalized the acquisition of a 90.5% stake in Minimalist. Minimalist turnover crossed ₹500 crore in FY25 revenue.

The company maintains a healthy margin in all its segments, with Home Care at 19%, Beauty & Wellbeing at 32%, Personal Care at 18%, and Foods at 18%. The company expects a gradual improvement in the coming quarters, led by portfolio transformation and improving macroeconomic conditions. According to the medium-term guidance, the EBITDA margin is to be within a healthy range of 22-23%. 

On the macro front, industry is being driven by rural markets, and urban demand is shifting towards e-commerce. Factors like a favorable monsoon forecast, inflation at a 6-year low, and a change in tax slabs may lead to better demand in the coming quarters.

Godrej Consumer Products Ltd (Current price: ₹ 1,272)

The company has diversified revenue across geographies and product segments. It stood among the largest players in the household insecticide and hair care segments. The company touches over 1.2 billion consumers in more than 85 countries, with a strong presence in Asia, Africa, and Latin America. The company has some well-known brands in its portfolio, like Godrej Aer, Park Avenue, Goodknight, Cinthol, KamaSutra, HIT, and others.

In FY25, the company’s consolidated volume grew by 4%. Total revenue as of FY25 stood at ₹14,680 crore, growing by 2% YoY, and EBITDA stood at ₹3,319 crore, growing by 3.3% YoY. The company has been successful in increasing its EBITDA margin through efforts like premiumization, better ad spend, and better realizations in international markets. 

Indonesia business continues to be stable with 5% volume growth and 9% EBITDA growth due to better distribution scale-up and successful launch of new products like Shampoo Hair Color and HI Electrics, etc.

In addition, the company aims to have a 2 billion customer base by FY27. It is also planning to foray into a new line of business, i.e., pet foods, branded as “Godrej Ninja," aiming for double-digit growth with an investment of ₹500 crore over a period of 5 years, and commenced production in H2 FY25.

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

MarketSmith India: Trade name: William O'Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543

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.

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 guarantees 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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