Stocks to trade today: Trade Brains Portal recommends two stocks for 13 June

Mint

13-06-2025

The benchmark Nifty 50 opened on a slightly upper note on Thursday, but remained on a declining trend throughout the rest of the trading session. The index hit the day's lowest at 24,825.90 before closing at 24,888.20, a fall of 1.01% or 253.20 points over Wednesday's close. The BSE Sensex also followed the decline, dropping to the day's lowest at 81,523.16 and closing at 81,691.98, slipping 1% or 823.16 points.
Thursday's steep market fall came amid rising geopolitical issues in West Asia and renewed tariff threats from US President Donald Trump, which are set to take effect on 9 July.
Today, we recommend two stocks—one from the capital goods sector and the other from the fast-moving consumer goods (FMCG) sector. We also analyze the market's performance on Thursday to understand what may lie ahead for the stock indices in the coming days.
Kirloskar Brothers Ltd
Current price: ₹1,843
Target price: ₹2,160 in 12 months
Stop-loss: ₹1,684
Why Kirloskar Brothers is recommended: Incorporated in 1920, KBL is one of India's largest manufacturers and exporters of pumps with expertise in fluid management systems. The company caters to 120 countries across six continents from nine domestic and five international manufacturing plants. KBL has more than 2,500 active customers and a diverse product portfolio that serves a larger range of applications in more than 12 industries and emerging areas, including chemicals, petrochemicals, wastewater management, and renewable energy.
In FY25, the company's revenue jumped 12% year-on-year to ₹4,492 crore, driven by strong demand for its diverse range of products and services. It holds a strong market share of 15% on the retail side, 25% in small- and medium-sized pumps, 40% in large pumps, and 66% in centrifugal pumps. The company recorded order inflows of ₹5,182 crore, a growth of 12% y-o-y, from both domestic and international markets, and has pending orders of ₹1,208 crore from overseas markets. It launched 200 new products, specifically energy-efficient products with energy-efficient motors and large submersible products with up to around 10-inch oil-filled submersibles.
Going forward, Kirloskar Brothers aims to increase its efficiency by cutting costs, decreasing waste, and improving processes, and anticipates increasing its margin by 20% or more over the next three to four years. Using its own technologies, Colligo and Phoenix, the company is concentrating on growing its services business in the UK, Europe, and Southeast Asia. A maintenance capital expenditure of ₹100 crore is anticipated for machine replacement, modernization, and debottlenecking. The urbanization, building, and construction segments, the electricity and thermal sectors, and the small pumps industry have all seen positive growth of 7% for KBL.
Risk factors: The company faces fierce rivalry in the pump manufacturing sector because small- and medium-sized unorganized firms have a greater regional presence, which results in low margins for organized players. KBL is also subject to fluctuations in the price of raw materials because pig iron, gun metal, and steel scrap are used in the manufacturing process, and their prices are naturally fluctuating.
Emami Ltd
Current price: ₹576
Target price: ₹720 in 12 months
Stop-loss: ₹504
Why Emami is recommended: One of India's top FMCG firms, Emami was established in 1974 and produces and markets healthcare and personal care goods. Trusted power brands including Navratna, BoroPlus, Smart and Handsome, Zandu Balm, Mentho Plus, and Kesh King are among Emami's more than 550 varied product offerings. Through its network of more than 3,400 distributors, Emami goods can be found in more than 5.4 million retail locations throughout India. The company's global reach includes more than 70 countries.
In FY25, the company's revenue increased 6.5% to ₹3,809 crore while Ebitda grew 9.7% to ₹1,093 crore and profit after tax by 9% to ₹803 crore. Despite tepid urban mass demand, Emami demonstrated resilient performance. Its core domestic business delivered robust double-digit growth of 11%, coupled with a healthy volume growth of around 7%, led by key brands such as Navratna, Dermicool, BoroPlus, and the Healthcare range. Emami repositioned Smart and Handsome from a fairness-focused product to a complete male grooming solution during the fourth quarter. It also forayed into the brightening cream category with the launch of 'Emami Pure Glow". Additionally, the company introduced more than 25 new products in its domestic business during FY25.
Emami's international business recorded a 6% growth in Q4, demonstrating resilience in the face of geopolitical volatility across Bangladesh, West Asia, and parts of Africa. Strong momentum was witnessed across South Asian Association for Regional Cooperation (Saarc), Southeast Asia, Commonwealth of Independent States (CIS), and African markets. Organized trade channels comprising modern trade, e-commerce, and institutional sales contributed 27.6% of domestic revenues in FY25. Emami remains confident of navigating short-term macro uncertainties through portfolio premiumization, innovation acceleration, enhanced channel productivity, and strategic international expansion.
Risk factors: Profitability is subject to fluctuations in raw material prices since Emami uses menthol, packaging materials, and vegetable oil. The price of polymers, which are used to make packaging materials, is linked to the price of crude oil, which is volatile. The main raw materials used in health care and personal care products are til oil, seshale wax, rice bran oil (RBO), LLP (crude derivative), and menthol/mentha oil (which has a calming effect). Very few of the materials are imported; the majority are purchased domestically. Price-sensitive customers may make it difficult for the business to quickly pass on price increases for raw materials.
Market recap — 12 June, 2025
BSE Sensex crossed its 20-day EMA and remained above (50/100/200) EMAs. While Nifty 50 was trading above all four EMAs (20/50/100/200), with the Nifty 50 RSI at 54.97 and the BSE Sensex RSI at 53.64 (far below the overbought threshold of 70).
As the markets ignited on Thursday due to geopolitical fears, no gainers were witnessed. The major laggards were the Nifty PSE index, which slumped by 2.10% or 212.80 points and closed at 9,919.35, with Hindustan Petroleum, Bharat Petroleum, GAIL India, and RVNL declining by more than 5%. This decline was fueled by issues in West Asia, with Israel preparing to target Iran's nuclear facilities even as it will likely face possible retaliatory measures from Iran.
Asian markets tanked amid the rising geopolitical concerns in West Asia and because of concerns over Trump's renewed tariffs threats, which triggered global markets to fall. The Hang Seng index in Hong Kong fell 1.39%, or 331.56 points, to conclude at 24,035.38 in the Asia-Pacific markets. The Nikkei 225 in Japan declined 0.65%, or 248 points, to close at 38,173. South Korea's Kospi index, however, continued its upward trajectory, climbing 0.45%, or 12.99 points, to close at 2,920.03. In the US, the Dow Jones Futures fell 0.63% or 271 points, closing at 42,637.