Today, we recommend two stocks, one from the Capital Goods sector and another from the FMCG sector, by the Trade Brains Portal, to buy for an upside potential of more than 18%. We also analyzed the market’s performance yesterday to understand what may lie ahead for the stock indices in the coming days.
1. Kirloskar Brothers Ltd
- Current price: ₹ 1,833
- Target price: ₹ 2,160
- Upside: 18%
- Time frame: 12 Months
Why it’s recommended
KBL, a prominent pump manufacturer with experience in fluid management system engineering and manufacturing, was founded in 1920 and is among the biggest pump manufacturers and exporters in India. With nine local and five foreign manufacturing facilities, the company serves 120 countries on six continents. With a varied product portfolio that covers a wider variety of applications in over 12 industries and developing fields, such as chemicals, petrochemicals, wastewater management, and renewable energy, KBL has over 2500 active customers.
Strong demand for the company’s wide range of goods and services across several markets drove its FY25 revenues of Rs 4,492 crore, a 12% YoY increase. Centrifugal pumps account for over 66% of the market, whereas retail pumps hold a solid 15% share, small and medium-sized pumps 25%, and big pumps 40%. The company had pending orders from overseas totaling Rs 1,208 crore, and it recorded order inflows of Rs 5,182 crore, a 12% YoY gain from both local and international markets. They have introduced 200 new items, primarily large submersibles up to about 10-inch oil-filled submersibles and energy-efficient devices with energy-efficient motors.
Over the next three to four years, the company expects to expand its margin by 20% or more and is working to improve procedures, reduce waste, and decrease expenses in order to increase efficiency. The company is focusing on expanding its services business in the UK, Europe, and Southeast Asia using its own technologies, Colligo and Phoenix. It is projected that debottlenecking, modernization, and machine replacement will cost Rs 100 crores in maintenance capital expenditures. KBL has experienced positive growth of 7% in the building and construction, urbanization, and small pump industries, as well as in the energy and thermal sector.
Risk Factors
Due to the low margins for organized businesses caused by small and medium-sized unorganized firms’ stronger regional presence, the company faces intense competition in the pump manufacturing market. Because pig iron, gun metal, and steel scrap are utilized in the manufacturing process and their costs naturally fluctuate, KBL is likewise susceptible to changes in the price of raw materials.
Emami Ltd
- Current price: ₹ 573
- Target price: ₹ 720
- Upside: 26%
- Time frame: 12 Months
Why it’s recommended
Emami Ltd., one of the leading FMCG companies in India, was founded in 1974 and manufactures and sells personal care and healthcare products. Among Emami’s more than 550 diverse product offerings are trusted power brands like Navratna, BoroPlus, Smart and Handsome, Zandu Balm, Mentho Plus, and Kesh King. Emami products are available in over 5.4 million retail outlets across India thanks to their network of over 3400 distributors. More than 70 countries are part of the company’s global footprint, including those in Africa, Eastern Europe, the CIS, MENAP, SEA, and SAARC.
In FY25, the company recorded revenues of Rs 3,809 crore, a 6.5% gain, EBITDA increased by 9.7% to Rs 1,093 crore and profit after tax increased by 9% to Rs 803 crore. Emami Ltd. proved resilient in the face of weak urban mass demand; its core domestic business, which was driven by important brands like Navratna, Dermicool, BoroPlus, and the Healthcare line, produced strong double-digit growth of 11% in addition to a good volume growth of about 7%. During the last quarter, the firm changed the positioning of Smart and Handsome from a product that focused on fairness to a comprehensive male grooming solution. The company launched “Emami Pure Glow” in Q4, marking its entry into the brightening cream market. Furthermore, the business unveiled around 25 new products in its domestic business during FY25.
In Q4FY25, their international business grew by 6%, proving resilient in the face of geopolitical unrest in Bangladesh, the Middle East, and several regions of Africa. Strong momentum was seen in the African, CIS, SEA, and SAARC markets. In FY25, organized trade channels that included institutional sales, e-commerce, and contemporary trade accounted for 27.6% of domestic revenues. Through portfolio premiumization, innovation acceleration, increased channel productivity, and strategic overseas development, Emami is still confident in its ability to navigate short-term macro risks.
Risk Factors
As the business requires menthol, packaging materials, and vegetable oil, profitability is impacted by changes in the price of raw materials. The unpredictable price of crude oil affects the cost of polymers, which are used to produce packaging materials. Til oil, seshale wax, rice bran oil (RBO), LLP (crude derivative), and menthol/mentha oil (which has a relaxing effect) are the primary raw materials used in health care and personal care products. Most of the materials are bought domestically, with very few imported. It can be challenging for the company to swiftly pass on price increases for raw materials to price-sensitive clients.
Market Recap June 13th, 2025
Increased geopolitical tensions caused the broad indices to open lower as Israel began attacking targets in Iran, primarily missile manufacturers, nuclear facilities, and military officials. The Nifty 50 began the trading session down at 24,473, but it steadily rose and ended the day at 24,718.60, down -0.68% or -169.6 points.
The same pattern was followed by the BSE Sensex, which opened lower at 80,427.81, fell to the day’s low of 80,354.59, and closed at 81,118.60, down -0.70% or -573.4 points. Although the BSE broke through its 20-day EMA, it was still above the 50, 100, and 200 EMAs. With the Nifty 50 RSI at 50.55 and the BSE Sensex RSI at 49.15 (far below the overbought threshold of 70), the Nifty 50 was also trading above the 50, 100, and 200 EMAs but below the 20-day EMA on a daily basis.
With the exception of the Nifty India Defence Index, which rose 1.3% or 131 points to close at 8,791.6, almost every sector reflected bearish views as the markets erupted owing to geopolitical concerns. The index increased as a result of up to 5% gains in defense firms, such as HAL, BEL, Data Patterns, GRSE, and Unimech Aerospace. While several indices, like Nifty Healthcare, Nifty IT, Nifty Media, and Nifty Realty, saw increases of up to 0.17%, they closed the day flat.
The Nifty PSU bank index was the biggest laggard, closing at 6,934.85, down -1.18%, or -82.65 points. Canara Bank, Indian Overseas Bank, Union Bank, and SBI were the biggest losers; their declines of up to 4% caused the index to decline. Then came the Nifty FMCG index, which fell -1.05%, or -576.95 points, and ended the day at 54,527. The main firms that fell in this index were United Spirits, ITC, Colgate-Palmolive, and VBL, which witnessed a 2.5% decrease. Rising tensions in the Middle East, including Israel’s airstrikes on Iran’s nuclear facilities and potential Iranian retaliation, were the main causes of this steep decrease.
With all of the main Asian indices closing in red, the Asian markets plummeted as geopolitical worries about the Middle East increased. In Asia-Pacific markets, Hong Kong’s Hang Seng index fell -0.6%, or -142.8 points, to end the day at 23,892.56. After rising for seven days, the South Korean Kospi index fell 0.88%, or 25.4 points, to settle at 2,894.62, while the Nikkei 225 in Japan fell 0.9%, or -338.84 points, to conclude at 37,834.25. Dow Jones Futures fell -1.12%, or -481 points, to close at 42,487.02 in the US market.
Significant events emerged this week, including the US President negotiating a trade agreement with China in which the US levied a 55% tariff on Chinese goods while China placed a 10% tariff on the US. Additionally, since the US President is scheduled to impose unilateral tariff rates on its trade partners in the upcoming week, worries about the possibility of additional tariffs increased.
Israel’s strikes in Iran during the week, mostly targeting Iran’s nuclear facilities, missile manufacturing, and military officials, increased tensions in the Middle East and may prompt retaliation from Iran. Crude oil prices rose 15.9% in a single week due to the Iran-Israel war, from USD 63/Bbl on June 6, 2025, to USD 73/Bbl on June 13 2025. In addition, when geopolitical tensions increased and investors looked to gold as a safe haven, the price of gold once again crossed the Rs 1 lakh barrier.
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