Today, we recommend two stocks, one from the retail (textile) sector and another from the railway sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 40%. India’s railway infrastructure plays a vital role in the country’s development, acting as the backbone of transportation, enabling trade and commerce, supporting industrial growth, and generating employment. Simultaneously, the Indian retail textile sector is a rapidly growing industry driven by rising disposable incomes, urbanization, and evolving fashion trends. We also analyzed the market’s performance on Wednesday to understand what may lie ahead for the stock indices in the coming days.
1. Vedant Fashions Ltd
- Current price: ₹ 789.15
- Target price: ₹ 1,110
- Upside: 40.65%
- Time frame: 16 – 24 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Vedant Fashions, established in 2002, is a market leader in men’s Indian wedding and celebration wear based on both revenue and profitability. As of Q1 FY26, the company operates 670 Exclusive Brand Outlets (EBOs) across 245 cities and towns in India, along with 14 EBOs in international markets, including the USA, UAE, Canada, and the UK. Its total retail footprint stood at 1.78 million square feet. The company’s popular brands include Manyavar, Twamev, Diwas, and Mebaz. Vedant Fashions is also expanding its footprint in women’s Indian wedding and celebration wear through Mohey, which has the largest number of outlets among its peers and a nationwide presence.
In FY25, income from operations grew by 1.4% from Rs 1,367.5 crore in FY24 to Rs 1,386.5 crore. EBITDA stood at Rs 646.4 crore with a strong margin of 46.6%, while PAT was Rs 388.5 crore, yielding a net margin of 28%. Client sales rose by 2.2% to approximately Rs 1,893 crore. The company’s profitability in FY25 was impacted by subdued consumer demand and a nearly wedding-free first quarter. However, during the nine months from July to March of FY25, like-for-like (L2L) sales grew by 2.9%, and retail sales increased by 9.3%. The company added over 1.8 lakh square feet of gross retail space during the year, excluding existing markets.
For FY26, the company’s main objectives are to drive like-for-like sales growth and expand its retail presence meaningfully before year-end. The management is focused on integrating Mohey’s flagship stores within Manyavar outlets, with Mohey currently covering approximately 2.5 lakh square feet. A significant uptick in retail sales is expected in the third quarter of FY26. The company plans to secure new stores with optimal rents and high productivity. It also anticipates a drop in retail inflation in early FY26, which will support reinvestment in retail expansion. The overall goal is to add high-quality net retail space to fuel future growth.
In Q1 FY26, the company reported a 17.2% increase in operational revenue, reaching Rs 281 crore compared to Rs 240 crore in Q1 FY25. It maintained a strong industry-leading gross margin of 66.9%. PAT rose by 12.4% to Rs 70.3 crore, up from Rs 62.5 crore in the same quarter last year. Retail sales, representing customer purchases, grew by 23.2% year-over-year during the quarter.
Risk Factor
Vedant Fashions may face intense competition from both established players and new entrants in the ethnic and wedding wear segments, which could impact its market share and pricing flexibility. Additionally, the business is heavily dependent on festivals, weddings, and celebratory events. Variations in the timing or scale of these occasions can lead to fluctuations in sales and profitability.
2. Titagarh Rail Systems Ltd
- Current price: ₹ 869.95
- Target price: ₹ 1,050
- Upside: 20.70%
- Time frame: 16 – 24 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Founded in 1997, Titagarh Rail Systems brings over 25 years of expertise as one of India’s top providers of integrated mobility solutions. The company’s core operations include manufacturing passenger coaches, propulsion systems, urban metros, semi-high-speed trains, and a wide variety of wagons, including specialized ones. It currently can process more than 30,000 tons of casting steel annually and produce 12,000 wagons and 300 coaches across its four manufacturing facilities. As of FY25, its total order book stood at Rs 24,526 crore. Titagarh Rail Systems is the only company in India that manufactures both wagons and coaches.
While operational income grew at an 18% compound annual growth rate (CAGR) between FY23 and FY25, it rose only slightly in FY25 to Rs 3,867 crore compared to Rs 3,853 crore in FY24. Profit after tax (PAT) declined by 4.9% from Rs 288 crore in FY24 to Rs 274 crore, though it has maintained a robust CAGR of 43% since FY23. Revenue from the freight rolling stock (FRS) segment grew by 5.64% year over year, reaching Rs 3,610.27 crore in FY25, while the passenger rolling stock (PRS) segment contributed Rs 255.55 crore. The company set a new industry benchmark by producing 9,431 wagons in FY25, the highest ever manufactured in a single year in India, and achieved a foundry production record of 27,240 metric tons.
Looking ahead, the company plans to establish fully modernized foundry facilities to significantly expand production in FY26, targeting 40,000 tonnes of casting output in the initial phase. With supply chain challenges related to China now resolved, production for the Bangalore Metro is expected to become more efficient and fully streamlined by the second quarter of FY26. In its propulsion division, the company aims to scale up to 125 to 150 traction motors per month, translating to 1,500 to 1,800 motors annually starting in FY26. It is actively pursuing new business opportunities from a substantial project pipeline. Key upcoming prospects include the Rs 72,000 crore Vande Bharat Coach initiative and the proposed Rs 15,800 crore Metro coach contracts.
Risk Factor
The Indian Railways continues to be the company’s primary revenue source, with freight rail lines and wagons contributing over 90% of its operating income. Additionally, the company has minimal exposure to international markets and remains focused almost entirely on domestic projects, which could limit diversification and growth opportunities abroad.
Market Recap 30th July, 2025
The Nifty 50 was trading on a flat trend on Wednesday, opening at 24,890, higher than its previous close of 24,821, indicating a slightly positive start. It ended below the 20 and 50-day EMAs at 24,855 after reaching the day’s low of 24,772. The Nifty 50 was up 0.14%, or 33.95 points, at the close of the day. Following the same pattern, the BSE Sensex rose 0.18%, or 143.91 points, to close at 81,481.8.
With a day’s low of 81,187, the index remained above the 100 & 200-day EMAs and is currently trading below the 20 & 50-day EMAs. On Wednesday, the Nifty closed above the 100 and 200 EMAs, and the Nifty 50 RSI remained at 43.25. The BSE Sensex RSI also closed at 43.19, significantly below the 70-point overbought level. On Wednesday, the India VIX also declined slightly by -0.32 points, or -2.78%, to 11.20, indicating lower market volatility.
The sectoral indices also showed mixed signals. The biggest gainer was the Nifty Infrastructure index, which gained 46.55 points, or 0.5%, and closed at 9,151. Major stocks like Larsen & Toubro Ltd, Cummins India Ltd, Ambuja Cements Ltd, and NTPC Ltd saw gains of up to 4.85%. Also, the Nifty IT index was among the top gainers, finishing the day up 108.45 points, or 0.31%, at 35,481. With gains of up to 2%, the best performers were Coforge Ltd, LTIMindtree Ltd, Mphasis Ltd, and Tech Mahindra Ltd.
The Nifty Realty Index, however, fell -8.85 points, or -0.96%, and closed at 917.65. The index declined as a result of heavyweights such as Brigade Enterprises Ltd, DLF Ltd, Godrej Properties Ltd, and Oberoi Realty Ltd tumbling more than 1%. Another significant loser was the Nifty Media Index, which closed at 1,624.80, down -12.95 points, or -0.79%.
Asian markets showed a mixed trend on Wednesday. Hong Kong’s Hang Seng declined -382.45 points, or -1.52%, to 25,142.00. In contrast, the Kospi in South Korea closed at 3,254.47, up by 0.73% or 23.90 points. Japan’s Nikkei 225 tumbled by -45.55 points, or -0.11%, settling at 40,629.00. Meanwhile, Shanghai’s Composite index closed the day higher at 3,615.72, down 6.01 points, or 0.17%. At 4:39 p.m., Dow Jones Futures were up 50.27 points, or 0.11%, on the US stock exchange at 44,682.26.
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