2 Stocks to Buy Now for Up to 18% Upside: LTIMindtree and IREDA June 12
LTIMindtree : As the Indian stock market continues to trend upwards amid global optimism and resilient domestic macroeconomic indicators, investors are on the lookout for strong fundamental stocks with promising upside. According to a recent analysis by Trade Brains, two stocks—LTI Mindtree Ltd (LTIM) and IREDA Ltd—stand out as solid investment opportunities with an estimated upside of up to 18% over the next 12 months.
Here’s an in-depth look at both companies, including why analysts recommend buying them and what risks investors should be mindful of.
📈 Stock #1: LTI Mindtree Ltd (LTIM)
- Current Market Price (CMP): ₹5,402
- Target Price: ₹6,350
- Upside Potential: 18%
- Time Frame: 12 Months
🔍 Why LTIM is Recommended:
Established in 1996, LTIM is a powerhouse in the IT services sector, providing cutting-edge solutions in AI, infrastructure management, analytics, and enterprise solutions. With over 84,000 employees across 40+ countries, LTIM maintains a global footprint with development centers in the US, Europe, South Africa, the Middle East, and India.
For FY25, the company reported:
- Revenue: ₹38,008 crore (+7% YoY)
- PAT: ₹4,602 crore (+0.4% YoY)
- Free cash flow to PAT: 78.5%
- Operational cash flow to PAT: 98.8%
- Cash & investments: ₹13,346 crore (~$1.56 billion)
LTIM’s regional revenue split reflects its global dominance:
- North America: 74.8%
- Europe: 14.1%
- Rest of the World: 11.1%
In FY25, the company onboarded 4,700+ new hires, added 2,657 net employees YoY, and maintained a steady attrition rate of 14.4%.
LTIM is also heavily investing in transformation initiatives:
- AI-powered large deals
- Sales leadership optimization
- Fit4Future cost-efficiency program
Strategic partnerships, such as those with Arenco Group and Google Cloud, position LTIM strongly for future growth. The company boasts $6 billion in order inflows, up 6% YoY, with 741 active clients.
⚠️ Risk Factors:
LTIM derives 74.8% of its revenue from North America, creating a concentration risk. Any adverse policy or regulatory shifts in that region could impact its profitability and operations.
🏦 Stock #2: Indian Renewable Energy Development Agency Ltd (IREDA)
- Current Market Price (CMP): ₹182
- Target Price: ₹215
- Upside Potential: 18%
- Time Frame: 12 Months
🔍 Why IREDA is Recommended:
IREDA, a Navratna PSU and India’s largest green energy NBFC, plays a pivotal role in funding renewable energy projects across the country. It offers financial solutions for solar, wind, hydro, green hydrogen, and EV infrastructure projects across 23 states and 4 union territories.
In FY25, IREDA posted:
- Revenue from operations: ₹6,743 crore (+36% YoY)
- PAT: ₹1,698 crore (+36% YoY)
- Amount Disbursed: ₹30,168 crore (+20% YoY)
- Amount Sanctioned: ₹47,453 crore (+27% YoY)
Other key financial metrics include:
- NIM: 3.27% (+42 bps YoY)
- Yield on advances: 10.03%
- Cost of borrowing: 7.61%
- Gross NPA: Reduced to 1.35% (from 5.61% in FY21)
IREDA raised ₹25,200 crore in borrowings in FY25, with 13% from foreign sources, underscoring its access to global capital. With India targeting 500 GW of non-fossil fuel capacity by 2030, IREDA is poised to be at the center of the green energy transition.
⚠️ Risk Factors:
Being a financial institution, IREDA is vulnerable to interest rate volatility, which could compress its net interest margin and impact profitability.
📊 Financial Ratio Comparison Table
| Parameter | LTIMindtree Ltd | IREDA Ltd |
|---|---|---|
| CMP | ₹5,402 | ₹182 |
| Target Price | ₹6,350 | ₹215 |
| Upside Potential | 18% | 18% |
| FY25 Revenue | ₹38,008 Cr (+7% YoY) | ₹6,743 Cr (+36% YoY) |
| FY25 PAT | ₹4,602 Cr (+0.4% YoY) | ₹1,698 Cr (+36% YoY) |
| NIM | N/A | 3.27% |
| Yield on Advances | N/A | 10.03% |
| Gross NPA | N/A | 1.35% (down from 5.61%) |
| Free Cash Flow to PAT | 78.5% | N/A |
| Operational Cash Flow to PAT | 98.8% | N/A |
| Active Clients/Loan Book | 741 | ₹76,282 Cr |
| Sector | IT Services | Renewable Energy NBFC |
📉 Market Recap – June 11, 2025
- Nifty 50 ended at 25,141.40, up from the opening at 25,134.15
- Sensex closed at 82,515.14, up by 123.42 points
- Both indices traded above all key EMAs, supported by positive global cues from the US-China trade deal
- Sectoral gains were led by Oil & Gas (+1.47%) and IT (+1.26%)
- Weakness seen in PSU Banks (-0.88%) and FMCG (-0.67%)
❓Frequently Asked Questions (FAQs)
Q1: Which stocks are recommended by Trade Brains for June 12?
A1: Trade Brains has recommended LTI Mindtree Ltd and IREDA Ltd for potential upsides of up to 18% over the next 12 months.
Q2: What is the upside potential of LTIMindtree and IREDA?
A2: Both stocks have an 18% upside based on their target prices set at ₹6,350 (LTIM) and ₹215 (IREDA), respectively.
Q3: Why is LTIMindtree considered a good buy?
A3: LTIM shows strong fundamentals, high global presence, strategic AI-driven growth plans, healthy order inflows, and robust financials.
Q4: What makes IREDA a promising stock?
A4: IREDA is leading India’s renewable energy financing sector with diversified lending, government backing, strong financial growth, and reduced NPAs.
Q5: What are the key risks associated with these stocks?
A5: LTIM faces revenue concentration risk in North America, while IREDA is sensitive to interest rate changes that could impact margins.
These two fundamentally strong stocks—LTIMindtree and IREDA—offer promising opportunities for medium to long-term investors looking to ride India’s growth wave in IT and renewable energy. With positive market momentum and strong sectoral tailwinds, these recommendations could be a worthy addition to your watchlist or portfolio.
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