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Trendlyne Marketwatch
Trendlyne Marketwatch
17 Feb 2025
Market closes flat, EMS bags an order worth Rs 273 crore for civil and MEP works
By Trendlyne Analysis

Nifty 50 closed at 22,959.50 (30.3, 0.1%), BSE Sensex closed at 75,996.86 (57.7, 0.1%) while the broader Nifty 500 closed at 20,652.35 (19.3, 0.1%). Market breadth is overwhelmingly negative. Of the 2,445 stocks traded today, 745 were on the uptick, and 1,673 were down.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 22,959.5 points. The Indian volatility index, Nifty VIX, rose 4.7% and closed at 15.7 points. Cyient DLM fell by more than 3%, despite securing a long-term contract from Thales to manufacture high-reliability printed circuit board assemblies (PCBAs) for next-generation flight systems. These PCBAs will be used in major commercial aircraft platforms.

Nifty Smallcap 100 and Nifty Midcap 100 closed flat, following the benchmark index. Nifty MidSmall Healthcare and Nifty Healthcare index were among the top index gainers today. According to Trendlyne’s Sector dashboard, Pharmaceuticals & Biotechnology emerged as the best-performing sector of the day, with a rise of 1.4%.

Asian indices closed mixed, while European indices are trading higher. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the green. Several Fed officials, including Patrick Harker and Michelle Bowman, are set to speak this week following mixed US inflation data last week. Investor sentiment will be largely influenced by rising geopolitical tensions, particularly US-Russia talks on the Ukraine conflict.

  • Relative strength index (RSI) indicates that stocks like Whirlpool of India, Kirloskar Oil Engines, and Atul are in the oversold zone.

  • Utkarsh Small Finance Bank plunges to its all-time high of Rs 23.9 per share as it posts a net loss of Rs 168.1 crore compared to a net profit of Rs 116.1 crore in Q3FY24 due to higher provisions, employee benefits, and interest expenses. However, revenue grows 15.7% YoY to Rs 932.4 crore, helped by improvements in the treasury, retail and corporate banking segments. The bank's asset quality worsens as its gross and net NPAs grow 313 bps YoY and 231 bps YoY, respectively.

  • Zen Technologies plunges to its 20% lower circuit as its Q3FY25 revenue misses Forecaster estimates by 42.3% despite rising 44% YoY to Rs 141.5 crore, helped by an improvement in the defence & homeland segment. Net profit grows 21.8% YoY to Rs 38.6 crore during the quarter. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • EMS is rising as it secures an order worth Rs 272.9 crore from Jaypee Infratech for civil and mechanical, electrical, & plumbing (MEP) works in the "Orchards" housing project at Jaypee Wish Town, Noida.

  • CG Power and Industrial Solutions rises more than 5% after emerging as the highest bidder for the proposed acquisition of 90% of the equity shares in BTW-Atlanta Transformers India (BTW India) from Baoding Tianwei Baobian Electric, China. The offer, valued at around Rs 165 crore, was part of an online bidding process conducted by the China Beijing Stock Exchange.

  • Gujarat Narmada Valley Fertilizers & Chemicals' Q3FY25 net profit grows 68% YoY to Rs 163 crore, owing to lower raw materials, inventory, power & fuel, employee benefits, and finance costs. However, revenue declines 6.9% YoY to Rs 2,056 crore, attributed to a reduction in the fertilisers segment. It appears in a screener of stocks outperforming their industries over the past month.

  • Cyient DLM wins a long-term contract from Thales to produce high-reliability printed circuit board assemblies (PCBAs) for next-generation flight systems. These PCBAs will be deployed in leading commercial aircraft platforms.

  • Uflex is rising as it posts a net profit of Rs 136.8 crore in Q3FY25 compared to a net loss of Rs 67.2 crore in Q3FY24, driven by an exceptional items gain of Rs 31 crore and inventory destocking. Revenue increases 12.9% YoY to Rs 3,734.7 crore during the quarter, supported by higher sales from the flexible packaging activities segment. The company appears in a screener of stocks with increasing profits every quarter for the past three quarters.

  • An SBI report suggests that even with a 15-20% hike in US tariffs, Indian exports to the US will likely decline only 3-3.5%. The bank believes higher export targets can offset this. While the US remains India's top export market (17.7% of total exports in FY24), India is diversifying to reduce reliance on any sing

  • Aditya Birla Fashion & Retail rises sharply as its Q3FY25 net loss contracts 34.1% YoY to Rs 51.3 crore, helped by lower raw materials and inventory expenses. Revenue grows 3.6% YoY to Rs 4,361.8 crore, attributed to improvements in the Madura Fashion & Lifestyle and ethnic segments. It appears in a screener of stocks with the highest FII holdings.

  • Narayana Hrudayalaya's net profit grows 2.6% YoY to Rs 193 crore in Q3FY25. Revenue increases 13.6% YoY to Rs 1,366.7 crore, helped by an improvement in the medical & healthcare-related services segment. The company shows up in a screener of stocks with growing costs YoY from long-term projects.

  • GlaxoSmithKline Pharmaceuticals surges as its Q3FY25 net profit jumps 5x YoY to Rs 229.9 crore, helped by lower employee benefits and finance costs. Revenue grows 18.1% YoY to Rs 984.5 crore, led by increased market share in brands like Augmentin, Ceftum & T-bact and higher sales in the respiratory & vaccines segments. It appears in a screener of stocks with dividend yields greater than the sector dividend yield.

  • Reports suggest that Tata Consultancy Services (TCS) plans to implement its annual salary hikes in March, with payouts starting in April. The increases will likely range from 4% to 8%. These hikes will follow the company’s quarterly variable pay (QVP) distribution in February for the October-December period.

  • Welspun Corp secures orders worth Rs 3,000 crore in the United States to supply coated pipes for natural gas pipeline projects. These include two large orders for helical submerged arc welded (HSAW) pipes and additional orders for high-frequency induction welded (HFIW) pipes.

  • Arvind SmartSpaces signs a new residential plotted development project in Sanand, Ahmedabad. The company expects the project to generate nearly Rs 600 crore in total revenue.

  • Axis Direct upgrades Manappuram Finance to 'Buy' from 'Hold' with a higher target price of Rs 220 per share. This indicates a potential upside of 17.2%. The brokerage expects slower assets under management (AUM) growth in FY25. However, it expects growth to resume in FY26, supported by the lifting of restrictions on microfinance institution (MFI) disbursements and high demand in the gold loans segment. It expects the firm's net interest income (NII) to grow at a CAGR of 14.6% over FY25-27.

  • Nomura initiates a 'Buy' rating on Afcons Infrastructure with a target price of Rs 561. The brokerage highlights the company’s track record of timely project completion and steady profitability. It notes consistent financial performance and anticipates a 22% revenue CAGR from FY25-27, driven by strong ordering momentum.

  • Ajax Engineering’s shares debut on the bourses at an 8.4% discount to the issue price of Rs 629. The Rs 1,269.3 crore IPO received bids for 6.5 times the total shares on offer.

  • Bharat Heavy Electricals receives a letter of intent (LoI) worth Rs 6,700 crore from Singareni Collieries (SCCL) to set up an 800 MW thermal power unit in Telangana. The order involves supplying, installing, testing, and commissioning a boiler, turbine, generator, flue gas desulfurization system, and other related equipment.

  • Dilip Buildcon is rising as its net profit grows 7.3% YoY to Rs 115.3 crore in Q3FY25, led by a reduction in raw material costs. However, revenue declines 9.3% YoY to Rs 2,633 crore, impacted by the engineering, procurement, & construction (EPC) projects and road infrastructure maintenance segments. It features in a screener of stocks with improving net cash flow over the past two years.

  • Jefferies maintains a 'Buy' rating on Samvardhana Motherson International with a target price of Rs 165. The brokerage highlights that the company's EBITDA margins exceeded expectations and notes its expansion into non-auto sectors like electronics and space. It adds that the company is finding attractive inorganic growth opportunities.

  • PTC Industries is falling as its net profit misses Forecaster estimates by 19.3% despite rising 76.2% YoY to Rs 14.2 crore in Q3FY25 due to inventory destocking and lower finance costs. Revenue increases 20.7% YoY to Rs 66.9 crore during the quarter. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • Swan Energy is rising as its Q3FY25 net profit surges 5.1x YoY to Rs 582.8 crore, helped by inventory destocking and lower finance costs. Revenue jumps 128.3% YoY to Rs 3,776.6 crore, attributed to improvements in the construction and distribution & development segments. It appears in a screener of undervalued growth stocks.

  • Rail Vikas Nigam is falling as its net profit declines 13.1% YoY to Rs 311.4 crore in Q3FY25 due to higher operating expenses and finance costs. Revenue decreases 2.6% YoY to Rs 4,567.4 crore during the quarter. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Glenmark Pharmaceuticals is falling as its Q3FY25 net profit of Rs 348 crore misses Forecaster estimates by 6%. Revenue grows 35.1% YoY to Rs 3,387.6 crore, driven by improvements in the US, Indian, European, and rest of the world (ROW) markets. It features in a screener of stocks with zero promoter pledges.

  • Nifty 50 was trading at 22,803.45 (-125.8, -0.6%), BSE Sensex was trading at 75,641.41 (-297.8, -0.4%) while the broader Nifty 500 was trading at 20,530 (-103.1, -0.5%).

  • Market breadth is sharply down. Of the 2,052 stocks traded today, 584 were on the uptick, and 1,400 were down.

Riding High:

Largecap and midcap gainers today include GlaxoSmithKline Pharmaceuticals Ltd. (2,340.25, 16.0%), CG Power and Industrial Solutions Ltd. (583, 5.6%) and Ashok Leyland Ltd. (223.61, 4.6%).

Downers:

Largecap and midcap losers today include PB Fintech Ltd. (1,494.35, -5.1%), Rail Vikas Nigam Ltd. (342.45, -4.9%) and Mazagon Dock Shipbuilders Ltd. (2,083.10, -3.8%).

Movers and Shakers

19 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included GlaxoSmithKline Pharmaceuticals Ltd. (2,340.25, 16.0%), Manappuram Finance Ltd. (193.29, 8.5%) and Piramal Pharma Ltd. (199.88, 8.1%).

Top high volume losers on BSE were PTC Industries Ltd. (11,945, -8.7%), Radico Khaitan Ltd. (1,950, -4.6%) and Carborundum Universal Ltd. (970, -4.4%).

Nuvoco Vistas Corporation Ltd. (319.50, 2.5%) was trading at 6.2 times of weekly average. Jubilant Pharmova Ltd. (995.45, 5.3%) and Ramkrishna Forgings Ltd. (644.30, 1.9%) were trading with volumes 5.1 and 5.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock hit their 52 week highs, while 128 stocks were underachievers and hit their 52 week lows.

Stock touching their year highs included - Redington Ltd. (242.91, -1.0%).

Stocks making new 52 weeks lows included - 3M India Ltd. (26,799.90, 0.2%) and Alembic Pharmaceuticals Ltd. (815, -0.4%).

5 stocks climbed above their 200 day SMA including Godfrey Phillips India Ltd. (7,038, 17.3%) and Manappuram Finance Ltd. (193.29, 8.5%). 26 stocks slipped below their 200 SMA including KFIN Technologies Ltd. (825.70, -10.7%) and PTC Industries Ltd. (11,945, -8.7%).

 
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The Baseline
14 Feb 2025, 05:28PM
Five Interesting Stocks Today - February 14, 2025
By Trendlyne Analysis

1. SBI Cards and Payment Services:

This finance company rose by over 5% on 13th January and touched a 52-week high of Rs 872 today. The surge in its stock price came after the global brokerage Macquarie upgraded its rating on the stock to ‘Outperform’, as it believes that the company's credit card delinquencies have decreased, indicating better lending choices. Over the past 12 months, the company limited credit to borrowers with higher credit scores. The brokerage has also increased the stock's target price to Rs 1,000.

Its Q3FY25 net profit declined by 30.2% YoY to Rs 383.2 crore due to tighter regulations on fee income. Revenue was up by 0.5% YoY, primarily due to marginal growth in interest income. The company’s net profit missed forecaster estimates by 8.7%, due to a slower loan growth. It appears on screener for stocks where FIIs & FPIs are increasing their shareholding.

The company’s Gross Non-Performing Assets (GNPA) slightly decreased to 3.24% during the quarter, down from 3.27% in the previous quarter. However, the gross credit cost rose by 40 bps to 9.4% QoQ. 

Regarding the increase in credit costs, the company’s CEO & MD, Abhijit Chakravorty, said, “We are at an inflection point in our credit cycle. As we tighten underwriting, portfolio management, and collections, we expect credit costs to moderate. The speed of this will depend on changes in the unsecured lending ecosystem and the economy.”

According to RBI’s December 2024 data, the company's market share in card spends stood at 15.6%. Girish Budhiraja, Chief Sales & Marketing Officer, stated, "We expect our card spend market share to reach 18-20% in the next 3-4 quarters. We are projecting loan growth of 12-15% over the next 9-12 months. However, our outlook could change in either direction if the credit cost trajectory shifts or the economic mood changes."

Macquarie forecasts a significant decline in the company’s credit costs over the next two quarters, driven by factors like falling interest rates, better liquidity, and potential tax cuts. The brokerage also points out that the RBI's more lenient approach to unsecured loans could be an added boost. However, it has reduced its earnings projections for FY25-27 by 13-15%, reflecting slower growth in loans, net interest income and fee generation. 

2. National Aluminium Company:

This aluminum manufacturer has fallen 7.8% in the past week despite beating Forecaster estimates for revenue and net profit in its Q3FY25 results. The decline comes after US President Trump’s move to set a 25% tariff on steel and aluminum imports without any exemptions. National Aluminium Co’s (NALCO) management noted that these tariffs could put pressure on global aluminum prices, similar to the impact seen in 2018-2020 after similar trade policies during Trump’s first term.

NALCO announced its Q3FY25 results on February 10, reporting a 39% YoY increase in revenue to Rs 4,662 crore, driven by higher sales realisation in alumina and metal. Net profit surged 2.3X YoY to Rs 1,566 crore, thanks to lower employee benefit expenses, material costs, and finance costs. The company appears in a screener of stocks with book value per share improving over the last two years.

Chairman & MD Pratap Singh said, “The alumina price trend of $400/tonne in previous years was breached when prices shot up to $800/t in Q3FY25 due to plant shutdowns in Australia. The prices are now correcting, with spot prices falling to $530/t and possibly declining further to the $450-500/t range.” 

Singh also highlighted that analysts should not get too optimistic about the net profit jump – the decline in employee costs that drove profit higher, he noted, was due to a one-time provision for non-executive performance-related pay (PRP). Going forward, annual employee expenses are expected to stay over Rs 2,000 crore.

Speaking about capex, Singh said that NALCO is expanding its alumina refinery, increasing capacity by 1 million tonnes per annum (MTPA) from the current 2.1 MTPA. The total capex for this expansion is now Rs 5,677 crore, of which Rs 3,500 crore has already been spent. The refinery is expected to be commissioned by the end of FY26, revised from the earlier target of September 2025.

Axis Direct has a ‘Buy’ rating on this PSU stock with a target price of Rs 220. The brokerage expects strong alumina realisations to drive another good quarter in Q4FY25. However, with spot prices declining, the impact of lower alumina prices may be seen from Q1FY26 onwards. Additional alumina volumes from the ongoing refinery expansion, however, will help offset some of the impact of lower prices on EBITDA in the future.

3. FSN E-Commerce Ventures (Nykaa):

This internet retail company has declined 3% over the past week following the announcement of its Q3FY25 results. Nykaa’s net profit increased 61.4% YoY to Rs 26.1 crore, but missed Forecaster estimates by 29.6%. 

Revenue rose 26.7% YoY to Rs 2,267.2 crore during the quarter, driven by growth in the beauty & personal care (BPC) and fashion segments. The company’s revenue beat estimates marginally by 0.2%.

During the quarter, Nykaa’s GMV (gross merchandise value) grew 25% YoY, driven by strong growth in the BPC segment, which contributes the majority of its revenue and has seen an increasing customer base and festive demand. Meanwhile, Nykaa Cosmetics, Kay Beauty, and Dot & Key continued to drive growth with new launches – the company is pushing its own brands hard, including its wakeup makeup line. The fashion segment grew 8% YoY despite a challenging demand environment and intense competition.

Recently, Shein, the Chinese low-cost fast-fashion giant, re-entered India through a partnership with Reliance Retail. Falguni Nayar, the CEO, underplayed the threat to Nykaa’s market share, saying, “Fashion is a vast industry. Shein operates in just one segment. With 4,000+ brands and more international players entering the market, no single brand can dominate”. 

But analysts think differently, and believe Shein's re-entry into India could disrupt the country’s fashion market. Nykaa’s fashion vertical, which competes with Myntra, Tata Cliq Fashion, and Ajio, is expected to expand its catalogue with new brand partnerships. 

Meanwhile, Nykaa continued to expand its retail network, with total stores reaching 221. The company expects to grow its store count to 350 over the next two years. 

Following the Nykaa’s earnings announcement, Nuvama maintained its ‘Buy’ rating. The brokerage highlights that competition in fashion remains a concern, but profitability improvements in the eB2B segment are encouraging. It expects Nykaa’s beauty segment to remain a key growth driver.

4. Global Health (Medanta):

Thishealthcare facilities company surged 10.7% on February 5 following the announcement of itsQ3FY25 results. During the quarter, the company’s net profit rose 15.6% YoY to Rs 142.9 crore in Q3FY25, while revenue grew 13.3% YoY to Rs 943.4 crore. The growth was driven by higher patient volumes, with a 10% increase in footfalls and a 13% rise in In-Patient Department (IPD) admissions.

The companyreported an Average Revenue Per Occupied Bed (ARPOB) of Rs 61,307, reflecting a marginal 1.2% YoY increase but a 1.3% QoQ decline. Toimprove ARPOB, Medanta is pushing high-value procedures, which contribute to better revenue per patient. 

Medanta is also improving its payer mix by reducing dependence on lower-paying government schemes and increasing the proportion of insurance and cash patients. Additionally, the companyplans selective tariff hikes, particularly in facilities like Lucknow and Patna, where prices have remained unchanged for several years.

In Q3 FY25, Medantaadded 34 beds, bringing the total bed additions to 219 for the first nine months of FY25. This has increased the company’s total operational bed capacity to 3,042. The company hassecured a long-term lease for a 110-bed hospital in Ranchi to expand its presence in Jharkhand. Additionally, the 550-bed Noida hospital is set to begin operations within six months. 

Pankaj Sahni, Group Chief Executive Officer of the companysaid, “We have roughly 1,000 bed additions planned over the next two years. We also have 3 major Greenfield projects underway, comprising approximately 1,600 beds.” These include projects in Mumbai Oshiwara, Pitampura, and Greater Kailash, which are expected to be completed in the next 3 to 4 years.

Post results, Axis Directmaintains its ‘Buy’ rating on this company, citing optimism about the business recovery, improvements in ARPOB, and capacity expansion. The brokerage expects a CAGR of 21.5% in sales, 18.2% in EBITDA and 18.1% in net profit over FY25-26, with a target price of Rs 1,270 per share.

5. Power Finance Corporation:

This financial institution is a value stock, under radar, according to Trendlyne’s DVM score. PFC exhibits high financial strength and is trading at an affordable valuation, demonstrated by its high durability and valuation scores. However, the stock price momentum is weak due to the recent correction in the stock market. Shares of PFC currently trade at a discount of over 35% from its 52-week high.

In Q3, the company reported a revenue growth of 14% and a net profit growth of 23% on a YoY basis. Its consolidated loan book witnessed a 12% YoY growth, driven by disbursements in the renewable and distribution segments. To further expand its renewable portfolio, it entered into an agreement on January 16 with Japan Bank for International Cooperation for a loan of ~Rs 6,500 crore.

Foreign currency borrowing makes up 19% of its total borrowings, of which 95% is hedged against currency fluctuations. The remaining 5% unhedged portfolio has come under risk following the recent depreciation of INR. Chairman and MD Parminder Chopra noted that PFC anticipates a loss of Rs 45 crore for every one-rupee depreciation of INR with respect to USD.

PFC is in the advanced stages of resolving loan defaults totalling around Rs 5,000 crore from the KSK Mahanadi, TRN Energy, and Shiga Energy projects. Once resolved, it expects to release approximately 73% of the allocated provisions—roughly Rs 3,650 crore—which is the capital set aside to cover potential losses should these companies default on their loans.

During the Q3 earnings call, Chopra said, “We expect these provision reversals to provide sufficient cushion against the impact of rupee depreciation.” The resolution of these defaults is expected to improve PFC’s asset quality, potentially lowering its gross non-performing assets (NPAs) from 2.7% at the end of Q3 to below 2%. 

Chopra is confident of a strong performance in Q4, driven by disbursements in the renewable portfolio, which will help PFC achieve its guidance of 13-14% annual growth in assets under management for FY25. Motilal Oswal maintains a ‘Buy’ rating on the stock, anticipating a surge in disbursements of 110% YoY in Q4, supported by benign credit costs and the resolution of its stressed assets.

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
14 Feb 2025, 04:13PM
Market closes lower, Manappuram Finance's net profit declines 50.8% YoY to Rs 282.1 crore in Q3FY25
By Trendlyne Analysis

Nifty 50 closed at 22,929.25 (-102.2, -0.4%), BSE Sensex closed at 75,939.21 (-199.8, -0.3%) while the broader Nifty 500 closed at 20,633.10 (-271.3, -1.3%). Market breadth is sharply down. Of the 2,419 stocks traded today, 298 showed gains, and 2,095 showed losses.

Nifty 50 closed lower after paring losses from the afternoon session. The Indian volatility index, Nifty VIX, rose 0.4% and closed at 15 points. Deepak Nitrite plunged to its 52-week low of Rs 1,872.3 per share as its Q3FY25 net profit declined 51.5% YoY to Rs 98.1 crore, impacted by weak demand in agrochemical intermediates, rising employee costs, and higher finance expenses.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower, following the benchmark index. Nifty Alpha 50 and Nifty Media Indices were among the top index losers today. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the worst-performing sector of the day, with a fall of 5.2%.

Asian indices closed mixed. European indices are trading mixed. US index futures are trading either flat or lower as investors assess President Trump's plan for reciprocal tariffs. Set to take effect from April, the tariffs could impact most trading partners like India, Japan, and the European Union. Brent crude oil futures are trading higher.

  • Money flow index (MFI) indicates that SBI Cards & Payment Services is in the overbought zone.

  • Manappuram Finance plunges more than 10% as its net profit declines 50.8% YoY to Rs 282.1 crore in Q3FY25 due to higher finance, fees & commission, impairment on financial instruments, and employee benefits expenses. However, revenue grows 11% YoY to Rs 2,559.7 crore, owing to an improvement in the gold loans segments. It shows up in a screener of stocks with an increase in provisions in recent results.

  • NBCC (India) secures two orders worth Rs 851.7 crore. These include township construction in Durgapur, Koderma, and Raghunathpur for Damodar Valley Corp and maintenance work at New Moti Bagh GRPA Complex in Delhi for the Ministry of Housing and Urban Affairs.

  • Bank of Baroda's board approves raising funds up to Rs 8,500 crore by issuing equity shares. The company plans to do this through one or more public or private offerings, including a qualified institutional placement.

  • Jefferies' latest India strategy report notes that despite positive developments, the Indian equity market has not seen a major rally. Key factors such as pro-growth RBI commentary, no negative impact from the new tax bill, in-line earnings, and strong mutual fund inflows have not been enough to spark a rally. Jefferies remains cautious, noting that the equity market has yet to respond positively to these developments.

  • Bharat Rasayan is rising as its net profit surges 1.6X YoY to Rs 40.5 crore in Q3FY25, driven by inventory destocking and lower finance costs. Revenue increases 10.1% YoY to Rs 256.4 crore during the quarter. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • RateGain Travel Technologies is rising as its Q3FY25 net profit grows 39.9% YoY to Rs 56.5 crore, helped by lower depreciation & amortisation and deferred tax expenses. Revenue jumps 10.6% YoY to Rs 278.7 crore, helped by new customer acquisitions. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • GAIL (India) signs a memorandum of understanding (MoU) with Accelera by Cummins to collaborate on clean energy and energy transition technologies. The partnership will explore opportunities in green energy, including hydrogen production, blending, transportation, and storage, leveraging GAIL's gas infrastructure and Accelera’s expertise.

  • India's WPI inflation falls to 2.3% in January, down from 2.4% in December 2024, due to softening food prices. Food inflation fell sharply to 7.5% from 8.9% in December, largely due to vegetable inflation touching a five-month low of 8.4%.

  • Rites signs a memorandum of understanding (MoU) worth Rs 120.1 crore with Neyveli Uttar Pradesh Power (NUPPL) to operate and maintain the railway siding at the NUPPL Ghatampur Thermal Power Project (GTPP).

  • Afcons Infrastructure's net profit grows 35.7% YoY to Rs 148.9 crore in Q3FY25, led by lower raw materials and depreciation & amortisation expenses. Revenue rises 2.7% YoY to Rs 3,211.1 crore, helped by an improvement in the order book. It appears in a screener of stocks with high promoter pledges.

  • Mahindra Lifespace Developers' board of directors approves a fundraising of up to Rs 1,500 crore through the rights issue of equity shares.

  • Unsoo Kim, Managing Director of Hyundai Motor India, highlights that the company has exported over 3.7 million Made-in-India vehicles globally. Hyundai aims to establish India as its largest export hub outside South Korea. He adds that Hyundai exported around 1.6 lakh vehicles in 2024, with Saudi Arabia, South Africa, Mexico, Chile, and Peru as its leading overseas markets.

  • ITC Hotels's shares fall sharply as British American Tobacco (BAT) plans to divest its 15.3% stake, valued at Rs 5,405 crore, by 2026.

  • SJVN's Q3FY25 net profit grows 7.2% YoY to Rs 149 crore, owing to lower deferred tax expenses. Revenue jumps 23.5% YoY to Rs 671 crore during the quarter. It features in a screener of stocks with growth in net profit and profit margin (QoQ).

  • Kalpataru Projects International falls sharply as its net profit misses Forecaster estimates by 15%, rising marginally by 0.7% YoY to Rs 142 crore in Q3FY25. Revenue increases 17.1% YoY to Rs 5,732.5 crore, helped by an improvement in the engineering, procurement & construction (EPC) segment. The company features in a screener of stocks where FII / FPI or institutions are increasing their shareholding.

  • Asian Paints signs a share purchase agreement with Berger Paints Singapore Pte to sell its Indonesia operations for Rs 48 crore. The loss arising from divestment is approximately Rs 90 crore.

  • Godfrey Phillips India is rising as its net profit surges 48.7% YoY to Rs 315.9 crore in Q3FY25 due to inventory destocking. Revenue increases 27.3% YoY to Rs 1,591.3 crore during the quarter, driven by higher sales from the cigarettes and tobacco segment. The company appears in a screener of stocks with book value per share improving over the last two years.

  • Deepak Nitrite plunges to its 52-week low of Rs 1,930.1 per share as its Q3FY25 net profit declines 51.5% YoY to Rs 98.1 crore due to higher inventory, employee benefits, and finance costs. Revenue falls 5.3% YoY to Rs 1,903.4 crore, led by a reduction in the advance intermediates segment. It shows up in a screener of stocks where insiders sold shares.

  • Premier Energies' subsidiary, Premier Energies Photovoltaic, receives orders worth Rs 1,234 crore from existing customers to supply solar PV modules.

  • Suvankar Sen, Managing Director & CEO of Senco Gold, projects revenue growth of 18-20% for FY25 and FY26, with margins ranging from 7-7.5%. He believes the company's PAT will reach Rs 300 crore in FY26. Sen adds that the firm's Q3FY25 was impacted by Rs 70 crore due to hedging and customs duties.

  • Hindustan Construction falls sharply as it posts a net loss of Rs 38.9 crore in Q3FY25 compared to a net profit of Rs 182.3 crore in Q3FY24 due to higher inventory, finance, and deferred tax expenses. Revenue declines 31.7% YoY to Rs 1,006.8 crore, impacted by the engineering & construction and real estate segments. It appears in a screener of stocks with large swings between profit and loss.

  • KNR Constructions is falling as its Q3FY25 revenue declines 14.9% YoY to Rs 848.1 crore due to arbitration claims of Rs 209.9 crore from Patel KNR Infrastructures and its Orissa Project. However, net profit surges 78.1% YoY to Rs 248.6 crore, driven by lower raw materials, subcontracting, construction, spreading & assortment, and employee benefits expenses. It shows up in a screener of stocks with medium to low Trendlyne Momentum scores.

  • Carborundum Universal falls to its new 52-week low of Rs 983.2 as its net profit declines 68.8% YoY to Rs 34.8 crore in Q3FY25 due to an exceptional item charge of Rs 104.1 crore related to sanctions on its Russian subsidiary, Volzhsky Abrasive Works (VAW). However, revenue increases 9% YoY to Rs 1,255.5 crore during the quarter. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Hindalco Industries is rising as its Q3FY25 net profit jumps 60.2% YoY to Rs 3,735 crore owing to lower inventory, employee benefits, and finance costs. Revenue grows 10.9% YoY to Rs 58,899 crore, led by improvements in the Novelis, aluminium upstream, aluminium downstream, and copper segments. It features in a screener of stocks with improving cash flow from operations over the past two years.

  • Nifty 50 was trading at 23,068.55 (37.2, 0.2%), BSE Sensex was trading at 76,419.83 (280.9, 0.4%) while the broader Nifty 500 was trading at 20,896.70 (-7.7, 0.0%).

  • Market breadth is in the red. Of the 1,967 stocks traded today, 677 were on the uptick, and 1,247 were down.

Riding High:

Largecap and midcap gainers today include Jubilant Foodworks Ltd. (670.50, 1.3%), Hindustan Zinc Ltd. (416.55, 1.2%) and Britannia Industries Ltd. (4,939.65, 1.0%).

Downers:

Largecap and midcap losers today include Deepak Nitrite Ltd. (1,900.50, -15.1%), JSW Energy Ltd. (437.10, -6.5%) and Coromandel International Ltd. (1,752.20, -5.4%).

Crowd Puller Stocks

19 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Ingersoll-Rand (India) Ltd. (3,532.55, 11.3%), Chalet Hotels Ltd. (693.65, 2.8%) and Ajanta Pharma Ltd. (2,560.25, 2.6%).

Top high volume losers on BSE were Concord Biotech Ltd. (1,692.30, -19.9%), Deepak Nitrite Ltd. (1,900.50, -15.1%) and Kalpataru Projects International Ltd. (879.55, -10.5%).

Go Digit General Insurance Ltd. (289, -2.8%) was trading at 36.9 times of weekly average. Anupam Rasayan India Ltd. (674.10, 0.9%) and Affle (India) Ltd. (1,501.60, -3.5%) were trading with volumes 10.7 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52 week highs, while 94 stocks hit their 52 week lows.

Stock touching their year highs included - SBI Cards and Payment Services Ltd. (859, -0.1%).

Stocks making new 52 weeks lows included - Alembic Pharmaceuticals Ltd. (810, -1.9%) and Astral Ltd. (1,332.60, -2.8%).

4 stocks climbed above their 200 day SMA including Godfrey Phillips India Ltd. (5,999.50, 20%) and Cholamandalam Investment & Finance Company Ltd. (1,376, -1.1%). 22 stocks slipped below their 200 SMA including Concord Biotech Ltd. (1,692.30, -19.9%) and Manappuram Finance Ltd. (178.15, -8.2%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
13 Feb 2025, 03:54PM
Market closes flat, Ipca Lab's EBITDA margin expands 430 bps YoY in Q3
By Trendlyne Analysis

Nifty 50 closed at 23,031.40 (-13.9, -0.1%), BSE Sensex closed at 76,138.97 (-32.1, 0.0%) while the broader Nifty 500 closed at 20,904.35 (-3.5, 0.0%). Market breadth is in the red. Of the 2,405 stocks traded today, 1,089 were on the uptick, and 1,281 were down.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 23,560 after switching between gains and losses. The Indian volatility index, Nifty VIX, fell 3.5% and closed at 13.7 points. Hindustan Aeronautics closed 1.9% higher as its Q3FY25 net profit grew 14.1% YoY to Rs 1,439.8 crore, beating the Forecaster estimates by 2.5%.

Nifty Smallcap 100 closed in the red, while Nifty Midcap 100 closed in the green. Nifty Pharma and BSE Metal were the best-performing indices of the day. According to Trendlyne’s sector dashboard, Diversified emerged as the highest-performing sector of the day, with a rise of 2.3%.

European indices are trading in the green, except the UK’s FTSE 100 and the Netherlands’ AEX index, which are trading 0.9% and 0.6% higher, respectively. Major Asian indices closed mixed. US index futures are trading mixed amid concerns of rising inflation. Applied Materials, Unilever, Sony Group Corp, Deere & Co, Palo Alto Networks, Moody’s Corp, and Duke Energy Corp are set to report their earnings later today.

  • Muthoot Finance sees a long buildup in its February 27 futures series, with open interest increasing by 19.8% and a put-call ratio of 0.5.

  • Hindustan Aeronautics is rising as its Q3FY25 net profit grows 14.1% YoY to Rs 1,439.8 crore, beating the Forecaster estimates by 2.5%. Revenue increases 14.8% YoY to Rs 6,957.3 crore during the quarter, while its EBITDA margin increases marginally by 50 bps. The company features in a screener of stocks where FII / FPI or institutions are increasing their shareholding.

  • Ipca Laboratories rises sharply as its Q3FY25 net profit grows 37.9% YoY to Rs 248.1 crore, driven by lower raw materials and finance costs. Revenue increases 9.2% YoY to Rs 2,265.5 crore, helped by an improvement in the domestic business. It features in a screener of stocks with consistently high returns over the past five years.

  • IOL Chemicals and Pharmaceuticals is falling as its net profit declines 11.1% YoY to Rs 20.5 crore in Q3FY25 due to pricing pressure, stagnant demand, and intense market competition. Revenue decreases marginally YoY to Rs 523.3 crore during the quarter, driven by lower sales from the chemical and pharmaceutical segments. The company appears in a screener of stocks with declining ROE over the past two years.

  • Amish Shah, Head of India Research at BofA Securities, expects developed markets to outperform emerging markets, including India, this year. He notes that FPIs (Foreign portfolio investors) will continue to favour US equities and bonds. Shah adds that global investors usually target around 15% returns from emerging markets like India. However, with risk-free dollar returns at 4.5% and an anticipated 5% rupee depreciation, investors are guaranteed a 9% risk-free return.

  • Suven Pharmaceuticals rises sharply as its Q3FY25 net profit surges 77.3% YoY to Rs 82.9 crore, owing to inventory destocking and deferred tax returns of Rs 15.2 crore. Revenue grows 37.9% YoY to Rs 322.9 crore, attributed to improvements in the pharma contract development & manufacturing organization (CDMO) and active pharmaceutical ingredient (API) segments. It appears in a screener of stocks with increasing net profit for the past four quarters.

  • Tata Power Company is rising as its subsidiary, Tata Power Renewable Energy, signs a memorandum of understanding (MoU) with Oil and Natural Gas Corp (ONGC) to explore joint opportunities in the battery energy storage system (BESS) value chain. This includes grid stabilisation, EV charging, renewable integration, and industrial storage solutions.

  • Entero Healthcare Solutions is falling as its net profit misses Forecaster estimates by 15.1% despite rising 2.8X YoY to Rs 25.4 crore in Q3FY25 due to lower finance cost and inventory destocking. Revenue increases 36.9% YoY to Rs 1,359 crore during the quarter, driven by high-margin products, better procurement, and cost efficiency. The company appears in a screener of stocks with zero promoter pledges.

  • Alexander George Muthoot, Managing Director of Muthoot Finance, highlights that Q3FY25 was a record-breaking quarter for the company. Cost of funds stood at 9% during the quarter. He adds that the company has diversified its borrowing and expects the net interest margin (NIM) to stay between 11-11.5%. He also emphasizes the company’s continued focus on the affordable housing finance segment.

  • Engineers India secures a Rs 106 crore project management consultancy (PMC) contract from Indian Oil Corp for phase-I of the Paradip Petrochemical Complex in Odisha. The contract covers project management for key process units, offsites, and utilities, set for completion in 10 months.

  • Godrej Industries rises sharply as its Q3FY25 net profit grows 76.9% YoY to Rs 188.2 crore owing to lower inventory costs. Revenue increases 33.9% YoY to Rs 5,146.9 crore, driven by improvements in the estate & property development, finance & investments, chemicals, animal feed, crop protection, and vegetable oils segments. It features in a screener of stocks where mutual funds increased their shareholding in the past quarter.

  • Mahindra & Mahindra Financial Services is rising as its board of directors approves a fundraising of up to Rs 3,000 crore through the rights issue of equity shares.

  • Fitch Ratings expects Indian banks' net interest margins (NIMs) to drop by 10 basis points on average in 2025-26 due to RBI interest rate cuts, though the decline will be offset by eased liquidity conditions. The firm also notes that NBFCs may face NIM (net interest margins) pressures in areas where they compete with banks, like near-prime urban housing and commercial loans.

  • SKF India falls to its new 52-week low of Rs 3,643.1 as its net profit declines 17.1% YoY to Rs 109.5 crore in Q3FY25 due to higher material costs and employee benefit expenses. However, revenue increases 15% YoY to Rs 1,256.1 crore during the quarter. The company appears in a screener of stocks with declining profits every quarter for the past two quarters.

  • Godawari Power & Ispat is falling sharply as its net profit plunges 36.8% YoY to Rs 144.8 crore in Q3FY25 due to higher raw materials and employee benefits expenses. Revenue declines marginally by 0.7% YoY to Rs 1,316 crore, caused by lower production of iron ore and pellets. It appears in a screener of stocks with prices below short, medium, and long-term averages.

  • NTPC Green Energy's 50:50 JV, ONGC NTPC Green (ONGPL), signs a share purchase agreement to acquire Ayana Renewable Power for Rs 19,500 crore. The acquisition supports ONGPL’s strategy to expand its clean energy portfolio and India’s renewable energy transition.

  • SBI Cards and Payment Services rises over 5% as Macquarie upgrades the stock to an 'Outperform' rating with a higher target price of Rs 1,000. The brokerage believes the company's credit card delinquencies have decreased, showing it is making better lending choices. Over the past 12 months, the company offered credit to borrowers with better credit scores.

  • Endurance Technologies is rising as its net profit grows 21.1% YoY to Rs 184.4 crore in Q3FY25 due to lower purchases of traded goods. Revenue increases 11.6% YoY to Rs 2,859.2 crore during the quarter, driven by capacity gains and new business acquisitions in braking, suspensions, die casting, and alloy wheels segments. The company appears in a screener of stocks with increasing revenue every quarter for the past four quarters.

  • IIFL Finance is falling as its net profit declines 91.7% YoY to Rs 40.7 crore in Q3FY25 due to higher impairment on financial instruments, finance, and employee benefits expenses. Revenue falls 7.8% YoY to Rs 2,442.6 crore, caused by a reduction in net interest income. It shows up in a screener of low DVM stocks.

  • Crompton Greaves Consumer Electricals is rising as its net profit grows 27.7% YoY to Rs 109.8 crore in Q3FY25 due to lower materials cost and inventory destocking. Revenue increases 4.5% YoY to Rs 1,769.2 crore during the quarter, driven by higher sales from the electric consumer durables and lighting products segments. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • India’s CPI inflation declines to a a five-month low of 4.3% in January from 5.2% in December, driven by easing food inflation and the RBI's rate cuts. Nomura expects weak domestic demand and ongoing deflation in manufacturing input costs to keep core inflation between 3.5-4% over the next year.

  • Bombay Burmah Trading Corp's Q3FY25 net profit declines 12.3% YoY to Rs 339 crore due to higher raw materials and depreciation & amortisation expenses. However, revenue grows 8.4% YoY to Rs 4,758.9 crore, driven by improvements in the tea plantations, auto electrical components, investments, healthcare, and food-bakery & dairy products segments. It appears in a screener of stocks with high market cap but lower public shareholding.

  • PTC India rises sharply as its Q3FY25 net profit jumps 62.9% YoY to Rs 152.9 crore, helped by lower impairment on financial instruments, employee benefits, finance costs, and income tax returns. However, revenue declines marginally by 0.3% YoY to Rs 3,425.3 crore due to a decline in the financing business offsetting a growth in the power segment. It features in a screener of affordable stocks with good Trendlyne valuation scores.

  • Natco Pharma is falling as its net profit declines 37.5% YoY to Rs 133 crore in Q3FY25. Revenue decreases 37.4% YoY to Rs 474.8 crore during the quarter due to lower contributions from the export formulation business. The company appears in a screener of stocks where mutual funds decreased their shareholding in the past quarter.

  • Bharat Forge falls to its new 52-week low of Rs 1,044.7 as its net profit declines 19.6% YoY to Rs 212.8 crore in Q3FY25. Revenue decreases 10.1% YoY to Rs 3,475.5 crore during the quarter amid weak demand conditions in Europe, impacting exports. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Nifty 50 was trading at 23,080.45 (35.2, 0.2%), BSE Sensex was trading at 76,333.10 (162.0, 0.2%) while the broader Nifty 500 was trading at 20,964.05 (56.2, 0.3%).

  • Market breadth is surging up. Of the 1,941 stocks traded today, 1,296 showed gains, and 609 showed losses.

Riding High:

Largecap and midcap gainers today include Muthoot Finance Ltd. (2,317.80, 6.2%), SBI Cards and Payment Services Ltd. (859.85, 5.3%) and Ipca Laboratories Ltd. (1,490.90, 5.0%).

Downers:

Largecap and midcap losers today include Adani Enterprises Ltd. (2,244.70, -4.6%), UNO Minda Ltd. (946.85, -4.4%) and Varun Beverages Ltd. (513.40, -4.0%).

Crowd Puller Stocks

19 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Finolex Cables Ltd. (998.55, 13.1%), Honasa Consumer Ltd. (230.79, 12.7%) and Suven Pharmaceuticals Ltd. (1,120.05, 6.9%).

Top high volume losers on BSE were Natco Pharma Ltd. (975.05, -20%), FDC Ltd. (410.15, -7.0%) and KIOCL Ltd. (279.70, -4%).

Godrej Industries Ltd. (824.90, 1.5%) was trading at 33.4 times of weekly average. Muthoot Finance Ltd. (2,317.80, 6.2%) and LMW Ltd. (14,990, 0.9%) were trading with volumes 9.3 and 9.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

5 stocks made 52 week highs, while 25 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Kotak Mahindra Bank Ltd. (1,964.75, 1.1%), Muthoot Finance Ltd. (2,317.80, 6.2%) and Redington Ltd. (244.55, 6.8%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,370.70, -1.7%) and Bayer Cropscience Ltd. (4,369.05, -0.5%).

16 stocks climbed above their 200 day SMA including Ipca Laboratories Ltd. (1,490.90, 5.0%) and Mankind Pharma Ltd. (2,501.15, 3.2%). 10 stocks slipped below their 200 SMA including Godfrey Phillips India Ltd. (4,999.60, -8.5%) and Aegis Logistics Ltd. (736.75, -7.2%).

 
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The Baseline
13 Feb 2025, 03:00PM
By Abdullah Shah

The Q3FY25 results season has been under par, with approximately 44% of companies that released their results seeing negative profit growth. In this edition of the chart of the week, we screen for stocks with the highest negative surprises in revenue and net profit during the quarter, according to Forecaster. 

The negative surprises screener is dominated by stocks from the auto, finance, pharma & biotech, consumer durables, and general industrials sectors. Major stocks in the screener include India Cements, Adani Enterprises, Biocon, BEML, Alembic Pharma, Bosch, CCL Products India, Angel One, Astral, and Bajaj Auto among others.

The companies in the screener disappointed investors for various reasons. Net profit misses were due to higher costs in raw materials and operations. Revenue underperformed estimates owing to increased competition, pricing pressure and weak demand in the domestic market.

The auto sector struggled with low demand from the domestic market, leading to missed estimates, while the pharma & biotech stocks saw strong pricing pressure and increased competition. 

India Cements & Adani Enterprises underperform estimates due to higher input costs

India Cements has seen the highest Forecaster estimated net profit miss of 198.8% in Q3FY25, while its revenue missed estimates by 4.5%. This comes after the cement & cement products company’s net loss expanded by a steep 26x YoY and revenue declined by 16.8% YoY during the quarter. Rising expenses in raw materials, inventory, employee benefits, finance, power & fuel, and transportation resulted in expanding net loss. Its revenue has also fallen YoY for the past seven consecutive quarters. According to analysts at Motilal Oswal Financial Services, India Cements’ revenue was also hit by lower price realisations in the blended cements segment. 

Adani Enterprises also features in the screener after its net profit and revenue missed Forecaster estimates by 96.6% and 14.4%, respectively, in Q3FY25. This was a result of the commodity trading & distribution company’s net profit and revenue plunging by 96.9% YoY and 18.5% YoY. Increasing costs were also a factor here – in raw materials, inventory, employee benefits, finance, depreciation & amortisation, and foreign exchange, which drove the decline in net profit. Meanwhile, its revenue decreased owing to a reduction in the integrated resources management (IRM), commercial mining, and road segments. 

Speaking on the company’s results, its Director and natural resources CEO, Vinay Prakash said, “The IRM business declined due to a good domestic coal availability for customers, resulting in lower sales. We have been exploring ways to tap into newer market segments through initiatives like the IRM portal, an e-portal for the online trading of natural resources.”

Biocon & Alembic Pharma miss estimates on the back of increasing pricing pressure

Biocon’sQ3FY25 net profit and revenue missed Forecaster estimates by 80.5% and 2.4%, respectively, after falling 96.2% YoY and 14.7% YoY. The biotech company’s net profit declined due to rising costs in inventory, employee benefits, etc. A reduction in sales from the generics and biosimilars businesses resulted in a degrowth in revenue. The biosimilar business revenue fell due to the company selling its branded generic immunotherapy and nephrology businesses in FY24. 

However, analysts are positive about the company. Axis Direct believes that Biocon has a strong product line over the next three years, including five new products, like Aspart, Bevacizumab, Denosumab, and Stelara, which are expected to drive growth. It expects the company’s revenue and net profit to grow at a CAGR of 11.7% and 10.2%, respectively, over FY25-26.

Alembic Pharmaceuticals witnessed its Q3FY25 net profit and revenue missing its Forecaster estimates by 20.5% and 2.5%, respectively. This comes after the pharmaceutical company’s net profit declined due to higher costs in raw materials and employee benefits. Meanwhile, revenue missed estimates due to a reduction in the active pharmaceutical ingredient (API) business. 

Analysts at KR Choksey believe the company struggled with headwinds in the acute therapy business, which saw seasonal weakness. The API business has also struggled due to pricing headwinds, lower demand from key customers, and heavy competition from low-cost manufacturers. 

Auto stocks underperform estimates, led by weak demand

BEML’sQ3FY25 net profit and revenue missed Forecaster estimates by 72.5% and 23.6%, respectively, after decreasing 49.4% YoY and 18.6% YoY. The commercial vehicles company’s net profit fell due to increasing inventory and finance costs. On the other hand, weak demand for commercial vehicles due to muted construction activity led to a decline in revenue. 

Bajaj Auto is another notable auto stock to feature in the screener, with its net profit and revenue missing Forecaster estimates by 3.1% and 1.4%, respectively in Q3FY25. Higher sales of lower-margin electric vehicles led to this ?-wheeler manufacturer’s net profit missing estimates. Meanwhile, lower demand in the domestic market resulted in revenue underperforming estimates.

Post results, Rakesh Sharma, Executive Director of Bajaj Auto, stated, “Going forward, we expect the domestic two-wheeler segment growth to be around 6-8%. We plan to continue to build share in the 125cc+ segment through steady expansion of Freedom and leveraging the expanded lineup for Pulsars, KTMs, and Triumphs.”

Bosch’sQ3FY25 net profit and revenue underperformed Forecaster estimates by 15.9% and 1.2%, respectively. This comes after the auto equipment company’s net profit declined due to higher costs in raw materials, inventory, and employee benefits. However, revenue missed estimates, driven by declining sales of heavy commercial vehicle components. 

Guruprasad Mudlapur, Managing Director and CTO of Bosch highlighted, “The growth is driven by mobility aftermarket, two-wheeler, power sports and consumer goods businesses. Looking ahead, sustained macro stability, policy support, and consumer liquidity will be critical in maintaining momentum and ensuring broad-based growth across segments.”

 
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The Baseline
12 Feb 2025
The missing piece in India's growth | Screener: Exporters outperforming the Nifty
By Swapnil Karkare

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

 
Trendlyne Marketwatch
Trendlyne Marketwatch
12 Feb 2025
Market closes flat, Aegis Logistics' revenue falls 8.9% YoY to Rs 1,707 crore in Q3FY25
By Trendlyne Analysis

Nifty 50 closed at 23,045.25 (-26.6, -0.1%), BSE Sensex closed at 76,171.08 (-122.5, -0.2%) while the broader Nifty 500 closed at 20,907.85 (-42.6, -0.2%). Market breadth is in the red. Of the 2,419 stocks traded today, 897 were on the uptrend, and 1,489 went down.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 23,045.3 points. The Indian volatility index, Nifty VIX, rose 0.1% and closed at 14.9 points. Bharat Heavy Electricals secured a letter of intent (LoI) from Damodar Valley Corp for a Rs 6,200 crore steam generator island package at the 2x660 MW Raghunathpur thermal power station phase-II in West Bengal.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty Metal and Nifty PSU Bank closed higher. According to Trendlyne’s sector dashboard, Healthcare Equipment & Supplies emerged as the worst-performing sector of the day, with a fall of 2.2%.

European indices are trading mixed. Major Asian indices closed flat or higher. US index futures are trading mixed, indicating a cautious start to the trading session, as markets await the consumer price index (CPI) inflation print scheduled for release later today. CPI inflation is expected to rise 2.9% YoY in January, matching December's pace, while it is seen cooling to 0.3% from 0.4% on a MoM basis.

  • Relative strength index (RSI) indicates that stocks like Bosch and Whirlpool of India are in the oversold zone.

  • Aegis Logistics' revenue falls 8.9% YoY to Rs 1,707 crore in Q3FY25 due to lower sales in the gas terminal division. Net profit declines 4.5% YoY to Rs 124.3 crore during the quarter. It features in a screener of stocks where mutual funds decreased their shareholding in the last quarter.

  • Patel Engineering is rising sharply as its net profit grows 18.4% YoY to Rs 81.5 crore in Q3FY25, helped by reduced finance costs. Revenue increases 17.6% YoY to Rs 1,265.1 crore, driven by improvements in the civil construction and real estate segments. It appears in a screener of newly affordable stocks with good financials and durability.

  • Suzlon Energy secures a 201.6 MW wind energy order from Oyster Renewable in Madhya Pradesh. The project includes supplying 64 units of S144 wind turbine generators with Hybrid Lattice Towers, each with a capacity of 3.2 MW.

  • Infosys plans to issue salary increment letters by the end of February, with hikes ranging from 5-8%, effective April 2025. The company has also issued promotion letters in batches since December, reflecting a strategic response to the anticipated rise in technology budgets for the upcoming fiscal year.

  • Power Finance Corp's Q3FY25 net profit grows 23% YoY to Rs 4,154.9 crore, owing to decreasing impairment of financial instruments and transaction exchange gains. Revenue rises 10.1% YoY to Rs 13,043.7 crore during the quarter. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • BEML signs a strategic partnership with South Korea’s STX Engine to co-develop, manufacture, and market battle tank and marine engines, along with spares and components. BEML will focus on localisation, optimising production, and enhancing India’s self-reliance in defence manufacturing.

  • MOIL is rising as its net profit grows 17.7% YoY to Rs 63.7 crore in Q3FY25, helped by lower material costs. Revenue increases 19.8% YoY to Rs 366.8 crore during the quarter, driven by higher sales from the mining and manufactured products segments. The company appears in a screener of stocks with book value per share improving over the last two years.

  • Manish Gulati, Executive Director at HEG, highlights that the company’s Q3FY25 realizations declined 5% QoQ but anticipates an improvement in the coming quarters. He notes that steel production has remained stagnant, particularly in Europe. Gulati projects production volumes at 80,000 tonnes by FY25 and expects margins to improve by FY26.

  • Steel Authority of India (SAIL) rises sharply as its Q3FY25 net profit of Rs 141.9 crore beats Forecaster estimates of a net loss of Rs 20.8 crore despite plunging 66.4% YoY due to higher inventory, finance, and depreciation & amortisation expenses. However, revenue grows 4.9% YoY to Rs 24,489.9 crore, led by improvements in the Bhilai, Durgapur, and alloy steel plants. It features in a screener of strong-performing, under-radar stocks.

  • TVS Motor signs a memorandum of understanding (MoU) with the Karnataka Government to invest Rs 2,000 crore over five years to set up a global capability centre and expand Mysuru operations. The investment includes the development of a new test track and upgraded office infrastructure.

  • Bayer Cropscience falls to its new 52-week low of Rs 4,402 as its net profit declines 63.3% YoY to Rs 34.2 crore in Q3FY25 due to higher materials cost. However, revenue increases 10.7% YoY to Rs 1,056.9 crore during the quarter, driven by growth in the corn business. The company appears in a screener of stocks with declining profits every quarter for the past two quarters.

  • Angan Guha, CEO of Birlasoft, highlights that the company’s Q3FY25 revenue was affected by an increase in furloughs, up 150 bps QoQ, especially in the life sciences and manufacturing segments. He projects a muted Q4 due to project rampdowns and extended furloughs. Guha expects the company to reach a 15% EBITDA margin within four quarters.

  • EIH's Q3FY25 net profit grows 20.6% YoY to Rs 264.5 crore. Revenue rises 8% YoY to Rs 831.2 crore during the quarter. The company shows up in a screener of stocks with improving return on equity (RoE) over the past two years.

  • Bharat Heavy Electricals secures a letter of intent (LoI) from Damodar Valley Corp for a Rs 6,200 crore steam generator island package at the 2x660 MW Raghunathpur thermal power station phase-II in West Bengal.

  • Kirloskar Oil Engines falls to its new 52-week low of Rs 691 as its net profit declines 20.6% YoY to Rs 71.3 crore in Q3FY25 due to higher finance costs and employee benefit expenses. However, revenue increases 4.6% YoY to Rs 1,453.7 crore during the quarter, driven by higher sales from the B2B and financial services segments. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Mutual Funds' net inflows rise to Rs 1,87,551 crore in January, compared to outflows of Rs 80,355 crore in December 2024, according to data released by the Association of Mutual Funds in India (AMFI). Meanwhile, equity inflows increase to Rs 39,688 crore in January, compared to Rs 1,156 crore last month.

  • HG Infra Engineering's joint venture (JV) with DEC Infrastructure & Projects secures a Rs 2,195.7 crore contract from the Rail Land Development Authority (RLDA) to redevelop the New Delhi Railway Station. The project is awarded under the engineering, procurement, and construction (EPC) mode and includes station infrastructure upgrades, set for completion in 45 months.

  • Lupin's Q3FY25 net profit jumps 39.5% YoY to Rs 855.2 crore, driven by lower raw materials, inventory, and finance costs. Revenue grows 11% YoY to Rs 5,767.7 crore owing to a rise in sales in the North American, Indian, and Europe, Middle East & Africa (EMEA) markets. It features in a screener of stocks with improving cash flow from operations over the past two years.

  • Jupiter Wagons secures a letter of acceptance (LoA) worth Rs 600 crore from Ambuja Cements and ACC to manufacture and supply Bogie Covered Fly Ash/Cement (BCFCM) wagons and Bogie Brake Van Type (BVCM) wagons.

  • Reports suggest there will be no changes in short-term capital gains (STCG) and long-term capital gains (LTCG) in the new Income Tax Bill. In the July 2024 budget, Finance Minister Nirmala Sitharaman stated that STCG from stocks, equity funds, and business trust units (InvIT and REIT) would be taxed at 20%, up from the previous 15%. The Budget also announced a uniform 12.5% tax rate on LTCG across all asset classes.

  • EID Parry (India)'s net profit grows 64.8% YoY to Rs 19.5 crore in Q3FY25, owing to lower raw material costs. Revenue rises 12.2% YoY to Rs 872 crore, led by improvements in the nutrient & allied, crop protection, distillery, and consumer products businesses. It appears in a screener of stocks with low debt.

  • Berger Paints (India) is rising as its net profit beats Forecaster estimates by 1.8% despite falling 1.5% YoY to Rs 295.1 crore in Q3FY25 due to price cuts in prior quarters, currency depreciation and the inventory impact of higher monomer prices. Revenue increases 3.2% YoY to Rs 2,975.1 crore during the quarter. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • Vodafone Idea is falling as its Q3FY25 revenue misses Forecaster estimates by 1.1% despite growing 4.2% YoY to Rs 11,117.3 crore, driven by price hikes. However, net loss contracts 5.4% YoY to Rs 6,609.3 crore, helped by lower trading, network & IT outsourcing, marketing, content, customer acquisition & service, and finance costs. It shows up in a screener of stocks with high interest payments compared to earnings.

  • Indian Railway Catering & Tourism Corp's net profit rises 13.7% YoY to Rs 341.1 crore in Q3FY25 due to lower materials cost and inventory destocking. Revenue increases 9.5% YoY to Rs 1,224.7 crore during the quarter, driven by higher sales from the catering, rail neer, internet ticketing, and tourism segments. The company features in a screener of stocks with improving cash flow from operations over the past two years.

  • Nifty 50 was trading at 23,040.40 (-31.4, -0.1%) , BSE Sensex was trading at 76,165.26 (-128.3, -0.2%) while the broader Nifty 500 was trading at 20,880.60 (-69.9, -0.3%)

  • Market breadth is sharply down. Of the 1,938 stocks traded today, 613 were gainers and 1,257 were losers.

Riding High:

Largecap and midcap gainers today include Ashok Leyland Ltd. (219.35, 7.7%), Steel Authority of India (SAIL) Ltd. (105.75, 5.7%) and SBI Cards and Payment Services Ltd. (816.40, 4.1%).

Downers:

Largecap and midcap losers today include Prestige Estates Projects Ltd. (1,220.15, -6.9%), Godrej Properties Ltd. (1,929.75, -4.8%) and DLF Ltd. (680.05, -4.1%).

Movers and Shakers

31 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Ashok Leyland Ltd. (219.35, 7.7%), Campus Activewear Ltd. (282.05, 7.5%) and Steel Authority of India (SAIL) Ltd. (105.75, 5.7%).

Top high volume losers on BSE were Bayer Cropscience Ltd. (4,389.50, -8.3%), Archean Chemical Industries Ltd. (463.95, -7.9%) and Prestige Estates Projects Ltd. (1,220.15, -6.9%).

Elgi Equipments Ltd. (549, 2.4%) was trading at 22.3 times of weekly average. Kirloskar Oil Engines Ltd. (748.50, -4.2%) and Schneider Electric Infrastructure Ltd. (685.55, 3.5%) were trading with volumes 13.8 and 10.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

107 stocks hit their 52 week lows.

Stocks making new 52 weeks lows included - 3M India Ltd. (27,664.95, 0.4%) and Asian Paints Ltd. (2,228.25, -0.6%).

8 stocks climbed above their 200 day SMA including Godfrey Phillips India Ltd. (5,463, 6.6%) and Godrej Agrovet Ltd. (754.45, 4.8%). 38 stocks slipped below their 200 SMA including Metro Brands Ltd. (1,143.50, -6.1%) and Westlife Foodworld Ltd. (760.30, -3.6%).

 
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The Baseline
12 Feb 2025
Five stocks to buy from analysts this week - February 12, 2025
By Ruchir Sankhla

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)

 
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The Baseline
11 Feb 2025
Which stocks did superstar investors sell in Q3FY25?
By Melissa Koshy

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.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
11 Feb 2025
Market closes lower, NBCC bags orders worth Rs 272 crore from the University of Punjab
By Trendlyne Analysis

Nifty 50 closed at 23,071.80 (-309.8, -1.3%) , BSE Sensex closed at 76,293.60 (-1,018.2, -1.3%) while the broader Nifty 500 closed at 20,950.45 (-420.9, -2.0%). Market breadth is highly negative. Of the 2,423 stocks traded today, 192 showed gains, and 2,217 showed losses.

Indian indices closed in the red. Investors saw a loss of Rs 9 lakh crore as the Sensex plunged more than 1,000 points. Key factors contributing to the decline included Trump's tariff hike on steel and aluminum, weak earnings, and foreign investor sell-offs. The Indian volatility index, Nifty VIX, rose 2.9% and closed at 14.9 points. Escorts Kubota’s Q3FY25 net profit missed Forecaster estimates by 0.3% despite growing 7.4% YoY to Rs 320.6 crore owing to lower inventory and finance costs. Revenue increased 8.1% YoY to Rs 3,057.9 crore.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. S&P BSE SME IPO and Nifty Microcap 250 were among the top index losers today. According to Trendlyne’s Sector dashboard, Telecommunications Equipment emerged as the worst-performing sector of the day, with a fall of 4.4%.

Asian indices closed lower, while European indices are trading mixed. US index futures traded in the red, indicating a cautious start to the trading session. McDonald's surged over 4% following stronger-than-expected Q4 global comparable sales, despite a decline in US sales due to the aftermath of an E. coli outbreak last year, which was traced to one of its burgers. Brent crude oil futures are trading in the green. Meanwhile, BP's Q4 profit dropped to $1.2 billion, the lowest in four years, as weak margins impacted its refining business.

  • Eicher Motors sees a short buildup in its February 27 futures series, with open interest increasing by 24.1% and a put-call ratio of 0.9.

  • Cera Sanitaryware is falling as its net profit declines 10% YoY to Rs 45.8 crore in Q3FY25 due to higher raw materials and employee benefit expenses. However, revenue increases 3.1% YoY to Rs 452.3 crore during the quarter. The company features in a screener of stocks with improving cash flow from operations over the past two years.

  • Schneider Electric Infrastructure's revenue rises 15.2% YoY to Rs 857.2 crore in Q3FY25. Net profit surges 103.5% YoY to Rs 110.5 crore due to gains from exceptional items. The company features in a screener of stocks with increasing net profit and profit margin (QoQ).

  • NBCC (India) bags two orders worth Rs 272.3 crore from the Central University of Punjab and Navodaya Vidyalaya Samiti (NVS). The former order involves planning, designing, and developing infrastructure at The Central University of Punjab, while the latter includes the construction of a regional office building and central covered courtyards in Assam; and MP halls in Meghalaya and Nagaland. The company also completes the sale of 1,233 units of ASPIRE Golf Homes Amrapali Projects in Noida for a total value of Rs 3,217 crore.

  • Bharat Dynamics signs an initial supply agreement with Thales UK for Laser Beam Riding Man Portable Air Defence Systems (LBRM) to meet the Indian Government's requirement to support India's air defence capabilities. The deal also includes the supply of High Velocity Missiles (STARStreak) and launchers this year.

  • Genus Powers Infrastructures' revenue surges 2.3X to Rs 604.2 crore in Q3FY25, driven by an improvement in the metering business. The company posts a net profit of Rs 56.7 crore during the quarter compared to a Rs 10 crore loss in Q3FY24, helped by a deferred tax credit of Rs 6.8 crore. It appears in a screener of stocks with book value per share improving over the past two years.

  • Gujarat State Fertilizers & Chemicals' Q3FY25 net profit grows 13.4% YoY to Rs 133.9 crore, owing to lower inventory and power & fuel expenses. Revenue rises 37.4% YoY to Rs 2,870 crore, driven by improvements in the fertiliser products and industrial products segments. It features in a screener of stocks with dividend yields greater than their sector dividend yield.

  • Chalet Hotels' board approves the acquisition of Mahananda Spa and Resorts, a wholly owned subsidiary of Mankind Pharma and the owning entity of The Westin Resort & Spa, Himalayas, for an enterprise value of Rs 530 crore. The acquisition aims to expand the company's presence in India’s luxury and leisure segment.

  • Bajaj Group reportedly plans to make an initial investment of Rs 10,000 crore ($1.1 billion) to establish a network of hospitals across India. The conglomerate will invest the amount in phases to develop a chain of affordable, high-quality hospitals and healthcare facilities.

  • Devyani International falls sharply as it posts a net loss of Rs 50 lakh in Q3FY25 compared to a profit of Rs 9.6 crore in Q3FY24 due to higher raw materials, employee benefits and tax expenses. However, revenue increases 53.5% YoY to Rs 1,294.4 crore during the quarter. It features in a screener of stocks where mutual funds decreased their shareholding in the last quarter.

  • Grasim Industries is rising as its Q3FY25 revenue beats Forecaster estimates by 2% after growing 26.1% YoY to Rs 8,221.8 crore, led by improvements in the cellulosic fibres and chemicals segments. However, it posts a net profit of Rs 168.7 crore during the quarter compared to Rs 236.3 crore in Q3FY24 due to higher raw materials, inventory, employee benefits, finance, depreciation & amortisation, and power & fuel expenses. It appears in a screener of stocks with PEG lower than their industry average PEG.

  • Bondada Engineering receives an order worth Rs 228.2 crore from South Central Railways for ground infrastructure works. The project includes installing Kavach, a 4G LTE-R high-density network, and pile foundations for towers.

  • JM Financial anticipates that Paytm is a strong candidate for inclusion in the MSCI index during its rejig tomorrow, which could attract around $169 million (approximately Rs 1,400 crore) in inflows. The brokerage identifies Coforge, Fortis Healthcare, IndusInd Bank and Coromandel International as potential high-probability inclusions in the MSCI India Standard Index.

  • Patanjali Foods' Q3FY25 net profit grows 20.1% YoY to Rs 370.9 crore, helped by inventory destocking. Revenue increases 15.1% YoY to Rs 9,103.1 crore during the quarter, attributed to an improvement in the edible oils segment. It features in a screener of stocks with rising net profit margins (QoQ and TTM).

  • Escorts Kubota falls sharply as its Q3FY25 net profit misses Forecaster estimates by 0.3% despite growing 7.4% YoY to Rs 320.6 crore owing to lower inventory and finance costs. Revenue increases 8.1% YoY to Rs 3,057.9 crore due to improvements in the agri machinery products and construction equipment segments. It shows up in a screener of stocks with declining net cash flow.

  • FSN E-Commerce Ventures (Nykaa) is rising as its net profit surges 61.4% YoY to Rs 26.1 crore in Q3FY25 due to lower materials cost. Revenue increases 26.7% YoY to Rs 2,267.2 crore during the quarter, driven by higher sales from the beauty and fashion segments. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • CLSA upgrades Muthoot Finance to an 'Outperform' rating with a higher target price of Rs 2,400. The brokerage highlights strong momentum in the gold loan segment during 9MFY25 despite challenges in personal loans. Muthoot Finance saw a 31% YoY growth, benefiting from restrictions on competitors. The brokerage raises its FY25-27 earnings forecast by 1-4%, driven by higher loan growth expectations.

  • Sansera Engineering falls sharply as its Q3FY25 revenue misses Forecaster estimates by 5.4% despite rising 2.1% YoY to Rs 727.8 crore, owing to improvements in the auto tech-agnostic & xEV segment. Net profit increases 16% YoY to Rs 55.7 crore, driven by inventory destocking and lower tax expenses. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Bata India is rising as its net profit grows 1.3% YoY to Rs 58.7 crore in Q3FY25 due to lower raw material costs. Revenue increases 1.7% YoY to Rs 918.8 crore during the quarter, driven by higher sales from its premium offerings (Hush Puppies) segment. The company appears in a screener of stocks with zero promoter pledges.

  • Ashoka Buildcon is rising as its net profit surges 6.8x YoY to Rs 654.5 crore in Q3FY25, helped by a deferred tax return of Rs 406.2 crore and lower raw materials, finance, and depreciation & amortisation expenses. However, revenue declines 10.1% YoY to Rs 2,426.4 crore, driven by a reduction in the construction & contract and build, operate & transfer (BOT) projects segments. It appears in a screener of profit making stocks with high return on capital employed (RoCE) and low PE.

  • K Natarajan, Managing Director of Galaxy Surfactants, projects a 4% volume growth in FY25. He highlights the company saw a volume dip of 7% in India operations and 1% globally during Q3FY25. Natarajan expects fatty alcohol prices to decline as new supply enters the market.

  • Crisil is falling as its net profit misses Forecaster estimates by 14.2% despite rising 6.9% YoY to Rs 224.7 crore in Q3FY25, driven by lower employee benefit expenses. Revenue decreases marginally YoY to Rs 912.9 crore during the quarter due to lower sales from the ratings services segment. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Apollo Hospitals Enterprise's Q3FY25 net profit grows 51.8% YoY to Rs 372.3 crore owing to inventory destocking and lower finance costs. Revenue jumps 14.6% YoY to Rs 5,590.7 crore, led by improvements in healthcare services, retail health & diagnostics, and digital health & pharmacy distribution. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • National Aluminium Company is rising as its net profit surges 2.3X YoY to Rs 1,566.3 crore in Q3FY25 due to lower employee benefits expenses, material, and finance costs. Revenue increases 39.3% YoY to Rs 4,662.2 crore during the quarter, driven by higher sales realisation in Alumina & Metal. The company appears in a screener of stocks with book value per share improving over the last two years.

  • Eicher Motors falls sharply as its Q3FY25 net profit misses Forecaster estimates by 1.2% despite growing 17.5% YoY to Rs 1,170.5 crore, driven by lower inventory and tax expenses. Revenue increases 18.7% YoY to Rs 5,261.9 crore, helped by higher two-wheeler and commercial vehicle sales. It shows up in a screener of stocks where promoters are decreasing their shareholding.

  • Nifty 50 was trading at 23,347.90 (-33.7, -0.1%), BSE Sensex was trading at 77,287.64 (-24.2, 0.0%) while the broader Nifty 500 was trading at 21,274.45 (-96.9, -0.5%).

  • Market breadth is sharply down. Of the 1,954 stocks traded today, 448 were on the uptick, and 1,455 were down.

Riding High:

Largecap and midcap gainers today include Oil India Ltd. (412.20, 1.7%), Adani Power Ltd. (498.15, 1.4%) and Adani Enterprises Ltd. (2,321.75, 1.4%).

Downers:

Largecap and midcap losers today include UNO Minda Ltd. (986.50, -8.1%), PB Fintech Ltd. (1,539.30, -7.4%) and Eicher Motors Ltd. (4,972.35, -6.8%).

Movers and Shakers

25 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Happiest Minds Technologies Ltd. (705.10, 5.9%), Timken India Ltd. (2,818.15, 5%) and Crisil Ltd. (5,349.20, 4.7%).

Top high volume losers on BSE were HBL Engineering Ltd. (481.95, -8.9%), Piramal Pharma Ltd. (204.28, -7.7%) and Eicher Motors Ltd. (4,972.35, -6.8%).

FSN E-Commerce Ventures Ltd. (166.83, -1.5%) was trading at 7.1 times of weekly average. Adani Enterprises Ltd. (2,321.75, 1.4%) and Sterling and Wilson Renewable Energy Ltd. (295.35, -5.8%) were trading with volumes 6.9 and 6.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52 week highs, while 65 stocks were underachievers and hit their 52 week lows.

Stock touching their year highs included - Kotak Mahindra Bank Ltd. (1,918.60, -2.1%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,415.15, -2.2%) and Bayer Cropscience Ltd. (4,787.80, -1.5%).

2 stocks climbed above their 200 day SMA including Star Cement Ltd. (204.14, 0.8%) and CCL Products India Ltd. (608.65, -4.8%). 52 stocks slipped below their 200 SMA including Godfrey Phillips India Ltd. (5,125.95, -8.2%) and UNO Minda Ltd. (986.50, -8.1%).