Stocks to trade today: Trade Brains Portal recommends two stocks for 16 June

Here are two stocks to trade today, as recommended by the Trade Brains Portal

IREDA Ltd

Current price: ₹167 | Target price: ₹215 in 12 months | Stop-loss: ₹144

Why it’s recommended: The company is the largest green financing non-banking financial company (NBFC) with more than 38 years of experience and holds the ‘Navratna’ status. It offers a diversified, comprehensive suite of financial products across the renewable energy ecosystem, including solar, hydro, transmission, wind, battery storage systems, green hydrogen, project-term loans, loan refinancing, and EV charging infrastructure. 

Also Read: Escalating Israel-Iran conflict to keep markets on boil in near term

As of 31 March 2025, the Government of India is the majority shareholder in IREDA with a stake of 75%. It plays a strategic and vital role in the GOI’s initiatives for the promotion and development of the renewable energy sector. India’s renewable energy sector capacity as of FY25 stood at 220 GW, and an ambitious target to increase the capacity to 500 GW has been set by 2030. The company has a well-diversified loan book, with a presence across 23 states and 4 Union territories.

As of FY25, revenue from operations grew by 36% year-on-year, standing at ₹ ₹6,743 crore. PAT stood at ₹1,698 crore, a jump of 36% on-year. The company did a disbursement of ₹30,168 crore, a growth of 20% on-year, whereas sanction grew by 27%, stood at ₹47,453 crore in FY25. The outstanding loan book is standing at ₹76,282 crore, and a growth of 28% on-year has been witnessed. The loan book has a major weight in the solar thermal sector (24%), followed by the wind sector (14%), and hydropower (11%). 

As of FY25, the private sector constitutes 73% of the loan book, whereas the public sector contributed 27%. States like Rajasthan, Karnataka, Andhra Pradesh, and Tamil Nadu are among the leading states that contribute more than 50% of the loan book, as of FY25. 

The company has been successfully increasing the asset quality over the years, reducing its NPA from 5.61% in FY21 to 1.35% in FY25. Yield on advances for FY25 stood at 10.03%, on account of controlled cost of borrowing, which stood at 7.61%. IREDA maintains a healthy, sustainable NIM of 3.27%, up by 42bps on-year.

The renewable energy sector in India grew 3x in the last decade. Solar PV installed capacity has been growing at an astounding rate of 24% CAGR since FY19, which currently stands at 106 GW as of FY25. According to CEA, Solar installed capacity is expected to reach 364 GW by FY32, and a CAGR of 19.27% is assumed. Wind energy installed capacity stood at 50 GW as of FY25 and is expected to reach 122 GW by FY32, according to CEA.

Risk Factor: The company is exposed to interest rate risk, which could hamper NIMs and operations, as the company depends on interest income from the loans disbursed. The company is also vulnerable to counterparty risk, augmented by the wholesale nature of the loans and concentration risk in a few states. Any downward revision in the tariffs could negatively affect the cash flows and financial conditions of the company’s borrowers and further hamper repayment capabilities.

Also Read: The capital goods sector gets a power-up, its weight rises in Nifty

NCC ltd

Current price: ₹226 | Target price: ₹295 in 12 months | Stop-loss: ₹190

Why it’s recommended: The company was established in 1978 and is one of the largest listed construction companies in terms of revenue. It is in the business of creating infrastructure for buildings, transportation, water and environment, electrical transmission and distribution, irrigation, mining, and railway projects. It has a pan-India presence, with footprints across nine cities such as Ahmedabad, Bengaluru, Chennai, Delhi, Lucknow, Mumbai, Pune, Kolkata, and Patna, with its headquarters located in Hyderabad. 

It has a healthy client base with clients like BMC, NHAI, Airport Authority of India, Adani, RVNL, Coal India, etc. Apart from accomplishing projects across India, the company has a presence in the Middle East through its subsidiaries in Muscat and Dubai.

In FY25, the company recorded a total revenue of ₹22,355 crore, a growth of 6.6% on-year, and PAT of ₹868 crore, a jump of 17% on-year. It has recorded the highest ever order book of ₹71,568 crore, a growth of 18.4% on-year. Moreover, the company secured orders worth ₹32,888 crore in FY25, which is 50% higher than the previous guidance by the company. 

The company has recorded an Ebitda of ₹1,918 crore, registering a growth of 8.4% on-year. In FY25, NCC received two work orders from BSNL for the BharatNet project, which is one of the largest single-project wins for the company, focused on building the middle-mile network. Apart from that, the company has also secured orders worth ₹9,000 crore to ₹9,500 crore from the Andhra Pradesh state for the infrastructure development, construction of residential blocks, and the high court.

As per the guidance from management for FY26, the company is targeting the order inflow to be in the range of ₹22,000-25,000 crore, driven by continued sectoral demand and a strong pipeline. The company also expects to maintain 10% growth in revenue, with stable margins in the range of 9.0%–9.25%, on account of ongoing focus on cost optimization and operational efficiency. It has incurred a capex of ₹305 crore, which is higher than the budgeted capex of ₹250 crore for the regular projects in FY25. It anticipates a capex of ₹750 crore in FY26, where around ₹300 crore will be utilized for TBM machines and about ₹280 crore for the smart meter project.

Risk Factor: The company is exposed to working capital management risk due to the nature of the business's long working capital cycle. It also faces counterparty risk, as recovery of debtors, including unbilled revenue, is crucial for the company. It is also vulnerable to implementation risks due to long-term projects. This risk includes instances like construction delays, delay or disruption in the supply of raw materials, delays in the acquisition of land, unanticipated cost increases, and cost overruns.

Market recap 

On Friday, Israel's strikes on nuclear targets in Iran shook markets. BSE Sensex followed the same trend as the Nifty, opening in red at 80,427.81, dropping to day's lowest at 80,354.59, and closing at 81,118.60, slipping by -0.70% or -573.4 points. BSE breached its 20-day EMA but remained above (50/100/200) EMAs. The Nifty 50 was also trading above (50/100/200) EMAs but below 20-day EMA in the daily timeframe, with the Nifty 50 RSI at 50.55 and the BSE Sensex RSI at 49.15 (far below the overbought threshold of 70).

Also Read: Battery energy storage stocks: A small-cap watchlist

As the markets ignited due to geopolitical fears, almost all the sectors reflected bearish sentiments except for the Nifty India Defence Index, which surged 1.3% or 131 points, closing at 8,791.6. Defence stocks, including HAL, BEL, Data Patterns, GRSE, and Unimech Aerospace, gained up to 5%, bringing the index up. Whereas a few indices like Nifty Healthcare, Nifty IT, Nifty Media, and Nifty Realty ended on a flat note with gains of up to 0.17%. 

The major laggard was the Nifty PSU bank index, which dropped -1.18% or -82.65 points and closed at 6,934.85. The major losers included Canara Bank, Indian Overseas Bank, Union Bank, and SBI, which slumped up to 4%, hence dragging the index down. Followed by the Nifty FMCG index, which dropped by -1.05% or -576.95 points, and closed at 54,527, in which major stocks declined are United Spirits, ITC, Colgate-Palmolive, and VBL saw a decline of up to 2.5%. This sharp decline was fueled by rising issues in the Middle East, with Israel airstriking Iran’s nuclear facilities and possible retaliatory measures from Iran.

The Asian markets tanked amid the rising geopolitical concerns over the Middle East, with all major asian indices ending in red. Hong Kong’s Hang Seng index dipped -0.6%, or -142.8 points, to conclude at 23,892.56 in the Asia-Pacific markets. The Nikkei 225 in Japan declined 0.9%, or -338.84 points, to close at 37,834.25, while the Kospi index in South Korea declined on Friday after a 7-day upward trajectory, slumping 0.88%, or 25.4 points, to close at 2,894.62. In the US market, Dow Jones Futures slipped by -1.12% or -481 points, closing at 42,487.02.

This week was followed by major events, with the US President reaching a trade deal with China, where the US imposed a 55% tariff on Chinese goods, compared to China’s 10% tariff on the US. Additionally, concerns over threats of renewed tariffs rose, as the US President is set to impose unilateral tariff rates on its trading partners in the coming week. 

The Middle East tensions also heightened during the week with Israel striking targets in Iran, mainly targeting Iran’s nuclear facilities, missile factories, and military leaders, which could lead to retaliatory measures from Iran. As a result of the Iran-Israel war, crude oil prices jumped by 15.9% in just one week from $63/Bbl on 6 June 2025 to $73/Bbl on 13 June 2025. 

Additionally, the Gold price also crossed the ₹1 lakh mark again amid escalated geopolitical tensions, as investors turned to Gold as a safe haven.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.