2 High-Potential Stocks to Buy Now with Up to 16% Upside
Trade Brains Portal recommends Vedanta Ltd and Indian Oil Corporation Ltd for an upside potential of up to 16%. Analyze their performance and market trends to make informed investment decisions.
Real Estate:In this article, we look at two dividend stocks, one from the metals & mining sector and another from the oil & gas sector, recommended by the Trade Brains Portal to buy for an upside potential of more than 15%. We also analyzed the market’s performance to understand what may lie ahead for the stock indices in the coming days.
**Why it’s recommended:** Founded in 1965, Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the leading global companies in natural resources, critical minerals, energy, and technology. Its operations span across India, South Africa, Namibia, Liberia, the UAE, Saudi Arabia, Korea, Taiwan, and Japan, with key activities in oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, power, and glass substrate production. The company is also expanding into electronics and display glass manufacturing.
Vedanta reported its highest-ever consolidated revenue of Rs 1,50,725 crore in FY25, a 10% increase from Rs 1,43,727 crore in FY24. EBITDA rose by 37% year-on-year to Rs 43,541 crore, the second highest on record. PAT surged 172% to Rs 20,535 crore in FY25 from Rs 7,539 crore in FY24. Capital expenditure for the year stood at Rs 12,626 crore, aimed at expanding capacity and strengthening supply chain integration.
The company achieved record annual aluminum production of 2,422 kt, up 2% YoY, while alumina production rose 9% YoY with the addition of a new train. Mined metal production reached an all-time high of 1,095 kt, and refined metal production stood at 1,052 kt. Zinc International’s Q4 mined metal output was 50 kt, marking a 52% YoY and 9% QoQ increase; total annual production stood at 178 kt. Saleable steel production reached 1,337 kt, and copper cathode output rose 6% YoY to 149 kt. Overall annual saleable ore production rose 12% YoY to 6.2 MTPA. Hindustan Zinc has now become the world’s largest integrated zinc producer.
Vedanta has consistently delivered strong returns to shareholders through attractive dividend payouts. Over the past 10 years, the company has paid dividends totaling Rs 1,10,233.75 crore. For FY25, it declared a dividend of Rs 43.5 per share, offering a yield of approximately 11.8%.
**Risk factor:** Vedanta Ltd is exposed to regulatory and environmental risks due to the nature of its mining operations. The company is also vulnerable to fluctuations in global commodity prices such as oil, zinc, and aluminum, which can significantly affect its performance and margins. Furthermore, any delays in major projects or adverse policy changes could impact its growth and operational stability.
**Why it’s recommended:** Indian Oil Corporation Ltd. (IOCL) is India’s largest commercial energy enterprise, with a broad portfolio covering the entire hydrocarbon value chain. As a Maharatna public sector undertaking, it is engaged in refining, pipeline transportation, marketing of petroleum products, petrochemicals, natural gas, and exploration and production of crude oil and gas. IOCL is the largest refiner in India, operating 11 refineries with a combined capacity of 80.8 MMTPA. It also operates the largest downstream pipeline infrastructure in the country (over 20,000 km) and ranks as the second-largest petrochemical producer (4 MMTPA) and gas market participant with a 14% market share.
The company holds the highest refining share in India with a 31% market share, and its refining capacity is expected to increase to 98.5 MMT by 2027 from 80.8 MMT in 2025. It also leads in pipeline infrastructure with a 73% market share in crude oil pipelines, 57% in product pipelines, and 61% overall. IOCL achieved record gas sales of 7.9 MMT in FY25, a 21% increase from 6.5 MMT in FY24. Planned capital expenditure for major projects in 2025-26 stands at US$3.37 billion, with an additional US$0.58 billion allocated for smaller initiatives.
The company is expanding through strategic joint ventures, including partnerships with L&T Renew Power, Sun Mobility Pte Ltd (Singapore), and proposed collaborations with SJVN, SECI, and RVUNL for renewable energy development. New petrochemical projects are underway at Gujarat, Barauni, Panipat, and Paradip refineries. IOCL exports to 72 countries and currently has 252.1 MW of renewable energy capacity. Its new subsidiary, Terra Clean Ltd., is planning to develop 5.3 GW of renewable energy capacity.
IOCL has maintained a consistent track record of shareholder returns. The board has proposed a final dividend of 30% for FY 2024-25, amounting to Rs 3.00 per equity share of face value Rs 10 each on the paid-up share capital.
**Risk factor:** Indian Oil Corporation is exposed to risks from fluctuations in global crude oil prices, which can affect profit margins. The company also faces regulatory uncertainties, including evolving policies, licensing requirements, and compliance deadlines, which may impact operations and increase the potential for legal or procedural complications.
### Market Recap June 27th, 2025
The Nifty 50 opened positively on Friday, continuing its rally for the third straight session. It opened at 25,577, up 28 points from the previous day’s close of 25,549. The index gained 89 points, or 0.35%, during the day, reaching a high of 25,654 before closing at 25,638. The Relative Strength Index stood at 67.72, approaching the overbought zone of 70. Nifty closed above all four key moving averages, the 20/50/100/200-day EMAs, on the daily chart. The Sensex followed a similar trend, ending the day at 84,059 with a gain of 303 points or 0.36%, and an RSI of 66.9. The uptrend in the markets was largely driven by easing tensions between Israel and Iran in the Middle East. Additionally, the dollar index touched a three-year low of 97 on Thursday, suggesting a higher potential for foreign capital inflows into the Indian market. Strong demand from domestic institutional investors also contributed to the rally.
Most sectoral indices closed in the green on Friday. The Nifty Oil and Gas index closed at 11,835, up 139 points or 1.2%, continuing its upward movement for the second session. The index was buoyed by gains in stocks such as Adani Total Gas, which surged 5.7%, along with Mahanagar Gas and Hindustan Petroleum Corporation Ltd, both of which rose by about 4.5%. Other contributors like Gujarat State Petronet and Indraprastha Gas saw gains of up to 3%.
Frequently Asked Questions
What is Vedanta Ltd’s current and target price?
Vedanta Ltd’s current market price (CMP) is ₹463.7, and the target price is ₹510, offering an upside of 10%.
What sectors does Vedanta Ltd operate in?
Vedanta Ltd operates in various sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, power, and glass substrate production.
What is Indian Oil Corporation Ltd’s current and target price?
Indian Oil Corporation Ltd’s current market price (CMP) is ₹147.2, and the target price is ₹170, offering an upside of 15.5%.
What are the primary activities of Indian Oil Corporation Ltd?
Indian Oil Corporation Ltd is engaged in refining, pipeline transportation, marketing of petroleum products, petrochemicals, natural gas, and exploration and production of crude oil and gas.
What are the risks associated with investing in Vedanta Ltd and Indian Oil Corporation Ltd?
Vedanta Ltd faces regulatory and environmental risks, and is vulnerable to fluctuations in global commodity prices. Indian Oil Corporation Ltd is exposed to risks from fluctuations in global crude oil prices and regulatory uncertainties.