Source: LIVEMINT
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India’s stock market benchmarks rebounded sharply on Wednesday, 21 May, after three straight sessions of losses. The Nifty 50 rose 0.52% to close at 24,813.45 points, as a recovery in flows from foreign institutional investors helped improve market sentiment after significant outflows in the previous session. The Sensex ended 410 points, or 0.51%, higher at 81,596.63. Broad-based buying lifted the broader market as well, with the BSE Midcap index rising 0.90% and the Smallcap index gaining 0.51%.
On to the top stock picks for today as recommended by some of India’s top market experts.
● Why it’s recommended: Strong financial performance, operational efficiency
● Key metrics: P/E: 62.89, 52-week high: ₹ 708, volume: ₹ 72.82 crore
● Technical analysis: Reclaimed its 21-DMA
● Risk factors: Regulatory risks, operational challenges in new facilities
● Buy at: ₹ ₹ 662.75
● Target price: ₹ 760 in three months
● Stop loss: ₹ 615
● Why it’s recommended: Robust project pipeline and capacity expansion, favourable government policies.
● Key metrics: P/E: N/A, 52-week high: ₹ 155.00, volume: ₹ 255.31 crore
● Technical analysis: Possible 100 DMA
● Risk factors: Capital-intensive nature of the sector
● Buy at: ₹ 106
● Target price: ₹ 122 in three months
● Stop loss: ₹ 99
Despite privatization in coal mining through government auction, the company enjoys a monopoly, controlling 48% of India’s proven reserves and contributing 78% of the total domestic coal production.
Revenue from operations stood at Rs. 1,43,369 crore as of FY25, which has been growing at 12% CAGR since FY21. The company has significantly improved its margins through better cost realizations. Net profit margin stood at 24.6% in FY25, up from 15.36% in FY21, with a dividend payout ratio of 46%. Additionally, CIL has distributed ₹5.15 per share as a final dividend for FY25, along with an interim dividend of ₹5.60 and ₹15.75 per share. CIL has a high dividend yield of 6.5% for FY25.
The company expects to achieve 1 billion tons of coal production by 2028-29 and 1.22 billion tonnes of coal production by 2034-35. To achieve this guidance, the company plans to do a capex of ₹16,000 crore to increase its washing capacity, coal mining capacity, first mile connectivity (FMC) projects, and development of rail infrastructure for improving evacuation capabilities.
In November, CIL commissioned its largest solar installation to date, a 50 MW plant at Nigahi under Northern Coalfields Limited, demonstrating its diversification towards renewable energy as India strives to reach 500 GW from non-fossil sources by 2030. Additionally, Coal India plans to supply 4500 MW of carbon-free energy, in a phased manner, to upcoming green ammonia facilities, making it one of the world’s largest renewable energy contracts.
The company has declared a 2nd interim dividend of ₹27 per share, with a total dividend of ₹51 per share for FY25. Colgate continued to maintain product superiority through the relaunch of “Colgate Strong Teeth." The company has introduced India's largest oral health initiative, the Oral Health Movement, which provides personalized dental screening reports powered by AI.
Demonstrating a commitment to innovation, Colgate has also implemented an AI-ML-driven system to offer tailored product recommendations to 1.7 million retail outlets. This strategy has led to a 14% improvement in product assortment over a two-year CAGR, with participating stores showing 1.2 times higher growth than others.
According to company, estimates, around 272 million households purchase toothpaste over seven times a year, with an average of 1.5 tubes per purchase, resulting in approximately 2.3 billion tubes sold annually.
The Indian toothpaste market is expected to grow at a CAGR of 4.23% between 2025 and 2034, reaching $2,180 million by 2034. In FY25, the overall revenue of toothpaste and oral health amounted to $1.96 billion, and in terms of per-person revenue, India generated $1.35 per individual in FY25.
The oral care market is driven by increasing oral health awareness, increased disposable income, and demand for premium dental products. An uptrend in toothpaste consumption is observed, with the rapid expansion of distribution channels across the country and the faster-than-ever evolving e-commerce sector, contributing to the Indian toothpaste market growth.
The e-commerce market, valued at $125 billion in FY24, is expected to reach $325 billion by 2030, exhibiting a growth rate of 5-17%.
The company also faces concentration risk, as approximately 95% of revenues come from the oral care business.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
MarketSmith India: Trade name: William O'Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543
Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
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.
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