Stocks to trade today: Trade Brains Portal recommends two stocks for 23 July

Stocks to trade today, recommended by Trade Brains Portal for 23 July:

Ion Exchange (India) Ltd

Current price: ₹540

Target price: ₹685 in 12 months

Stop loss: ₹465

Why It’s recommended: Ion Exchange, one of the top water and environmental management firms, was founded in 1964. A range of households, communities, organizations, and industries are served by the company. Ion Exchange is headquartered in Mumbai and operates seven production and assembly facilities throughout India, as well as one each in Bangladesh, Indonesia, Saudi Arabia, and the United Arab Emirates. It also has a facility in Portugal. The business also boasts two applications and testing centres, two in-house R&D facilities, over 50 patents, and over 100 commercialized products.

In FY25, the company’s consolidated operating income stood at ₹2,737 crore, a 16.6% rise year-on-year. Profit after tax was up 6.6% on-year to ₹208.3 crore, while operational Ebitda increased 8% on-year to ₹293.9 crore. The company's revenue in FY25 was ₹29.02 crore (10%) from consumer goods, ₹81.84 crore (29%) from chemicals, and ₹170.38 crore (61%) from engineering. Exports contributed 35% of revenue and domestic sources 65%. The company had a total order book of ₹2,762.03 crore as of 31 March 2025, and orders from its robust bid pipeline totalled ₹8,834 crore.

The company is looking for opportunities in semiconductors and data centres, as well as expanding its product and go-to-market portfolios globally to include chemicals and membranes. The Roha Greenfield Resin Plant is expected to generate revenue and improved margins in Q3 and Q4 of FY26, after the company made significant investments in infrastructure, personnel, and the distribution network in FY25. The debt component makes up about 80% of the company's approximately ₹400 crore total capital expenditure for the Roha project in FY26. This term loan has an interest rate that is a little less than 10%. The value of the unfinished UP project order was ₹378 crore, and it was anticipated to last until Q1 of FY26.

Risk factor: The engineering segment's revenue remains impacted by economic cycles. Additionally, the business serves PSUs and government organizations, the costs of which are closely related to the state of the economy. Any downturn in the Indian economy or any postponement or delay in capital expenditure (capex) in end-user sectors could hurt IEIL's earnings.

Ganesha Ecosphere Ltd

Current price: ₹1,530

Target price: ₹1,855 in 12 months

Stop loss: ₹1,367

Why it’s recommended: Ganesha Ecosphere Ltd, one of the largest rPET Fibre manufacturers in India, was created in 1987. In addition to producing recycled polyester staple fibre (RPSF), dyed yarn, and recycled spun yarn, the company has recently expanded into the production of rPET chips and rPET filament yarn. The company has a strong statewide collection network, especially in the northern and southern regions, and mobilizes 450 tonnes of PET bottle waste every day. With a network of over 300 suppliers across India, 400+ customers in more than 20 countries, and over three decades of industry experience. Currently, the company has six manufacturing facilities and recycles more than 8.5 billion scrap bottles annually.

The company's revenue increased by 30.5% on-year from ₹1,122.9 crore in FY24 to ₹1,465.5 crore in FY25. Its Ebitda grew by 52.72% on-year from ₹137.9 crore in FY24 to ₹210.6 crore in FY25. In FY25, the Ebitda margin was 14.4%, compared to 12.3% in FY24. In contrast, its profit after tax climbed from ₹40.6 crore in FY24 to ₹103.1 crore in FY25, a 154% on-year increase. Ganesha Ecosphere is a prominent player in the PET plastic recycling market in India with 196,440 tonnes of installed capacity and an annual conversion rate of over 150,000 MTPA of PET waste.

By H1FY27, the company intends to expand its capacity for rPET granules in Odisha to 67,500 MTPA, while by Q4FY26, it anticipates expanding its capacity in Warangal to 22,500 MTPA. Over the next two years, the business plans to invest ₹725 crore in capital expenditures to expand the capacity of rPET granules (Ganesha Ecopet Pvt. Ltd). Of this amount, ₹600 crore will be used for the greenfield growth in Odisha and ₹125 crore for the brownfield expansion in Warangal. In order to increase the credibility of its raw materials and the effectiveness of its supply chain, Ganesha Ecosphere has partnered strategically with Race Eco Chain (49:51) to secure PET flakes through a statewide hub-and-spoke sourcing strategy.

Risk Factor: The availability of PET waste and the volatility of VPSF pricing, especially in a declining price scenario, can influence GEL's profitability. GEL's raw material (PET waste) costs are driven by its demand-supply dynamics, while RPSF revenues are affected by changes in VPSF prices, which depend on the prices of crude oil and cotton. Consequently, the business has limited ability to pass on raw material cost increases.

Market recap

Tuesday's opening price of the Nifty 50 index was 25,167, up 76 points from Monday's closing price of 25,091. Throughout the day, the index fluctuated a lot, closing flat at 25,060.90, down -29.80 points, or -0.12%. In the daily time frame, it was below the 20 EMA but above the 50, 100, and 200 EMAs. With an RSI of 46.65, it was significantly below the 70-point overbought zone. The BSE Sensex opened at 82,527, up 327 points, similar to the previous close of 82,200. The Sensex ended the day at 82,186, down -0.02% or -13.53 points. The Bank Nifty dropped -196.75 points, or -0.35%, to close at 56,756 in the red.

The Nifty India Digital Index was one of the biggest gainers on Tuesday, closing the day at 9,114.25, up 102 points, or 1.1%. Major stocks that helped the index rise included Eternal Ltd, which increased 10.3%; Swiggy Ltd, which increased 5.7%; and Info Edge (India) Ltd, which increased 4.2% on Tuesday. At 11,801.50, the Nifty India Consumption Index likewise ended the day higher, up 54.40 points, or 0.5%.

But the Nifty Media Index ended the day at 1,733.60, down -2.3%, or -40.30 points. The index was dragged down by stocks such as Zee Entertainment, Dish TV India, and Network 18 Media & Investments; Zee Entertainment was the biggest loser, down 5.7%. Another significant loser was the Nifty PSU Bank Index, which ended the day at 7,006.35, down -111.75 points, or -1.6%. Canara Bank, Punjab National Bank, and Punjab & Sind Bank were among the banking stocks that pulled the index lower; Canara Bank was the biggest loser, dropping 3.6%.

Tuesday's Asian markets were mostly mixed. At 3,169.94, South Korea's Kospi fell 1.29%, or -40.87 points. The Nikkei 225 index closed at 39,774.92 points, down -0.11% or -44.19 points. The Composite Index of Shanghai, on the other hand, ended the day higher at 3,581.86, up 22.07 points, or 0.62%. The Hang Seng index closed at 25,130.03 points, up 0.54%, or 135.89 points. On the US stock exchange, Dow Jones Futures are down -30.80 points, or -0.08%, at 44,292.27 at 4:33 p.m.

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