Stocks to trade today: Trade Brains Portal recommends two stocks for 20 June

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

Biocon Ltd (Current price: ₹349)

Target price: ₹405 in 16-24 months

Stop loss: ₹320

Why it’s recommended: Founded in 1978, Biocon Ltd is the top biopharma firm in India, improving the lives of people in more than 120 countries by developing novel and cost-effective treatments for cancer, diabetes, and autoimmune diseases. The company employs more than 18,200 people who work in the research services, biosimilars, generics, and new biologics divisions. The largest integrated insulin manufacturing and research and development facility in Malaysia is operated by Biocon, which also contains one of the biggest biomanufacturing facilities for insulin, monoclonal antibodies, and devices.

The group's four incubated businesses are Biocon Biologics, which focuses on biosimilars and accounts for 58% of total revenue in FY25; the generics division, which contributes 19%; and Syngene, which provides research services and accounts for 23% of total revenue in FY25. When comparing the performance on a like-for-like basis, revenue from operations totalled ₹15,262 crore, a 10% year-on-year increase; Ebitda reached ₹4,374 crore with a margin of 27%, and the net profit in FY25 was ₹1,013 crore, which represents a significant turnaround. The company has launched several new products, such as Liraglutide in the UK, Dasatinib in the US, and YesintekTM, which boosted revenue performance in Q4FY25.

Going forward, the company plans to invest $200-250 million in capital expenditures across several business segments. While Syngene will increase the capacity of its research centres and production facilities for large and small compounds, BBL wants to expand its insulin factory in Malaysia as part of its capital expenditure plans. It is anticipated to spend $50 million in capital expenditures on generics in the upcoming year. The business anticipates approving generic Copaxone in the US and launching liraglutide there. According to management, Lenalidomide will be introduced in limitless quantities, with more launches scheduled for FY26. Additionally, five other products—Stelara, Bevacizumab, Aspart, Aflibercept, and Denosumab—will be introduced during the next 12 to 18 months.

Risk Factor: If clearances from the US Food and Drug Administration, the European Medicines Agency, and those in the Asian and Latin American markets are delayed, their biosimilar business may miss out on opportunities. Additionally, the company faces fierce competition from a number of cost-competitive Indian enterprises as well as strong defense tactics from innovative companies that produce authorized generics.

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Titagarh Rail Systems Ltd (Current price: ₹839)

Target price: ₹1,050 in 16-24 months

Stop loss: ₹730

Why it’s recommended: Titagarh Rail Systems was founded in 1997 and has over 25 years of expertise as a top provider of comprehensive mobility solutions in India. Its main activities include the production of passenger coaches, propulsion equipment, urban metros, semi-high-speed trains, and a variety of wagons, including specialized ones. With four production sites, the firm can now produce 12,000 wagons and 300 coaches annually, processing about 30,000 tonnes of casting steel. As of FY25, their entire order book was worth ₹11,200 crore. Titagarh Rail Systems is the only Indian company that produces both wagons and coaches.

In FY25, operational revenue was ₹3,867 crore, a slight increase over ₹3,853 crore in FY24; however, it increased 18% CAGR since FY23. PAT stood at ₹274 crore, down 4.9% from ₹288 crore in FY24; however, it has been increasing at a robust CAGR of 43% since FY23. In FY25, the FRS segment's revenue was ₹3,610.27 crore, up 5.64% year over year. In FY25, the PRS segment's income was ₹255.55 crore. The company achieved a record for the most wagons ever produced in a single year in India, with 9,431 wagons. In FY25, it produced 27,240 metric tonnes in the foundry, setting a new production record.

In order to increase its production to a significantly higher level in FY26, the company plans to expand its foundry by constructing fully modern foundry production facilities. About 40,000 tonnes of castings are what the company hopes to produce in the first phase of production in FY26. Since the supply chain problems with China have been fixed, the business anticipates that manufacturing for the Bangalore Metro will be rather streamlined. It is anticipated that production will be completely simplified starting in Q2 of FY26. 

Starting in FY26, the company plans to increase its propulsion division by between 125 and 150 traction motors every month, or 1,500 to 1,800 traction motors per month. The company has its sights set on winning a number of projects from the enormous potential pipeline. Among the major projects are the anticipated ₹15,800 crore Metro coach contracts and the ₹72,000 crore Vande Bharat Coach.

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Risk Factor: More than 90% of the company's operating revenues come from freight rail systems and wagons, and Indian Railways continues to be the company's biggest source of sales. Additionally, geographically speaking, the company works on nearly all local projects and has little to no exposure to international enterprises.

Market recap 

As the benchmark indices were flat amid the ongoing geopolitical worries that continued to worry investors, who remained vigilant, the Indian markets stayed flat and followed a bearish trend throughout the market hours on Thursday. 

The Nifty 50 hit an intraday low of 24,733.40 after opening at 24,803.25. Similar to this, the BSE Sensex opened at 81,403.94 and fell as low as 81,191.04 during the day. With an RSI of 51.65, the Nifty 50 closed at 24,793.25, down -18.80 points, or -0.08%, and fell below the 20-day EMA but above the 50/100/200 throughout the day. In contrast, the BSE Sensex closed below the 20-day EMA but above the 50/100/200 in the daily time frame at 81,361.87, down -82.79 points, or -0.10%, with an RSI of 50.50.

The majority of sectoral indices ended in the red. One of the major losers was the Nifty PSU Bank Index, which ended the day at 6,734.30, down -140.35 points, or -2.04%. For three straight trading sessions, it saw a decrease. Additionally, it was touching the 50-day EMA and trading below the 20-day EMA. Almost all the companies declined in this index, with the Central Bank of India, Bank of India, Punjab & Sind Bank, UCO Bank, and Indian Overseas Bank among the major losers, dropping below 3% and causing the index to decline.

Amid ongoing tensions between Israel and Iran, Asian markets likewise mirrored the pessimistic outlook on Thursday. For the fourth day in a row, the US Federal Reserve held the fed rate steady while cautioning that Donald Trump's trade policies would increase the danger of inflation. Hong Kong's Hang Seng index closed at 23,237.74, down -1.99%, or -472.95 points. The Nikkei 225 in Japan closed at 38,488.34, down -396.81 points, or -1.02%. At 10,051.97, the Shenzhen Index decreased -123.62 points, or -1.22%. The Shanghai index of China has likewise dropped, closing at 3,362.11, down -26.70 points, or -0.79%. The Kospi index for South Korea, meanwhile, increased slightly, ending at 2,977.74 after rising 0.19%, or 5.55 points. On Thursday, Dow Jones Futures in the US fell -173.60 points, or -0.42%, to 41,996.

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