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Trendlyne Marketwatch
06 Jan 2025
Market closes lower, Angel One's ADTO drops 30.9% YoY to Rs 29 lakh crore in December
By Trendlyne Analysis

Nifty 50 closed at 23,616.05 (-388.7, -1.6%), BSE Sensex closed at 77,964.99 (-1,258.1, -1.6%) while the broader Nifty 500 closed at 22,225.40 (-482.8, -2.1%). Market breadth is highly negative. Of the 2,446 stocks traded today, 271 showed gains, and 2,151 showed losses.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,616.1 points due to the detection of Human Metapneumovirus (HMPV) cases in India and rising sell-off by institutional investors. The Indian volatility index, Nifty VIX, surged 15.6% and closed at 15.7 points. Titan closed higher as its revenue grew 24% YoY in Q3FY25, driven by improvements in the jewellery, watches & wearables, CaratLane, and eyecare segments.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. S&P BSE Utilities and Nifty PSU Bank were among the worst-performing indices of the day. According to Trendlyne’s Sector dashboard, Telecommunications Equipment emerged as the best-performing sector of the day, with a rise of 6.6%.

Asian indices closed mixed, while European indices are trading mixed. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the green, in anticipation of an improvement in employment expected to come out on Friday.

  • Money flow index (MFI) indicates that stocks like Lloyds Metals & Energy, Coromandel International, PTC Industries, and Jubilant Foodworks are in the overbought zone.

  • JSW Infrastructure enters a concession agreement with the Railway Administration (Nothern Railway) to purchase a container train operator (CTO) licence or concession from Sical Multimodal and Rail Transport.

  • Arkade Developers adds three new redevelopment projects in Mumbai's western suburbs, covering 20,232 sq meters. The Andheri East, Malad West, and Borivali West projects aim for a turnover of around Rs 2,150 crore.

  • Premier Explosives falls sharply as it faces disruption following a major fire accident at its Telangana factory. The incident caused one fatality and severely injured another person, who was taken to a hospital in Hyderabad for treatment.

  • Easy Trip Planners rises over 6% after ex-CEO Nishant Pitti clarifies that there will be no further promoter selling in the company and that they still hold a 50% stake. He expects a gross merchandise value (GMV) growth of 20-25% YoY and a GMV rate of Rs 8,000 crore yearly.

  • Sharekhan retains its 'Buy' call on Radico Khaitan with a higher target price of Rs 2,996 per share. This indicates a potential upside of 19.5%. The brokerage believes the company's revenue will continue to grow, driven by its focus on premiumisation and backward integration. It expects the firm's revenue to grow at a CAGR of 16.6% over FY25-27.

  • NTPC Green Energy's wholly owned subsidiary, NTPC Renewable Energy, wins a 1000 MW bid from Uttar Pradesh Power Corporation (UPPCL) at a tariff of Rs 2.6 per kWh for solar power projects.

  • HDFC Bank's deposits grow by 15.8% YoY to Rs 25.7 lakh crore, and advances increase 3% YoY to Rs 25.5 lakh crore in Q3FY25. The bank's CASA deposits grow by 4.4% YoY during the quarter.

  • Ramesh Kancharia, the CMD of Rainbow Children's Medicare, plans to drive inorganic growth in the Northeast and Hyderabad regions. He aims to add 1,000 beds by CY27 and expects the EBITDA per bed to reach Rs 8 million within a few years. Kancharia also forecasts that the occupancy rate will remain around 59%.

  • Titan is rising as its revenue grows by 24% YoY in Q3FY25, driven by improvements in the jewellery, watches & wearables, CaratLane, and eyecare segments. It appears in a screener of stocks with increasing return on capital employed (RoCE) over the past two years.

  • Brigade Enterprises' subsidiary, Ananthay Properties, acquires a 20-acre land parcel in Bangalore for Rs 630 crore. The company will develop a residential project with a total saleable area of 2.5 million square feet and a gross development value (GDV) of Rs 2,700 crore.

  • Gensol Engineering is rising as it secures an engineering, procurement, and construction (EPC) contract worth Rs 1,062 crore to develop a 275 MW solar photovoltaic (PV) project at the RE Solar Park in Khavda Rann of Kutch, Gujarat. The contract also includes three years of operations and maintenance (O&M) services.

  • The Indian government introduces a second version of the PLI (production linked incentive) scheme for steel to attract additional steel companies and investments. The new scheme has an estimated outlay of around Rs 4,300 crore and focuses primarily on specialty and electrical steel production.

  • Bajaj Finance's AUM grows by 28% YoY to Rs 4 lakh crore in Q3FY25. New loans booked also improve by 22% YoY to 12.1 million in the quarter. It appears in a screener of stocks with zero promoter pledges.

  • JSW Energy is falling sharply as the Central Electricity Regulatory Commission (CERC) rejects tariffs for the projects won by its subsidiary, JSW Renew Energy Five, from the Solar Energy Corporation of India (SECI). CERC rejected the tariffs as the market prices did not align with the proposed tariff after SECI delayed signing the battery storage and sale agreements.

  • RBL Bank is rising as its deposits grow by 15% YoY to Rs 1.1 lakh crore, and advances increase 13% YoY to Rs 92,740 crore in Q3FY25. The bank's CASA deposits grow by 12% YoY during the quarter.

  • India's Services PMI for December 2024 rises to 59.3, up from 58.4 in November. The rise in output was primarily driven by strong underlying demand, with new orders growing for the forty-first consecutive month.

  • Angel One's average daily turnover (ADTO) drops 30.9% YoY to Rs 29 lakh crore in December. Its client base grows 51.7% YoY to 3 crore, but gross client acquisition falls 25.9% YoY.

  • Nazara Technologies acquires a 35.1% stake in Moonshine Technology for a total consideration of Rs 820.1 crore.

  • KNR Constructions receives a letter of acceptance (LoA) for an order worth Rs 198.3 crore from the Irrigation and CAD Department, Government of Telangana. The project, part of the SRLIP to Paleru Link Canal – Package 13, involves earthwork excavation, embankment formation, CC lining, and construction of CM and CD structures.

  • The shares of ITC adjust by Rs 26 on the NSE and Rs 27 on the BSE following the special pre-open trading session for price discovery of the demerged entity ITC Hotels. ITC is yet to disclose the listing date for ITC Hotels as it awaits regulatory approvals. The market anticipates the stock listing by mid-February.

  • Azad Engineering's board of directors approves raising Rs 1,000 crore by issuing equity shares through a preferential issue, rights issue, qualified institutional placement (QIP), or other modes. The board also appoints Murali Krishna Bhupatiraju as its Managing Director, effective January 3.

  • Rail Vikas Nigam signs a memorandum of understanding (MoU) with the Visakhapatnam Port Authority (VPA) to construct internal flyovers at the port. This will improve cargo transportation by eliminating the 11 level crossings in VPA.

  • DCX Systems is rising as it receives an export order worth Rs 483 crore from ELTA Systems, Israel. The order involves manufacturing and supply of Close-In Weapon System (CIWS) module assemblies.

  • Bank of Baroda's global business grows by 11.7% YoY to Rs 25.6 lakh crore, and domestic deposits increase 9.2% YoY to Rs 11.7 lakh crore in Q3FY25. The bank's domestic advances grow by 11.8% YoY during the quarter.

  • Nifty 50 was trading at 24,019 (14.3, 0.1%), BSE Sensex was trading at 79,281.65 (58.5, 0.1%) while the broader Nifty 500 was trading at 22,700.80 (-7.4, 0.0%).

  • Market breadth is in the red. Of the 2,032 stocks traded today, 790 were on the uptick, and 1,184 were down.

Riding High:

Largecap and midcap gainers today include Linde India Ltd. (6,623.70, 4.7%), Godrej Consumer Products Ltd. (1,141.85, 2.3%) and FSN E-Commerce Ventures Ltd. (171.52, 2.2%).

Downers:

Largecap and midcap losers today include ITC Ltd. (442.65, -8.1%), Union Bank of India (114.72, -7.5%) and Indian Renewable Energy Development Agency Ltd. (214.68, -6.9%).

Volume Rockets

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

Top high volume gainers on BSE included KIOCL Ltd. (429.15, 7.9%), Linde India Ltd. (6,623.70, 4.7%) and Equitas Small Finance Bank Ltd. (69.38, 4.6%).

Top high volume losers on BSE were Union Bank of India (114.72, -7.5%), Aditya Birla Real Estate Ltd. (2,244.70, -5.9%) and Archean Chemical Industries Ltd. (638.45, -3.4%).

Aegis Logistics Ltd. (846.30, 4.3%) was trading at 97.3 times of weekly average. Devyani International Ltd. (197.75, 4.0%) and Alembic Pharmaceuticals Ltd. (1,065.55, 1.2%) were trading with volumes 12.7 and 8.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

10 stocks made 52 week highs, while 20 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Blue Star Ltd. (2,224.40, -4.8%), Coromandel International Ltd. (1,941.95, -0.8%) and Info Edge (India) Ltd. (8,815.75, -2.3%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,556.45, -4.0%) and Container Corporation of India Ltd. (763.60, -2.8%).

5 stocks climbed above their 200 day SMA including KIOCL Ltd. (429.15, 7.9%) and Metropolis Healthcare Ltd. (2,038.80, 2.1%). 48 stocks slipped below their 200 SMA including ITC Ltd. (442.65, -8.1%) and Intellect Design Arena Ltd. (901.90, -7.3%).

 
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The Baseline
03 Jan 2025
Five stocks to buy from analysts this week - January 03, 2025
By Divyansh Pokharna

1. Ipca Laboratories:

Motilal Oswal maintains a ‘Buy’ rating on this pharmaceutical company with a target price of Rs 1,980, indicating a potential upside of 13.5%. Analysts Tushar Manudhane, Akash Dobhada, and Viraj Shah highlight that after a muted performance in the US over the past eight years due to compliance issues, Ipca Labs is well-positioned to revive its US business. This will be supported by new product launches, relaunches, stable pricing in its base business, and the integration of the Unichem business over the next 12-24 months.

Ipca Labs has received 11 approvals from the US FDA in the 12 months ending September 2024. While the company has already shipped products to the US, it plans to file 15-17 more products over the next two years. The company also aims to enter the Chilean market, where the drug authority accepts US FDA-approved drugs without extra testing. Unichem’s strong presence in the US will help speed up approvals in Chile, significantly reducing the time needed for market entry.

Manudhane, Dobhada, and Shah expect a 52% CAGR in US sales for Ipca Labs over FY25-27, driven by improved process efficiency, new drug filings, and the integration of Unichem’s front-end operations. The company is also focusing on launching new divisions in high-growth therapies, such as cosmeto-dermatology and orthopedics.

2. Amara Raja Energy & Mobility:

Hem Securities reiterates its ‘Buy’ rating on this battery manufacturer with a target price of Rs 1,397. This indicates an upside potential of 16.2%. In Q2FY25, the company reported a revenue growth of 9.8% YoY to Rs 3,250.7 crore, driven by the lead-acid battery business.

Amara Raja Energy is focusing on cost reduction by increasing in-house manufacturing, with a tubular battery facility set to begin production by the end of FY25. Additionally, the company is improving lead refining operations at its Tamil Nadu plant, targeting a 2-3% improvement in lead recovery to reduce material costs. 

The business is expanding its lithium-ion battery and electric vehicle (EV) charger segments, having already invested Rs 850 crore, with plans for further investment of Rs 500-600 crore. The company plans to invest approximately Rs 1,200 crore in FY25 for the Giga Corridor and lithium-ion projects, with additional investments planned for FY26 to expand advanced chemistry cell manufacturing.

Analysts mention that the investments in electric vehicle (EV) and energy storage system (ESS) batteries position the company for future growth and expect a CAGR of 18.9% in net sales and 19.9% in net profit.

3. Man Infraconstruction:

Axis Securities maintains a ‘Buy’ rating on this Mumbai-based construction company with a target price of Rs 280, indicating an upside of 11.3%. Man Infraconstruction (MICL) recorded Rs 670 crore in collections for H1FY25, up 44% YoY from Rs 465 crore in H1FY24. Its pre-sales for the period totalled Rs 900 crore, driven by projects like Ghatkopar One Earth and Atmosphere in Mulund. MICL has achieved about 50% sales in the Ghatkopar ‘One Park’ project, with a potential revenue of Rs 1,200 crore. The company expects another Rs 500 crore in pre-sales in H2FY25.

MICL sold 3.2 lakh square feet of carpet area in Q2FY25, and its upcoming project pipeline is seen as promising by analysts. Upcoming developments include projects in Vile Parle, Malabar Hills, Dahisar and Pali Hill. Analysts Eesha Shah and Preeyam Tolia said, "These projects are expected to contribute Rs 3,500-4,000 crore to the topline. The company will continue focusing on an asset-light development strategy, with joint venture (JV) and development management (DM) projects in the upcoming pipeline."

Shah and Tolia believe the company is in a launching phase after making several acquisitions and will start realizing benefits in the upcoming financial year. They also note that the asset-light model has led to the highest profit margins in the industry, and are expected to grow further.

4. APL Apollo Tubes:

Sharekhan maintains its ‘Buy’ rating on this steel products manufacturer with a target price of Rs 1,850. This indicates a potential upside of 16.6%. Analysts note that domestic steel prices have improved and stabilized after a recent decline. They expect Q3FY25 earnings to improve due to higher steel prices and growth in volumes. However, the near-term outlook remains weak.

APL Apollo’s current capacity stands at 4.3 million tonnes per annum (MTPA) and is expected to increase to 5 MTPA by FY26. The company plans to set up three greenfield units in Uttar Pradesh (1.1 lakh tonnes per annum or LTPA), West Bengal (2 LTPA), and Karnataka (3 LTPA), along with brownfield expansions of 0.9 LTPA. Analysts expect the structural steel tubes market to grow at a 12% CAGR from 2023 to 2030, reaching around 17 million tonnes by 2030.

The analysts project APL to achieve a revenue CAGR of 24% and a net profit CAGR of 33% over FY25-27. They highlight that the management is sticking to its sales volume targets of 3.2 million tonnes for FY25, with further growth to 4 million tonnes in FY26 and 5 million tonnes in FY27.

5. Torrent Power:

Geojit BNP Paribas upgrades its rating to ‘Buy’ on this electric utilities company with a target price of Rs 1,709. This indicates an upside potential of 11.1%. In H1FY25, the company's revenue grew 13.4% YoY to Rs 16,210 crore, and net profit surged 38.8% to Rs 1,492 crore. However, Q2 net profit declined 8.5% YoY to Rs 481 crore due to weaker renewable and thermal generation, and lower electricity demand caused by extended monsoons.

Analyst Arun Kailasan noted that the company recently raised Rs 3,500 crore through its first Qualified Institutional Placement (QIP), which was oversubscribed 4X. Investors such as SBI Mutual Fund, Capital Group, Norges Bank, and Kotak Mutual Fund participated. The issue price was Rs 1,503 per share, and proceeds will be used to repay debt and to fund corporate expenses.

Kailasan expects expansion plans for over 4.3GW of renewable capacities in the next 3 to 4 years. He also expects EBITDA to grow by 18% CAGR in FY25-27, supported by strong addition to renewables portfolio and net profit to grow at a CAGR of 23.8% over the same period.

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
03 Jan 2025
Did the richest get richer in 2024?
By Swapnil Karkare

Born in Tehran in 1979, Adam Foroughi’s family fled to the US when he was a child. In 2012, he co-founded AppLovin, a gaming and mobile ad business that struggled at first. But in 2024, the company pivoted to AI, and surprised investors with its stellar performance, which pushed up the stock price by more than 700% this year.

The owner of Chinese vaccine maker Zhifei, Jiang Rensheng, was a primary school teacher. Sunil Mittal started out manufacturing bicycle parts. Others like Musk and Ambani, came from business families. What they all have in common: they are now among the 500 richest people in the world.

In 2024, the combined net worth of the top 500 billionaires reached a staggering $9.9 trillion, rising by 19%. But 112 individuals in the top 500 experienced substantial losses. While some billionaires rode a rising wave in sectors like AI, retail, and finance, others faced economic slowdowns and volatile markets.

Europeans struggled, while Asians, Americans prospered

In 2024, the wealth of Filipino billionaires doubled, while Mexican fortunes dipped by about one-sixth. The wealth of American and Chinese billionaires grew 34% and 14%, while Indian billionaires saw a modest 9% growth, beating the French (-14%) and Germans (6%).

One country dominates. More than one-third of the top 500 billionaires in the world live in the US. Together, they have a net worth exceeding $5 trillion. These are familiar names - Elon Musk, the richest person worldwide, Jeff Bezos, Mark Zuckerberg, Bill Gates, Warren Buffett.

China is second with 56 billionaires in the top 500, followed by India and Russia with 26 and 25 billionaires, respectively. Mukesh Ambani and Gautam Adani from India, Zhong Shanshan and Ma Huateng from China, and Russia’s Alexey Mordashov lead their respective countries. Ambani became the richest Asian person in 2024 with a net worth of $91 billion.


The tech boom vs. the consumer slump

The technology sector was a driving force behind wealth creation in 2024. Tech entrepreneurs added more than $900 billion collectively to their wealth -- the rise of AI and the strong US economy fuelling this growth. While tech represents only 82 people (16%) of the top 500 billionaires, it is 32% of the total net worth ($3 trillion).

Not doing so well? The consumer and commodities sectors. Slow growth in China, rising interest rates, and a pause in revenge spending post-pandemic, especially in luxury, resulted in a $21 billion fall in the net worth of consumer-sector billionaires, with French billionaires hit the hardest. Bernard Arnault, the French founder of the world’s largest luxury company LVMH (which owns Louis Vuitton), saw his wealth drop by $31 billion - equivalent to Azim Premji’s entire net worth. 

The US is the world's dominant economy, and it takes up a lot of space in the 500 billionaires list.

Who are India’s Richie-Riches?

Out of the 500 ultra-rich, Indians take up 26 spots, underscoring the country’s growing influence in the global economy. However, India’s top two wealthiest individuals - Mukesh Ambani and Gautam Adani slipped out of the $100 billion club in the last three months.

18 Indian billionaires saw their wealth increase.  Shiv Nadar, the founder of HCL Technologies and the third richest person in India, witnessed the highest jump of $9 billion in his wealth. Others whose net worth spiked include Sunil Mittal, Dilip Shanghvi, Savitri Jindal, Samir & Sudhir Mehta, Murali Divi, Vikas Oberoi and Rahul Bhatia.

Subdued consumer demand has weakened share prices and hit companies like Reliance Retail (Mukesh Ambani), DMart (Radhakrishnan Damani), and Britannia (Nusli Wadia), while a healthy luxury real estate market has boosted the net worth of individuals like KP Singh (DLF) and Vikas Oberoi (Oberoi Realty).

What about the rest of us?

India has witnessed a rise in the number of millionaires and billionaires over the past two decades. However, overall per capita wealth has grown by a mere 6% CAGR, from $2,088 in 2012 to $3,755 in 2022.

The disparity is striking: the average Indian billionaire's net worth is 6 million times India's per capita median wealth, far more than Russia (1.7 million times) and China (0.5 million times). Developed nations, on the other hand, show smaller disparities (0.05 to 0.3 million times).

India stands out as an extreme case compared to both emerging and developed economies. Here, the rise of billionaires is well underway. But the rest of the country has a lot of catching up to do.

 
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The Baseline
03 Jan 2025
Five Interesting Stocks Today - January 03, 2025
By Trendlyne Analysis

1. JSW Energy:

This electric utility company rose over 2.8% on December 30 after its subsidiary, JSW Neo Energy, signed a definitive agreement to acquire O2 Power, a renewable energy platform. The platform is a joint venture between Sweden’s EQT Partners and Singapore’s Temasek Holdings. The transaction, valued at around $1.5 billion (approximately Rs 12,468 crore), is the company’s largest acquisition. The deal is expected to close by May 2025.

Renewable energy currently accounts for over 51% of JSW Energy’s capacity. The acquisition of O2 Power will further enhance its renewable energy portfolio. The deal will increase JSW Energy’s generation capacity by 23%, from 20 GW to 24.7 GW.

Commenting on this, Sharad Mahendra, Joint MD, and CEO, said, “We are on track to reach close to 10 GW by March 2025 and for the O2 platform (we will reach) 2.3 GW by June 2025. This deal will also help achieve our renewable capacity growth target of 20 GW by FY30.” Trendlyne’s Forecaster estimates revenue growth of 28.1% in FY25, with net profit growth of 41.5%.

Meanwhile, over the past month, JSW Energy has secured multiple renewable energy projects in the Commercial and Industrial (C&I) power market, increasing the company's total power generation capacity to 20 GW. Its locked-in renewable energy C&I capacity now totals 3.1 GW, including 2,654 MW of JSW Group's captive capacity and 445 MW of third-party C&I capacity.

Motilal Oswal reiterates its ‘Buy’ call on JSW Energy with a target price of Rs 810, indicating a potential upside of 27.7%. The brokerage names JSW Energy as its top pick in the utility space for 2025. It believes the company's strong position in renewable energy augurs well for its growth prospects.

2. Mahanagar Gas:

This gas distribution company rose over 5% in the past week. In late November, the company raised CNG prices by Rs 2 in Mumbai and surrounding areas, excluding Delhi, due to a 20% rise in input costs. Reports indicate that the company may revise CNG prices in Delhi after the assembly elections, which are expected to be scheduled for February. 

The company posted a 13.5% YoY increase in revenue for Q2FY25. However, its net profit declined by 16.3% to Rs 283.5 crore due to a rise in input cost. The Trendlyne Forecaster estimates the company’s revenue to rise by 7.6% in Q3FY25 due to rising demand for commercial and domestic natural gas. Meanwhile, net profit is estimated to decline by 2.5% due to the government's reduced domestic gas allocation to city gas distributors. It appears in a screener of stocks where mutual funds have increased holdings in the past month.

Geojit highlights the company’s robust volume growth of 13.1% in Q2FY25. Regarding the volume guidance, the company’s MD, Ashu Shinghal, noted,“ In the past few quarters, we have successfully added several large-volume customers. In fact, one of our largest customers has reached its full volume. For the first half, we have achieved around 7% growth in volumes. By year-end, we expect an additional 2-3% growth, bringing us close to a double-digit increase for the year. As for next year, we'll see how it unfolds, but the momentum is definitely there.”

Geojit has upgraded to an ‘Accumulate’ rating on MGL with a target price of Rs 1,392. The brokerage expects increased demand for commercial and domestic natural gas, driven by population growth, more CNG and PNG customers, and higher CNG usage in commercial vehicles, to fuel the company's future growth. The brokerage notes that in H1FY25, CNG end-users rose to 10.4 lakh from 9.5 lakh in H1FY24, while PNG end-users grew to 17.6 lakh from 16 lakh. Price hikes and cost-cutting measures are expected to boost MGL’s margins and profitability.

3. Jubilant Foodworks:

Thisrestaurant company surged 7.7% over the past week and hit a52-week high of Rs 774.8 on Friday, following theannouncement of a memorandum of understanding (MoU) with Coca-Cola India on December 26. The agreement allows Jubilant to acquire a range of sparkling beverages and products from Coca-Cola's authorized bottlers.

The partnership with Coca-Cola was longstanding and existed for nearly 20 years (1998-2018). However, the contract was terminated during Pratik Pota's tenure as CEO, as his previous experience with Pepsi enabled him to secure a more favorable deal for Domino’s India (operated by Jubilant Foodworks) at that time. 

After a six-year collaboration with Pepsi, Jubilant FoodWorks has decided to renew its partnership with Coca-Cola, effective April 1, 2025. This decision follows the Bhartia family, promoters of Jubilant Foodworks, recentlyacquired a 40% stake in Hindustan Coca-Cola Beverages (HCCB), the largest bottling partner of Coca-Cola India, for approximately Rs 12,500 crore. 

In theH1FY25, the company opened over 139 new stores, bringing its total to 3,130 stores across six markets, including India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia. Founder and Co-chairman of Jubilant Bhartia Group, Hari Bhartia,said, “We’re doubling down on reducing delivery times from 30 minutes to 20 minutes and accelerating new store openings, expanding into new cities to capture growing demand.” Domino's India hasexpanded to 50 new cities in the past year. In the second quarter of FY25, the company added 20 cities, bringing its total presence to 447.

However, the company faces competition in the Indian food delivery market from players like Zomato, Swiggy, and Ola Foods, which could affect its market share. Additionally, Jubilant Foodworksstruggles to maintain its margins due to increasing raw material costs and rising competition. Analysts have raised concerns regarding past capital allocations, particularly with investments in DP Eurasia and Barbecue Nation, which have diverted focus from the company’s core business objectives.

Jefferies hasreiterated its ‘Buy’ rating on Jubilant Foodworks with a target price of Rs 1,000. The optimism is based on expectations for a recovery in the company's same-store sales growth (SSSG), supported by a low base effect and internal improvement measures.

4. Ashok Leyland:

This commercial vehicles manufacturer rose 6.4% over the past week after announcing a 5% YoY growth in its December 2024 wholesales to 16,957 units, led by a 7.9% growth in total domestic medium and heavy commercial vehicles (MHCV). However, cumulative sales for 2024 declined by 2% to 1.35 lakh units, compared to 1.38 lakh units in 2023.

On December 13, Ashok Leyland (ALL) announced a price hike of up to 3% on all of its commercial vehicles, effective January 2025, citing inflation and rising commodity costs. Similarly, Tata Motors also plans to raise the prices of its trucks and buses by up to 2% starting in January due to higher input costs. Analysts believe these industry-wide price hikes highlight efforts by leading players to maintain pricing discipline in the commercial vehicle segment while focusing on sustaining double-digit EBITDA margins.

The company’s share price has declined by 1.7% over the past quarter. However, it has outperformed its industry by 3.6% points. Trendlyne’s Forecaster estimates profit to increase 4.4% YoY in Q3FY25, with revenue growth of 0.6% YoY.

While discounting is standard across the industry, ALL has reduced discounts and is focusing on its medium-term goals, including a 35% market share in MHCVs, expanding non-CV businesses, and leading alternate fuel vehicles. In the LCV segment, ALL serves 50% of the addressable market and aims to grow it to 80% with new product launches.

Managing Director and CEO Shenu Agarwal said, “We aim for 80-85% participation in the LCV industry, with new product launches driving this goal. The LCV segment has higher growth potential than MHCV in terms of volume due to last-mile delivery and rural penetration.” He also highlighted the company is focusing on expanding geographically and enhancing its product portfolio to gain a better market share.

Sharekhan reiterates its ‘Buy’ rating on ALL with a target price of Rs 268, which indicates a potential upside of 14.5%. The brokerage notes that ALL is expanding its presence in new and existing international markets, aiming for annual exports of 50,000 units. The company is gaining strong traction in the bus segment and continues to secure new orders from state transportation units.

5. Maruti Suzuki India Limited (MSIL):

This car manufacturer has gained 9.5% over the past week following its monthly sales report. In December 2024, total wholesales rose 29.6% YoY to 1.8 lakh units. Maruti Suzuki’s domestic passenger vehicle (PV) sales increased by 24.2% to 1.3 lakh units. The rise is due to new launches, festive offers, and anticipated price hikes in January 2025. 

The demand for CNG models also significantly contributed to the overall numbers. Chief Investor Relations Officer Rahul Bharti stated, “MSIL saw robust customer adoption of CNG vehicles, with one in three cars sold being a CNG model. The company plans to expand its hybrid offerings and enhance its product portfolio with limited-edition launches, including the S-CNG powertrain for the Swift.” He added that the company plans to launch a high-speed electric SUV with a 60 kWh battery by early CY25, aimed at export markets such as Europe and Japan.

MSIL delivered a mixed performance in Q2FY25, with net profit dropping 17.6% while revenue slightly increased. The profit declined due to high commodity prices and higher sales promotion expenses. Recovery in overseas markets and improved realization helped the car maker post a slight revenue growth of 2.8%. Trendlyne Forecaster estimates a 7% YoY increase in revenue for Q3FY25.

ICICI Direct has maintained a ‘Hold’ rating for Maruti Suzuki, highlighting its strong position to leverage the underpenetrated PV market domestically. With ongoing capacity expansion, the brokerage anticipates a 9% CAGR in sales and a 12% CAGR in profit after tax (PAT) for MSIL over FY25-27. The stock's target price of Rs 12,450 indicates an upside potential of 4.3% from the current price.

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
03 Jan 2025
Market closes lower, KEC Intl secures Rs 1,097 crore orders in the UAE and Americas
By Trendlyne Analysis

Nifty 50 closed at 24,004.75 (-183.9, -0.8%), BSE Sensex closed at 79,223.11 (-720.6, -0.9%) while the broader Nifty 500 closed at 22,708.15 (-111.6, -0.5%). Market breadth is in the green. Of the 2,412 stocks traded today, 1,247 were in the positive territory and 1,133 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,004.8 points. The Indian volatility index, Nifty VIX, declined 1.1% and closed at 13.6 points. Yes Bank closed 1.9% higher as its deposits grew by 14.6% YoY to Rs 2.8 lakh crore, and advances rose 12.6% YoY to Rs 2.5 lakh crore in Q3FY25. The bank's CASA deposits grew by 27.6% YoY during the quarter.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, following the benchmark index. Nifty Media and BSE Oil & Gas were among the top index gainers today. According to Trendlyne’s Sector dashboard, Telecommunications Equipment emerged as the best-performing sector of the day, with a rise of 8.2%.

Asian indices closed lower, while European indices are trading in the red. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the red. The American Petroleum Institute reported a 1.4 million barrel decrease in US crude inventories last week, marking a six-week decline in stockpiles.

  • Relative strength index (RSI) indicates that stocks like Lloyds Metals & Energy, United Spirits, Coromandel International, and Lupin are in the overbought zone.

  • KEC International rises as it secures orders worth Rs 1,097 crore in its Transmission and Distribution (T&D) business. Orders include a 400 kV transmission line project in the UAE and tower supplies across the Americas.

  • Aarti Pharmalabs is falling as the Gujarat Pollution Control Board (GPCB) directs the company to stop operations at its Vapi plant due to violations of the Water (Prevention and Control of Pollution) Act, 1974.

  • Sachin Agarwal, CMD of PTC Industries, highlights the company's newly commissioned 1,500 TPA vacuum arc remelting (VAR) furnace for producing titanium alloy ingots. The company now has the largest titanium ingot producing capacity in India. He guides margins to reach 30% with revenues at Rs 750 crore in FY26 and Rs 1,700 crore in FY27.

  • NHPC receives Rs 250 crore payment under its Mega Insurance Policy, related to business interruption loss from the Teesta-V power station (510 MW) flash flood on October 4, 2023.

  • Vedanta is rising as its parent company, Vedanta Resources, reportedly plans to raise up to $1 billion to restructure and prepay high-yield debt.

  • Jai Corp falls sharply as its subsidiary, Urban Infrastructure Holding (UIHPL), sells a 74% stake in Navi Mumbai IIA to Reliance Industries for Rs 1,628 crore, valuing the company at Rs 2,200 crore. According to reports, it held a 5,286-acre industrial land parcel with significant appreciation potential.

  • According to data from the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales reached 4.2 million units in FY24, marking an 8.4% YoY growth driven by improved supplies and sustained consumer demand. Two-wheeler sales also saw a recovery, growing by over 13% to 17.9 million units.

  • KPI Green Energy's subsidiary, Sun Drops Energia, receives letters of intent (LoI) for solar power projects totaling 32.2 MW under its captive power producer business. The project is scheduled for completion in FY25-26.

  • Afcons Infrastructure rises to its all-time high of Rs 570 as it receives a letter of intent (LoI) worth Rs 1,084.5 crore from the Defence Research and Development Organisation (DRDO) to upgrade facilities and equipment at the ship lift facility in Visakhapatnam.

  • Western Carriers rises sharply as it secures a Rs 139 crore contract from Vedanta for material handling at the JSG Plant. The four year agreement covers handling of import, finished goods, and export materials.

  • ONGC rises over 4% as Jefferies maintains its 'Buy' rating with a revised target price of Rs 385. The brokerage cites a surge in oil prices amid hopes of an improvement in China's economic growth prospects and a likely ramp-up in KG Basin production in Q4FY25-Q1FY26 to be key triggers for the company's growth. It also expects the company's consolidated earnings per share to benefit from an improved earnings outlook for HPCL.

  • V2 Retail rises to a new all-time high of Rs 1,728.9 as its standalone revenue grows 58% YoY to Rs 591 crore in Q3FY25. The company adds 21 new stores during the quarter, bringing its total store count to 160.

  • Wockhardt rises to a new 5-year high of Rs 1,583 as it receives approval from the Central Drugs Standard Control Organization (CDSCO) for its new oral antibiotic, Miqnaf (Nafithromycin), to treat community-acquired bacterial pneumonia (CABP) in adults. The drug has a market size of approximately $23.5 billion.

  • RITES rises as it secures a Rs 69.8 crore contract from Steel Authority of India's (SAIL) Bhilai Steel Plant to repair 43 WDS6 locomotives over three years. Additionally, the company's arm, REMC, signs an memorandum of understanding (MoU) with Indian Railway Finance Corp (IRFC) to explore financing options for power projects supplying to Indian railways.

  • Zee Entertainment Enterprises rises over 3% as the Securities and Exchange Board of India (SEBI) rejects a settlement application filed by the company and its CEO, Punit Goenka, in connection with alleged violations of the listing obligations and disclosure requirements (LODR) regulations.

  • Adani Ports and Special Economic Zone handles 38.4 million metric tonnes (MMT) of cargo in December, led by a 22% YoY growth in the container segment. January-December cargo volumes grow 7% YoY to 332.4 MMT, driven by containers (19% YoY) and liquids & gas (8% YoY).

  • Yes Bank is rising as its deposits grow by 14.6% YoY to Rs 2.8 lakh crore, and advances increase 12.6% YoY to Rs 2.5 lakh crore in Q3FY25. The bank's CASA deposits grow by 27.6% YoY during the quarter.

  • Varun Beverages invests Rs 413 crore in its South African subsidiary, The Beverage Company (Bevco), raising its stake by 2.4%. The investment aims to reduce debt and strengthen Bevco's balance sheet for growth.

  • The Indian government forms a working group, led by NITI Aayog member Ramesh Chand, to revise the base year of the current Wholesale Price Index (WPI) from 2011-12 to 2022-23. The group will recommend a new commodity basket for the WPI and Producer Price Index, review the price collection system, and enhance its reliability. The final report is expected within 18 months.

  • AXISCADES Technologies' Chief Executive Officer & Managing Director, Arun Krishnamurthi, tenders his resignation, effective January 2, for personal reasons.

  • Avenue Supermarts surges as its standalone revenue grows 17.5% YoY to Rs 15,565.2 crore in Q3FY25. The company adds 10 new stores during the quarter, bringing its total store count to 387.

  • MOIL is rising as its Q3 sales increase 13% YoY to 3.9 lakh tonnes. The company's production rises to 4.6 lakh tonnes.

  • Hero MotoCorp's monthly wholesales decline 17.5% YoY to 3.2 lakh units in December due to lower motorcycle sales and domestic business. However, its exports grow by 90.9% YoY to 30,754 units during the month.

  • Nifty 50 was trading at 24,175.55 (-13.1, -0.1%) , BSE Sensex was trading at 80,072.99 (129.3, 0.2%) while the broader Nifty 500 was trading at 22,864.20 (44.5, 0.2%)

  • Market breadth is overwhelmingly positive. Of the 1,954 stocks traded today, 1,499 were gainers and 409 were losers.

Riding High:

Largecap and midcap gainers today include Avenue Supermarts Ltd. (4,025.20, 11.5%), Oil And Natural Gas Corporation Ltd. (258.89, 5.2%) and UPL Ltd. (529.55, 4.0%).

Downers:

Largecap and midcap losers today include Zomato Ltd. (272.85, -4.1%), Wipro Ltd. (294.45, -3.1%) and Gujarat Fluorochemicals Ltd. (4,106, -3%).

Volume Shockers

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

Top high volume gainers on BSE included Avenue Supermarts Ltd. (4,025.20, 11.5%), Lloyds Metals & Energy Ltd. (1,441.25, 7.5%) and Just Dial Ltd. (1,064.20, 5.4%).

Top high volume losers on BSE were Asahi India Glass Ltd. (730.25, -3.0%), Metropolis Healthcare Ltd. (1,997.80, -2.5%) and Deepak Nitrite Ltd. (2,452.70, -2.5%).

Quess Corp Ltd. (689.35, 3.2%) was trading at 19.1 times of weekly average. Shyam Metalics and Energy Ltd. (776.85, 4.6%) and Endurance Technologies Ltd. (2,200.95, 0.7%) were trading with volumes 14.0 and 12.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

18 stocks hit their 52 week highs, while 1 stock hit their 52 week lows.

Stocks touching their year highs included - Coromandel International Ltd. (1,956.65, 0.0%), Eicher Motors Ltd. (5,310.75, 0.1%) and Firstsource Solutions Ltd. (401.25, 1.7%).

Stock making new 52 weeks lows included - Astral Ltd. (1,621.60, -1.6%).

23 stocks climbed above their 200 day SMA including UPL Ltd. (529.55, 4.0%) and REC Ltd. (538.05, 3.8%). 10 stocks slipped below their 200 SMA including Ingersoll-Rand (India) Ltd. (4,130, -2.8%) and Balkrishna Industries Ltd. (2,818.70, -2.5%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
02 Jan 2025
Market closes higher, PNB's Q3FY25 domestic business grows 14.3% YoY to Rs 25.4 lakh crore
By Trendlyne Analysis

Nifty 50 closed at 24,188.65 (445.8, 1.9%) , BSE Sensex closed at 79,943.71 (1,436.3, 1.8%) while the broader Nifty 500 closed at 22,819.75 (338.0, 1.5%). Market breadth is in the green. Of the 2,415 stocks traded today, 1,486 were in the positive territory and 894 were negative.

Indian indices closed higher, with the benchmark Nifty 50 index closing at 24,188.7 points. The Indian volatility index, Nifty VIX, fell 5.3% and closed at 13.7 points. Eicher Motors hit a new all-time high of Rs 5,234.7 as its total sales grew 25% YoY to 79,466 units in December 2024.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. Nifty Bank and Nifty Consumer Durables closed higher. According to Trendlyne’s sector dashboard, Diversified emerged as the best-performing sector of the day, with a rise of 4.3%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading higher, indicating a positive start to the trading session. Apple plans to offer discounts on its latest iPhone models in China, a rare move highlighting rising competition from local rivals in the world’s largest smartphone market.

  • Money flow index (MFI) indicates that stocks like Lemon Tree Hotels, Coromandel International, Laurus Labs, and Lupin are in the overbought zone.

  • Punjab National Bank rises as its Q3FY25 domestic business reaches Rs 25.4 lakh crore, up 14.3% YoY. Domestic deposits grow 14.4% to Rs 14.8 lakh crore, while global deposits reach Rs 15.3 lakh crore, up 15.6% YoY.

  • TVS Motor’s total sales grow by 7% YoY to 3.2 lakh units in December. Two-wheeler sales increase 8% YoY, while three-wheelers are down 18.2% YoY. The company’s sales rise 11% YoY to 11.8 lakh units in Q3FY25.

  • Sandur Manganese & Iron Ores is rising as it secures approval from the Central Empowered Committee (CEC) of the Supreme Court of India to increase its permissible annual production (PAP) limit of iron ore from 3.8 million tonnes per annum (MTPA) to 4.4 MTPA.

  • Citi reiterates its 'Buy' rating on Bajaj Finance with a target price of Rs 8,150. The brokerage notes the positive movement in the broader finance and NBFC sector. It anticipates stable loan growth, driven by a 3-5 basis point (bps) positive bias in net interest margins (NIM).

  • HDFC Life Insurance receives a Rs 270.6 crore GST demand from the Assistant Commissioner of State Tax related to FY20-21, including both tax and interest components.

  • Indo Farm Equipment's Rs 260.2 crore IPO receives bids for 147.7X the available 84.7 lakh shares on offer on the last day of bidding. The retail investor quota gets bids for 82.7X the available 42.4 lakh shares.

  • Lloyds Metals & Energy rises to its all-time high of Rs 1,349.5 as its iron ore production rises 5% YoY to 8.6 million tonnes for 9MFY25. Direct Reduced Iron (DRI) production surges 22% YoY to 2.4 lakh tonnes.

  • Crude oil futures climb after Chinese President Xi Jinping expresses optimism for improved economic progress in 2025. China's outlook, being one of the largest crude oil consumers, has boosted prices. March Brent oil futures rise 0.3% to $74.9, while February West Texas Intermediate (WTI) crude oil futures increase 0.3% to $71.9.

  • Easy Trip Planners falls sharply as Nishant Pitti resigns as the Chief Executive Officer (CEO) of the company. The board appoints Rikant Pittie as his successor, effective January 1.

  • Vishnu Prakash R Punglia is rising as it receives a letter of intent (LoI) worth Rs 3,134 crore from the Department of Information Technology and Communication, Government of Rajasthan. The project involves elevating the academic blocks of Fintech Digital Institute, Jodhpur.

  • Eicher Motors rises to a new all-time high of Rs 5,234.7 as its total sales grow by 25% YoY to 79,466 units in December. Domestic vehicle sales increase 19% YoY, while exports are up 90% YoY.

  • India’s manufacturing PMI declines marginally to a year-low of 56.4 in December, compared to 56.5 in November, driven by softer demand in the sector despite easing cost pressures and strong job growth.

  • Waaree Energies secures a 150 MWp solar module supply order from a major renewable energy firm. The module supply is scheduled to commence in FY25-26.

  • Ashok Leyland rises sharply as its total sales rise 5% YoY to 16,957 units in December 2024. Its medium and heavy commercial vehicles' sales increase 7.9% YoY, while light commercial vehicles' sales grow marginally by 0.7% YoY.

  • Mahindra & Mahindra is rising as its wholesales grow by 16% YoY to 69,768 units in December. Passenger vehicle sales increase 18% YoY, while exports are up 70% YoY.

  • Jefferies upgrades Jubilant Foodworks to a 'Buy' rating and revises its target price to Rs 1,000. The brokerage maintains a positive outlook, highlighting improvements in same-store sales growth (SSSG) and strategic self-help measures. It notes the company's margins bottomed out in early CY24 and expects further improvement. The management's focus on growth over margins supports a strong long-term strategy.

  • Va Tech Wabag secures a Rs 145 crore order from Chennai Petroleum Corp (CPCL) to design, install, and commission desalination water pipelines between CPCL’s Manali Refinery and Kattupalli plant. The project is scheduled for completion in 12 months.

  • South Indian Bank is rising as its deposits grow by 6.3% YoY to around Rs 1.1 lakh crore in Q3FY25. The bank's advances also increase 11.9%, while its CASA ratio declines by 64 bps YoY.

  • RailTel Corporation of India is rising as it receives a work order worth Rs 78.4 crore from Bharat Coking Coal to implement an integrated IT-based security infrastructure and related services.

  • According to data from the National Payments Corporation of India (NPCI), digital transactions maintain their growth in December 2024, as UPI (unified payments interface) transactions rise 8% MoM to reach a record 1,673 crore. The value of transactions also increases by 8%, reaching Rs 23.3 lakh crore, up from Rs 21.6 lakh crore in November.

  • Ambuja Cements is rising as it receives a ‘no objection’ letter from the National Stock Exchange (NSE) and BSE for its merger with Adani Cementation.

  • Maruti Suzuki is rising as its wholesales grow by 29.6% YoY to 1.8 lakh units in December. Passenger vehicle sales increase 24.2% YoY, while exports are up 39.2% YoY.

  • Tata Motors' total sales grow marginally YoY to 2.4 lakh vehicles in Q3FY25. Passenger vehicle sales increase 1% YoY, while commercial vehicles sales decline by 1% YoY.

  • NMDC's total sales decline 6.7% YoY to 3.9 million tonnes (MT) in December. However, its production grows by 5.1% YoY to 4.7 MT.

  • Nifty 50 was trading at 23,788.85 (46.0, 0.2%) , BSE Sensex was trading at 78,657.52 (150.1, 0.2%) while the broader Nifty 500 was trading at 22,511.50 (29.7, 0.1%)

  • Market breadth is overwhelmingly positive. Of the 1,959 stocks traded today, 1,315 were gainers and 611 were losers.

Riding High:

Largecap and midcap gainers today include Eicher Motors Ltd. (5,308.10, 8.7%), Bajaj Finserv Ltd. (1,700.65, 7.9%) and Cholamandalam Investment & Finance Company Ltd. (1,271.50, 7.4%).

Downers:

Largecap and midcap losers today include Petronet LNG Ltd. (327.75, -5.7%), Suzlon Energy Ltd. (62.92, -3.7%) and Adani Total Gas Ltd. (734.45, -2.1%).

Volume Shockers

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

Top high volume gainers on BSE included Eicher Motors Ltd. (5,308.10, 8.7%), Bajaj Finserv Ltd. (1,700.65, 7.9%) and Cholamandalam Financial Holdings Ltd. (1,504.80, 7.5%).

Top high volume losers on BSE were Petronet LNG Ltd. (327.75, -5.7%), FDC Ltd. (508, -0.6%) and Tata Elxsi Ltd. (6,705.25, -0.6%).

Varroc Engineering Ltd. (633.50, 6.1%) was trading at 22.7 times of weekly average. CreditAccess Grameen Ltd. (954.65, 7.2%) and Zensar Technologies Ltd. (793.10, 6.1%) were trading with volumes 16.2 and 15.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

17 stocks overperformed with 52 week highs,

Stocks touching their year highs included - Coromandel International Ltd. (1,952.65, 1.2%), Eicher Motors Ltd. (5,308.10, 8.7%) and Firstsource Solutions Ltd. (394.50, 2.8%).

26 stocks climbed above their 200 day SMA including Bajaj Finserv Ltd. (1,700.65, 7.9%) and Cholamandalam Financial Holdings Ltd. (1,504.80, 7.5%). 5 stocks slipped below their 200 SMA including Petronet LNG Ltd. (327.75, -5.7%) and Crompton Greaves Consumer Electricals Ltd. (372.05, -0.9%).

 
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The Baseline
31 Dec 2024
By Aditi Priya

As 2024 ends, the benchmark indices, Sensex and Nifty 50, are set to finish the year with single-digit gains. The Sensex has gained 8.2% over the year, while the Nifty has risen 8.8%. 

The year saw major milestones: the Sensex hit a record high of 85,978.3 and the Nifty reached a record of 26,277.4 on September 27. However, the year's final quarter has seen a downturn for the indices with the Nifty 50 declining by 8.7% and the Sensex falling by 9.7%.

ICICI Direct said, “In the journey of Nifty to 50,000 by CY30, the index has achieved the milestone of 24,800 for CY24. Our analysis indicates that the stage is set for the next up move towards 28,800 levels in CY25.”

But a continued rise for the Indian indices depends on whether company earnings can justify current and future valuations. The September quarter was disappointing for many sectors. Now as the next earnings season approaches, we look at turnaround companies that analysts say are poised for a financial recovery in Q3FY25. These companies underperformed in revenue or net profit in Q2FY25, but are expected to show a stronger performance in Q3FY25.

In this chart of the week edition, we highlight these comeback kids, the companies which delivered disappointing results in Q2FY25 but are forecast to rebound in the upcoming quarter.

Bharat Dynamics and Prestige Estates lead the turnaround charge

Bharat Dynamics, a leading defense company, is expected to see a 102.8% YoY revenue growth in Q3FY25, rebounding from an 11.5% and 16.7% YoY decline in revenue and net profit, respectively in Q2FY25. The ongoing Russia-Ukraine war and Middle East conflicts caused supply chain delays, affecting Q2 performance.

The company’s 68.3% EPS growth forecast signals a strong recovery in profitability. As the sole manufacturer of missiles and torpedoes for the Indian military, Bharat Dynamics benefits from both domestic and export opportunities. While recent order delays have affected performance, Elara Securities remains optimistic about a surge in orders driven by upcoming defense capital expenditures.

Despite a challenging Q2FY25, Prestige Estates is expected to perform strongly in Q3FY25, with a forecast of 56.6% YoY revenue growth and a 165.2% YoY EPS increase. This turnaround is driven by the expected recovery in demand across the residential and commercial real estate segments. The company is also accelerating new launches in key markets such as Mumbai, Chennai, Bengaluru, Hyderabad, and NCR, following delays due to RERA (Real Estate Regulatory Authority) approval processes. Many of these projects, originally planned for earlier, are now slated for Q3FY25. Prestige Estates has also outlined plans to launch projects with a total Gross Development Value (GDV) of Rs 520 billion in H2FY25.

General industrials and consumer durable sectors expected to recover

The turnaround screener has the maximum number of companies (8 out of 42) from the general industrials sector. Several companies from the sector are expected to make significant turnarounds in Q3FY25. Companies like CG Power & Industrial, Grindwell Norton, and Timken stand out with positive forecasts. 

CG Power & Industrial is expected to see a 40.2% rise in net profit in Q3FY25, despite an 8.8% decline in Q2FY25. The decline was due to higher material costs and other expenses. The company, which specializes in electrical equipment, automation, and industrial solutions, has a strong order book of Rs 7,831 crore. In November, it won a Rs 500-600 crore order for the Kavach train protection system from Chittaranjan Locomotive Works, with execution expected within a year.

Grindwell Norton, which saw a modest 4% YoY revenue growth and a 4.7% decline in net profit in Q2FY25, is projected to post a 15.8% YoY revenue growth and 18.7% YoY EPS growth in Q3FY25. The company's performance in Q2 was impacted by margin declines in the ceramics & plastics and digital services segments, along with lower-than-expected growth in the abrasives segment. In H1FY25, the abrasives segment grew 5.5% YoY to Rs 350 crore, accounting for nearly 50% of total revenue of Rs 710 crore. Moving forward, growth in the abrasives segment is set to be driven by opportunities in solar glass edge grinding, increased demand for high-productivity solutions in steel and construction, and the expansion of non-woven products into new market segments. 

Similarly, companies from the consumer durables sector are expected to deliver positive results in the upcoming quarter. Finolex Cables is expected to recover in Q3FY25 with 11.6% YoY revenue growth and 7.8% EPS growth. In Q2FY25, net profit declined by 23.5% due to volatility in input prices, inventory loss, and destocking. However, stable input costs, improving margins and higher volumes are expected to drive growth in the upcoming quarter. Strong demand from the real estate sector and increased government spending are expected to boost wire and power cable volumes. 

Kajaria Ceramics, India’s largest ceramic and vitrified tile manufacturer, expects a positive Q3FY25 with 10.5% revenue growth and 12.2% EPS growth after weak Q2FY25 results. Strong domestic demand, driven by the realty sector and growing exports, is expected to support its recovery. 

Honeywell Automation faced challenges in Q2FY25, with a 5.6% decline in net profit due to weak execution, softer demand, and accounting changes. However, Q3FY25 looks promising, with EPS forecast to grow by 26.2%. The company should benefit from the government's focus on infrastructure sectors like oil, gas, power, and metals. Its emphasis on industrial digitalization, automation, and sustainability is expected to drive long-term growth, aiming to outpace GDP domestically.

Strong rebound in consumer-facing companies

Jubilant Foodworks is expected to achieve 50.3% revenue growth and 48% EPS growth in Q3FY25, recovering from a 34.1% YoY net profit decline in Q2FY25 due to higher tech investments and supply chain upgrades. The company also holds the master franchise for Domino’s India. Domino's added 50 stores and entered 20 new cities in Q2, with expansion efforts set to further boost customer reach and market share.

Westlife Foodworld reported a 98.4% drop in Q2 net profit, driven by higher expenses, subdued in-store business and rising inflation, which affected consumption outside the home and intensified competition. However, the company, analysts predict, will achieve 30.9% EPS growth in Q3FY25. Despite near-term challenges like lower on-premise sales, the company is expected to perform well in Q3 due to the festive season and new menu offerings. Management expects gross margins to rebound to over 70% in H2FY25, targeting 18-20% EBITDA margins by 2027.

Dabur reported a 5.5% revenue decline and a 17.5% net profit drop in Q2FY25, impacted by inventory corrections. Commenting on Q2 results, the company's CEO, Mohit Malhotra, stated, “The inventory correction is an exceptional one-time event. Dabur's business fundamentals remain strong, with our 5-year revenue CAGR for the India business growing at over 8%.” The forecast for Q3FY25 indicates a recovery with 5.7% revenue growth and 0.9% EPS growth. The acquisition of Sesa Care in October is expected to strengthen Dabur's position in the premium Ayurvedic hair oil segment.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
31 Dec 2024
Market closes flat, MedPlus Health's arm gets temporary suspension of drug licenses in Karnataka & Maharashtra
By Trendlyne Analysis

Nifty 50 closed at 23,644.80 (-0.1, 0%) , BSE Sensex closed at 78,139.01 (-109.1, -0.1%) while the broader Nifty 500 closed at 22,375.40 (18.3, 0.1%). Market breadth is in the green. Of the 2,394 stocks traded today, 1,488 were gainers and 874 were losers.

Nifty 50 closed flat after paring losses from the morning session. The Indian volatility index, Nifty VIX, rose 3.4% and closed at 14.4 points. Waaree Renewable Technologies surged to its 5% upper limit as it secured a 2 GW solar project from Sunbreeze Renewables Nine, Jindal Renewables' special purpose vehicle (SPV).

Nifty Smallcap 100 closed in the green, while Nifty Midcap 100 closed flat. S&P BSE SME IPO and Nifty CPSE Index were among the top index gainers today. According to Trendlyne’s sector dashboard, Forest Materials emerged as the top-performing sector of the day, with a rise of 2.7%.

Asian indices closed mixed. European indices are trading mixed. US index futures are trading in the green, indicating a positive start to the trading session. Brent crude oil futures are trading higher, driven by data indicating an expansion in China’s manufacturing sector in December.

  • Relative strength index (RSI) indicates that stocks like Aster DM Healthcare, Indian Hotels Co, and United Spirits are in the overbought zone.

  • Chemical companies like Tata Chemicals and GHCL rise sharply after the Centre imposes a minimum import price of Rs 20,108 per tonne on disodium carbonate (soda ash) up to June 30,2025.

  • MedPlus Health Services declines after its subsidiary, Optival Health Solutions, experiences temporary suspensions of drug licenses for several stores in Karnataka and Maharashtra by the Food & Drugs Control Administration.

  • ITD Cementation India is rising as it reportedly secures a contract worth Rs 1,648 crore for the Vadhvan Port project in Maharashtra. The project includes near-shore reclamation and shore protection works under an engineering, procurement, and construction (EPC) model.

  • Satish Wagh, Chairman and Whole-Time Director of Supriya Lifescience, announces the launch of the company’s new manufacturing block with a capacity of 575 kilolitres per day. With an investment of Rs 120 crore, the facility will produce unique products currently dominated by Chinese manufacturers. He also reaffirms his revenue growth guidance of 22% YoY for both CY24 and CY25.

  • Mahindra Lifespace Developers (MLDL) is rising as it invests Rs 126 crore in its step-down subsidiary Mahindra Industrial Park Chennai (MIPCL) to expand the existing industrial park in Tamil Nadu.

  • Indo Farm Equipment's Rs 260.2 crore IPO receives bids for 10X the available 84.7 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 13.1X the available 42.4 lakh shares.

  • Waaree Renewable Technologies rises to its 5% upper limit as it secures a 2 GW solar project from Sunbreeze Renewables Nine, Jindal Renewables' special purpose vehicle (SPV). The project, located in Bikaner, Rajasthan, aims to improve energy efficiency and maximize power generation. Waaree will manage the design, engineering, procurement, supply, construction, testing, and commissioning of the solar PV project.

  • ITC plans to transfer cash worth Rs 1,500 crore to its demerged hotel business, ITC Hotels, which will take effect from January 1. The newly formed ITC Hotels will invest in renovations and ongoing projects, allocating 8-10% of its revenue for capital expenditures. ITC will retain trademarks for its iconic hotel restaurants, including Bukhara, Dum Pukht, and Dakshin, and transfer them to ITC Hotels under a trademark license agreement.

  • KP Green Energy wins multiple orders relating to solar & energy projects along with power components worth Rs 165.7 crore.

  • IT stocks like Tata Consultancy Services, Infosys, HCL Technologies, Wipro, and LTIMindtree are falling in trade. All constituents of the broader Nifty IT index are also trading in the red.

  • Jubilant Ingrevia is rising as its wholly-owned subsidiary, Jubilant Infrastructure's board, approves acquiring a 6.7% stake in Forum I Aviation (FAPL) from Hero Fincorp and Sunil Kant Munjal. Post-acquisition, the company will hold a 15.8% stake in FAPL.

  • India's Defence Minister, Rajnath Singh, highlights the surge in defence exports to a record Rs 21,000 crore, up from Rs 2,000 crore a decade ago. He has set a target of Rs 50,000 crore by 2029. Singh underlines the evolving nature of warfare, emphasizing challenges such as information warfare, AI-driven tactics, proxy conflicts, electromagnetic warfare, space warfare, and cyber-attacks while stressing the need for a well-prepared and equipped military.

  • Adani Green Energy is falling as its Chief Executive Officer (CEO), Amit Singh, resigns effective March 31. The company appoints Ashish Khanna, CEO of the International Energy Business, as his successor.

  • Prataap Snacks is falling as it faces disruption following a major fire at its manufacturing facility in Kartholi, Jammu. The company has announced its collaboration with third-party manufacturers in Hisar and Karnal to cater to the northern market.

  • Clean Science & Technology is rising as its wholly-owned subsidiary, Clean Fino-Chem (CFCL), commences commercial production of 2,5-Dihydroxy-1,4-Dithiane (DHDT) in a dedicated production block.

  • Ather Energy, the electric two-wheeler maker, gets its final approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The IPO will consist of a fresh issue of equity shares worth Rs 3,100 crore and an offer-for-sale (OFS) of 2.2 crore equity shares by promoters and investors.

  • Gokul Agro Resources is rising as it acquires fixed assets of an edible oil refinery in Mangalore from Sri Anagha Refineries for Rs 105.5 crore. This acquisition aims to increase the market presence in Southern India.

  • Easy Trip Planners falls sharply as 3.4 crore shares (1% stake) worth approximately Rs 54 crore reportedly change hands in a block deal at an average price of Rs 15.5 per share. Co-founder Nishant Pitti is likely the seller in the transaction.

  • Lupin hits a new all-time high of Rs 2,342.6 as it announces the acquisition of Huminsulin in India from Eli Lilly and Co to enhance its diabetes portfolio. Huminsulin is used to treat type 1 and type 2 diabetes mellitus and improve blood sugar control in adults and children.

  • Nuvama maintains a 'Buy' rating on Jindal Steel & Power with a target price of Rs 1,292. The brokerage believes Q4FY25 looks promising due to higher steel prices and increased volumes. However, it has lowered its FY25 and FY26 EBITDA estimates by 6% and 4%, respectively, due to weaker-than-expected volumes in the near term. Despite this, Nuvama remains positive about JSPL’s medium to long term growth prospects.

  • Unimech Aerospace and Manufacturing’s shares debut on the bourses at an 86% premium to the issue price of Rs 1,460. The Rs 500 crore IPO received bids for 175.3 times the total shares on offer.

  • Rail Vikas Nigam is rising as it emerges as the lowest bidder for a Rs 137.2 crore order from Central Railway. The project involves building a traction substation and related systems in the Bhusaval-Khandwa section to meet the 3,000 metric tonnes loading target.

  • Adani Wilmar is falling as Adani Enterprises (AEL) announces the sale of its entire 44% stake in the joint venture to partner Wilmar International for $2 billion.

  • Mazagon Dock Shipbuilders rises sharply as it signs a contract worth Rs 1,990 crore with the Ministry of Defence. The contract involves building an air-independent propulsion (AIP) plug for submarines, a technology that enables submarines to stay underwater for longer.

  • Markets opened on a low note. Nifty 50 was trading at 23,554.75 (-90.2, -0.4%) , BSE Sensex was trading at 77,826.94 (-421.2, -0.5%) while the broader Nifty 500 was trading at 22,273.95 (-83.2, -0.4%)

  • Market breadth is holding steady. Of the 1,930 stocks traded today, 984 showed gains, and 905 showed losses.

Riding High:

Largecap and midcap gainers today include Torrent Power Ltd. (1,485.95, 5.4%), Rail Vikas Nigam Ltd. (422.70, 3.5%) and UCO Bank (43.87, 3.5%).

Downers:

Largecap and midcap losers today include Adani Wilmar Ltd. (308.05, -6.3%), Bajaj Holdings & Investment Ltd. (11,886.75, -5.9%) and Bharti Hexacom Ltd. (1,456.90, -4.1%).

Volume Shockers

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

Top high volume gainers on BSE included KIOCL Ltd. (400.30, 16.6%), Rites Ltd. (291.65, 9.2%) and Crisil Ltd. (6,448, 7.6%).

Top high volume losers on BSE were Easy Trip Planners Ltd. (15.86, -6.9%), Westlife Foodworld Ltd. (792.45, -3.0%) and Krishna Institute of Medical Sciences Ltd. (598, -0.8%).

Chennai Petroleum Corporation Ltd. (625.80, 5.7%) was trading at 22.5 times of weekly average. Concord Biotech Ltd. (2,210.75, 0.8%) and Redington Ltd. (200.07, 6.5%) were trading with volumes 19.5 and 18.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

8 stocks took off, crossing 52 week highs, while 6 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Crisil Ltd. (6,448, 7.6%), Lupin Ltd. (2,355.70, 1.9%) and Muthoot Finance Ltd. (2,136.15, 1.7%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,652.25, -0.5%) and Relaxo Footwears Ltd. (621.25, 0.0%).

21 stocks climbed above their 200 day SMA including Godfrey Phillips India Ltd. (5,227.70, 8.5%) and Redington Ltd. (200.07, 6.5%). 19 stocks slipped below their 200 SMA including Phoenix Mills Ltd. (1,634, -2.1%) and Tata Consultancy Services Ltd. (4,094.80, -1.5%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
30 Dec 2024
Market closes lower, Reliance Ind's arm acquires healthcare platform Karkinos for Rs 375 crore
By Trendlyne Analysis

Nifty 50 closed at 23,644.90 (-168.5, -0.7%) , BSE Sensex closed at 78,248.13 (-450.9, -0.6%) while the broader Nifty 500 closed at 22,357.15 (-88.1, -0.4%). Market breadth is highly negative. Of the 2,438 stocks traded today, 771 were in the positive territory and 1,628 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 23,644.9 points. The Indian volatility index, Nifty VIX, rose 5.6% and closed at 13.9 points. The Government of India waived off financial bank guarantees for spectrum acquired by telecom players in previous years. The waiver will apply to guarantees from 2012, 2014, 2015, 2016, and 2021.

Nifty Smallcap 100 closed in the red, while Nifty Midcap 100 closed in the green. Nifty Midcap Select and Nifty MidSmall Healthcare were among the top index gainers today. According to Trendlyne’s Sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 5.6%.

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. Brent crude oil futures are trading in the red. Goldman Sachs forecasts that the Federal Reserve will implement a 25 basis point interest rate cut in March 2025, followed by two more cuts of the same size in June and September.

  • Money flow index (MFI) indicates that stocks like Five-Star Business Finance, Dr. Reddy's Laboratories, Devyani International, and PTC Industries are in the overbought zone.

  • The Income Tax Appellate Tribunal (ITAT) disposes of a penalty order worth Rs 172.8 crore against Suzlon Energy. The company received an order from the Office of the National Faceless Assessment Centre, Income Tax Department, for FY15-16 and FY16-17 in March 2024.

  • Reliance Industries' wholly-owned subsidiary, Reliance Strategic Business Ventures (RSBVL), acquires oncology-focused healthcare platform Karkinos for Rs 375 crore.

  • Vakrangee is rising as it partners with Shriram Life Insurance to offer comprehensive life insurance products through its Vakrangee Kendra network nationwide.

  • Ventura initiates a 'Buy' rating on Adani Enterprises with a target price of Rs 3,801. The brokerage notes that AEL aims to invest Rs 6.5-7 lakh crore in capex over the next decade for expansion into airports, data centers, copper, and green H2. It also raised Rs 4,200 crore in Q2FY25 through a QIP, with strong participation from both domestic and international investors, and Rs 800 crore via its first public NCD issuance.

  • Gujarat Fluorochemicals falls sharply following a gas leak incident at its CMS-1 plant in Dahej, Gujarat. The mishap has resulted in the loss of four lives, including one employee and three contractual workers.

  • Deep Industries' board of directors approves raising funds worth up to Rs 350 crore through a qualified institutional placement (QIP) of equity shares.

  • Utkarsh Small Finance Bank is rising as it sells its written-off loans portfolio and non-performing assets (NPAs) worth Rs 355 crore to an asset reconstruction company (ARC) for Rs 52 crore.

  • Cigniti Technologies' board of directors approves its merger with and into Coforge. Following the merger, Cigniti shareholders will receive one equity share of Coforge for every five shares they hold in the company.

  • Universal Autofoundry declines after Ashish Kacholia sells a 2.5% stake (3.1 lakh shares) in the company through a bulk deal. The transaction was executed at an average price of Rs 98 per share.

  • Prestige Estates Projects enters a business transfer agreement (BTA) to transfer its three hospitality business undertakings to its wholly-owned subsidiary, Prestige Hospitality Ventures, for Rs 313 crore.

  • Aether Industries is rising as it commissions a 15 MW solar power project. The project, developed under the Captive Power Producer (CPP) model, was executed by KPIG Energia, a subsidiary of KPI Green Energy.

  • Anil Gupta, Chairman & Managing Director of KEI Industries, highlights that the company is undergoing massive capex. He mentions that Phase 1 of their Sanand project is expected to be commissioned in June 2025, with full completion by March 2026. The Sanand project will lead to a 65-70% increase in capital expenditure, factoring in additional investments. He also reiterates the 15-17% revenue growth guidance and EBITDA margin guidance of 10.5-11% for FY25.

  • NAVA’s board sets January 20 as the record date for its stock split, dividing one equity share of face value of Rs 2 each fully paid up into two equity shares of Rs 1 each.

  • KEC International enters a business transfer agreement (BTA) to transfer its cables business through a slump sale to its subsidiary, KEC Asian Cables, in a transaction valued at Rs 125 crore.

  • Vodafone Idea is rising as the Government of India waives financial bank guarantees for spectrum acquired in previous years. The waiver applies to guarantees from 2012, 2014, 2015, 2016, and 2021. The company owed Rs 24,800 crore for each spectrum.

  • A BankBazaar report indicates a surge in India's gold loans by 56% YoY in 2024, surpassing the 18% growth in home loans. George Alexander Muthoot, Managing Director of Muthoot Finance, highlights that gold loans promote financial inclusion, providing credit access to individuals without a credit history. The company reported consolidated loan assets under management of Rs 1 lakh crore in 2024.

  • Senores Pharmaceuticals’ shares debut on the bourses at a 53.5% premium to the issue price of Rs 391. The Rs 582.1 crore IPO received bids for 93.4 times the total shares on offer.

  • Carraro India’s shares debut on the bourses at a 7.5% discount to the issue price of Rs 704. The Rs 1,250 crore IPO received bids for 1.1 times the total shares on offer.

  • Ventive Hospitality’s shares debut on the bourses at an 11.4% premium to the issue price of Rs 643. The Rs 1,600 crore IPO received bids for 9.8 times the total shares on offer.

  • Sharekhan maintains a 'Buy' rating on HDFC Bank and revises its target price to Rs 2,100. The brokerage notes the bank is preparing for a transition and finds the risk-reward profile of the stock appealing. It also highlights the bank is focused on increasing retail deposit mobilization while partially reducing its loan portfolio, as it aims to lower its loan-to-deposit ratio (LDR) more quickly to a normalized level of 85-87%.

  • Shakti Pumps (India) is rising as its board of directors schedules a meeting for January 7 to consider a proposal to raise funds via a qualified institutional placement (QIP) of equity shares.

  • IOL Chemicals and Pharmaceuticals is rising as its board of directors approves the stock split of one equity share with a face value of Rs 10, fully paid up, into five equity shares of Rs 2 each.

  • JSW Energy is rising as its wholly-owned subsidiary, JSW Neo Energy, signs an agreement to acquire O2 Power, a renewable energy platform with a capacity of 4,696 MW, at an enterprise value of Rs 12,468 crore.

  • Hero MotoCorp extends its partnership with Harley-Davidson Motor to introduce new variants of the Harley-Davidson X440 and develop a new motorcycle.

  • Nifty 50 was trading at 23,802 (-11.4, -0.1%) , BSE Sensex was trading at 78,637.58 (-61.5, -0.1%) while the broader Nifty 500 was trading at 22,434.65 (-10.6, -0.1%)

  • Market breadth is in the red. Of the 2,011 stocks traded today, 923 were on the uptick, and 1,023 were down.

Riding High:

Largecap and midcap gainers today include Bajaj Holdings & Investment Ltd. (12,630.80, 11.8%), Indian Renewable Energy Development Agency Ltd. (218.47, 10.9%) and Adani Total Gas Ltd. (751.15, 10.6%).

Downers:

Largecap and midcap losers today include Thermax Ltd. (3,913.10, -10.8%), Jindal Stainless Ltd. (686.90, -6.7%) and Solar Industries India Ltd. (9,527.35, -6.4%).

Movers and Shakers

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

Top high volume gainers on BSE included ITI Ltd. (379.20, 15.5%), AstraZeneca Pharma India Ltd. (7,337.20, 15.4%) and Bajaj Holdings & Investment Ltd. (12,630.80, 11.8%).

Top high volume losers on BSE were Thermax Ltd. (3,913.10, -10.8%), Balaji Amines Ltd. (1,743.95, -10.3%) and Redington Ltd. (187.93, -7.2%).

Happiest Minds Technologies Ltd. (749.70, 7.0%) was trading at 36.8 times of weekly average. Cera Sanitaryware Ltd. (7,684.95, 6.8%) and CreditAccess Grameen Ltd. (909.25, 8.3%) were trading with volumes 22.3 and 15.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

15 stocks hit their 52 week highs, while 11 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Bajaj Holdings & Investment Ltd. (12,630.80, 11.8%), Coromandel International Ltd. (1,868.95, 1.2%) and Crisil Ltd. (5,992.45, 7.3%).

Stocks making new 52 weeks lows included - Astral Ltd. (1,660.70, 0.4%) and Berger Paints (India) Ltd. (447, 1.1%).

15 stocks climbed above their 200 day SMA including AstraZeneca Pharma India Ltd. (7,337.20, 15.4%) and Indian Renewable Energy Development Agency Ltd. (218.47, 10.9%). 28 stocks slipped below their 200 SMA including Godfrey Phillips India Ltd. (4,819.70, -8.5%) and Jindal Stainless Ltd. (686.90, -6.7%).

 
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The Baseline
27 Dec 2024
Five Interesting Stocks Today - December 27, 2024
By Trendlyne Analysis

1. InterGlobe Aviation:

This airlines company has risen by 5.6% over the past week, and gained around 64.5% from its 52-week low of Rs 2,847. This comes after Elara Securities upgraded its rating to ‘Buy’ from ‘Sell’ and raised the target price to Rs 5,309, while highlighting that the company will be a key beneficiary of the growth in India's aviation sector. The average target from analysts on the company according to Trendlyne’s Forecaster is Rs 4,913. 

IndiGo carried 90.7 lakh passengers during November, with its market share increasing to a dominant 63.6%, according to data from the Directorate General of Civil Aviation (DGCA). The company targets to fly around 11.2 crore passengers in 2024, surpassing its previous record of over 10 crore last year. India's air travel industry is witnessing rapid growth, driven by rising domestic and international passenger traffic. In the January to November 2024 period, Indian airline companies carried 14.6 crore passengers, a 5.9% YoY growth. 

To meet the growing demand in India’s air travel market, IndiGo is exploring advancing its aircraft rental agreements to February. In April, the company announced an order for 30 wide-body Airbus A350-900 aircraft, with deliveries starting in 2027, and 69 A321XLR aircraft expected in 2025. However, the company stated that it won’t wait until 2027 to introduce these planes. Commenting on this, Pieter Elbers, the CEO said, “To meet the rising demand for international and domestic travel to and from India and considering global supply chain challenges, IndiGo is exploring interim solutions for an earlier induction of long-range aircraft”.

India’s aviation space is projected to grow at a 12% CAGR from FY25-28, driven by capacity expansion and new infrastructure, including new airports in Delhi and Mumbai by April 2025 and terminal upgrades in Bengaluru, Chennai, and Ahmedabad. Elara Securities believes IndiGo is well-positioned to benefit from these tailwinds. According to Trendlyne’s Forecaster estimates, the airline’s revenue is expected to grow by 28.5% YoY in Q3FY25. 

2. Dr. Reddy's Laboratories:

Thispharmaceuticals company surged 3.9% on December 19 after Nomuraupgraded Dr. Reddy's Laboratories’ rating to ‘Buy’ from ‘Neutral.’ The brokerage set a target price of Rs 1,500 per share based on the company’s growth potential and investments in emerging markets and key therapeutic areas.

On November 28, the companylaunched Toripalimab, the first and only approved drug in India for nasopharyngeal carcinoma, a rare throat cancer. This drug, marketed under the brand name Zytorvi, works alongside chemotherapy to enhance the immune system's ability to fight the disease. This treatment is only available in a few countries, including India.

InQ2FY25 the company reported a revenue growth of 15.6% YoY to Rs 8,345.7 crore, driven by a 17.2% increase in sales from the pharmaceutical services & active ingredients segment, and a 16.3% rise in the global generics segment. However, net profit declined 15.3% YoY to Rs 1,255.7 crore during the quarter, due to the acquisition of Haleon’s global portfolio of consumer healthcare brands in Nicotine Replacement Therapy.

Dr. Reddy's has significantly increased its investments in manufacturing infrastructure, with capital expenditure (capex) expected toexceed Rs 2,500 crore in FY25. This is more than double the average annual capex of Rs 1,100 crore over the past five years. The increase is primarily for API capacity expansion, particularly for peptide products, including weight loss GLP-1 drugs. CFO M V Narasimhan,said, “We are developing a robust pipeline of small molecules, biosimilars and novel oncology assets, through internal and collaborative efforts, to drive future growth.”

Nomura believes the company is focusing on wellness and unique products, reducing its reliance on traditional therapies that currently make up 41% of sales. This shift is expected to strengthen its product range and improve its position in the market.

3. UPL:

This agrochemicals company has fallen by over 3% in the past week. On December 20th, the company raised Rs 3,376 crore through a rights issue at a price of Rs 360 per share. On December 1st, the company completed the transfer of its Specialty Chemical business by way of a slump sale to its wholly-owned subsidiary, Superform Chemistries.

UPL had posted a nominal 9% YoY increase in revenue for Q2FY25. However, its net loss rose to Rs 443 crore due to a jump in net debt and pricing pressure. Trendlyne Forecaster estimates the company’s revenue to rise by 38% in Q3FY25. Meanwhile, analysts from Sharekhan highlight rising food grain production, favorable regulatory reforms for farmers, and significant opportunities from off-patent products as positives for the company. It appears in a screener of stocks with the highest FII stock holdings.

The outlook however, is mixed – company’s management anticipates a slowdown in volume growth during the second half of the year, with expected growth in the mid-single digits, down from 18% in H1. Anand Vohra, CFO of the company, notes, “We continue to maintain our revenue guidance of 4-8% for FY25, driven by an increase in our differentiated product sales and recovery in the US market.” Commenting on the overall agrochemical space, the company’s CEO, Mike Frank, says, “Price pressure continues to weigh on the overall market, partly due to overcapacity issues in China and tight grower margins, specifically in global row crops. However, we continue to perform well in maintaining and growing our market share in most regions.”

Sharekhan has maintained its ‘Hold’ rating on UPL with a target price of Rs 584. The brokerage observes that high channel inventory and pricing pressures, coupled with increasing Chinese supply, will pose growth challenges for both global and domestic agrochemical companies. It anticipates that the demand recovery for the company is expected to be gradual in North America, Europe, and Brazil, with a quicker rebound in Asia. Given these industry challenges, the brokerage anticipates that earnings concerns for UPL will continue in the near term, with a recovery expected in FY25.

4. Akums Drugs & Pharmaceuticals:

This pharma company, which went public in August 2024, gained 19.2% last week after signing a long-term agreement with a leading global pharmaceutical firm to manufacture and supply oral liquid formulations for the European market. The total deal is valued at approximately €200 million (Rs 1,760 crore), including an upfront payment of €100 million (Rs 880 crore) for product development and site approval.

Akums is set to begin the commercial supply of these products in 2027, continuing through 2032. The company also plans to seek European approvals for its oral liquid site, which it aims to utilize for manufacturing these products.

Akums Drugs reported mixed Q2FY25 results, with a 105% YoY increase in net profit to Rs 65.2 crore, despite an 11.9% YoY decline in revenue due to muted volume demand and lower active pharmaceutical ingredient (API) prices. The company operates in three main segments - contract development and manufacturing operations (CDMO), active pharmaceutical ingredients (API), and branded and generic formulations. CDMO led the performance, contributing 79% of Q2 revenue, followed by branded and generic formulations at 16%, and API accounting for 5%.

On November 19, Akums also announced that it had signed an exclusive Master Sales Agreement with Caregen Ltd., a South Korean company in the nutraceuticals segment. Under the agreement, Akums obtained exclusive rights to market specific Caregen products in India.

Sandeep Jain, Managing Director of Akums stated, “Looking ahead, we anticipate demand trends in the second half to remain largely similar to the first half. There is potential for upside if API prices improve and industry volumes pick up, but that remains uncertain.” He believes that either in Q3 or Q4, API prices to at least average out or normalize, which should positively impact their revenue cycle.

5. Bharat Petroleum Corp:

This oil exploration and production company rose 1% on December 24 following two developments. Bharat Petroleum Corp (BPCL) initiated pre-project activities for a greenfield refinery and petrochemical complex on the East Coast of Andhra Pradesh, with an estimated cost of Rs 6,100 crore. The refinery reportedly could have a capacity of at least 9 million tonnes (180,000 barrels per day).

On the same day, the company also won NTPC’s 1200 MW solar tender as the lowest bidder, securing 150 MW in capacity. The project, valued at Rs 756.5 crore, will be developed over two years and is expected to generate annual revenue of ~Rs 100 crore by producing 400 million clean energy units.

On December 2, BPCL signed a memorandum of understanding (MoU) with Coal India to explore a coal-to-synthetic natural gas project at Western Coalfields (WCL). According to reports, BPCL and Coal India will invest Rs 12,000 crore in the joint venture, with Coal India holding a 51% stake and BPCL 49%. The investment supports BPCL’s clean energy goals and Coal India’s efforts to diversify coal use. The government will provide Rs 1,350 crore in funding for the project.

The company’s Bina refinery project, which involves an investment of Rs 50,000 crore, is expected to be commissioned by FY28, with a production capacity of 2.2 million metric tonnes per annum of bulk petrochemicals. The propylene project at the Kochi refinery, with a capacity of 4 lakh tonnes per annum, is set to be commissioned by FY27. Speaking about the capex on these projects, VRK Gupta, Director of Finance, said, “We don't anticipate a significant increase in borrowing in the next couple of years. However, from FY27 and FY28 onwards, peak capex will occur for both the Bina and Kochi projects, leading to higher borrowings. In the next 1–2 years, we expect a capex plan of around Rs 18,000–20,000 crore.”

Geojit BNP Paribas has given a ‘Hold’ rating to BPCL with a target price of Rs 326. This indicates a potential upside of 11.1%. The brokerage expects earnings growth in the coming quarters, driven by its expanding market share across segments, aggressive capital expenditure, and strategic partnerships. However, geopolitical uncertainties and volatile oil prices remain key risks that could affect the company's performance.

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