Stocks to trade today: Trade Brains Portal recommends two stocks for 18 June

The Nifty 50 declined 93 points, or 0.37%, to close at 25,843 points, while the Sensex concluded the session with a drop of 212 points, or 0.26%, to settle at 81,583 points. 

Here are two stocks to trade today, as recommended by Trade Brains Portal

 Bajaj Auto (Current price: ₹ 8,495)

• Why Bajaj Auto is recommended: Bajaj Auto Ltd. is one of the top producers of 2Ws and 3Ws for automobiles. Two of the company's five manufacturing facilities are located in Chakan, and the other three are located in Waluj, Akurdi, and Pantnagar. An annual total of 7.1 million units can be installed by the company.

It is well-established in the international market and offers a wide range of products. Well-known brands like Pulsar, KTM, Triumph, Chetak, Dominar, and Avenger are among them. In terms of volume, it ranks second in the domestic motorcycle market and is the biggest exporter of 2Ws from India. With a presence in more than 70 countries, it had a 46.3% market share in the export market and an 18.2% market share in motorcycle sales in India in FY24.

Due to high sales of both vehicles and replacement parts, the company's revenue surpassed ₹50,000 for the first time in FY25. The reported income from operations increased by 13.65% from ₹44,870 crore in FY24 to ₹50,995 crore in FY25. With a robust domestic performance in H1 and a comparatively weak H2 that was more than offset by the strong export comeback, volumes increased 7% year over year, demonstrating the adaptability of the company's business strategy to shifting market conditions. In the fourth quarter of FY25, the company sold 943,563 two-wheelers and 159,371 commercial vehicles. In May 2025, there were 332,370 2-wheeler sales and 52,251 commercial vehicle sales; hence, the total sales volume grew by 8% YoY in May.

Also Read: Bajaj Auto flags danger of production cuts by July if rare-earth magnet issue remains unresolved

In the upcoming years, the company anticipates the export business unit to increase by at least 20% annually. The company is expected to spend ₹6-7 billion on capital expenditures in FY25-FY26, mostly for maintenance activities, and has committed to delivering ₹1,000 crore of capital expenditures under the PLI plan over a 5-year horizon. 

They were permitted to increase their export capacity to 50,000 units or more annually by Q4 FY26 for their Dominar brand, which has surpassed several well-known European brands in the personal segment. The business has approved a capital infusion of about ₹2,300 crore into Bajaj Auto Credit Limited, of which ₹955 crore has already been invested. By the end of the next year, it hopes to have invested ₹1,400 crore.

• Risk Factors: Players like BAL, Hero MotoCorp Ltd., Honda Motorcycles & Scooters India Pvt. Ltd., Suzuki Motorcycle India Pvt. Ltd., and TVS Motors Ltd. hold a significant amount of market share in the Indian 2W market. Additionally, to increase their market share, OEMs occasionally introduce new models. Macroeconomic challenges that the company faces include supply chain disruptions due to geopolitical issues, declining per capita income that lowers people's purchasing power, shifting demand and preferences across nations, inflation across regions, and the availability of input materials, all of which are inherent to the automotive industry. 
• Target price: ₹ 10,200 in 12 Months
• Stop-loss: ₹ 7,642

Escorts Kubota Current price: ₹ 3,152

• Why Escorts Kubota is recommended: The company operates in three business segments: agricultural machinery products, construction equipment, and railway equipment. In 2018, Kubota and Escorts set up a 60:40 JV and established a high-end tractor manufacturing capacity in Haryana. The facility has a capacity of 50,000 units per annum. The company has five manufacturing facilities in Faridabad, Haryana, and one in Poland, with an annual capacity of 1.7 lakh tractors. Kubota is a Japanese conglomerate that is in the business of tractors, agricultural machinery, construction equipment, engines, vending machines, pipes, etc. 

This partnership will help the company to overcome the high dependence on the cyclical domestic tractor market. Strong parentage helped the company to increase operational efficiency and capacity expansion, and 70% of exports come from the Kubota network. The company has a market share of 11.8% in the domestic tractor industry. As of March 2025, the agri machinery segment contributes 83% of the total revenue, whereas construction equipment contributes 17%.

As of FY25, revenue from operations stood at ₹10,243.9 crore, up by 4.5% as of FY25. EBITDA stood at ₹1,165.3 crore, up by 3% YoY, with a stable EBITDA margin of 11.4% as of FY25. The company saw a jump of 36.6% YoY in tractor volume in exports, compared to industry growth of 4%, as of Q4FY25. Tractor volumes stood at 1,15,554 units as of FY25, up by 1% YoY. The company sold its railway business to Sona BLW Precision Forgings Limited at a lump-sum cash consideration of ₹1,600 crore on 23 October 2024. The company is planning to invest ₹4,500-5,000 crores over the next 3-4 years for setting up a greenfield plant.

The greenfield plant will enable the company to integrate various manufacturing processes, leading to an increase in capacity across different verticals for tractor manufacturing, CE manufacturing, spare parts manufacturing, and a dedicated line for manufacturing engines for Kubota. Management expects the tractor industry to grow continuously due to various reasons, like favorable macroeconomic conditions such as a good rabi harvest, better crop prices, and more than average rainfall in 2025, and a sufficient water level in the reservoir.

• Risk Factors: The company faces cyclical risk as demand for tractors depends on monsoons, crop prices, and various other socio-economic factors. The company is also exposed to volatility in raw material prices, such as steel. The company also has a limited presence in the Western markets.
• Target price: ₹ 3,950 in 12 Months
• Stop-loss: ₹ 2,753 

Also Read: Tata Motors’ JLR navigates a tougher road in FY26

Market Recap

The Indian markets opened on a positive note and remained in the red throughout the market hours, as the benchmark indices remained underpressure amidst geopolitical uncertainties that continued to unsettle investors, who remained cautious after the US president warned Iran over the ongoing conflict, stating Tehran should have signed a nuclear deal with the US. 

The Nifty 50 opened at 24,977.85 and touched the intraday high of 24,982.05. BSE Sensex also opened on a similar note at 81,869.47, went to an intraday high of 81,890.15, and surpassed the 20-day EMA and RSI of 52.24. The Nifty 50 Recap, at 24,853.40, is down by -93.10 points, or -0.37%, with an RSI of 53.26 and trading above the 20/50/100/200 EMA in the daily time frame. Whereas, the BSE Sensex closed at 81,583.30, down 212.85 points, or -0.26%.

The IT index was the only sectoral gainer, closing at 39,356.10, up 283.05 points, or 0.72%. The largest companies, including Tech Mahindra, LTI Mindtree, Infosys Ltd., and Persistent Systems, reported gains of up to 2%.

The Nifty Pharma index was the major loser today, ending the day at 21,622.80, down by -416.65 points, or -1.89%. The Nifty Healthcare index followed the decline and closed at 14,138.65, down by -1.79% or -257.45 points. Granules India Ltd., Lupin Ltd., Natco Pharma Ltd., Aurobindo Pharma Ltd., and Laurus Pharma lost up to 4% in both the indices.

As the Israel-Iran conflict escalated, tensions arose in the Middle East and global trade, leading the investors to assess the market as US President Donald Trump urged everyone to immediately evacuate Tehran. The US president subsequently left the G7 summit a day earlier due to Middle East tensions. Asian markets opened on a mixed note on Tuesday.

In the Asia-Pacific markets, the Hang Seng index in Hong Kong fell -0.34%, or -80.69 points, to close at 23,980.3, while the Kospi index in South Korea continued its upward trend, rising 0.12%, or 3.64 points, to close at 2,950.3. Japan's Nikkei 225 closed at 38,536.74, up 225.41 points, or 0.59%. The Shanghai index ended the day at 3,387.4, down by -1.32 points, or -0.04%.

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