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Stock market today: Indian benchmark indices endured a highly volatile session on Monday, 2 June, but managed to pare early losses and close with modest declines, as late-session buying by bulls helped lift sentiment.

The Nifty 50 ended down 0.14% at 24,716, recovering 189 points from the day’s low. The Sensex also clawed back from early losses to finish 77 points, or 0.09%, lower at 81,373.

Against this backdrop, Trade Brains Portal has picked two stocks—one from the healthcare sector and the other from the finance sector.

Current price: ₹ 2,777

Target price: ₹3,380 in 16-24 months

Stop-loss: ₹ ₹2,475

Why it’s recommended: Founded in 1949, Dr. Lal PathLabs is one of India’s leading diagnostic chains, offering a comprehensive range of pathology and radiology services. Its pan-India presence includes 12,365 pick-up points (PUPs), 6,607 patient service centers (PSCs), and 298 clinical laboratories as of FY25. The company serves patients and healthcare providers with over 3,100 pathology tests, 1,400+ radiology/cardiology tests, and 385 test panels, operating across more than 23 countries.

A logistics backbone supported by 280+ satellite labs and 36 NABL accreditations.

Partnerships with 150+ hospitals/labs.

A medical team of 250+ physicians and 1,800+ employees.

Revenue: ₹2,461 crore, up 10.5% YoY

Ebitda: ₹696 crore, up 14.2%, with 28.3% margin

PAT: ₹492 crore, up 35.9%, with a 20% net margin

The management is guiding for 11–12% revenue growth in FY26, driven by test portfolio expansion and rising patient volumes. Ebitda margins are expected to hover around 27%, as the company invests in growth regions (especially South and West India), digital infrastructure, and talent acquisition.

Read this | Dr Lal PathLabs feels margin heat as it chases growth, long-term outlook remains strong

Continued focus on digital expansion, including an AI-based recommendation engine to improve patient experience.

Increasing depth in high-growth segments such as genomics, autoimmune disorders, and reproductive diagnostics.

Accelerated presence in Tier-3 and Tier-4 cities, particularly in North and East India; 18 new labs added in FY25.

Ongoing integration of Suburban Diagnostics (acquired in 2021) to broaden reach and service offerings.

Emphasis on volume-led growth by increasing both patient footfall and tests per patient.

Actively exploring inorganic growth opportunities through M&A, leveraging its strong brand recall.

Risk factors: The accuracy of diagnostic services is critical. Any lapses due to operational errors, poor maintenance, or mishandling could damage reputation and trust. The diagnostic space remains fragmented and highly competitive, with pricing pressure from numerous unorganized players offering similar services.

Current price: ₹ 260

Target price: ₹ 310 in 16-24 months

Stop-loss: ₹ 230

Why it’s recommended: Established in 1991, Mahindra Finance is among India’s leading non-banking financial companies (NBFCs), catering to a wide customer base across rural and semi-urban India. The company operates a robust pan-India network with over 1,365 branches across 27 states and 7 Union Territories, covering 516,000 villages and 8,000 towns, and serving 11 million customers through 6,000+ dealers and 10 OEM partnerships. 

Its diverse portfolio spans vehicle loans, SME financing, home finance, insurance broking, mutual funds, personal loans, and fixed deposits, with an AUM of $14.1 billion.

Read this | Three multibagger penny stocks to watch out for in 2025

Total disbursements: ₹60,741 crore, up from ₹58,647 crore in FY24

Profit after tax: ₹2,261 crore, up 16% YoY

Total income: ₹18,530 crore, up 16% YoY

Loan book: ₹1,16,214 crore, up 17% YoY

Interest income: ₹16,566 crore, up 15% YoY

Interest expenses: ₹8,415 crore, up 21% YoY

The company maintained healthy asset quality, supported by a tech-led approach to underwriting and collections. Credit cost stood at 1.3%, net interest margin at 6.5%, and gross stage 3 (GS3) assets at 3.7%.

The company maintained healthy asset quality, supported by a tech-led approach to underwriting and collections. Credit cost stood at 1.3%, net interest margin at 6.5%, and gross stage 3 (GS3) assets at 3.7%.

Mahindra Finance has focused on targeting resilient borrowers, digitizing processes via third-party API integrations, and using data analytics to drive collection efficiencies. The company’s SME segment saw a 48% jump in disbursements, accounting for 5% of the total. Among vehicles:

Passenger cars rose 8%, making up 41% of disbursements

Tractor loans grew 3%, contributing 10%

Pre-owned and three-wheeler financing accounted for 16% and 4%, respectively

Commercial vehicle financing remained stable at 21%

Other segments (farm implements, gensets, personal/consumer loans) grew 21%, contributing 2%

Mahindra Finance’s diversified portfolio and strong brand in rural markets position it well to benefit from increased rural spending and the uptick in auto and SME financing.

Risk factors: Credit risk remains a concern, particularly in rural markets, where loan delinquencies could lead to higher NPAs and impact profitability. The company’s dependence on multiple funding sources exposes it to liquidity risks, especially during times of financial market stress. Continued performance depends on effective risk management, prudent capital allocation, and strong administrative controls.

Indian benchmark indices ended a volatile session with minor losses on Monday. The Nifty 50 opened at 24,669.70, lower than Friday’s close of 24,750.70, and slipped to an intraday low of 24,526.15 before recovering to close at 24,716.60, down 34.10 points or 0.14%. The index remained above its 50-, 100-, and 200-day EMAs, while breaking past the 20-day EMA. Its Relative Strength Index (RSI) stood at 54.70.

The Sensex opened at 81,214.42, also below its previous close of 81,451.01, and dipped to a low of 80,654.26 before closing at 81,373.75, down 77.26 points or 0.09%. The Sensex also broke through its 20-day EMA and had an RSI reading of 54.69.

Among sectoral indices, PSU banks led the gains on expectations of a possible rate cut at the upcoming RBI policy meeting. The Nifty PSU Bank index jumped 2.43% to 7,145.30, driven by strong moves in Indian Overseas Bank, which climbed 5.42% to ₹42, and Bank of Maharashtra, which rose 6.82% to ₹57.66. Realty stocks also saw strong buying, with the Nifty Realty index rising 2.18% to 970.05. Brigade Enterprises led the pack with a gain of 5.29%.

On the other hand, technology stocks underperformed. The Nifty IT index fell 0.69% to 37,063, with names like Mphasis and Persistent Systems losing nearly 2% each. The Nifty Metal index also declined, slipping 0.48% to 9,148.95, after former US President Donald Trump announced plans to double steel import tariffs to 50%. JSW Steel and Lloyds Metals & Energy were among the notable losers, falling 1.25% and 2.76%, respectively.

Also read | Amara Raja’s March quarter margin is an irritant. More trouble ahead?

Asian markets were largely in the red, mirroring the cautious sentiment. Hong Kong’s Hang Seng index dropped 0.57% to 23,157.97, while China’s Shenzhen Component lost 0.86% to close at 10,040.63. Japan’s Nikkei 225 slid 1.3% to 37,470.67. Meanwhile, the Dow Jones in the US managed a modest gain of 0.13% to close at 42,270.07, even as tensions flared between the US and China. Beijing accused Washington of violating the Geneva tariff truce and threatened to raise retaliatory tariffs on US steel and aluminium imports to 50%.

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 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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