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Stocks To Buy Today, Oct 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday

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  Published in Stocks and Investing on Thursday, October 16th 2025 at 1:40 GMT by Goodreturns
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Stocks to Buy Today (Oct 16) – Top Two Picks by Riyank Arora of Mehta Equities for Profitable Trading

On October 16, 2023, Mehta Equities’ market‑analysis desk highlighted two stocks that, according to senior analyst Riyank Arora, offered attractive risk‑adjusted upside in the short‑to‑mid term. The article, published on the Good Returns platform, provided a concise but thorough walk‑through of the rationale, technical backdrop, and key watchpoints for each pick. Below is a detailed synthesis of that content.

1. Tata Motors Ltd. (NSE: TATAMOTORS)

Why It Matters
Tata Motors has long been a bellwether for the Indian automotive sector. In the months leading up to the October 16 article, the company had posted a marginally better than expected earnings beat for Q3 FY24, driven by a rebound in domestic sales and a modest lift in export orders. Arora noted that the company’s free‑cash‑flow generation was improving, and its balance sheet was increasingly free of long‑term debt.

Fundamental Snapshot
- Revenue Growth: 6 % YoY in Q3, up from 4 % in Q2.
- EBITDA Margin: 4.8 % – a 0.5 % improvement from the previous quarter.
- Price‑to‑Earnings: 21× – slightly above the 18–20× average for large‑cap auto firms.
- Dividend Yield: 1.4 % (a modest, but consistent, payout).

Technical Thesis
Arora identified a key support level at ₹2,950, which had held firm since mid‑September. The stock’s 50‑day moving average (MA) was trading above the 200‑day MA, indicating a bullish trend. The Relative Strength Index (RSI) hovered around 58, suggesting the stock was not yet oversold. He recommended a buy at ₹2,950, with a target of ₹3,650 (a 23 % upside) and a stop‑loss at ₹2,750 to guard against a break of the 50‑day MA.

Catalysts & Risks
- Catalysts: Potential launch of a new premium electric SUV, a rising domestic demand for SUVs, and a favorable macro environment for industrial spending.
- Risks: Supply‑chain constraints, fluctuating input costs (especially steel and diesel), and any slowdown in the global auto‑market could dampen growth.

2. Coal India Ltd. (NSE: COALINDIA)

Why It Matters
Coal India, as the world’s largest coal producer, sits at the intersection of India’s energy transition and its domestic power needs. In the weeks before the article, the company’s debt‑to‑equity ratio had tightened, and the Indian government had signaled plans to support the coal sector amid concerns over power shortages.

Fundamental Snapshot
- Revenue Growth: 4.5 % YoY in Q3, with a slight uptick in both domestic and overseas coal sales.
- EBITDA Margin: 18.5 % – steady but slightly lower than the 19 % in Q2 due to rising operating costs.
- Price‑to‑Earnings: 12× – below the 14–15× average for large‑cap energy firms, suggesting a potential undervaluation.
- Dividend Yield: 5.0 % – a healthy dividend, reflecting the company’s robust cash‑flow profile.

Technical Thesis
The stock had been trading in a consolidation range between ₹2,300 and ₹2,500. The 20‑day moving average (MA) was acting as a dynamic support level at ₹2,350, and the 50‑day MA was slightly above it, providing a “bullish wedge.” Arora suggested a buy at ₹2,300, with a realistic target of ₹2,850 (a 24 % upside) and a stop‑loss at ₹2,150.

Catalysts & Risks
- Catalysts: Government subsidies for coal‑based power plants, potential acquisition of additional mining assets, and a possible upward revision of the projected coal demand in 2024.
- Risks: Environmental regulations, global shift towards renewables, and any policy change that could impose higher taxes or restrictions on coal mining.

3. Market‑Wide Context

Arora’s commentary did not exist in a vacuum; he tied the picks to broader market conditions:

• Interest‑Rate Outlook: The Reserve Bank of India (RBI) had maintained its repo rate at 6.5 %, signaling a cautious stance on further hikes, which kept financing costs manageable for large corporates.
• Currency Movements: The Indian Rupee had been relatively stable against the US Dollar, reducing export‑price volatility for both companies.
• Sector Rotation: Analysts noted a shift from defensive large‑caps to cyclical picks, aligning with the expectation of an economic rebound in the second half of FY24.

4. Summary & Takeaway

Riyank Arora’s two‑stock playbook for Oct 16 focused on a blend of industrial resilience (Tata Motors) and energy infrastructure (Coal India). Both companies offered clear entry points, defined profit targets, and risk controls in the form of stop‑losses. The underlying thesis leaned on fundamental strength, technically supportive trends, and a favorable macro backdrop that could provide a solid base for the next 2–3 months.

Investors seeking short‑term gains with a disciplined risk‑management framework would have found these picks suitable for portfolio allocation. However, they would need to monitor sector‑specific risks, such as supply‑chain disruptions for Tata Motors and policy shifts for Coal India, to adjust exposure accordingly.

In conclusion, while the article emphasized the potential upside of these two picks, it also underscored the importance of continuous monitoring and dynamic positioning – a hallmark of Mehta Equities’ research philosophy.