Today, we recommend two stocks, one from the coal sector and another from the construction sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 21%. India’s coal sector plays a vital role in energy security, economic growth, and industrial development, while also providing employment and revenue to the nation.
On the other hand, the construction sector is vital for India’s economic growth, contributing significantly to GDP, employment, and infrastructure development. We also analyzed the market’s performance on Thursday to understand what may lie ahead for the stock indices in the coming days.
- Current price: ₹ 378
- Target price: ₹ 455
- Upside: 20.37%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Coal India Ltd., a “Maharatna” central PSU company under the control of the Ministry of Coal, is the largest coal producer in India and operates through 84 mining areas spread over eight states of India. The company has 310 mines and has produced 781 million tonnes of coal as of FY25. With 48% of India’s proven reserves under its control and 78% of all domestic coal production, the company enjoys a monopoly.
As of FY25, operating revenue was Rs 1,43,369 crore, growing at a 12% CAGR since FY21. Since FY21, the company’s net profit has increased by 29% CAGR to Rs 35,302 crore. Better cost realisations have allowed the company to greatly increase its margins. The net profit margin increased from 15.36% in FY21 to 24.6% in FY25, with a dividend payment ratio of 46%.
In addition, CIL paid out an interim dividend of Rs 5.60 and Rs 15.75 per share, as well as a final dividend of Rs 5.15 per share for FY25. For FY25, CIL offered a high dividend yield of 6.5%. The company’s total dividend in FY25 was Rs 16,331 crore, up 4% year over year and expanding at a CAGR of 13.4% over the previous five years. In FY25, their dividend yield was 6.6%, and the total dividend per share was Rs 26.5 per share. The company has distributed around Rs 171,700 crores in dividends since the IPO.
During Q1 FY26, the company produced 183.32 MT of coal. The company’s operational revenue was Rs 35,842 crore, while its EBITDA and PAT were Rs 13,165 crore and Rs 8,734 crore, respectively. By 2028–2029, the company hopes to produce 1 billion tons of coal, and 1.22 billion tons by 2034–2035. The company expects to invest a total capex of Rs 16,000 crore to improve its washing capacity, coal mining capacity, first mile connection (FMC) projects, and construction of rail infrastructure for improving evacuation capacities.
Risk Factor
CIL requires environmental and forest permissions, particularly for greenfield projects; delays in obtaining these approvals may affect operations. The business is extremely susceptible to sociopolitical elements such as local and tribal demonstrations, political pressure, and legal mandates. The company’s logistical infrastructure and last-mile connectivity are still lacking. Long-term monopoly status may also be impacted by coal mining privatization.
- Current price: ₹ 260
- Target price: ₹ 315
- Upside: 21.15%
- Time frame: 12 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Founded in 1974, Rites Ltd. is a prestigious Navratna and Schedule ‘A’ Central Public Sector Enterprise that offers comprehensive solutions and customised, competitive, and diverse commissioning services in every area of infrastructure and transportation development. The company’s activities include design engineering, project management consulting, turnkey construction, rolling stock export, locomotive leasing, and quality assurance, serving numerous industries in more than 55 countries.
The company’s operating revenues for FY25 were Rs 2,218 crore, a 9.6% YoY decline. The delay in exports and turnkey project implementation was the reason for the income reduction. It is anticipated that exports and turnkey execution will increase in FY26. Due to decreased revenue and pressure from competitors across segments, the PAT suffered a 14.4% YoY decline to Rs 424 crore. The company’s revenue in Q1 FY26 was Rs 489.74 crore, up from Rs 485.76 crore in Q1 FY25. The results have been flat.
The order book stood at Rs 8,790 crore in the first quarter of FY26. Notably, 300+ orders totalling Rs 3,500 crore were added in the last two quarters of FY25. The following was the order book split: 33% came from consulting, 48% from turnkey, 16% from exports, 2% from leasing, and 1% from REMCL. In the upcoming fiscal year, the company hopes to achieve its highest-ever revenue to date and a top-line growth of roughly 20% that is aligned with the bottom line.
The company reached the milestone of executing one export order every quarter in FY25, won over 500 orders totalling Rs 5,500 crore, and maintained the trend of one order each day. Rites Ltd has signed an MoU with the Central Water and Power
Research Station (CWPRS) for works related to engineering consultancy services and research & development projects, and the subsidiary REMC Ltd signed an MoU with Indian Railway Finance Corporation (IRFC) Limited to explore options for financing power projects for supply to the Railways.
Risk Factor
For a large percentage of the contracts on its order book that are given out on a nomination basis, the company is dependent on the Ministry of Railways, the Government of India, the central and state governments, and the central and state PSUs. On the basis of these clients’ nominations, there is no guarantee that they will receive future contracts. This could harm their company’s expansion, financial health, and operational outcomes.
Market Recap 21st August 2025
After a volatile trading session, the broader indices ended Thursday’s trading session flat. At 25,142, the Nifty 50 opened higher than its previous close of 25,050.5, a gain of 91.45 points. At 25,083.75, it ended the day above each of the four 20/50/100/200-day EMAs. The Nifty 50 gained 33.2 points, or 0.13%, by the end of the day.
Similar to this, the BSE Sensex opened at 82,220.46 and settled at 82,000.7, increasing 142.87 points, or 0.17%, from yesterday’s closing. Regarding momentum, the Sensex RSI was at 56.48 and the Nifty 50’s RSI was at 57.88, both of which were below the 70-point overbought mark. On the other hand, the Bank Nifty Index closed at 55,755.4 after rising 56.95 points, or 0.10%, to that level.
The largest gainer, the Nifty Pharma Index, closed at 22,177, up 208.20 points, or 0.95%. Pharma stocks, such as Dr. Reddy’s Laboratories, Cipla Ltd., and Mankind Pharma Ltd., increased by up to 3%. Following the gains, the Nifty Realty Index closed at 917.35, up 3.5 points, or 0.38%. Anant Raj Ltd was the largest gainer with a gain of 2.66% followed by Brigade Enterprises Ltd (1.18%) and Sobha Ltd (0.89%).
Among the major losers, the Nifty FMCG index fell the most during Thursday’s trading session. The index closed at 56,303, down -361 points, or -0.64%. Dabur India Ltd. was the biggest loser, falling 3.6%, followed by Britannia Industries, down 1.8%, and United Breweries sank 1.7%. The Nifty CPSE Index was another significant underperformer, closing at 6,308.5 after dropping -39.85 points, or -0.63%. Coal India Ltd., Lupin Ltd., Power Grid Corporation, and NHPC Ltd. are among the major losers, with their shares falling by as much as 2%.
On Thursday, Asian markets displayed a mixed pattern. Hong Kong’s Hang Seng Index ended the day at 25,069, down -96.94 points, or -0.39%. In contrast, the Shanghai Composite Index gained 4.89 points, or 0.13%, to close at 3,771.1, on a flat note. The KOSPI Index for South Korea ended the day higher at 3,141.74, up 11.65 points, or 0.37%. At 42,626, down -262.55 points, or -0.62%, Japan’s Nikkei 225 Index, on the other hand, also ended the day lower. As of 5:10 p.m. IST, the US Dow Jones Futures were down -131.24 points, or -0.29%, at 44,807.07.
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