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It’s February, and summer has officially hit Mumbai. Not that it's ever cold here - I have a drawer full of sweaters that I barely use. Sometimes in December I see a fellow Mumbaiker optimistically wearing their underused woolens, but let's not fool ourselves.

On the bright side, as the days warm up, I can finally indulge in ice cream. Chocolate’s my go-to flavour. But the tough part is deciding between choco chips and Belgian dark chocolate.

But why do I have to choose, really? It doesn't have to be 'either-or'; it can be 'and'. That’s what Minister Ashwini Vaishnaw has been saying for India’s growth path: not manufacturing or services, but both. Multiple paths can rapidly grow India's GDP, just as multiple ice-cream scoops can grow my waistline.

Bloomberg estimates that India can be the GDP growth leader globally by 2028, the way China used to be in the past two decades. WEF President Børge Brende expects India to contribute to 20% of global growth in the coming years, from 15% currently.

In this week's Analyticks,

Recipe for growth: India is still missing key pieces as we try to boost the economy

Screener: Exporters outperforming Nifty with growth in revenue and profit

India's recipe for growth is missing high-end manufacturing

A country's growth usually comes with rising complexity. Countries start with simple, low-cost products like clothes, shoes, and commodities. Then they move up to high-tech goods like electronics, electric cars and aircraft, plus advanced services like chip designing, R&D, and AI. They build on their capabilities over time, to move into specialized sectors.

A good example of how this complexity works is Finland's growth path. Finland historically had a lot of tree cover, so over time they became good at building machines that cut trees. Finnish manufacturers soon developed automated cutting machines, and then became better at making automated machines across different industries. That skill over time, led to Nokia.

The first Nokia factory was originally a wood pulp plant.

Similarly China moved from making cheap toys and electronics to becoming a leader in electric cars. South Korea became a global electronics giant, while India’s IT sector grew from call centres to a global tech powerhouse.

To understand this better, economists use something called the Revealed Comparative Advantage (RCA) index — a fancy way of saying, “What has a country become really good at making and exporting?” If the score for a product is greater than 1, it means the country exports more of that product than the world average, indicating a comparative advantage, and vice versa.

Where does China score high in 'comparative advantage'?

By 1999, China already had a strong manufacturing base, excelling in primary (food, beverages, and minerals), low-tech (leather, textile, glassware, furniture, and jewellery) and high-tech products (advanced machines, pharma products and radioactive materials). By 2023, it had shifted from low-value sectors and now dominates high-tech industries.

India's move from low to medium specialization

Two decades ago, India had a competitive edge in primary, resource-based (food processing, rubber, wood, and cement), and low-tech industries. In 2023, its scores for these sectors have declined, but remain above 1. But India is getting better at producing medium (auto and auto componenets, synthetic fibers, and appliances) and high-tech products. But scores for the higher-end sectors are still below 1 - we are lagging the global average here.

The trend shows that India is still great at making things like clothes, shoes, and toys. But we haven't yet moved into more advanced manufacturing like electronics and biotechnology.

Electronics: From importer to exporter

Not long ago, India relied on imports for most electronics. Today, it’s becoming an export leader in this space. Electronics exports jumped from $4.5 billion in FY15 to $28.5 billion in FY24 – a stunning 23% CAGR. The secret sauce? A blend of tax cuts, production incentives, and capital support.

Last year, India registered a 40% increase in mobile phone exports, while China and Vietnam saw declines. India captured nearly 50% of China and Vietnam’s lost mobile exports — a sign of its growing dominance.

The smartphone production-linked incentive (PLI) scheme played an important role. Giants like Apple, Xiaomi, and Samsung ramped up production in India, with Apple doubling its exports from India. Today, iPhones make up 65% of India’s mobile exports. Dixon Technologies, a key player in PLI, expanded its workforce from 9,000 before the pandemic to 26,000 today, manufacturing products for Motorola, HP, Lenovo, LG, and more.

“What we’re used to seeing in China is these large mega factories, where thousands of people are working on one campus and live on that campus; we are also trying to do that in India”, says Sunil Vachani, Dixon’s chairman.

So India has entered the electronics manufacturing space -- but we have yet to move up the value chain, from assembly to design.

India’s rise in global pharma

India is the world's largest vaccine maker, producing 60% of global vaccines, and is making waves in biotech research and development. A few companies are leading this front. Zydus for instance, has beat global giants like Novartis and Roche in testing NLP3R inhibitors for amyotrophic lateral sclerosis (ALS) disease. Glenmark’s ISB 2001, a blood cancer drug, could be a cheaper alternative to J&J’s Darzalex, if approved. 

The government has targeted making this a $300 billion industry by 2030 from $130 billion today, through policies like the PLI, National Biotechnology Development Strategy 2020-2025 and the Bio-E3.

But there’s also a political angle to this story.

The US Biosecure Act, which aims to ban federal agencies from purchasing Chinese drugs, is awaiting a decision from the Trump administration. Even though the Act hasn't yet passed the Senate, global companies are already moving their supply chains away from China. This shift presents a significant opportunity for Indian pharmaceutical companies, which already provide 40-50% of generic drugs in the US.

Not every industry is a winner

The Indian government has been building support for many promising industries. But today’s factories are quite different from those in the ‘80s and ‘90s. They have more automated machines and robots. The Economist notes that this makes it harder for poor countries to compete in manufacturing.  It also makes it harder for governments to know which industries to help.

When venturing into new sectors where it lacks experience, India must start small and choose carefully the areas it builds expertise in. Some may not pay off at all. Take semiconductors, for example. India has ambitious manufacturing plans, but most proposed facilities will only assemble chips (low value), not design them (high value). It is also a late entrant to a semiconductor space where many countries are jockeying for supremacy.

The manufacturing+services strategy gets a boost from GCCs

The good news? India’s services sector is evolving alongside its manufacturing efforts.India is no longer housing just basic call centres; it's becoming a global hub for Global Capability Centers (GCCs). GCCs work as overseas offices of big companies. They handle tasks like tech development, research, and customer service.

India is home to 1,700 GCCs, 17% of the global total. This number could rise to 2,200+ in the next few years. Consulting firm Zinnov’s CEO Pari Natarajan, calls Indian GCCs "the nerve centres of global tech advancement".

GCCs earned over $64 billion in FY24, up from $46 billion in FY23. They are creating a wealth of high-paying, specialised jobs and could generate over 4 lakh jobs this year. Companies are even tapping into smaller cities like Visakhapatnam, Coimbatore, Jaipur, Vadodara, Kochi, and Chandigarh to find talent.

India faces the difficult challenge of finding jobs quickly for millions of low-skilled and high-skilled workers, which can only be answered with a manufacturing and services combo. The one advantage India has in a difficult global environment of tariffs and competition, is hostility in the US and EU to a rising China. Politics+economics, combined with manufacturing+services, may be India's real advantage in the coming years.

Screener: Exporters outperforming the Nifty with growth in revenue and profit

Auto & chemical stocks outperform Nifty 50 after strong profit growth in Q3FY25

As we near the end of the results season, we look at exporters with the best performance in Q3FY25. This screener shows stocks outperforming the Nifty 50 in month change with YoY growth in revenue and net profit.

The screener is dominated by stocks from the chemicals & petrochemicals, automobiles & auto components, pharmaceuticals & biotechnology, and textiles apparels & accessories sectors. Major stocks that feature in the screener are UPL, Maruti Suzuki, TVS Motor, Sumitomo Chemical India, Divi’s Laboratories, Epigral, Garware Technical Fibres, and Mahindra & Mahindra.

UPL surged by 11.3% over the past month, outperforming the Nifty 50 index by 12.8 percentage points after its net profit and revenue grew by 168% YoY and 10.3% YoY, respectively, in Q3FY25. This helped the agrochemicals company’s net profit and revenue to beat Forecaster estimates by 138.8% and 1.2%, respectively. Net profit surged on the back of lower raw materials, finance, and exchange differences on trade receivables. On the other hand, sales growth and rising prices of its products helped the company’s revenue increase.

Maruti Suzuki also shows up in the screener after its price rose 9.4% over the past month, outperforming the Nifty 50 by 11 percentage points. This comes in response to the cars & utility vehicles manufacturer’s net profit and revenue growing by 16.2% YoY and 15.4% YoY during Q3FY25, helping to surpass Forecaster estimates by 2.1% and 2.9%, respectively. A reduction in inventory costs and a deferred tax return during the quarter helped profit increase, while a recovery in sales in the rural market helped with revenue growth.

You can find some popular screeners here.

Signing off this week,

The Trendlyne Team

1. Info Edge India (Naukri):

Sharekhan maintains a ‘Buy’ rating on this software & services company with a target price of Rs 9,100. This indicates an upside potential of 20.7%. The company reported a net profit growth of 60.6% YoY to Rs 242.6 crore in Q3FY25. Its revenue rose 15.2% to Rs 722.4 crore, beating Forecaster estimates by 6.2%.

The recruitment business grew across segments, benefiting from improved go-to-market strategies, new client additions, and strong performance from niche businesses such as IIM Jobs, Naukri Fast Forwards, Zwayam, and Job Hai. Total billings rose 15.8% YoY to Rs 668 crore, with the recruitment segment growing 15.2%.

Non-recruitment businesses also delivered strong growth, with 99acres.com, Jeevansathi.com, and Shiksha.com reporting billing increases of 16%, 36%, and 12.3%, respectively. Paid listings on 99acres.com rose 21% to 8.3 lakh. The analyst expects a CAGR of 18% in sales and 19% in revenue over FY25-27 as the platform continues to invest in expanding its user and client base.

2. Stove Kraft:

Emkay maintains its ‘Buy’ rating on this kitchen appliances company with a target price of Rs 1,200, indicating a potential upside of 59.6%. Stove Kraft has entered into a partnership with IKEA to use its manufacturing capabilities while benefiting from IKEA’s global reach. The initial contract covers eleven stock-keeping units (SKUs) with an expected volume of 2.5-3 crore units per year. This is expected to generate Rs 30 crore in revenue for FY26 and Rs 150 crore for FY27. Stove Kraft is also in talks with IKEA for an additional contract covering four SKUs with similar volumes. 

In Q3FY25, this small cap company’s revenue increased 11.7% YoY to Rs 400 crore. EBITDA margin improved by 150 bps YoY but declined 180 bps QoQ to 10.2% due to higher marketing expenses and post-festive discounts amid weak consumer sentiment. Net profit grew 80% YoY to Rs 12.1 crore during the quarter.

Analysts Chirag Jain and Jaimin Desai note that Stove Kraft’s partnership with IKEA could raise its export revenue share from ~12% to 16-17%. The management sees exports to contribute 25% of total revenue in the next 3-4 years, with IKEA potentially accounting for 50%. They also highlight that the company aims to double its revenue using existing capacity with minimal capex, supported by aggressive retail expansion, targeting 25-30 new stores per quarter and increasing brand visibility through Pigeon.

3. J Kumar Infraprojects:

Axis Direct maintains a ‘Buy’ rating on this construction company with a target price of Rs 940, indicating an upside potential of 32.6%. The company’s profit and revenue growth has been driven by a strong order book, which has benefited from the government’s infrastructure push. In Q3FY25, net profit grew 20.7% YoY to Rs 99.7 crore, and revenue increased by 22% to Rs 1,486.9 crore

Analysts Uttam Srimal and Shikha Doshi highlight the company’s order book of Rs 20,529 crore, which provides revenue visibility for the next 3-4 years. The company has a bidding pipeline of Rs 40,000-47,000 crore, including building projects, metro & railway projects, and a Rs 30,000 crore pipeline in elevated corridors. They note that the company aims to win projects worth Rs 6,000-8,000 crore in FY25.

Srimal and Doshi expect a revenue, EBITDA and net profit CAGR of 17%, 19%, and 22%, respectively, over FY25-26, from a diversified order book, strong bidding pipeline and healthy order inflow.

4. Greenlam Industries:

Anand Rathi retains its ‘Buy’ rating on this furniture manufacturer with a target price of Rs 771, indicating an upside potential of 38.9%. In Q3FY25, its revenue rose 6.9% YoY to Rs 602 crore, helped by the engineered flooring and doors businesses. Analyst Rishab Bothra noted that a favorable demand environment supported growth in the international business, but the domestic market faced challenges due to weak demand.

The analyst highlights that the company’s laminate business grew 4% in value and 2.6% in volume, supported by a 1.4% increase in blended realizations to Rs 1,050 per sheet. He also points out that improved utilization levels in plywood and particle boards will aid profitability in the coming years. Management targets breakeven for particle boards in FY26, with 50% utilization, and Rs 750 crore in revenue at optimal capacity within three years.

Bothra expects the company to achieve a 21% revenue CAGR and a 33% net profit CAGR over FY25-27, driven by growth in the engineered flooring and doors segments, along with efficiency gains supporting earnings expansion.

5. Subros:

Khambatta Securities maintains a ‘Buy’ rating on this small cap auto parts maker with a target price of Rs 799. This indicates a potential upside of 33.3%. In Q3FY25, the company’s revenue rose 12.1% YoY to Rs 826 crore, helped by the start of production (SOP) of a newly secured contract. Net profit grew 22.6%, supported by cost reduction efforts. Analysts highlight that Subros aims to lower its import dependence to around 10% of total revenue within the next 2-3 years.

The company is focusing on products for alternative fuel technologies, including CNG, hybrid, and electric components, which are expected to contribute over 20% of its revenue in the next 1-2 years. Subros is also working on products for railway coaches, with each coach generating revenue of Rs 1.5-1.7 crore. For FY26, it has allocated a capex of over Rs 100 crore. Analysts estimate an 11.5% revenue growth and a 20.7% net profit growth over FY25-26.

Note: These recommendations are from various analysts and are not recommendations by Trendlyne.

(You can find all analyst picks here)

The portfolio changes of superstar investors like RARE Enterprises, Ashish Kacholia, Sunil Singhania, and Vijay Kedia provide valuable insights into the market, especially during periods of volatility – like right now. Their buys and sells help investors find potentially profitable sectors and stocks. Here we look at the sells made by these superstar investors in Q3FY25.

The chart below shows changes in superstar investors' current portfolio net worth (note that net worth reflects changes in current holdings, as well as new buys and sells). 

Previously, we focused on the key superstar buys in Q3FY25. Now, let's analyse their sells. During the latest quarter, most superstar investors remained cautious and increased stake sales, extending the trend from the previous quarter. The chart below highlights their biggest sells during this period.

RARE Enterprises pares stake in a pharma stock to below 1% 

Rakesh Jhunjhunwala’s portfolio, currently managed by Rekha Jhunjhunwala and investment firm RARE Enterprises, reduced holdings in four companies during Q3. The portfolio’s net worth has risen by 12.5% to Rs 61,970 crore as of February 10. 

In the October-December quarter, the late big bull’s portfolio sold its stake in Sun Pharma Advanced Research to below 1%. The portfolio held a 1.9% stake in the firm for seven consecutive quarters. The pharma company has declined by 56.9%, underperforming its industry by 83.4% points.

During the latest quarter, RARE reduced a 0.8% stake in Nazara Technologies, and now holds 7.2% in the internet software & services company. The company rose just 9.8% in the past year, underperforming its industry by 39.7% points.

RARE Enterprises also sold a minor 0.1% stake each in household appliances maker Singer India, and pharma stock Wockhardt during the quarter. The portfolio now holds 6.9%, and 1.8%, respectively, in these companies. 

Ashish Kacholia goes on a selling spree in Q3

Ashish Kacholia’s net worth declined by 21.9% to Rs 2,732.5 crore as of February 10 as he scaled back on multiple stocks. The investor reduced his holdings in three companies to below 1% during the third quarter. 

During the latest quarter, Kacholia cut his stake to below 1% each in Raghav Productivity Enhancers, Updater Services, and E2E Networks. He held 2%, 1.5%, and 1.1% stakes, respectively, in the other industrial goods, misc. commercial services, and internet software companies respectively during Q2FY25. Raghav Productivity and Updater Services have neutral Momentum scores, while E2E has low Durability.

The marquee investor also sold 4.7% in auto parts & equipment maker Universal Autofoundry. It has a technically bearish Momentum score. The company is currently trading in the PE Sell Zone. Its net profit has declined over the past few quarters, and it reported a net loss during Q3FY25.

A possible reason for Kacholia’s significant sells during Q3 could be the rising valuations in the midcap and smallcap space. He sold a 0.9% stake in Awfis Space Solutions, a special consumer services company. The company has weak financials and features in a screener of stocks with low piotroski scores.

The ace investor lowered his holding in Basilic Fly Studio to 1.2% and Shaily Engineering Plastics to 5.2%. Basilic Fly appears in a screener of companies with prices below short, medium, and long term averages. He also trimmed his stake in Jyoti Structures to 2%. Its share price has declined by 21.9% over the past year, underperforming the construction & engineering industry by 28% points. 

Sunil Singhania’s Abakkus Fund adjusts holdings in key sectors

Sunil Singhania’s Abakkus Fundsaw its net worth fall by 17.6% to Rs 2,636.8 crore. The fund reduced its stake in HIL to 2.4% during the quarter, after holding a 3.2% stake in the cement & cement products maker in Q2FY25. Its share price has declined by 28.1% over the past year, underperforming its sector by 33.7% points.

Singhania’s fund also trimmed its stake in IIFL Capital Services by 0.4%, taking the holding to 2.5% in the capital markets company. It sold a 0.2% stake in the iron & steel company Sarda Energy & Minerals. The company is in the PE Strong Sell Zone, indicating that it is currently trading above its historical PE.

The fund also cut a 0.1% stake in industrial machinery maker Anup Engineering. Trendlyne classifies the company as an Expensive Performer, with a valuation score of 26.5.

Vijay Kedia makes minor stake sales during Q3

Vijay Kedia’s net worth decreased by 4.4% to Rs 1,598.8 crore as of February 10. During the quarter he reduced his stake in telecom equipment maker Tejas Networks to 1.3%. He held a 1.9% stake in the company in Q2. Over the past three months, its share price decreased by 37%, underperforming its industry by 21.7% points.

Kedia also cut a 0.2% stake in industrial machinery maker Elecon Engineering during the quarter. He held a 1.3% stake in the company for three consecutive quarters before reducing it to 1.1% in Q2FY25. The company has risen by a marginal 0.2% over the past year. Trendlyne classifies the company as a Falling Comet.

The ace investor sold a minor stake in Repro India, and now holds 6.3% in the publishing company.

Dolly Khanna cuts stakes in multiple companies

Dolly Khanna reduced her holdings in eleven companies during Q3FY25, including three where her stake fell below 1%. Her net worth decreased by 36.2% to Rs 389.5 crore as of February 10. During Q3, she lowered her stake in housing finance company Repco Home Finance and non-ferrous metals firm Pondy Oxides & Chemicals to below 1% from 1.1%. Over the past year, Repco’s share price has declined by 15.6%, while Pondy Oxides has risen by 84.3%. Pondy Oxides is currently trading in the PE Sell Zone.

Khanna also reduced her stake in J Kumar Infraprojects to below 1% from 1%. The company is currently in the PE Neutral zone. Over the past year, it has risen 15.6% over the past year.

During the quarter, she trimmed her stake in Selan Exploration by 0.5%, now holding 1.2%, and cut her holding in Nile to 1.1% by reducing 0.2%. Both the companies have a bearish outlook as they appear in a screener of stocks with medium to low Trendlyne Momentum score.

Khanna also cut 0.1% in Prakash Pipes, Som Distilleries, and Talbros Automotive, now holding 3.8%, 1.5%, and 1.2% in these companies, respectively. Prakash Pipes and Talbros Automotive saw marginal price changes over the past year, while Som Distilleries declined by 4%.

Dolly made minor reductions in Zuari Industries, 20 Microns, and POCL Enterprises in Q3FY25.

Porinju Veliyath reduces stakes in two companies to below 1%

Porinju V Veliyath’s net worth decreased by 13.7% to Rs 240.3 crore as of February 10. During the quarter, he reduced his stakes in two companies, taking his holdings to below 1%. He cut his stake in hotels firm Apollo Sindoori Hotels from 1.4% to below 1%. Over the past year, the company’s share price has declined by 31.4%, underperforming its industry by 59.7% points.

During the latest quarter, Porinju also cut his stake in Centum Electronics, an electronic components maker, to below 1%. He has consistently held a 1% stake since Q1FY24. Centum holds a medium rank on the Trendlyne Checklist, with a neutral momentum score of 53.5. Over the past year, the firm's share price has risen by 14.3%, but underperformed its industry by 90.2% points.

The investor also reduced his holdings in Ansal Buildwell and AeonX Digital by 0.4%, now holding 3.1% and 3%, respectively. Ansal has a neutral Momentum score and is trading in the PE Sell zone. AeonX has gained 6.1% over the past year.

1. Kalyan Jewellers India:

Thisjewellery retailer surged 22.4% over the past week after announcing itsQ3 results. This jump was primarily driven by a 40% YoY growth in revenue, which surpassedForecaster estimates by 1.3%. However, net profit growth fell short of projections by 6%, mainly due to the introduction of corporate tax in the UAE.

The proposed customs duty cut on jewellery and platinum parts in the FY26Budget is expected to make platinum jewellery more affordable. The duty on platinum parts has been significantly reduced from 25% to 5%, and the duty on jewellery has been lowered to 20%. Suvankar Sen, CEO of Senco Gold, expects these measures to boost jewellery demand as the government aims to improve middle-class consumption.

KJIL’s Indiabusiness, which contributes the majority of its revenue, recorded a 42% YoY growth. The remaining comes from the UAE, which saw a revenue growth of 23%, although net profit remained flat compared to the previous year. Losses in its e-commerce division, Candere, expanded to Rs 7 crore, with revenue of Rs 15 crore. Executive Director Ramesh Kalyanaramansaid, “We will focus on making the store (Candere) EBITDA positive in FY26.” He projected an ambitious revenue target of Rs 1,000 crore for Candere in “the next two-three years”.

During Q3, KJIL opened 45 showrooms in India and launched its first showroom in the US, taking the total showroom count to 349. In FY26, the firm plans to expand its showroom count by over 40% and has already signed letters of intent for showrooms to be opened during H1FY26. KJIL owns approximately 60% of its stores, while the remainder operates under a franchise-owned, company-operated (FOCO) model. 

The company is using about 50% of its profits to pay down its debt, which exceeds Rs 2,000 crore. The FOCO model and debt repayments are expected to result in an EBITDA margin contraction of around 100 bps. However, as the debt is paid and the company starts to add more stores of its own starting 2027, margins are expected to expand.

2. Nestle India:

This packaged foods company rose 4.3% on January 31 after announcing its Q3FY25 results, but has declined 3.8% since then. Nestle reported a 4% YoY revenue growth to Rs 4,780 crore, driven mainly by price hikes across three of its four product groups. Volume growth stood at ~1% YoY. The company’s e-commerce segment grew 38%, boosted by festive promotions and premiumization, with Kitkat, NESCAFÉ and Maggi playing key roles.

Nestle's net profit increased 5% YoY during the quarter, but missed Forecaster estimates by 8.2% due to lower volumes, impacted by coffee and cocoa price inflation. The company’s management stated that if coffee prices stay high, it may introduce further price hikes.

Nestle's packaged food penetration has grown in tier-2 and rural markets, with higher growth in ‘Rurban’ areas as the company focuses on premiumization. The company is expanding into previously untapped categories, adding cereals, flavored yogurts, cat food and premium coffees to its portfolio. However, it continues to offer mass-market products like Rs 10 noodles, which remain essential for rural and budget-conscious consumers.

Chairman and Managing Director Suresh Narayanan said, “The premiumization trend is no longer limited to urban consumers—rural consumers also have a taste for premium products. We see a Rs 7,500 crore opportunity in this space across our categories.” He also said the Rurban strategy has helped Nestle reach more consumers. Over the past year, this strategy has expanded distribution reach by 5%.

Speaking on the capex, Narayanan mentioned that the commissioning of its third confectionery unit at the Sanand factory for Kitkat will boost manufacturing capacity, supporting the Rs 5,800 crore capex goal from 2020 to 2025.

Motilal Oswal has a ‘Neutral’ rating for Nestle. The brokerage notes that Nestlé's portfolio faces limited competition from local players, reducing the need for high overhead costs to protect market share. However, with the ongoing inflation, maintaining margins remains crucial. They estimate EBITDA margins of 24% for FY25-26.

3. Swiggy:

This internet & catalogue retail company has plunged over 9% in the last two days after its Q3FY25 results showed losses outpacing revenue growth. Swiggy’s net loss widened 39.1% YoY to Rs 799.1 crore due to higher finance costs, employee benefits, advertising, and delivery expenses. The company’s revenue grew 31% YoY to Rs 3,993.1 crore during the quarter due to improvements in the food delivery, out-of-home consumption, and supply chain & distribution segments.

During the quarter, gross order value (GOV) grew 38% YoY, while the average MTU (monthly transacting users) increased 25.3%, driven by innovations like Bolt (10-minute food delivery) and better execution. Bolt constitutes 9% of the overall food deliveries. The food delivery business’ GOV was up 19.2% YoY. Rohit Kapoor, CEO, Food Marketplace, said, “The October-December quarter is usually slightly softer than others, but we are growing at 19.2%, which is within the range of what we've guided (18 to 22% growth)".

Swiggy’s management is optimistic that the income tax cut announced in the Union Budget 2025-26 will increase disposable income, driving higher discretionary spending and boosting the food delivery business. It expects its GOV to grow by 18-20% YoY in FY26.

The company’s quick commerce unit Swiggy Instamart added 96 dark stores on a net basis in Q3FY25, taking the total store count to 705. However, analysts highlighted that Instamart’s GOV (up 88% YoY) lagged in comparison to Zomato’s Blinkit, which surged ~1.2X YoY. Swiggy’s management noted that competition in quick commerce remains intense in Q4 and is unlikely to ease soon. Competitors like Zepto are also expected to stay aggressive in acquiring customers ahead of their public listing. It has reiterated its guidance of doubling its dark stores and raising the store size by the end of FY25.

Kotak Institutional Equities initiated coverage on the company with a 'Buy' call, and set a target price of Rs 500. The brokerage highlights Swiggy’s unified platform approach, integrating multiple services within a single app, which enhances customer acquisition and cross-selling opportunities. However, it remains cautious due to potential challenges, including increasing competition from Zomato in food delivery along with Blinkit and Zepto in quick commerce.

4. Hitachi Energy India:

Thiselectrical equipment company surged 20% on January 30 following the announcement of itsQ3FY25 results. During the quarter, the company’s net profit soared five-fold YoY to Rs 137.4 crore in Q3FY25, driven by inventory destocking and higher order backlog. Revenue grew 27.2% YoY to Rs 1,620.3 crore due to improved order execution.

Hitachi Energy India’s Q3 order intakesurged eight-fold YoY, reaching a record high of Rs 11,594.3 crore, supported by higher number of orders from data centers and the renewables segment. As a result of this growth, the companyachieved debt-free status in the quarter. The company’s order backlog grew 1.5X YoY to Rs 18,994.4 crore. MD & CEO of Hitachi Energy India, N Venu,said, "Quarter-on-quarter, order inflow growth will depend on market conditions and we are looking at high single-digit to high double-digit growth.”

A key contributor in the order backlog growth was an ordersecured in partnership withBharat Heavy Electricals. The company won an HVDC (High Voltage Direct Current) order fromPower Grid Corporation to build a high-voltage power line that will transport renewable energy from Khavda (Gujarat) to Nagpur (Maharashtra), covering 1,200 km.

On January 18, the company’s board approved aproposal to raise funds up to Rs 4,200 crore. These funds will be utilized for capacity expansion at its transformer factory, upgrading testing facilities, and increasing capacity for traction transformers and network control solutions. N Venuadded, ”We plan to invest Rs 2,000 crore in India over the next four to five years for expansions, capacity building, and talent attraction.” 

Post results, Geojit BNP Paribasupgraded its rating to ‘Buy’, highlighting the strong order backlog, and ongoing capacity expansion. The brokerage sets a target price of Rs 13,825, expecting a CAGR of 26.3% in revenue, 60% in EBITDA, and 73% in net profit over FY25-27.

5. Indian Oil Corporation:

This oil marketing and distribution company declined by over 5% in the past month. It announced its Q3FY25 results on January 28th. During the quarter, its net profit declined by 76.6% YoY to Rs 2,115.3 crore. Revenue was down 3.1% YoY, primarily due to a 4% decline in revenue of the petroleum products segment. However, the company’s revenue beat forecaster estimates by 18.3%, thanks to an 8% QoQ recovery in refining volumes to 18.1 million metric tonnes (MMT). It appears in a screener for stocks which have given consistent high returns over 5 years in Nifty 500.

The Russia-Ukraine conflict, weakness in the Chinese economy, and a weakening rupee have significantly impacted the company’s performance in FY25. However, according to the latest estimates from the Petroleum Planning and Analysis Cell (PPAC) published in January 2025, India's petroleum product demand is expected to reach an all-time high of 252.9 MMT in FY26, reflecting a 4.65% YoY growth. To meet this demand, the company has outlined capital expenditure plans totaling Rs 72,000 crore.

Regarding capex guidance, Anuj Jain, Director Finance of Indian Oil, said, "Indian Oil is investing Rs 72,000 crore to increase its refining capacity by 25%, reaching a total of 88 MMTPA. This includes Rs 38,000 crore for the expansion of Panipat refinery, Rs 19,000 crore for the expansion of Gujarat refinery (both expected to be completed in FY26) and Rs 14,800 crore for the expansion of Barauni refinery, which is anticipated to be finished in 1-2 years."

Speaking on Russian crude imports to India, Mr. Jain said, “We source crude from various markets, including Russia, based on the lowest price. IOCL doesn't have a term contract for Russian crude in FY25. The intake in FY26 will depend on available discounts and freight costs, as Russian crude comes in smaller tankers compared to Middle East crude which comes in Very Large Crude Carriers (VLCCs).”

Goldman Sachs has upgraded IOCL to a ‘Neutral’ rating, noting a 25% drop in Indian OMCs stock prices since early 2024, driven by reduced crude discounts and LPG under-recovery. The brokerage however, believes these concerns are already reflected in OMC stock prices. It forecasts an improved outlook for OMCs in FY26-27, driven by capped crude prices and potentially higher discounts on Russian crude. It also expects Brent crude to drop to $70 per barrel by the end of the year and anticipates a recovery in free cash flow for OMCs in FY26.

Post results, Motilal Oswal has maintained a ‘Buy’ rating on IOCL. The brokerage highlights that IOCL’s major refinery expansions are slated for commissioning in H2FY26. However, considering the sequentially weak refining performance and expected medium-term weakness in the segment, it has reduced its target price to Rs 145.

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.

It’s been a muted Q3FY25 results season, with a large number of companies seeing negative profit growth. But there have been some bright spots, and we look at the best-performing stocks so far. In this chart of the week, we spotlight a screener of stocks with rising Trendlyne momentum scores, which delivered strong YoY growth in revenue and net profit. 

Stocks from the banking, finance (including NBFCs), capital markets, IT consulting & software, and agrochemicals industries show up in the screener. The most notable companies here are Multi Commodity Exchange of India, DOMS Industries, Cholamandalam Investment & Finance, Bajaj Finance, Navin Fluorine International, ICICI Securities, Laurus Labs, and Karur Vysya Bank.

Banking & finance stocks see high growth in Q3FY25

Multi Commodity Exchange of India’s (MCX) Trendlyne momentum score has risen to 57 over the past month after its revenue grew 57.4% YoY in Q3FY25. Meanwhile, the company posted a net profit of Rs 160 crore during the quarter compared to a net loss of Rs 5.4 crore in Q3FY24. This helped the capital markets firm’s revenue to beat Forecaster estimates by 5%. Revenue increased due to growth in the options average daily turnover (ADT), futures ADT and transaction value during the quarter. 

The company’s MD and CEO, Praveena Rai, said, “Moving forward, MCX will be continuing to look at launching new commodity derivative contracts, as well as looking at innovations in our existing products and processes, mapping, and studying the evolving needs of the industry.”

Cholamandalam Investment & Finance’s (CIFC’s) momentum score jumped to 52 after its Q3FY25 revenue and net profit grew 34.5% YoY and 24.8% YoY, respectively. The non-banking financial company’s (NBFC’s) revenue rose thanks to improvement in assets under management (AUM), vehicle financing, property loans, and home loans. This helped revenue and net profit beat Forecaster estimates by 3.8% and 3%. 

Ravindra Kumar Kundu, MD, states, “CIFC retains its leadership in vehicle financing, with strong AUM growth despite sector challenges like inflation and supply chain disruptions. Infrastructure and capex spending in India will drive growth in heavy commercial vehicle (HCV) financing. Expansion into Tier 3 & Tier 4 towns for home loans will help us longterm.”

Bajaj Finance’s momentum score jumped to 66 after its Q3FY25 revenue and net profit grew 27.4% YoY and 16.7% YoY, respectively. The non-banking financial company’s (NBFC’s) revenue rose, led by new customer additions, improvement in loan disbursals, and assets under management. This helped its revenue and net profit beat Forecaster estimates by 2% and 2.6%. 

ICICI Securities’ Trendlyne momentum score increased to 53 over the past month as its revenue and net profit rose 19.9% YoY and 8.3% YoY in Q3FY25. Revenue growth was driven by an improvement in the broking & distribution and issuer services & advisory segments, while net profit rose due to a reduction in commission expenses. 

Karur Vysya Bank also features in the screener, with its Trendlyne momentum score rising to 65 after posting a 16.2% YoY and a 20.5% YoY growth in its Q3FY25 revenue and net profit. This bank’s revenue and net profit surpassed Forecaster estimates by 173% and 5.8%. Revenue rose due to improved corporate & retail banking, while net profit increased due to lower provisions and employee benefits expenses. 

Analysts at BNP Geojit Paribas believe that India’s loan growth has peaked and expect deposit growth to align with loan growth in FY26-27. They anticipate the bank’s loan book to grow by 10.4% in FY26E and 11.6% in FY27E, while deposit growth is expected to decrease but remain stable at 10.9% for FY26E and 11.8% for FY27E.

Stationery, commodity chemicals and pharma stocks deliver strong results 

Pharmaceuticals player Laurus Labs, witnessed its Trendlyne momentum score rising to 71 over the past month due to its revenue and net profit growing 18.4% YoY and 298.9% YoY, respectively in Q3FY25. Both revenue and net profit beat Forecaster estimates by 7.7% and 41.3%, respectively, on the back of an increase in sales from the contract development & manufacturing organisation (CDMO) and formulation (FDF) segments. 

DOMS Industries' Trendlyne momentum score increased to 54 in the last month, helped by its revenue and net profit growing 34.9% YoY and 35.9% YoY, respectively, in Q3FY25. Its revenue and net profit beat Forecaster estimates by 4.6% and 8.3%, respectively. This stationery company’s revenue jumped owing to increased sales of school stationery and office supplies. 

DOMS’ MD, Santosh Rasiklal Raveshia, said, “The new distribution agreement with FILA will offer significant growth potential in South Africa, Australia, the US, and Europe markets, utilising FILA's strong network in over 100 countries.”

Navin Fluorine International appears in the screener with its Trendlyne momentum score rising to 66 as its revenue increased 20.8% YoY in Q3FY25. Its net profit jumped 7.2% YoY during the quarter. Both revenue and net profit surpassed Forecaster estimates by 4.9% and 17.3%, respectively. Increase in high-pressure processing (HPP) and specialty chemicals segments helped revenue growth, while higher capacity utilisation at the Dahej and Surat plants; and lower inventory and employee benefits expenses assisted in net profit rise. 

Analysts at Edelweiss believe that the capacity expansion at Navin Fluorine’s R32 facility will improve optimisation amid a recovery in demand, higher demand in the agro-specialty business, and a recovery in the contract development & manufacturing organisation (CDMO) will help growth in FY26-27. It expects the company’s revenue to grow at a CAGR of 27.2% over FY26-27.

Commenting on its results, Laurus Labs’ Founder and CEO, Satyanarayana Chava, said, “The strong progress in the CDMO business will help to achieve long-term growth. The strategic investment by Eight Roads in our biotech arm will further expand our efforts toward building a commercial scale sustainable manufacturing capability, helping boost revenue growth."

Investors closely track superstar investors like RARE Enterprises, Ashish Kacholia, Sunil Singhania, and Vijay Kedia for insights into the market. Their buying and selling activity helps retail investors identify interesting sectors and stocks. Let’s take a look at their top buys in Q3FY25.

(You can now invest in shadow superstar baskets available on Starfolio, which are updated and rebalanced in line with Trendlyne's superstar portfolios).

In Q3, most superstar investors stayed cautious as markets fell, making fewer additions and more stake sales, continuing the trend from the September quarter. The chart below shows the changes in superstar investors' current public portfolio net worth. 

Note that net worth includes both current holding changes, and new buys & sells. 

Each superstar investor's portfolio reflects their unique investing style and sector preferences. The following chart highlights the dominant sectors in each investor’s public portfolio. 

Sector preferences vary among superstar investors – RARE Enterprises leans towards the diversified consumer services sector, while Ashish Kacholia favours general industrials. Sunil Singhania prefers the metals & mining sector, and Vijay Kedia’s preferred industry is automobiles & auto components. Dolly Khanna leans more towards the oil & gas industry, and Porinju Veliyath focuses on software & services.

RARE Enterprises reveals a 49.3% stake in a newly listed company during Q3

Rakesh Jhunjhunwala’s portfolio, currently managed by Rekha Jhunjhunwala and RARE Enterprises, has risen by 16.9% to Rs 64,384.4 crore as of February 5. RARE Enterprises disclosed a stake in one newly listed company and made a minor increase in another during the quarter.

Jhunjhunwala’s portfolio includes a 49.3% stake inInventurus Knowledge Solutions, a healthcare services company. This drove the overall net worth higher. The company debuted on the bourses on December 19, 2024, with itsIPO oversubscribed by 52.7 times and has gained 30.7% since listing. RARE Enterprises is part of Inventurus’ promoter group. The late Rakesh Jhunjhunwala acquired a stake in the company in 2007.

During Q2, RARE increased a minor stake in Geojit Financial Services. The portfolio now holds a 7.2% stake in this capital markets company. Over the past year, the company’s share price has increased by 11%. 

Ashish Kacholia adds two new companies to his portfolio

Ashish Kacholia’s net worth has declined by 18.3% to Rs 2,858.7 crore as of February 5. During the quarter, the investor added two new companies to his portfolio and raised stakes in another two companies. 

Kacholia’s biggest buy during the December quarter was Texel Industries, a plastic products maker. The ace investor bought a 7.9% stake in the company. The company’s share price has increased by 77.4% over the past year, outperforming its industry by 58.2% points. 

During Q2, he also acquired a 3.8% stake in Aelea Commodities. Over the past quarter, the cashew processing company has surged by 27.1%, outperforming its industry by 43% points. 

He increased his stake in Xpro India by 0.5%, bringing his holding to 4.2%. Xpro has a high Durability score of 70 and 52 on Trendlyne’s checklist. Kacholia also made a minor increase in Aeroflex Industries, now holding 1.8% in the iron & steel products maker.

Sunil Singhania’s Abakkus Fund adds a textiles company in Q3

Sunil Singhania’s Abakkus Fund saw its net worth fall by 17% to Rs 2,654.9 crore as of February 5. The fund made its first new stock addition since Q3FY24 and increased a minor stake in a household appliances company.

Abakkus Fund's most notable investment was a 6.8% stake in Himatsingka Seide, a textile manufacturer. The company has a Durability score of 70, reflecting strong financial stability, along with an affordable valuation. However, its stock price has declined by 5% over the past year.

The fund also raised its stake in Hindware Home Innovation by 0.1%, now holding 4.6% in the household appliances manufacturer.

Vijay Kedia increases stake in three companies during Q3FY25

Vijay Kedia’s net worth decreased by 2.7% to Rs 1,627 crore. During the October-December quarter, the ace investor increased his stake in an airlines company.

The investor raised his stake in Global Vectra Helicorpby buying a 0.2% stake. Over the past year, this airlines company’s share price has zoomed 126.3%, outperforming its industry significantly by 89.9% points. 

Dolly Khanna adds three new companies in Q3, raises stakes in four

Dolly Khanna’s net worth decreased by 34.8% to Rs 397.9 crore as of February 5, and publicly holds 19 companies. During Q3, she continued to expand her portfolio by adding three new companies and raising stakes in four others. Her new investments include a 1.2% stake each in metals & mining company Indian Metals & Ferro Alloys, and Rajshree Polypack, a containers & packaging firm, along with a 1.1% stake in household appliances maker Stove Kraft. 

Trendlyne classifies both Indian Metals and Rajshree Polypack as Strong Performers, Under Radar. Meanwhile, Stove Kraft has risen by 81.7% over the past year, outperforming its industry by 59.9% points. 

During the third quarter, Khanna bought a 0.3% stake in capital markets company Emkay Global Financial Services, taking her holding to 2.8%. She bought a 0.2% stake in fertilizers stock Mangalore Chemicals & Fertilizers and now holds a 1.8% stake. 

The ace investor added minor stakes in the sugar stock KCP Sugar & Industries Corp and metals & mining company Prakash Industries. She now holds 1.8% and 1.3% stakes, respectively, in these companies. 

Porinju Veliyath adds an auto parts company 

Porinju Veliyath’s net worth decreased by 10.7% to Rs 248.8 crore. During the December quarter, he added Sundaram Brake Lining to his portfolio, acquiring a 1% stake in the auto parts & equipment manufacturer. Over the past year, the company has risen by 64.6%, outperforming its industry by 54.9% points. Sundaram Brake Lining is a Mid-range Performer with high financial strength and mid-valuation, scoring 85 and 35.3, respectively.  

Veliyath also added a 0.5% stake in an IT software company Aurum Proptech, taking his holding to 5.9%. The company’s share price has increased by 32.8% in the past year, outperforming its industry by 20.1% points.