Stock Market Today: Indian equities rebounded strongly on Tuesday, 15 July, snapping a four-day losing streak as broad-based buying lifted benchmark indices.
The Sensex rose 317 points to close at 82,570.91, while the Nifty 50 gained 114 points, or 0.45%, to end at 25,195.80.
Mid- and small-cap stocks continued to outperform. The BSE Midcap index advanced 0.83%, while the Smallcap index added 0.95%.
Against this backdrop, Trade Brains Portal has picked two stocks-one from the IT sector and another from the energy sector.
Stocks to trade today, recommended by Trade Brains Portal for 16 July:
Tanla Platforms Ltd
Current price: ₹646
Target price: ₹825in 16-24 Months
Stop-loss: ₹550
Why it’s recommended:Founded in 1995, Tanla Platforms Ltd. has been the top provider of Communications Platform as a Service (CPaaS) in India, accounting for around 35% of the market. It has led the way in mobile and digital communications innovations and is now the preferred partner for more than 2,500 businesses and their users in a variety of industries in India, Southeast Asia, and the Middle East, including well-known international tech firms like Google, Meta, and Truecaller. They are still growing their presence in the Middle East and Southeast Asia, with India continuing to be their main focus market, which makes up over 95% of their business.
In FY25, the company reported a 2.5% YoY increase in revenue to ₹4,028 crore, a gross profit of ₹1,051 crore, and margins of 26.1%. Ebitda was ₹691 crore for the entire year, with an Ebitda margin of 17.2%. The profit margin was 12.6%, with a profit after tax of ₹507 crore. The free cash flow was ₹514 crore, or 101% of profit after taxes, and the earnings per share were ₹37.76.
In order to prevent scams on their messaging platform by detecting fraud phone numbers, the company signed agreements with one of the Global Tech Majors on Wisely ATP in Q1 FY25. The company launched Wisely ATP with another top Indian bank in Q2 FY25 and was the first to introduce and execute Call to Action (CTA) whitelisting on the Trubloq platform. The company was one of the top players in the world in Q3 of FY25, delivering one billion RCS business messages in a month. The company is the first to introduce and use PE/TM binding on the Trubloq platform later in Q3.
Additionally, the company’s subsidiary Karix has worked with a number of partners, including Makemytrip (MMT), Chennai Metro Rail Limited (CMRL), and Axis Bank, to digitise ticketing and enhance customer engagement in various services. The company continues to work with global Internet tech giants like Google and Meta to accelerate the adoption of OTT channels in India. In FY25, their OTT channel doubled in size, and almost one-third of their 400 new customers were on new OTT channels.
Risk factors:Tanla is particularly exposed to the possibility of technical failure because it works in a rapidly evolving digital environment. Because of shifting market dynamics and advancements in communication technology, existing CPaaS solutions run the real danger of becoming less competitive over time. Tanla’s reputation and clientele may suffer as a result of system malfunctions and potential hacks that steal confidential customer data.
Mahanagar Gas Ltd
Current price: ₹1,478
Target price: ₹1,750 in 16- 24 Months
Stop-loss: ₹1,310
Why it’s recommended: One of India’s top City Gas Distribution (CGD) firms, Mahanagar Gas was founded in 1995 and serves a wide range of clientele in its operating Geographical Areas (GAs) by meeting their various needs. More than 2.83 million PNG households and 1.11 million CNG vehicle users are served by its infrastructure, which includes more than 7,460 km of pipeline and 385 CNG stations. MGL has played a key role in establishing gas infrastructure and encouraging gas use among a range of consumers throughout the Mumbai Metropolitan Region (MMR), including Mumbai, Urban Thane, Navi Mumbai, Kalyan, and others, for more than thirty years.
Revenue for FY25 was ₹6,924 crore, up 10.87% from FY24’s ₹6,245 crore, according to the company. Over the past four years, it has grown at a 34% CAGR. Ebitda was ₹1,510 crore, while gross profit was ₹2,466 crore. The gross margin was ₹16.51/SCM, which was more than the FY22 gross margin of ₹13.61/SCM. The average sales realization was ₹46.54/SCM, higher than FY21’s ₹26.42/SCM. Over the past four years, PAT has grown at a 14% CAGR to reach ₹1,045 crore. As of FY25, ROE was 18.94%.
The company wants to expand its customer base in all regions for both PNG and CNG. The market penetration of CNG will rise as more OEMs prepare to introduce CNG-based automobiles. The business intends to invest approximately ₹1,300 crore in FY26 and ₹150 crore in MGL’s subsidiary, UEPL. Approximately ₹500 crore would be spent on PNG, including pipelines, and ₹300 crore will be spent on CNG. Within the next five years, 250 CNG filling stations and 180 km of steel pipeline are planned. In order to diversify into new markets or bolster its current ones, the company has made a number of acquisitions and partnerships and is growing into various energy-related subsegments.
Risk factors: Delays caused by prolonged authorization procedures typically have an impact on the company’s project implementation. The installation of CNG stations and an increase in pipeline infrastructure would be necessary to streamline the procedure. Also, exorbitant costs and a lack of available land make it difficult to establish new CNG stations in the company’s operating areas.
Market Recap – 15 July
Indian equities opened on a strong note Tuesday, with the Nifty 50 beginning the day at 25,089.50-just 7 points above Monday’s close of 25,082.30. The index hit an intraday high of 25,245.20 before settling at 25,195.80, up 113.50 points or 0.45%.
On the technical front, the Nifty ended below its 20-day exponential moving average (EMA) but remained above its 50-, 100-, and 200-day EMAs. The Relative Strength Index (RSI) stood at 50.50, comfortably below the overbought zone of 70.
The BSE Sensex followed a similar trajectory, opening at 82,233.16, peaking at 82,743.62, and closing at 82,570.91-up 317.45 points or 0.39%. Its RSI came in at 49.59. Like the Nifty, the Sensex closed below its 20-day EMA but held above the longer-term 50-, 100-, and 200-day EMAs.
All major domestic indices ended in the green.
The Nifty Auto Index led the sectoral rally, ending the day at 23,905.25, up 1.50% or 353.25 points. Stocks such as Hero MotoCorp, TVS Motor, Bajaj Auto, and Samvardhana Motherson gained over 2%.
The Nifty Healthcare Index rose 179.95 points or 1.23% to close at 14,787.65, supported by strong gains in Sun Pharma, Fortis Healthcare, and Apollo Hospitals-all of which rose more than 2%. Biocon and Syngene were top performers, advancing 2.99% each.
The Nifty Pharma Index also delivered solid gains, finishing at 22,665.70, up 255.35 points or 1.14%. Sun Pharma, Biocon, and Natco Pharma all gained over 2% during the session.
A broadly bullish tone was seen across Asian markets: Hang Seng (Hong Kong): +386.80 points (1.60%) to 24,590.12; Kospi (South Korea): +13.25 points (0.41%) to 3,215.28; Nikkei 225 (Japan): +218.40 points (0.55%) to 39,678.02; Shanghai Composite (China): -14.65 points (-0.42%) to 3,505.00
By 4:55pm (India time), US markets appeared relatively flat in early futures trade, with Dow Jones Futures up 17.48 points or 0.04% at 44,471.16.
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