Stocks to trade today: Trade Brains Portal recommends two stocks for 10 October

India's construction industry, which plays a pivotal role in driving the nation’s economic growth, registered an 8.6% increase in output in FY25, surpassing $1 trillion in size. This achievement positions India as the world's third-largest construction market.

The capital goods sector remains a cornerstone of India’s industrial progress and economic development. It plays a critical role in enabling large-scale manufacturing and infrastructure projects, and is a key driver of the country’s long-term growth trajectory.

We also analyse the market’s performance on Thursday to understand what may be in store for investors in the coming days.

Two stock recommendations from Trade Brains Portal for 26 September

Honeywell Automation India Ltd

CMP: ₹36,240

Target: ₹42,850 in 12 months

Stop loss: ₹32,935

Why it’s recommended: Honeywell Automation India Ltd, established in 1984, is a leading technology and manufacturing enterprise based in India and operates as a part of the global Honeywell group. The company serves a wide range of industries and aligns its growth strategy with three key global trends: increasing automation, advancements in aviation, and the shift towards sustainable energy solutions. It functions under a unified business segment, Automation and Control Systems, and employs 3,140 full-time personnel as of March 31, 2025.

In FY25, the company reported an operating revenue of ₹4,189.6 crore, reflecting a 3.2% increase from the previous year and an adjusted growth of 10.1%. Revenue from domestic operations rose slightly to ₹2,427 crore (up 0.4% from ₹2,417.8 crore), while export revenue reached ₹1,754.6 crore, marking a 7.2% year-on-year increase. The company also witnessed a 14.1% growth in new orders. Its net profit for the year stood at ₹523.6 crore, translating to a 12.5% return on sales.

For Q1 of FY26, revenue came in at ₹1,183 crore, up 23% year-on-year from ₹960.4 crore in Q1 FY25. Net profit for the quarter was ₹124.6 crore. Honeywell Automation continues to benefit from trends in the Building Solutions and Building Management Systems (BMS) space, supported by India's infrastructure sector, which is growing at a CAGR of 8%. Additionally, government initiatives like Make in India and the PLI scheme are fueling demand in its Process Solutions and Sensing Solutions segments. India’s goal to install 500 GW of non-fossil energy capacity and produce 5 MMT of green hydrogen annually by 2030 opens further opportunities in areas such as process automation, battery storage, EV safety sensors, and green hydrogen control systems.

The company is strategically positioned to leverage increasing government investments in vital infrastructure sectors such as airports, railways, and healthcare, along with rising private capital in emerging industries like data centres, semiconductor fabrication, lithium-ion battery production, and solar energy.

Risk factors: Honeywell Automation faces geopolitical risks that may disrupt global economic activity and increase trade and logistics expenses. The business is also exposed to currency exchange rate volatility, especially concerning the Indian rupee, due to international uncertainties. Furthermore, the Indian market is intensely competitive, with mounting pricing pressures from both domestic startups and global players, potentially affecting revenue and profitability.

KEC International Ltd

CMP: ₹855

Target: ₹1,085 in 12 months

Stoploss: ₹740

Why it’s recommended: KEC International Ltd., a part of the RPG Group, was founded in 1945 and is a major global player in the Engineering, Procurement, and Construction (EPC) space. Headquartered in Mumbai, the company operates in over 110 countries and employs more than 7,500 people. KEC is engaged across six core business verticals: Transmission & Distribution (T&D), Civil, Transportation, Pipelines, Renewables, and Cables. It boasts eight manufacturing units worldwide and strong internal design capabilities, enabling it to deliver complex infrastructure projects such as power transmission systems, metro networks, oil & gas pipelines, and solar installations. As of Q1 FY26, its total order book (including L1 positions) exceeded ₹40,000 crore.

In Q1 FY26, KEC recorded revenue of ₹5,023 crore, representing an 11% year-on-year increase from ₹4,512 crore in Q1 FY25. Net profit grew by 42% to ₹125 crore from ₹88 crore in the same quarter last year. The T&D segment was the primary driver, contributing 63% of total revenue (up from 55% YoY), with its segment revenue growing 26% YoY to ₹3,157 crore. The company won over ₹3,200 crore worth of new orders across regions, including India, the Middle East, and the Americas.

It also began expanding its Butibori tower plant, following recent capacity upgrades at its facilities in Dubai, Jaipur, and Jabalpur. The T&D order book and L1 pipeline alone are valued at ₹26,000 crore. EBITDA margins improved by 50 basis points to 7.0% in Q1 FY26, with guidance indicating further margin expansion to 8%-8.5% in FY26 and 9%-9.5% by FY27. Interest expenses also declined to 3.0% of revenue, a reduction of 40 bps from 3.4% in Q1 FY25.

In a major strategic move, the civil business entered the semiconductor EPC space by securing a significant project from a reputed client. The renewables division delivered an impressive 87% YoY growth, with ₹136 crore in revenue, supported by two 500 MW solar projects, one in Karnataka (partially commissioned) and the other in Rajasthan (first phase expected this quarter).

The company is actively pursuing opportunities in solar, wind, and Battery Energy Storage Systems (BESS), targeting ₹3,000-4,000 crore in renewable revenues over the next 2-3 years. Momentum in T&D remains strong, supported by the global renewable energy push and emerging demand for digital substations, STATCOMs, and HVDC solutions. The company maintains a positive outlook, especially in international markets such as the Middle East, Africa, CIS, and the Americas.

Risk factors: KEC is exposed to risks typical of the EPC industry, notably high working capital requirements due to lengthy project timelines. With a large share of its revenue coming from the competitive T&D segment, profitability is sensitive to raw material price volatility, particularly for fixed-price international contracts. Additionally, its global footprint makes it vulnerable to currency fluctuations, counterparty credit risks, and geopolitical instability, all of which could impact project execution and financial performance.

Market recap

On Thursday, the Nifty 50 opened on a positive note at 25,074.3, up 28.15 points from its previous close of 25,046.15. It touched an intraday high of 25,199.25 before closing slightly below the 25,200 mark at 25,181.8, up by 135.65 points, or 0.54%.

Technically, the index remained above all the 20/50/100 & 200-day EMAs on the daily chart. The BSE Sensex also reflected a similar trend, opening at 81,900, up 126.34 points from its previous close of 81,773.66. It traded in a similar pattern to the Nifty 50 and settled below the 82,200 level at 82,172.1, gaining 398.44 points, or 0.49%.

Momentum indicators showed moderate strength, with the RSI for Nifty 50 at 58.03 and for Sensex at 57.91, both well below the overbought level of 70. Also, the Bank Nifty Index closed in positive territory, gaining 173.8 points, or 0.31%, to end at 56,192.05.

All sectoral indices closed in the green on Thursday, with no major laggards across the board. The Nifty Metal Index led the rally, surging 219.65 points, or 2.17%, to close at 10,356.20. The rally was driven by a rise in global copper prices, with Hindustan Copper leading the gains at 6.4%.

Other top performers in the metal space included Hindustan Zinc Ltd, Lloyds Metals & Engineers Ltd, Steel Authority of India Ltd, and NMDC Ltd, each posting gains of up to 4.43%.

The Nifty IT Index was another notable gainer, climbing 396.30 points, or 1.12%, to settle at 35,628.50, buoyed by optimism ahead of TCS earnings. Key tech stocks such as HCL Technologies Ltd, LTIMindtree Ltd, Persistent Systems Ltd, and Oracle Financial Services Ltd rose by as much as 2.29%.

Meanwhile, the healthcare and pharmaceutical sectors also witnessed positive momentum. The Nifty Healthcare Index gained 154.2 points or 1.07% to end at 14,593.5, while the Nifty Pharma Index advanced 228.85 points, or 1.05%, closing at 21,936.2. Both indices reacted positively to reports suggesting that the Trump administration may not impose tariffs on generic medicines, offering a boost in sentiment and relief to investors.

Asian markets showed positive sentiment on Thursday. The Taiwan Weighted Index gained 238.24 points, or 0.88%, to close at 27,301.92. Japan’s Nikkei 225 Index increased by 845.45 points, or 1.77%, ending at 48,580.44.

The Shanghai stock exchange also gained 51.195 points, or 1.32%. Singapore’s Straits Times Index decreased by -15.8 points, or -0.35%, ending at 4,440.5. On the other side, Hong Kong’s Hang Seng Index lost 76.87 points, or 0.29%, and closed at 26,752.59.

As of 4:54 p.m. IST, US Dow Jones Futures were trading flat at 46,866, as investors await more Fed rate cuts and ongoing concerns with the US government shutdown, now entering its eighth day.

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