Best stocks to trade today, 19 May, as recommended by Trade Brains Portal

Today, we recommend three stocks: one from the financial services sector, one from the automobile sector, and the other from the auto ancillaries sector. We also analyse the market's performance on Friday to understand what may lie ahead for the stock indices in the coming days.

Motilal Oswal Financial Services Ltd (MOFSL)

• Current price: ₹ 795
• Target price: ₹ 880 in 12 months
• Stop-loss: ₹ 752
• Why it's recommended: MOFSL has a diversified presence in different segments, including retail and institutional broking, asset management, private equity, wealth management, loans against shares, margin financing, commodities broking, investment banking, venture capital management, housing finance, and treasury investments. It has an active client base of 12+ million, with assets under advice of ₹5.5 trillion as of FY25, growing at an astounding 39% CAGR over the last 10 years. MOFSL recorded the highest ever operating revenue and PAT during FY25, ₹5,161 crore and ₹2,016 crore, respectively. The company's book value stood at ₹11,079 crore and has been growing consistently at 24% CAGR since FY15. During FY25, the company's asset management segment saw an upsurge of 900% in its net flows compared to FY24, which stood at ₹48,450 crore.

As the financialization of savings continues to be at a nascent stage, equity just contributes 6.9% of total Indian household assets; thus, we expect a positive outlook for household savings. The company expects household savings will increase from $13 trillion in FY25 to over $125 trillion in the next 25 years. Since alternative investment funding delivers greater yields, the company intends to grow its asset management business over the medium term. In the meantime, the company has developed a product basket in the passive category. The company expects strong growth in the housing finance segment in the next 2 to 3 years in both AUM and profitability.

Read this | Motilal Oswal goes big on Zepto, purchases shares worth $100 mn

• Risk factors: The capital markets industry is highly regulated, such as higher margin requirements; not adhering to the regulatory requirements may result in disruption in operations. Moreover, the brokerage industry also faces intense competition from new-age brokers such as Zerodha, Groww, as well as from big institutional brokers, which leads to an aggressive pricing strategy implemented by discount brokerages and a risk of losing market share for the company. Despite diversification, the company is exposed to the volatility of the capital markets

Bajaj Auto Ltd

• Current price: ₹8,491
• Target price: ₹9,856 in 12 months
• Stop-loss: ₹ 7,805
• Why it's recommended: Bajaj Auto is a flagship company of the Bajaj Group, a two and three-wheeler manufacturing company exporting to over 79 countries globally and expecting over 20% growth in the coming years. The company has 5 manufacturing plants across India with a total installed capacity of 7.1 million units per annum. Bajaj Auto has a diversified product portfolio and a strong market presence overseas. It includes popular brands like Pulsar, KTM, Triumph, Chetak, Dominar, and Avenger. Further, the company has forayed into the e-2W scooter space with the Chetak brand and is among the top 5 players within the industry. Bajaj Auto is the 2nd largest player within the motorcycle business in India and India’s largest exporter of 2-wheelers and has received board approval for expansion of export capacity to 50,000-plus units by FY26 for their Dominar brand. In FY24, they held a market share of 18.2% of motorcycle sales in India and a 46.3% share in the export market. They are also a dominant player in the 3W passenger carrier segment, with a market share of 75.5% in FY24 and around 46.5% share in the 3W cargo segment. The company is also the largest exporter of 3Ws from India.

The company plans to infuse ₹2,300 crore into Bajaj Auto Credit Ltd by FY26. The company is committed to providing ₹1,000 capex as part of the PLI scheme in a horizon of 5 years and will incur a capex of ₹6-7 billion in FY25-26, mostly towards maintenance activities. It has reported sales of 943,563 units for 2-wheelers and 1,59,371 units in the commercial vehicle segment in Q4 FY25, and April sales stood at 3,17,937 units for 2-wheelers and 47,873 units in the commercial vehicle segment.

Read this | Bajaj Auto eyes market share gains with new electric 3-wheeler lineup

• Risk factors: The auto industry is closely aligned with the macroeconomic situation of the country. Industry is susceptible to geopolitical concerns, such as tariffs levied by the Trump administration, which may lead to high costs and supply chain disruption. Other macro events like a decline in per capita income across economies, which will lower people's purchasing power, shifting national demand and preferences, global inflation, and the availability of input materials may impact the industry. The 2W segment has become extremely competitive; players like Hero MotoCorp, Honda Motorcycles, Suzuki Motorcycle, and TVS Motors continue to launch new models to gain market share.

Amara Raja Energy & Mobility Ltd

• Current price: ₹ 1,037
• Target price: ₹ 1,280 in 12 months
• Stop-loss: ₹ 915
• Why it's recommended: Amara Raja Energy & Mobility Limited (ARE&M), the flagship company of the Amara Raja group, is one of the largest players in lead-acid batteries for both industrial and automotive applications. The company exports to over 50 countries globally under their brand names ‘Amaron,’ ‘PowerZone,’ ‘Elito,’ and ‘Quanta.’ ARE&M is a major supplier to telecom, railways, power control, solar, and UPS. All plants have been recognized with the highest-level awards in the International Quality Circle Competitions (ICQCC) held in Beijing, China. ARE&M entered the new energy business in 2022 with an ambitious capex plan of ₹95 billion for setting up a Giga Corridor in Telangana.

For 9MFY25, the company has reported total revenue of ₹9,786.3 crore, an increase of 11% YoY, and profit after tax of ₹704.6 crore, which surged by 11% for the same period. PAT margins stood at 8%. The company's lithium-ion battery division is expected to bring in ₹550 crores in FY25. With a vast distribution network that includes more than 100,000 points of sale, over 1,000 Power Zone retail locations, 2,000 extensive service hubs, and 23 branches throughout India, they are among the biggest competitors in the market. After the company begins its manufacturing, it anticipates a 20% rise in sales in the tubular lead-acid battery industry, or around ₹1,400+ crore in FY26. The company expects an outflow of ₹1,000 crore for the lead acid and new energy business divisions in the upcoming year, and it wants to invest ₹750 crore in lead acid and new energy businesses. Over the next two to three years, the business plans to invest ₹2,000 crore through ARACT and ₹100-150 crore in Phase I/II of the lead recycling facility at ARCSPL.

• Risk factors: Price fluctuations in lead and sulfuric acid have long been a concern due to the disturbance of the supply chain and geopolitical stress. The price of raw materials affects production costs because the average price of lead increased to $1,953 per tonne in 2025, which has an impact on the profit of the battery and creates a difficult scenario in the industry. Upgrading battery technology from lead-acid to lithium-ion batteries, sodium-ion batteries, and semiconductor batteries can be related to higher initial costs, because lithium-ion batteries and other alternative options are more expensive, increasing competitive pressure for lead batteries.

Stock market recap 16 May

On Friday, the markets opened at 25,064 points, marginally higher than Thursday’s closing at 25,062 points. It touched the intraday high of 25,070 points, trading above both 50 DMA and 200 DMA with RSI at 65.29, and closed at 25,019, declining slightly by 42 points, or 0.17%. The BSE Sensex closed at 82,330 points, down by 200 points, or 0.24%. 

Bank Nifty closed flat, down by 0.7 points, or 0.00%, closing at 55,355. During this week, Nifty 50 was up by 4.21%, or 1,012 points, closing above all four EMAs, with an RSI of 61.9. Meanwhile, the Sensex was also up by 3.62%, or 2,876 points.

The Nifty PSE index was up 1.81%, or 177 points, and closed at 9,958 points, with RVNL leading the way by surging 8.86% and closing at ₹409. This upsurge came after the news that RVNL received an LOA from the Central Railway worth ₹115 crore. The Nifty Smallcap 50 index was also among the top-gaining indices, up by 1.66% or 137 points, closing at 8,393 points, with Angel One leading the index by jumping 9.03% and closing at ₹2,800.

The Nifty IT index was among the top losers today, down by 0.84%, or 321 points, and closed at 37,972 points. Stocks such as HCL Technologies and Infosys have been the biggest laggards. HCL Technologies fell 2.13% and closed at ₹1,660. Nifty Service was also among the top losers, down by 0.42%, or 139 points, closing at 32,802 points.

Also read | India may gain from Apple’s Inc exit if it spurs deeper manufacturing push: GTRI

This week, Nifty crossed the 25,000 level. This upsurge came mainly due to the following positive developments that happened during this week, such as the ceasefire agreement between India and Pakistan, the China-US deal easing the tariff tensions, and the zero-tariff from India on the US claim from Trump. Government data released on 13 May showed that India’s retail inflation fell to a nearly six-year low of 3.2% in April, down from 3.34% in March.

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