Best stock picks for today, 12 May, as recommended by Trade Brains Portal

Two stocks to buy today, recommended by Trade Brains Portal

1. Rattanindia Enterprises 

Current price: ₹40.96

Target price: ₹70 in 16-24 months

Stop-loss: ₹28

Why it’s recommended: The stock is trading near its 52-week low. The valuation looks attractive given its presence in future-oriented segments such as e-commerce, electric vehicles (EVs), fintech and drones. Revolt Motors ventured into Sri Lanka in 2024 by partnering with Evolution Auto Pvt Ltd to sell AI-enabled electric motorcycles. This move is expected to increase its sales in the Sri Lankan market.

Revolt also planned to establish 15 dealerships by the end of the year. It has already opened 12 as of Q3 FY25, so we anticipate it will hit its target earlier. The company aims to have 90 dealerships across Sri Lanka by 2029, positioning itself to capitalise on early adoption in the growing EV market.

Also read: Godrej Consumer’s recovery hinges on premium shift, international play

Revolt Motors is also expanding its footprint across India, with more than 100 dealership stores across 65 cities. In the e-commerce segment, Cocoblu reported a 15% increase in revenues for Q3 2025 compared to Q3 2024. Its 130 million gross shipped units in FY24 marked a 140% rise from FY23.

NeoSky, in the drone segment, has formed strong partnerships with US-based firms TAS (Throttle Aerospace Systems Pvt. Ltd.) and Matternet to facilitate technology sharing, which is expected to boost sales. TAS has received DGCA approval to manufacture drones for military applications.

The company’s Wefin vertical in the fintech space had partnerships with over 45 banks, NBFCs and fintech firms, and added four more banks during Q3FY25. The registered customer base exceeded 4.43 lakh, with 36,441 loans disbursed.

Risk factor: RattanIndia faces intense competition in the EV and drone markets, making it difficult to capture and maintain market share. And with total debt of roughly ₹1,156 crore in FY24, the company's debt-to-equity ratio is high for a small-cap company.

2. Varun Beverages Ltd

Current price: ₹497

Target price: ₹655 in 14-16 months

Stop-loss: ₹418

Why it’s recommended: The company has commissioned new production facilities at Kangra (Himachal Pradesh) and Prayagraj (Uttar Pradesh) and also set up backward integration facilities at the Prayagraj plant, as well as at the DRC plant in the international region. It acquired BevCo along with its wholly owned subsidiaries and SBC Beverages Ghana Limited (SBCG) in West Africa.

VBL recently entered into binding agreements to acquire a 100% stake in Tanzania and Ghana, further enhancing its presence in Africa. The company has also secured exclusive snacks franchising rights for PepsiCo’s brands in Morocco, Zimbabwe and Zambia, set to commence by October 2025.

Also read: What higher gold prices have meant for Titan’s Q4 performance

VBL successfully raised ₹7,500 crore through a qualified institutional placement (QIP) for strategic acquisitions and expansions. Its net debt stands at ₹6,000 crore, with plans to use the proceeds for debt reduction in CY2025.

VBL is adding about 10-12% more outlets (400,000-500,000) every year, bolstering its growth. The company has more than 130 depots, 2,800 primary distributors, and 10,000 vehicles, and also has franchise rights in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.

Risk factors: Revenue consistency may be affected by seasonal sales fluctuations, posing a risk to the company's financial performance throughout the year. Also, regulations such as plastic bottle bans, high sugar taxes and FDI restrictions pose risks.

Market recap: 9 May

The Indian equity market closed in the red on Friday, with the Nifty around 24,000. It faced a sharp decline owing to the escalation of the India-Pakistan conflict and closed the day down 265.80 points.

The market opened on a negative note before the downward trend turned range-bound and indices started to recover from the day's low. An 18% spike in the India VIX in a week, from 18.34 to 21.63, amid India-Pakistan tensions shows that increased geopolitical risks have greatly increased market volatility.

Investors may selectively bet on defence stocks that have low valuations and strong potential to outperform. Investors should also cautiously focus on domestic-oriented sectors such as cement, infrastructure and capital goods for long-term growth. Sectors such as IT, pharma, and metals may face greater uncertainty due to trade agreements. 

Also read: Dabur stock lacks triggers amid weak financial show

As Q4 results of Union Bank and Canara were strong, the midcap 50 index was flat at 15,097, down just 1.3 points, and the small cap 100 index ended 0.61% or 98.10 points lower at 16,085.

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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.