Today, we recommend two stocks, one from the green energy sector and another from the railway sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 19%. India’s renewable energy sector is experiencing robust growth, with significant capacity additions in solar and wind power, as the country aims towards achieving 500 GW of renewable capacity by 2030.
We also analysed the market’s performance on Wednesday to understand what may lie ahead for the stock indices in the coming days.
- Current price: ₹88
- Target price: ₹105
- Upside: 19%
- Time frame: 12-14 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
The largest hydropower development firm in India, NHPC, was established in 1975 and can manage every stage of the development of hydropower projects, from planning to commissioning. NHPC has ventured into solar and wind energy in addition to creating a number of renewable energy projects. It operates in two union territories and fifteen states. Of the company’s 24 ongoing projects, 21 are hydro projects, one is wind, and two are solar.
The company’s FY25 operating revenue of Rs 8,994 crore was a 7% increase over FY18’s Rs 8,397 crore. However, profit after taxes dropped from Rs 3,722 crore to Rs 3,084 crore. In FY25, total capital expenditures came to Rs 11,596 crore, which was marginally less than the Rs 11,762 crore that was anticipated.
Through 30 power facilities, the firm has 8,140 MW of installed capacity (7,771 MW hydro and 369 MW renewable energy). Currently, it is engaged in 9,897 MW of projects, which include 8,514 MW of hydro and 1,383 MW of solar. 16% of the installed hydroelectric capacity in India is accounted for by the NHPC. NHPC can generate 7,771 MW of hydroelectric power out of India’s total 47,928 MW.
In April, the 800 MW Parbati-II hydroelectric plant was completely put into service by NHPC. NHPC is also constructing pumped storage projects; the Parbati-II power station is now the company’s largest operational power facility in Andhra Pradesh, Odisha, Madhya Pradesh, Chhattisgarh, Gujarat, Tripura, Punjab, Rajasthan, and Maharashtra.
Risk factor: NHPC is vulnerable to counterparty credit risk because of its involvement with state distribution utilities and departments with a moderate-to-weak credit profile. In the past, debtors have accrued, especially from Jammu and Kashmir Power Corporation Ltd. Since the company has already seen cost and schedule overruns for the 800-MW Parbati II and 2,000-MW Subansiri Lower projects, it is vulnerable to project execution and funding-related issues when considering substantial capital expenditure plans in the hydro and renewable segment.
- Current price: ₹138
- Target price: ₹165
- Upside: 20%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
The Ministry of Railways has administrative authority for the Indian Railway Finance Corporation (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 organisations in the industry, such as Rail Vikas Nigam Limited (RVNL), RailTel, Konkan Railway Corporation Limited (KRCL), and Pipavav Railway Corporation Limited (PRCL), have received financial support from IRFC in addition to the railways. The company’s assets under management (AUM) were valued at Rs 4.6 lakh crore as of March 31, 2025.
IRFC’s net interest income increased by 2.2% from Rs 6,429 crore in FY24 to Rs 6,569 crore in FY25. Additionally, its net interest margin improved somewhat, going from 1.38% to 1.42% over the prior year. IRFC approved Rs 5,700 crore in loans for the fiscal year, including Rs 700 crore for NTPC and Rs 5,000 crore for NTPC Renewable Energy Ltd. Additionally, the company became the first bidder for Rs 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 Rs 5,000 crore with NTPC REL.
The Department of Public Enterprises granted the firm Navratna status in FY25, and it hopes to soon obtain Maharatna status. Additionally, under Indian Railways’ General Purpose Waggon Investment Scheme (GPWIS), the IRFC board authorised funding to NTPC for 20 BOBR rakes on a finance lease basis up to Rs 700 crore. In January 2025, a leasing agreement was also struck with NTPC Ltd. for eight BOBR rakes, which were valued at over Rs 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 finance in the nuclear, thermal, and renewable energy domains.
Risk factor: The Ministry of Railways (MoR) and its affiliates account for the entirety of IRFC’s loan book. As of March 31, 2025, 37% consisted of advances for leased railway assets, 62% consisted of lease receivables from MoR, 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 MoR’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.
Market Recap 9th July 2025
After beginning the day lower, the Nifty 50 closed lower by 46.4 points, or 0.18%. It opened at 25,514.60, reached the day’s high of 25,548.70, and ended at 25,476.10, above all of the 20/50/100/200 EMAs on the daily time frame. The BSE Sensex closed at 83,536.08, down 176.43 points, or 0.21%, after opening at 83,625.89. Both indices were trading above all four EMAs (20/50/100/200), with the Nifty 50 RSI at 60.61 and the BSE Sensex RSI at 59.82 (far below the overbought threshold of 70). The upcoming earnings season, tariffs, and anticipated trade deal announcements between India and the US caused the Indian equities markets to close lower and stay volatile throughout the trading day on Wednesday. Additionally, the benchmark indices were driven lower by the selling pressures observed in the metal, oil and gas, and IT industries. With an increase of more than 6% by Emami Ltd., Dabur India, and Varun Beverages, the Nifty FMCG index increased 442.2 points, or 0.8%, to close at 55,946.
The Nifty Realty index, on the other hand, closed at 967.75, down -1.49%, or -14.6 points. Stocks like Brigade Enterprises and Phoenix Mills Ltd., which had declined by over -3.5% and -3.2%, respectively, pulled the Nifty Realty Index down.
In addition, the Nifty Metal Index dropped -132.9 points, or -1.4%, to close the day at 9,384.5. Trump’s announcement of additional duties on copper imports caused a 3% decline in the stocks of companies such as Vedanta, Hindustan Copper, and Hindustan Zinc on Wednesday.
Asian markets ended the day on Wednesday with mixed results. The Hong Kong Hang Seng index fell by -1.06%, or -255.75 points, to end at 23,892.32, while the South Korean Kospi index rose by 0.6%, or 18.79 points, to end at 3,133.74. Japan’s Nikkei 225 jumped 132.47 points, or 0.33%, to 39,821.28. The Shanghai index ended the day down 4.43 points, or 0.13%, at 3,473.13. At 4:36 PM on Wednesday, the US Dow Jones Futures was up 95.83 points, or 0.22%, at 44,336.59.
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