Stocks to trade today: Trade Brains Portal recommends two stocks for 2 June

Today, we have picked two stocks—one from the chemical sector and the other from the pharmaceutical sector. 

Stocks to trade today as recommended by Trade Brains Portal

Pidilite Industries Ltd (Current price: ₹ 3,125)

• Target price: ₹ 3,650 in 16-24 months
• Stop-loss: ₹ 2,862
• Why it’s recommended: Pidilite is a pioneer in consumer and specialty chemicals in India and the market leader in the adhesives and sealants industry. It offers a diverse product range, including adhesives, sealants, waterproofing solutions, construction and automotive chemicals, arts and crafts products, industrial resins, organic pigments, polymers, and more. As of FY25, the company has 68 manufacturing units, with over 1,300 SKUs exported annually and more than 60 distribution centers across the country. It has some popular brands in its portfolio, like Fevicol, M-Seal, Fevi kwik, Dr Fixit, Roff, and more.

The company has consistently achieved a consolidated net sales growth of 11% CAGR over the past decade. The company has managed to improve its Ebitda margin, which has been in a steady upward trend over the last 10 years, rising from 16% in FY15 to 23% in FY25. 

Moreover, net sales for FY25 stood at ₹13,094 crore, up by 6% from ₹12,337 crore in FY24. EBITDA stood at ₹3,013 crore in FY25, a growth of 11% from ₹2,707 crore in FY24. Profit before tax and exceptional items for FY25 stood at ₹2,848 crore, growing by 16% YoY. Profit after tax for FY25 was at ₹2,096.17 crore as against ₹1,747.42 crore in FY24, recording a growth of 20%.

The company has a diversified portfolio, which currently caters to various industries like infrastructure, real estate, packaging, paper, leather, paints, and more. It is venturing into high-growth industries like electronics, EVs, and semiconductors. It has an exclusive partnership with CollTech Group, which has extensive experience in providing electronics adhesive solutions. 

This partnership may become a good synergy between both companies to expand their presence further in the electronics sector. Additionally, Brand like Roff has a lot of room for growth due to growth in the tile market, which stood at ₹43,000 crore as of FY24 and is expected to reach ₹62,000 crore by 2027. Key growth drivers for the company are penetration in rural and semi-urban markets and international expansion through various business models. On a macro view, the specialty chemicals market in India is expected to grow faster than China, increasing its market share from 3-4% in 2021 to 6% by 2026, as per a Crisil report.

• Risk Factor: A significant portion of raw materials is exposed to crude oil price volatility. Key elements like vinyl acetate monomer (VAM), synthetic resins, and other derivatives are crude oil-based and are used by the company. The company has international subsidiaries in Bangladesh, Sri Lanka, and African countries, which are prone to geopolitical and economic uncertainties and volatility in input costs. 

Also Read: FMCG stocks face margin pressure. Here’s why

Cipla Ltd (Current price: ₹ 1,463)

• Target price: ₹ 1,690 in 12 months
• Stop-loss: ₹ 1,345
• Why it’s recommended: Cipla is a global pharmaceutical company with more than 85 years of experience. It supplies branded and generic medicines to more than 170 countries globally. The company is well diversified in both geographic presence and product offerings. It offers more than 1,500 products in 65 therapeutic categories, with more than 50 dosage forms covering a wide spectrum of diseases. 

The company’s Indian business accounts for 42% of Cipla’s revenue and grew at a healthy 7% YoY as of FY25. Cipla is the largest pharmaceutical company in India by volume. It has 26 brands that earn more than ₹100 crore in revenue. One of its brands, Foracort, became the 1st brand to cross ₹900 crore in the history Indian pharmaceutical market.

In FY25, Cipla saw a growth of 8% YoY in its income from operations at ₹27,548 crore, with an Ebitda growth of 14% at ₹7,128 crore. Their Ebitda margin grew from 24.5% in FY24 to 25.9% in FY25, and the return on invested capital (ROIC) grew to 33% from 31% last year. Cipla recorded a profit after tax (PAT) growth of 28%, from ₹4,106 crore in FY24 to ₹5,273 crore in FY25, with their PAT margin expanding from 16.1% to 19.1% now. Cipla’s R&D investment stood at ₹1,524 crore, which is 5.5% of revenue. 

The company’s total debt has been reduced from ₹559 crore in FY24 to ₹438 crore in FY25, and it has been maintaining a healthy cash balance of ₹10,807 crore as of FY25. Consumer health brands such as Nicotex, Omnigel, and Cipladine ranked no. 1 in the consumer health market. Cipla’s One Africa business, constituting 14% of revenue, grew at 12%, and the emerging markets and Europe business, which accounts for 12% of revenue, saw a growth of 15%. Cipla's North America business, contributing 29% of total revenue, grew marginally by 3% and secured drug approvals from ANDA & NDA for Lanreotide Injection, Nilotinib, and Nano Paclitaxel.

Total ANDA & NDA portfolio and pipeline as of FY25 stood at 284, with 109 under approval and tentatively approved categories. Cipla’s branded prescription business continued to outpace the market growth in key chronic therapies like respiratory, anti-infectives, urology, and cardiac. 

Trade Generics is back on a growth trajectory with 19 new launches in FY25, anchor brands of the subsidiary Cipla Health Limited continue to grow bigger. The company is focused on expanding its pipeline, with key respiratory, peptide, and complex generic assets in progress, and several launches expected between FY26 and FY28. Cipla has made many strategic alliances throughout the year, which have accelerated its inorganic growth.

• Risk Factor: Cipla operates in a highly regulated industry, and any changes in regulatory norms or failure to comply with existing norms could impact its operations. Additionally, any interruptions in the supply chain and non-compliance with required quality norms by vendors can disrupt its manufacturing process, leading to product shortages and a material adverse impact on the reputation and revenues. 

Additionally, the US president's recent plan to cut down drug prices in the country could impact the revenues of Cipla, as the company generates 29% of its revenue from North America as of FY25.

Also Read: JK Lakshmi’s ambitious targets are not without obstacles

Market Recap 30 May 2025

On Friday, Nifty 50 closed at 24,750.70, down by 82.9 points, or -0.33%, with an RSI of 55.52 and above the 20/50/100/200 EMA in the daily time frame. The BSE Sensex closed at 81,451.01, down by 182.01 points, or -0.22%, with an RSI of 55.26, and above all four EMAs.

Nifty PSU Bank was among the top gainers, closing at 6,976, surging by 195.30 points, or 2.88%, with Bank of Maharashtra leading the index, gaining 5.86%.

Nifty Metal was one of the major losers, closing at 9,193.25, down by -1.69% or 158.40 points. All the major companies of this index were in red today, with Jindal Stainless Ltd. being the biggest laggard, declining -3.65% and closing at ₹644.75.

Nifty IT was also among the top loser indices, down by -1.15% or 432.40 points, closing at 37,321. All the stocks in this index were in the red today, HCL Technologies being the top loser, down -1.69%, closing at ₹1,636.6. The Nifty PSE was also in the red today, closing at 9,867.95, down by -1.14% or 114 points. 

All the major companies were in the red today, with Oil India, RVNL, BHEL, and IRCTC down by more than 2% today. In May, Nifty touched the 25,000 mark after a decline since October 2024. Nifty touched the monthly high of 25,116.25. It grew 416.50 points, or 1.71%, this month.

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