Stocks to trade today: Trade Brains Portal recommends two stocks for 4 June

Stock market today: Indian stock markets extended their losing streak for a third straight session on Tuesday, 3 June, as weak global cues, stretched valuations, and persistent foreign capital outflows weighed on investor sentiment.

The Sensex opened at 81,492.50, slightly higher than its previous close of 81,373.75, but soon tumbled nearly 800 points—or 1%—to hit an intraday low of 80,575.09. The Nifty 50 followed a similar trajectory, opening at 24,786.30 versus the previous close of 24,716.60, before slipping to an intraday low of 24,502.15, also down about 1%.

By the close, the Sensex had shed 636 points, or 0.78%, to end at 80,737.51, while the Nifty 50 closed at 24,542.50, down 174 points, or 0.70%.

Against this backdrop, Trade Brains Portal has recommended two stocks for 4 June—one from the IT solutions sector and the other from the housing finance sector.

Stocks to trade today, recommended by Trade Brains Portal for 4 June: 

eMudhra Ltd

• Current price: ₹758
• Target price: ₹920 (16–24 months)
• Stop-loss: ₹677
• Why eMudhra is recommended: Established in 2008, eMudhra Ltd is a global organization enabling secure digital transformation through Trust services and identity-based solutions. As India’s largest certifying authority, it has issued over 60 million digital identities and serves enterprise clients across more than 21 countries. Its customer base includes Fortune 100 companies and over 1,000 enterprises that rely on its identity, authentication, and paperless platforms for digital transformation initiatives.

The company operates in two key segments: Enterprise Solutions, which contributes 80% of its revenue, and Trust Services, which accounts for the remaining 20%. eMudhra is uniquely positioned as the only Indian company offering a unified platform for identity, signing, cryptography, and certificate automation. It continues to lead the Indian market in the Trust Services segment, providing a wide range of digital certificates, including digital signature, SSL/TLS, and S/MIME certificates.

In FY25, the company’s international business grew 57.3% year-on-year, now contributing 62% of total revenue. eMudhra plans to expand further into the European Union in FY26. It also made strategic acquisitions in the U.S., including Ikon and Two95, to strengthen its presence and create cross-selling opportunities in the American market.

Financially, eMudhra reported a total income of ₹527.8 crore in FY25, up 38.9% YoY, driven by strong global demand for its services and solutions. Adjusted EBITDA rose 15.7% YoY to ₹141.3 crore, with a 4-year CAGR of 35%. Adjusted PAT stood at ₹94.6 crore, up 17.3% YoY, with a robust margin of 17.9%. The company remains debt-free, with cash and cash equivalents of ₹188.56 crore as of FY25.

• Risk factors: However, the business is exposed to regulatory risk, as it relies on licences to issue digital certificates. Failure to comply with evolving guidelines or audit requirements in India or abroad could affect operations. Additionally, it faces competition from global players such as DigiCert, Entrust, Sectigo, and GlobalSign across various digital certificate offerings.

Read this | Analysts and investors have soured on Asian Paints. Can it prove them wrong?   

Bajaj Housing Finance Ltd

• Current price: ₹122
• Target price: ₹150 (16–24 months)
• Stop-loss: ₹108
• Why Bajaj Housing Finance is recommended: A non-deposit-taking housing finance company registered with the National Housing Bank in 2015, Bajaj Housing Finance Ltd (BHFL) began operations in 2017. It offers a range of secured lending products including home loans, loans against property, lease rental discounting, and developer finance, with a focus on maintaining a low-risk, medium-return portfolio.

In FY25, BHFL surpassed ₹1 lakh crore in assets under management (AUM), reaching ₹1,14,684 crore. Its AUM is well-diversified: home loans make up 56.2%, lease rental discounting 19.1%, developer finance 12.5%, loans against property 10.7%, and other segments the remaining 1.5%. The company now operates 216 branches across 174 locations in 22 states.

Since FY18, BHFL’s AUM has grown at a staggering 64% CAGR. Total income in FY25 rose 25.7% YoY to ₹9,576 crore, while loan disbursements increased 25% YoY to ₹14,254 crore. Profit after tax for the year stood at ₹2,163 crore, also up 25%. The operating expense (OPEX) ratio has improved dramatically—from 74.6% in FY18 to 20.8% in FY25—reflecting strong cost control. Return on equity has strengthened to 13.4% in FY25 from 7.8% in FY21. Asset quality remains robust, with gross NPAs at just 0.11% and a provision coverage ratio of 60%. Net interest margin remains healthy and stable at 4% in Q4FY25.

Looking ahead, management has guided for 24–26% AUM growth over the medium term. The OPEX ratio is expected to fall further to 14–15%, and ROE is projected to improve to 13–15%. GNPA levels are expected to remain within 40–60 basis points. Leverage, currently at 5.2x, is targeted to increase to 7–8x, while the debt-to-equity ratio stood at 4.1x in FY25. BHFL plans to invest aggressively in its Strategic Business Units and expand into non-metro markets in FY26 to sustain its growth momentum.

• Risk factors. The housing finance industry is highly competitive, especially in the affordable housing space. BHFL could face pressure on lending margins and market share if it is forced to lower rates. Additionally, the company faces geographic concentration risk, with a significant portion of its business concentrated in four states and the New Delhi region.

Read this | Rich valuation pricks Bajaj Finance as it cuts guidance 

Market Recap for 3 June

Indian equity markets began Tuesday’s session on a weak footing, tracking global volatility, rising crude prices, and persistent foreign fund outflows. The Nifty 50 opened at 24,786.30 and slipped to an intraday low of 24,502.15, while the BSE Sensex opened at 81,492.50 before hitting a low of 80,575.09.

By the close, the Nifty 50 was down 174.10 points, or 0.70%, at 24,542.50. It remained above the 50-, 100-, and 200-day exponential moving averages (EMAs) on the daily chart but slipped below the 20-day EMA, with an RSI reading of 50.64. The Sensex fell 636.24 points, or 0.78%, to end at 80,737.51—marking its third straight session in the red.

Among sectoral indices, Nifty Realty led the gains, rising 1.20% to close at 982.90. Sobha Ltd surged 5.38%, followed by Brigade Enterprises (up 4.48%) and Prestige Estate Projects (up 3.01%), the latter buoyed by its announcement of upcoming housing launches worth ₹42,000 crore. Nifty Media also performed well, gaining 0.54% to end at 1,726.10. PVR Inox led the pack with a 2.19% rise, while DB Corp and Zee Entertainment gained 2.08% and 1.92%, respectively.

On the flip side, Nifty Private Bank was the worst-performing index, dropping 1.17% to close at 27,346.35. Yes Bank led the losses with a steep 10.40% decline, followed by IDFC First Bank, which was down 2.53%.

Also read | Lemon Tree ends FY25 on a good note, but investors must watch debt levels

Asian markets, meanwhile, traded higher on easing trade tensions between the US and China. Hong Kong’s Hang Seng index jumped 1.53% to 23,512.49, while the Shanghai Composite and Taiwan Weighted Index also ended in the green, up to 0.6% higher.

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 guarantee 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.