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Trendlyne Marketwatch
Trendlyne Marketwatch
28 Oct 2024
Market closes higher, Sun Pharma's net profit grows 28% YoY to Rs 3,040.2 crore in Q2
By Trendlyne Analysis

Nifty 50 closed at 24,339.15 (158.4, 0.7%), BSE Sensex closed at 80,005.04 (602.8, 0.8%) while the broader Nifty 500 closed at 22,649.95 (150.9, 0.7%). Market breadth is in the green. Of the 2,337 stocks traded today, 1,539 were on the uptick, and 777 were down.

Indian indices closed in the green, with the benchmark Nifty 50 index closing at 24,339.2 points.  The Indian volatility index, Nifty VIX, fell 2.3% and closed at around 14.3 points. Waaree Energies’ shares made their debut on the bourses at a 66.3% premium to the issue price of Rs 1,503. The Rs 4,321.4 crore IPO received bids for 76.3 times the total shares on offer.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher. Nifty FMCG and Nifty Metal closed in the green. According to Trendlyne’s sector dashboard, Consumer Durables emerged as the best-performing sector of the day, with a rise of 3.8%.

European indices traded mixed. Major Asian indices closed mixed. US index futures traded mixed, indicating a cautious start to the trading session. Spirit Airlines reached an agreement to sell 23 older Airbus aircraft worth around $519 million to GA Telesis. The low-cost airline also announced plans to cut about $80 million in annual costs by reducing its workforce as part of its cost-cutting initiatives.

  • Money flow index (MFI) indicates that stocks like IndusInd Bank, Indraprastha Gas, and Nestle India are in the oversold zone.

  • Sun Pharmaceutical Industries' rises as its Q2FY25 net profit grows 28% YoY to Rs 3,040.2 crore, beating the Forecaster estimates by 5.8%. Revenue increases 9% YoY to Rs 13,291.4 crore during the quarter. The company appears in a screener of stocks with increasing profits over the past four quarters.

  • Bharat Heavy Electricals is rising as it posts a net profit of Rs 106.2 crore in Q2FY25 compared to a net loss of Rs 63 crore in Q2FY24. Revenue grows by 26.2% YoY to Rs 6,695.4 crore owing to the power and industry segments. It features in a screener of stock with the highest recovery from their 52-week lows.

  • KR Choksey downgrades IndusInd Bank to 'Hold' from 'Buy' with a lower target price of Rs 1,305 per share. This indicates a potential upside of 22.6%. The brokerage believes the bank's operating growth will slow down with rising credit costs due to concerns in the unsecured loan and microfinance segments. It expects the lender's net interest income (NII) to grow at a CAGR of 11.9% over FY25-26.

  • According to Anarock, the real estate sector has accounted for more than 17% of QIP (qualified institutional placement) issuances across various sectors, making it the second largest contributor after the renewable energy sector. In the first nine months of 2024, developers raised Rs 12,801 crore.

  • Shakti Pumps surges to its 5% upper circuit as its revenue grows 4.2X to Rs 634.6 crore driven by an improvement in the domestic market. Net profit surges 16.6X YoY to Rs 101.2 crore during the quarter. The company appears in a screener of stocks with book value per share improving over the past two years.

  • Ambuja Cements rises sharply as its Q2FY25 revenue beats Forecaster estimates by 10.5% despite remaining flat at Rs 7,890.1 crore. Net profit declines by 42.5% YoY to Rs 456 crore due to higher raw materials, inventory, employee benefits, finance, and freight & forwarding expenses. It features in a screener of stocks with rising net cash flow and cash from operating activities.

  • Torrent Pharmaceuticals' falls as its Q2FY25 revenue misses Forecaster estimates by 2.5% despite rising 8.6% YoY to Rs 2,889 crore. Net profit grows by 17.4% YoY to Rs 453 crore, but misses estimates by 8%. It shows up in a screener for stocks where mutual funds decreased their shareholding in the past quarter.

  • Debadatta Chand, MD of Bank of Baroda, highlights the bank’s asset quality has improved in Q2FY25. He projects deposit growth of 9-10% and credit growth of around 12% for FY25. Chand adds the bank maintains its margin guidance of ~3.1% for the year.

  • Inox Wind is rising as it posts a net profit of Rs 92.9 crore in Q2FY25 compared to a net loss of Rs 24.1 crore in Q2FY24 due to lower finance and EPC, O&M, & common infrastructure facility expenses. Revenue surges by 93% YoY to Rs 741.7 crore, attributed to higher project execution and order wins. It features in a screener of stocks with increasing profits for the past four quarters.

  • NBCC (India) is rising as it bags multiple work orders worth approx. Rs 1,726 crore from the Government of Goa. The orders include the redevelopment of Junta House, Govt. Garage and Circuit House in Panjim, a Mini Convention Centre at Tiswadi, and others.

  • Macrotech Developers is rising as its net profit surges by 109.5% YoY to Rs 422.9 crore in Q2FY25 owing to a tax return of Rs 136.8 crore. Revenue grows by 53% YoY to Rs 2,684.6 crore, driven by higher collections and pre-sales. It appears in a screener of stocks with high trailing twelve-month (TTM) EPS growth.

  • Amit Paithankar, CEO of Waaree Energies, says the company currently operates with a 15% margin, which he expects to improve over the next two years. He expects a boost in margins due to backward integration and strong demand in India and the US. Paithankar also highlights that the current order book totals 16.7 GW.

  • Shriram Finance rises sharply as its Q2FY25 revenue grows 17.9% YoY to Rs 10,089 crore, helped by higher interest and fees & commission income. Net profit increases by 20.6% YoY to Rs 2,153.3 crore during the quarter. It shows up in a screener of stocks outperforming their industry price change during the quarter.

  • KRN Heat Exchanger and Refrigeration's wholly owned subsidiary, KRN HVAC Products, signs an MoU with the Government of Rajasthan to invest Rs 1,000 crore in a heat exchanger plant in Kotputli-Behror.

  • Bank of Baroda is rising as its net profit grows by 23.2% YoY to Rs 5,237.9 crore in Q2FY25. Revenue increases by 10.7% YoY to Rs 35,444.7 crore, attributed to improvements in the treasury, retail, and wholesale banking segments. The bank's asset quality improves as its gross and net NPAs decline by 82 bps YoY and 16 bps YoY, respectively.

  • HSBC lowers its target price for Ola Electric Mobility to Rs 110, from Rs 140 earlier, while retaining a ‘Buy’ rating. The brokerage cites slowing two-wheeler penetration, tight competition from low-cost models like Bajaj Auto's Chetak 2903 and TVS Motor's iQube 2.2kWh, and ongoing service issues.

  • Coal India is falling as its net profit declines by 21.9% YoY to Rs 6,289.1 crore in Q2FY25 due to higher raw materials, employee benefits, and finance costs. Revenue falls by 7.4% YoY to Rs 32,177.9 crore, caused by lower production and offtake of raw coal. It features in a screener of stocks with declining cash flow from operations in the past two years.

  • Deepak Builders & Engineers’ shares debut on the bourses at a 1.5% discount to the issue price of Rs 203. The Rs 260 crore IPO received bids for 41.5 times the total shares on offer.

  • Waaree Energies' shares debut on the bourses at a 66.3% premium to the issue price of Rs 1,503. The Rs 4,321.4 crore IPO received bids for 76.3 times the total shares on offer.

  • HSBC maintains its 'Buy' rating on Shriram Finance with a higher target price of Rs 3,725. The brokerage cites strong Q2 performance, noting that the firm is experiencing its most convincing operational period since 2010. It highlights all metrics were robust, with no weakness in asset quality or growth. Shriram Finance's net profit increased by 20.6% YoY to Rs 2,153.3 crore, while its revenue grew by 13.5% YoY.

  • Titagrah Rail Systems' Q2FY25 revenue rises by 13% YoY to Rs 1,057 crore, helped by an improvement in the freight rail segment. Net profit grows by 14.1% YoY to Rs 79.9 crore during the quarter. It features in a screener of stocks with growing quarterly net profit and profit margin (YoY).

  • DLF rises sharply as its net profit surges by 121.8% YoY to Rs 1,381.1 crore in Q2FY25, helped by a deferred tax return of Rs 504.7 crore. Revenue grows by 47.7% YoY to Rs 2,180.8 crore during the quarter. It features a screener of stocks with dividend yields higher than sector dividend yields.

  • Bandhan Bank surges as its Q2FY25 net profit grows 30% YoY to Rs 937.4 crore, helped by lower provisions. Revenue rises by 21.1% YoY to Rs 6,094.5 crore, owing to improvements in the treasury, retail, and wholesale banking segments. The bank's asset quality improves as its gross and net NPAs decline by 264 bps YoY and 103 bps YoY, respectively.

  • InterGlobe Aviation falls sharply as it posts a net loss of Rs 986.7 crore in Q2FY25 compared to a net profit of Rs 188.9 crore in Q2FY24 due to higher aircraft fuel, aircraft & engine rental, airport charges, employee benefits, and finance costs. However, revenue grows by 14.6% YoY to Rs 17,759 crore, driven by higher capacity and passengers carried. It shows up in a screener of stocks linked to ongoing regulatory investigations or legal cases.

  • Markets are up today morning. Nifty 50 was trading at 24,243.05 (62.3, 0.3%), BSE Sensex was trading at 79,815.18 (412.9, 0.5%) while the broader Nifty 500 was trading at 22,515.50 (16.5, 0.1%).

  • Market breadth is in the red. Of the 1,976 stocks traded today, 871 were on the uptrend, and 1,048 went down.

Riding High:

Largecap and midcap gainers today include Indian Bank (551.45, 10.6%), Bandhan Bank Ltd. (184.81, 9.9%) and Canara Bank (100.69, 6.8%).

Downers:

Largecap and midcap losers today include InterGlobe Aviation Ltd. (4,015.45, -8.0%), Cholamandalam Investment & Finance Company Ltd. (1,280.35, -6.7%) and Torrent Power Ltd. (1,829.05, -4.9%).

Volume Rockets

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

Top high volume gainers on BSE included Indian Bank (551.45, 10.6%), Archean Chemical Industries Ltd. (651.80, 9.2%) and Poonawalla Fincorp Ltd. (319.65, 7.6%).

Top high volume losers on BSE were InterGlobe Aviation Ltd. (4,015.45, -8.0%), Cholamandalam Investment & Finance Company Ltd. (1,280.35, -6.7%) and JBM Auto Ltd. (1,506.65, -4.1%).

Zydus Wellness Ltd. (1842.65, 2.4%) was trading at 9.6 times of weekly average. Rainbow Childrens Medicare Ltd. (1,495, 5.2%) and CreditAccess Grameen Ltd. (957.45, -2.5%) were trading with volumes 7.7 and 5.3 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

3 stocks made 52 week highs, while 12 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,129.20, -0.4%), Firstsource Solutions Ltd. (372.55, 12.0%) and Coforge Ltd. (7,705.35, -0.5%).

Stocks making new 52 weeks lows included - IDFC First Bank Ltd. (67.13, 2.5%) and Mahindra Lifespace Developers Ltd. (490.05, -0.9%).

26 stocks climbed above their 200 day SMA including Indian Bank (551.45, 10.6%) and Archean Chemical Industries Ltd. (651.80, 9.2%). 21 stocks slipped below their 200 SMA including InterGlobe Aviation Ltd. (4,015.45, -8.0%) and Cholamandalam Investment & Finance Company Ltd. (1,280.35, -6.7%).

 
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The Baseline
25 Oct 2024
Five Interesting Stocks Today - October 25, 2024

1. Sona BLW Precision Forgings:

This auto parts and equipment company surged 13.3% to Rs 730 per share on Thursday, following its strong second-quarter results. The company has also signed an agreement to acquire the Railway Equipment Division (RED) of Escorts Kubota (EKL) for Rs 1,600 crore in cash. RED is a key supplier of essential components for railways, such as brakes and suspension systems for rolling stock.

For the quarter ending September 30, 2024 (Q2FY25), Sona BLW (Sona Comstar) posted a 16.2% YoY rise in net profit, to Rs 143.9 crore. Revenue from operations increased by 18.7% to Rs 946.1 crore, up from Rs 796.9 crore in Q2FY24. Both revenue and net profit exceeded Trendlyne’s Forecaster estimates by 4.5% and 2.4%, respectively. At the operating level, EBITDA rose by 14.2% YoY to Rs 254.9 crore, while the EBITDA margin narrowed slightly by 33 basis points YoY to 28%. 

Battery electric vehicles (BEVs) contributed 36% of the company’s revenue, with BEV revenue increasing by 53% YoY in the July-September period. The company also reported a net order book of Rs 23,100 crore as of September 30, 2024. Vivek Vikram Singh, the MD & Group CEO commented, "We are cautiously optimistic about our growth prospects, especially in the EV sector, even though there are slowdowns in specific markets like Europe and Indian two-wheelers." The company has intensified its focus on the electric vehicle (EV) market, with significant order wins including a driveline program for a class-5 electric truck and an in-cabin sensing product, signalling expansion and diversification of its product portfolio.

Following the two developments, the Hong Kong-based brokerage CLSA upgraded Sona BLW to ‘Outperform,’ raising the target price to Rs 712 from Rs 690. The company’s operating performance met expectations, and its acquisition of EKL’s railway component business is seen as a key driver for future profitable growth.

However, CLSA highlighted a potential slowdown in Sona BLW’s core business, and the importance of exploring inorganic growth opportunities. Revenue from the newly acquired railway division is expected to start contributing from FY26.

2. Persistent Systems:

This IT software company surged 10.9% on October 23, reaching an all-time high of Rs 5,798.7 after announcing its Q2FY25 results. The company’s net profit grew by 6.1% QoQ to Rs 325 crore in Q2FY25, while its revenue increased by 5.8% to Rs 2,897.2 crore, driven by strong growth in the BFSI (which constitutes ~32% of total revenue) and healthcare & life sciences (28% of the revenue) segments. However, the software, hi-tech & emerging industries segment (which constitutes 40% of the revenue) saw a muted growth of 1.4% during the quarter. Both net profit and revenue beat estimates by 4%  and 1.2% respectively.

In terms of geographies, North Americas and Europe revenue grew by 6.4% and 6% QoQ, respectively, while India revenue grew by 1%. During the quarter, Persistent's total contract value (TCV) stood at Rs 4,400 crore ($529 mn), with Rs 2,574 crore from new deal wins.

The company has outperformed its larger IT peers in profit growth. For instance, TCS reported a 1.1% QoQ decline in net profit during the quarter, while Infosys saw a 2.2%increase. Persistent has also outperformed its industry price change by 15.8% during the quarter.

The company plans to acquire Arrka Solutions, a data privacy management firm, to enhance its offerings in data privacy, AI governance and cybersecurity. In FY24, Arrka reported Rs 2.9 crore in revenue.

Persistent Systems maintained a flat EBIT margin of 14% from the previous quarter. CEO Sandeep Kalra said, “With the growth and cost-saving programs at Persistent, we are sticking to our target of expanding margins by 200-300 basis points over the next two years, and expect all three verticals to contribute as growth enablers.”

Post-results, Axis Direct assigns a ‘Buy’ rating to Persistent, citing strong long-term growth potential due to multiple contracts with leading brands and improved revenue visibility. However, the brokerage also mentions worries about global growth, and supply issues that could affect the company's short-term prospects.

3. Havells India:

This electrical equipment maker has declined by 6.1% in the past week following the announcement of its Q2FY25 results on October 17. During the quarter, net profit missed Trendlyne’s Forecaster estimates by 15.2% despite growing by 7.7% YoY to Rs 268.2 crore. The company’s EBITDA margins contracted by 131bps to 8.3% mainly due to a sharp increase in ad-spends, and volatility in raw material prices. 

The management expects margins to normalize in the upcoming quarters, reaching 13-14%, excluding Lloyd in Q3 and Q4. Anil Rai Gupta, the CMD said, “As the festival season is slightly earlier this year, we witnessed higher advertising spends, moderating margins across categories. We expect normalization over subsequent quarters”. EBITDA margins have witnessed a sequential decline, and stood at 9.9% in Q1, and 11.7% in Q4FY24, lower than analysts' estimates. Gupta highlighted that the company has experienced lower margins due to fluctuating raw material prices.

Meanwhile, revenue increased by 16.4% YoY to Rs 4,539.3 crore, driven by the cables & wires (C&W), switchgear, and electrical consumer durables segments. The cables and switchgear segments (constituting over half of the revenue) witnessed healthy growth led by a pick-up in demand ahead of the festive season. 

During the quarter, revenue in the Llyod Consumer segment (~13% of the revenue) also saw healthy growth, led by the non-RAC segment, which includes LED panels, refrigerators, and washing machines. The management aims for the Lloyd segment to contribute around 20% to Havells’ India revenue. 

Going forward, the management expects revenue growth to be driven by residential demand and festive demand. The CMD highlighted that channel expansion and product addition by the company are also likely to contribute to revenue growth. In Q2, Havells India commissioned a new cable plant in Tumkur for the production of higher-sized cable. Due to the higher demand for the product, the company has committed an additional capex of Rs 450 crore to expand the facility. The capex planned for H2FY25 is Rs1,000 crore. 

ICICI Securities remains positive on Havells due to its established competitive advantages and growth opportunities in white goods and durables. The brokerage maintains its ‘Buy’ rating with a target price of Rs 2,120.

4. Dalmia Bharat:

This cement & cement products company rose by over 3% on 24th October, as its wholly owned subsidiary Dalmia Cement (Bharat) (DCBL) signed a Share Purchase & Shareholders Agreement (“SPSA”), to acquire a 5.4% stake in Atria Wind Power (Basavana Begawadi, Karnataka) to source wind power as a captive consumer for its capacity of 6 MW located in Karnataka.

The company declared its Q2FY25 results on 21st October. Its net profit declined by 61% YoY to Rs 46 crore due to lower realization, along with plant maintenance & shutdowns, while its revenue declined by 2.3%. The firm missed Trendlyne’s Forecaster estimates for revenue by 1.4% and the net profit estimate by 41.2%. Despite the weak result, the stock appears in a screener for stocks showing relative outperformance versus industry over 1 month period.

In Q2FY25, the company was impacted by a 9% YoY decline in realization, down to Rs 4,607/tonne, which negatively affected its EBITDA margin, which at 14.1%, was the lowest in several years.  The company’s cost/tonne decreased by 4% YoY to Rs 3,960, driven by lower freight and inventory adjustments. Its volume growth was 8%, which was better than expected owing to a lower base last year and the commissioning of new capacity in H1FY25.

Analysts remain optimistic about the company despite these speedbumps, noting that the market share of major cement players has risen from 46% in 2013 to 55% in 2024, with projections suggesting it could reach 60% by FY26-27. As top companies continue to consolidate and expand their capacities, their overall market share is expected to grow, positively impacting cement pricing, economies of scale, and supply chain efficiency. Being among the top five players in the country, the company is well-positioned to capitalize on this consolidation in the medium to long term. But the competition in the sector is intense.

The company’s CEO and Managing Director Puneet Dalmia guides a 9% volume growth, with EBITDA/tonne in the range of Rs 900-950 in H2FY25. He projects cement prices to trend slightly higher, while expecting operating efficiency to contribute Rs 150-200 in cost savings over the next three years. The company management plans to improve EBITDA margins to 18.5% by enhancing operating efficiency and clinker capacity from the current 22.4 mtpa to 27.1 mtpa, which is expected to be commissioned in FY26. 

Axis Securities has retained a ‘Buy’ rating on Dalmia Bharat with a target price of Rs 2,040. The brokerage projects the company will grow its Volume/Revenue/EBITDA at a CAGR of 9%, 7%, 9% respectively over FY25-FY26. It adds that with the current capacity utilisation at 58%, there is substantial scope for the company to increase its utilisation levels.

5. Kajaria Ceramics:

Thisfurnishing company fell 5% on October 22 after announcing itsQ2FY25 results. The company’s net profit declined 22.8% YoY to Rs 85.5 crore, missingTrendlyne’s Forecaster estimates by 20.2%. However, revenue rose by 5.1% to Rs 1,179.3 crore. Demand for tiles was subdued in Q2FY25 due to excessive rainfall in August and September across India. Despite the weak demand environment, Kajaria's tile volumegrew by 8.5% to 28.7 million square meters (MSM).

Kajaria Ceramics generates most of its revenue from tiles, which accounts for 88% to 93% of total revenue. In Q2FY25, tiles accounted for approximately 88% of the total revenue. The remaining revenue comes from non-tiles segments, which include bathware (Rs 90.1 crore, 8% of total revenue), adhesives (Rs 18.2 crore), and plywood (Rs 17.5 crore).

Ashok Kajaria, Chairman and Managing Director of the companysaid, “The second half will be better than quarter one and quarter two. So we are looking at a 9-10% volume growth for the full year (FY25) and margin guidance would be 15-17% this year.” Over the longer term, management believes they can achieve a CAGR of 11.5% for tile volumes from FY25 to FY27, leading to a total volume of 150 MSM. As part of their three-year vision, Kajaria Ceramics aims to expand its reach to over 2,000 towns across India, up from the current presence in 1,000 towns.

Post results, ICICI Directmaintains its ‘Buy’ rating with a target price of Rs 1,500. The brokerage expects the company’s tile volume and revenue to grow at around 10% annually between FY25 and FY27. EBITDA margins are projected to be 15% in FY25, and 15.8% in FY26.

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
25 Oct 2024
Market closes lower, HPCL's net profit falls 97.6% YoY to Rs 142.7 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 24,180.80 (-218.6, -0.9%) , BSE Sensex closed at 79,402.29 (-662.9, -0.8%) while the broader Nifty 500 closed at 22,499.05 (-288.8, -1.3%). Market breadth is highly negative. Of the 2,304 stocks traded today, 358 were on the uptick, and 1,921 were down.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,180.8 points. The Indian volatility index, Nifty VIX, rose 4.7% and closed at 14.6 points. Hindustan Petroleum Corp's net profit plunged by 97.6% YoY to Rs 142.7 crore in Q2FY25 due to higher raw material, inventory, excise duty, and finance costs. However, revenue grew by 5.6% YoY to Rs 1.1 lakh crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. S&P BSE Midsmallcap and S&P BSE Large MidCap were among the top index gainers today. According to Trendlyne’s Sector dashboard, Food Beverages & Tobacco emerged as the best-performing sector of the day, with a rise of 0.5%.

Asian indices closed mixed while European indices are trading in the green. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the green. Crude prices are recovering from two weeks of significant losses due to rising concerns over slowing demand. Macquarie observes that weak supply and demand fundamentals are likely to diminish any positive effects stemming from stimulus measures from China.

  • Relative strength index (RSI) indicates that stocks like Indraprastha Gas, Hindustan Unilever, and Nestle India are in the oversold zone.

  • Hindustan Petroleum Corp's net profit plunges by 97.6% YoY to Rs 142.7 crore in Q2FY25 due to higher raw material, inventory, excise duty, and finance costs. However, revenue grows by 5.6% YoY to Rs 1.1 lakh crore, helped by an improvement in the downstream petroleum segment. It features in a screener for stocks where mutual funds increased their shareholding in the past quarter.

  • Patanjali Foods' Q2FY25 net profit grows 21.4% YoY to Rs 309 crore, helped by lower raw materials and finance costs. Revenue increases by 4.5% YoY to Rs 8,198.5 crore during the quarter, attributed to the edible oils segment. It features in a screener of stocks with rising net profit margins (QoQ and TTM).

  • Finolex Industries is falling as its net profit misses Forecaster estimates by 65.7% as it declines 58.5% YoY to Rs 40.7 crore in Q2FY25. Revenue decreases 6.2% YoY to Rs 828.4 crore due to volatility in PVC price, and prolonged monsoon during the quarter. The company appears in a screener of stocks with increasing profits every quarter for the past two quarters.

  • The Reserve Bank of India (RBI) approves the re-appointment of Amitabh Chaudhry as the Managing Director & CEO of Axis Bank for three more years, effective January 1. The bank's shareholders had approved Chaudhry’s re-appointment at the 30th Annual General Meeting on July 26.

  • Atul's Q2FY25 revenue grows 16.7% YoY to Rs 1,392.8 crore, driven by improvements in life science chemicals and performance & other chemicals segments. Net profit increases 51.5% YoY to Rs 136.8 crore during the quarter. The company features in a screener of stocks with growing quarterly net profit and profit margin (QoQ).

  • Indian Energy Exchange's net profit grows by 25.3% YoY to Rs 108.3 crore in Q2FY25. Revenue rises by 26.2% YoY to Rs 167.8 crore, helped by higher industrialization and consumer demand. It features in a screener of stocks with increasing revenue for the past four quarters.

  • Oracle Financial Services Software's net profit fell 6.3% QoQ to Rs 577.7 crore. Revenue declines 3.9% QoQ to Rs 1,673.9 crore, driven by lower sales from product licenses and related activities segments during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding in the last month.

  • Reliance Jio reports a reduction of 40.2 lakh wireless subscribers on a net basis in August, while Bharti Airtel loses 24.1 lakh. Vodafone Idea’s subscribers also decline, with a loss of 18.7 lakh on a net basis.

  • Petronet LNG's revenue grows 3.9% YoY to Rs 13,024.3 crore, missing Trendlyne's Forecaster estimates by 1.6%. Net profit rises by 1.4% YoY to Rs 863.2 crore during the quarter. The company appears in a screener of stocks with revenue declining over the past two quarters.

  • CIE Automotive India is falling as its net profit declines by 48% YoY to Rs 195.2 crore in Q2FY25 due to higher profit in Q2FY24 from discontinued operations. Revenue declines by 6.1% to Rs 2,158.9 crore due to a reduction in the Indian and European markets. It shows up in a screener of stocks with high market cap and lower public shareholding.

  • Bikaji Foods International rises sharply as its net profit grows 13% YoY to Rs 69.2 crore in Q2FY25, helped by inventory destocking. Revenue increases 15.8% YoY to Rs 704 crore during the quarter. However, EBITDA margin declines by 150 bps. The company appears in a screener of stocks with book value per share improving over the past two years.

  • Grain-based distilleries are urging the Centre to instruct oil marketing companies (OMCs) to raise the procurement price of ethanol made from maize and damaged food grains to prevent heavy losses. CK Jain, President of the Grain Ethanol Manufacturers Association, notes current maize prices have led to losses of about Rs 10.3 per litre for dedicated ethanol plants, with damaged food grains at around Rs 10.2 per litre. He called for an immediate price increase for ethanol procurement by Rs 4-5 per litre.

  • Larsen & Toubro secures an order worth Rs 1,000-2,500 crore from the ITER Organisation, an intergovernmental body headquartered in France. The contract involves deploying advanced technologies to assemble ports and complex components with the Vacuum Vessel at the world’s largest nuclear fusion project in Cadarache, Southern France.

  • Cyient rises sharply as its Q2FY25 net profit grows 24.5% QoQ to Rs 179.1 crore. Revenue increases 12% QoQ to Rs 1,900.2 crore, helped by improvements in the digital, engineering & technology (DET) and design-led manufacturing (DLM) segments. It shows up in a screener of stocks with rising net cash flow and cash from operating activity.

  • Insolation Energy’s subsidiary, Insolation Green Energy, secures a Rs 208.3 crore order from Zetwerk Manufacturing to supply 550 Wp solar PV modules for NTPC’s Khavada site in Gujarat, to be completed by FY25.

  • Radico Khaitan delivers strong performance in the Prestige & Above (P&A) segment, with volumes rising by 12.6% to 3.2 million cases in Q2FY25. P&A net sales increased 18% to Rs 578 crore, contributing 75.7% to overall sales, up from 70%. However, the company's total Indian Made Foreign Liquor (IMFL) volumes declined by 2.5%, totaling 6.78 million cases in Q2.

  • PNB Housing Finance is rising as its net profit grows 22.6% YoY to Rs 469.7 crore in Q2FY25, driven by better management of financial losses and write-offs. Revenue increases 5.7% YoY to Rs 1,878.7 crore during the quarter. It features in a screener of stocks with zero promoter pledge.

  • Adani Ports & Special Economic Zone's subsidiary, The Adani Harbour International DMCC, acquires an 80% stake in Astro Offshore group for a consideration of $194.8 million (approx. Rs 1,637.6 crore).

  • DCB Bank is rising as its net profit grows 22.6% YoY to Rs 155.5 crore in Q2FY25. Revenue increases 20.1% YoY to Rs 1,568.4 crore, driven by improvements in the treasury, corporate, and retail banking segments during the quarter. The bank's asset quality improves as its gross and net NPAs contract by 7 bps and 11 bps YoY, respectively.

  • Investec maintains its ‘Hold’ rating on IndusInd Bank with a target price of Rs 1,410. The brokerage highlights that muted growth in MFI and stress in credit cards impacted NIMs (net interest margins) and fee income. Investec believes the bank may need a few more quarters to improve its fundamentals. The next key trigger will be the CEO decision from RBI.

  • Dixon Technologies rises to its all-time high of Rs 15,900 per share as its net profit surges by 3.6x YoY to Rs 389.9 crore in Q2FY25. Revenue grows by 2.3x YoY to Rs 11,528.4 crore during the quarter. It features in a screener of stocks with book value per share improving over the past two years.

  • NTPC is falling as its revenue misses Forecaster estimates by 5.1% after declining marginally to Rs 44,696.3 crore in Q2FY25. However, net profit increases 14.3% YoY to Rs 5,274.6, driven by lower fuel costs and electricity purchases during the quarter. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • Coromandel International is falling as its net profit declines by 12.3% YoY to Rs 664.1 crore in Q2FY25 due to higher raw materials, employee benefits, and freight & distribution expenses. However, revenue grows by 6.6% YoY to Rs 7,497.8 crore, driven by the nutrient & other allied businesses and crop protection segments. It appears in a screener of stocks where promoters are decreasing their shareholding.

  • Godrej Consumer Products' net profit grows 13.5% YoY to Rs 491.3 crore in Q2FY25, attributed to inventory destocking and lower raw material costs. Revenue increases 1.8% YoY to Rs 3,666.3 crore, driven by higher sales from India and Indonesia during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Nifty 50 was trading at 24,412.95 (13.6, 0.1%) , BSE Sensex was trading at 80,187.34 (122.2, 0.2%) while the broader Nifty 500 was trading at 22,782.85 (-5, 0.0%)

  • Market breadth is in the red. Of the 1,894 stocks traded today, 758 were in the positive territory and 1,084 were negative.

Riding High:

Largecap and midcap gainers today include Indian Hotels Company Ltd. (691.25, 3.6%), Max Healthcare Institute Ltd. (938, 3.5%) and Torrent Pharmaceuticals Ltd. (3,432.85, 3.4%).

Downers:

Largecap and midcap losers today include IndusInd Bank Ltd. (1,041.60, -18.6%), Hindustan Petroleum Corporation Ltd. (372.40, -8.0%) and Dixon Technologies (India) Ltd. (13,937.20, -7.4%).

Crowd Puller Stocks

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

Top high volume gainers on BSE included Thermax Ltd. (5,431.15, 4.8%), Laurus Labs Ltd. (465.80, 4.1%) and Jammu & Kashmir Bank Ltd. (97.63, 4.0%).

Top high volume losers on BSE were IndusInd Bank Ltd. (1,041.60, -18.6%), Poonawalla Fincorp Ltd. (297.05, -17.2%) and Dixon Technologies (India) Ltd. (13,937.20, -7.4%).

Chalet Hotels Ltd. (842.80, 0.8%) was trading at 21.2 times of weekly average. Home First Finance Company India Ltd. (1,102, -1.0%) and Radico Khaitan Ltd. (2,268.50, -1.2%) were trading with volumes 17.0 and 8.8 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 20 stocks hit their 52 week lows.

Stocks touching their year highs included - Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,133.70, 0.7%), Coforge Ltd. (7,739.85, 0.5%) and Radico Khaitan Ltd. (2,268.50, -1.2%).

Stocks making new 52 weeks lows included - IDFC First Bank Ltd. (65.50, -3.8%) and IndusInd Bank Ltd. (1,041.60, -18.6%).

4 stocks climbed above their 200 day SMA including Kotak Mahindra Bank Ltd. (1,768.85, 0.4%) and Asian Paints Ltd. (2,958, -0.5%). 52 stocks slipped below their 200 SMA including Au Small Finance Bank Ltd. (604.50, -6.4%) and Finolex Cables Ltd. (1,189.55, -5.6%).

 
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The Baseline
24 Oct 2024
By Aditi Priya

Most governments have some level of debt spending, which is often necessary for economies to invest in their people, finance critical expenditures, and fund infrastructure. However, when public debt rises too quickly or by too much, it becomes a burden. Today, as global debt levels climb to record highs, analysts are sounding the alarm. The debt to GDP ratio is a key indicator of a country's fiscal health, with higher ratios signaling more money spent on interest payments on debt. .

Global public debt is projected to cross $100 trillion by 2025. After a brief decline in 2021-22, it rose again in 2023 and is expected to reach nearly 100% of global GDP by 2030, led primarily by China and the US.

In this edition of Chart of the Week, we take a look at the government debt-to-GDP ratios of various countries.

India’s debt to GDP improves from its pandemic peak

India's debt to GDP ratio surged to nearly 88% in 2020-21 from around 74% in 2019-20, due to the economic fallout from the COVID-19 pandemic. The nationwide lockdowns led to a recession, with two consecutive quarters of negative growth. However, debt levels have since declined to 82% in 2024. Finance Minister Nirmala Sitharaman emphasized that India’s debt-to-GDP ratio is now below that of many other emerging markets.

The United States, in January 2023, exceeded its debt limit of $31 trillion, with the debt to GDP ratio reaching 122.3%, up from 108.1% in March 2020. The pandemic played a major role in this increase, with the ratio peaking at 133.8% in March 2021 due to extensive government spending on stimulus packages and addressing the public health crisis. 

US debt exceeded $31 trillion in January 2023, raising concerns about breaching the $31.4 trillion ceiling. However, a new debt limit bill passed in June 2023, raised the ceiling and prevented a default. The debt ceiling is the maximum amount of debt the US government can borrow. Since 1960, the US government has increased the ceiling seventy-nine times, most recently in 2023. Forty-nine of these increases were implemented under Republican presidents, and twenty-nine under Democratic presidents. Both political parties in the US, the Democrats and the Republicans, have got into the habit of promising heavy spending and more tax cuts to win elections. This may please voters, but it has resulted in the US being increasingly unable to have a balanced budget. In the current presidential election race, Harris has made commitments that would add $3.5 trillion to the US debt, while Trump’s promises would increase it by $7.5 trillion. 

Japan, US and UK see soaring debt levels 

The United Kingdom recently rejoined the unfortunate “100% debt to GDP ratio club” after 60 years, with a ratio of 100.1% as of August 2024. The UK’s debt has been increasing since the pandemic due to rising costs post-Brexit, energy subsidy schemes, inflation-linked benefit payments and interest payments on debt. 

In contrast, France has experienced a downward trend in debt since the pandemic, despite rising social security costs and an aging population. However, public debt approached 112% of GDP between April and June, leading to a credit downgrade from S&P earlier this year. This rise in debt is due to lower-than-expected tax revenues and delayed hiring and investment by companies, along with local and regional administrations exceeding their spending plans.

Moving on to Asian countries. Japan has the highest debt in the world at over 250% of GDP, especially worrying considering its slow growth and a declining population. However, Japan’s situation is less dire than it appears because the public sector holds substantial assets. The Bank of Japan owns domestic government bonds amounting to about 100% of GDP, effectively reducing the country’s net liabilities. This internal borrowing makes the debt more stable, as Japan doesn’t rely as heavily on foreign creditors. By early 2024, Japan's net debt excluding its internal debt, was around 119% of GDP, making it comparable to US debt levels when considering this asset ownership.

China's debt to GDP ratio among the lowest

China’s yearly debt to GDP ratio is at 83.6%, one of the lowest among the countries in focus. However, the debt to GDP ratio has been rising since the pandemic, as local authorities have borrowed heavily to boost a slowing economy. As a result, the economy's debt to GDP ratio has increased steadily over the last four years. 

Turning to countries with lower debt to GDP ratios, Brazil's ratio reached 78.5% in August 2024, surpassing the threshold limit of 77%. This increase could lead to a 1.7 basis point decline in annual real growth for each percentage point of debt. However, Brazil has decreased its debt to GDP ratio by about 12.2 percentage points since the pandemic, thanks to stronger-than-expected economic growth (2.9%) in 2023, the appreciation of the Brazilian currency against the U.S. dollar, and net debt redemption.

As of March 2024, Germany's debt to GDP ratio stands at 63.6%, having remained stable over the years. However, the pandemic led to a sudden increase of 9 percentage points. The finance ministry anticipates a slight rise this year, with the ratio projected to reach 64% by the end of this year, before gradually declining until 2028. This increase is attributed to the planned Generational Capital, a new pension scheme aimed at maintaining pensions in line with wage trends.

While many governments rely on debt for development, rising debt levels pose significant challenges. Countries like the US and Japan are facing high debt-to-GDP ratios, raising concerns about fiscal sustainability. As global public debt is projected to exceed $100 trillion by 2025, monitoring these trends is crucial for the stability of the global economy.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
24 Oct 2024
Market closes flat, KEC International secures orders worth Rs 1,142 crore globally
By Trendlyne Analysis

Nifty 50 closed at 24,399.40 (-36.1, -0.2%) , BSE Sensex closed at 80,065.16 (-16.8, 0.0%) while the broader Nifty 500 closed at 22,787.85 (-53.3, -0.2%). Market breadth is in the red. Of the 2,288 stocks traded today, 823 were gainers and 1,444 were losers.

Nifty 50 closed flat after switching between losses and gains throughout the day. The Indian volatility index, Nifty VIX, fell 4.5% and closed at 14 points. Pidilite Industries rose as its net profit grew by 18.8% YoY to Rs 534.6 crore in Q2FY25, helped by inventory destocking and finance costs.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty PSU Bank and Nifty MidSmall Healthcare Index were among the top index gainers today. According to Trendlyne’s sector dashboard, FMCG emerged as the worst-performing sector of the day, with a fall of 3.3%.

Asian indices closed in the red, except for Japan’s Nikkei 225 and Malaysia’s KLCI, which closed higher. European indices are trading in the green, except for Russia’s RTSI and MOEX index, which are trading in the red. US index futures are trading mixed, indicating a cautious start to the trading session. Brent crude oil futures are trading higher due to the Middle East conflict and reports of North Korean troops potentially supporting Russia in Ukraine.

  • Dr Lal Pathlabs sees a short buildup in its October 31 futures series, with open interest increasing by 33% and a put-call ratio of 0.6.

  • Ramkrishna Forgings rises as its net profit surges by 130.9% YoY to Rs 189.8 crore in Q2FY25, helped by inventory destocking and a one-time gain of Rs 95 crore from the sale of its subsidiary to Yatra Online. Revenue grows by 17% YoY to Rs 1,056.1 crore owing to higher forging components sales. It shows up in a screener of stocks reducing their debt.

  • KEC International secures orders worth Rs 1,142 crore across various sectors. The transmission & distribution segment includes a 380 kV transmission line project in Saudi Arabia and supply orders in the Americas, along with railway bridge construction and cable supply projects in India and overseas.

  • Ujjivan Small Finance Bank is falling as its net profit declines 28.9% YoY to Rs 233 crore in Q2FY25. Revenue increases by 15.9% YoY to Rs 1,612.8 crore, driven by improvements in the treasury, wholesale, and retail banking segments. The bank's asset quality deteriorates as its gross and net NPAs expand by 17 bps and 47 bps YoY, respectively, during the quarter.

  • TVS Motor Co declines over 3% after its Q2FY25 results missed analysts' expectations. Kotak Institutional Equities retains its 'Sell' rating but raises the target price to Rs 1,850, citing high valuations. However, the brokerage notes strong medium-term growth prospects from rising EV two-wheeler volumes, steady demand in ICE segments, and recovering exports.

  • Tata Consultancy Services launches a new unit in collaboration with NVIDIA to accelerate AI adoption across industries. The unit will offer industry-specific AI solutions and strategies, leveraging TCS' global centres of excellence (CoEs) and NVIDIA's AI platforms.

  • ICICI Direct upgrades Ultratech Cement to 'Buy' from 'Hold' with a higher target price of Rs 13,500 per share. This indicates a potential upside of 22.1%. The brokerage believes the company is well-positioned to benefit from a pick-up in demand and cost-saving initiatives. It expects the firm's net profit to grow at a CAGR of 22.6% over F25-27.

  • Colgate-Palmolive India's net profit grows 16.2% YoY to Rs 395.1 crore in Q2FY25, helped by inventory destocking. Revenue increases 13.6% YoY to Rs 1,695.1 crore owing to an improvement in the domestic market. It features in a screener of stocks with PEG lower than industry PEG.

  • Kishor Patil, MD & CEO of KPIT Technologies, believes the company will achieve the lower end of its 18-22% guidance band in FY25. He attributes the delay in programme launches as the key factor for the cautious guidance for H2FY25. Patil, however, remains optimistic about improving margins going forward.

  • Piramal Enterprises' revenue grows 4.3% YoY to Rs 2,288 crore in Q2FY25, driven by higher interest, dividend, and rental income. Net profit surges 238% YoY to Rs 163 crore, helped by an exceptional gain of Rs 76.9 crore. The company shows up in a screener of stocks outperforming their industry price change in the past quarter.

  • Au Small Finance Bank's net profit grows by 42.2% YoY to Rs 571.2 crore in Q2FY25. Revenue increases by 54.5% YoY to Rs 3,910.6 crore, driven by improvements in the treasury, wholesale, and retail banking segments. The bank's asset quality deteriorates as its gross and net NPAs expand by 7 bps and 15 bps YoY, respectively, during the quarter.

  • Dr. Lal Pathlabs' Q2FY25 net profit grows by 18.2% YoY to Rs 129.2 crore, helped by lower finance costs and depreciation & amortisation expenses. Revenue rises by 10.1% YoY to Rs 682.1 crore, owing to higher testing samples and patients. It appears in a screener of stocks with improving cash flow from operations over the past two years.

  • Reports suggest that the Adani group-controlled Kutch Copper is in talks with Australian mining giant BHP to secure a copper concentrate supply of up to 1.6 million tonnes per annum. The deal, potentially worth around Rs 30,000 crore annually, may vary due to fluctuating copper prices. Both companies are finalizing the agreement details.

  • United Spirits' Q2FY25 revenue falls 1% YoY to Rs 6,672 crore due to weak performance in the beverage alcohol segment. However, net profit grows marginally by 0.6% YoY to Rs 341 crore, helped by lower raw material costs and other expenses. The company shows up in a screener of stocks where mutual funds decreased their shareholding in the past quarter.

  • Ashok Leyland is rising as its electric mobility subsidiary, OHM Global Mobility, secures an order from the Metropolitan Transport Corporation (MTC) of Chennai for 500 12-meter ultra-low-floor electric buses.

  • Pidilite Industries is rising as its net profit grows by 18.8% YoY to Rs 534.6 crore in Q2FY25, helped by inventory destocking and finance costs. Revenue increases 5.9% YoY to Rs 3,292 crore during the quarter, driven by improvements in the consumer & bazaar and business-to-business (B2B) segments. It features in a screener of stocks where foreign institutional investors (FIIs) are increasing their shareholding.

  • Zydus Lifesciences receives in-principle approval from WHO for its Typhoid Vi conjugate vaccine, ZyVac TCV. This vaccine is eligible for procurement by the UN and is designed for individuals aged 6 months to 65 years. It aims to tackle the high incidence of typhoid in India, Africa, and Southeast Asia. Each year, UN agencies procure over 150 million doses of the typhoid conjugate vaccine to combat this infectious disease.

  • RailTel Corp of India is rising as it receives a work order worth Rs 144.9 crore from the Home Department, Government of Gujarat. The order includes supplying, installing, and maintaining CCTV video surveillance systems at local crime branches, the Special Operations Group cyber police station, the Local Intelligence Bureau, and several police stations across three clusters.

  • Birlasoft falls sharply as its net profit declines by 15.1% QoQ to Rs 127.5 crore in Q2FY25, caused by higher employee benefits and finance costs. However, revenue grows by 2.9% QoQ to Rs 1,401.6 crore due to improvements in the banking, financial services & insurance (BFSI) and energy & utilities segments. It appears in a screener of stocks where promoters are decreasing their shareholding.

  • Schaeffler India is falling as its Q2FY25 net profit misses Forecaster estimates by 7.4% despite growing 1.6% YoY to Rs 236.4 crore, driven by inventory destocking. Revenue increases 14.2% YoY to Rs 2,116.4 crore during the quarter. The company appears in a screener of stocks with increasing revenue every quarter for the past two quarters.

  • Macquarie downgrades Avenue Supermarts to ‘Underperform’ with a lower target price of Rs 3,700. The brokerage expects competitive pressures in the quick commerce space to persist. It also highlights that the 350 bps sequential fall in Q2FY25 same-store-sales growth was a negative surprise.

  • State Bank of India signs an agreement with the German Development Bank to secure a line of credit worth € 150 million (approx. Rs 1,358.7 crore). The bank plans to use the loan to finance renewable energy projects in India.

  • Sona BLW Precision Forgings surges as its net profit grows 16.2% YoY to Rs 143.9 crore in Q2FY25. Revenue increases 18.7% YoY to Rs 946.1 crore during the quarter. The company enters an agreement with Escorts Kubota to acquire its railway equipment business for Rs 1,600 crore.

  • Metro Brands is falling as its Q2FY25 net profit misses Forecaster estimates by 6.2% despite growing 4.3% YoY to Rs 69.6 crore, driven by inventory destocking. Revenue increases 5.4% YoY to Rs 585.5 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Hindustan Unilever's Q2FY25 net profit declines by 2.4% YoY to Rs 2,591 crore due to higher raw materials, employee benefits, and finance costs. However, revenue grows by 2.1% YoY to Rs 16,145 crore, driven by the home care and beauty & wellbeing segments. It shows up in a screener of stocks with weakening technicals and share price decline.

  • Nifty 50 was trading at 24,437.70 (2.2, 0.0%), BSE Sensex was trading at 80,098.30 (16.3, 0.0%) while the broader Nifty 500 was trading at 22,823.25 (-17.9, -0.1%).

  • Market breadth is in the red. Of the 1,904 stocks traded today, 806 were on the uptick, and 1,050 were down.

Riding High:

Largecap and midcap gainers today include Sona BLW Precision Forgings Ltd. (729.45, 13.3%), Adani Total Gas Ltd. (754.95, 7.8%) and Adani Wilmar Ltd. (340.30, 6.9%).

Downers:

Largecap and midcap losers today include Hindustan Unilever Ltd. (2,505.10, -5.8%), Escorts Kubota Ltd. (3,494.55, -5.6%) and Supreme Industries Ltd. (4,371.05, -4.8%).

Volume Shockers

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

Top high volume gainers on BSE included Piramal Pharma Ltd. (255.84, 17.4%), Sona BLW Precision Forgings Ltd. (729.45, 13.3%) and Aster DM Healthcare Ltd. (443.45, 10.3%).

Top high volume losers on BSE were KPIT Technologies Ltd. (1,410.85, -13.7%), VIP Industries Ltd. (471.65, -7.2%) and Dr. Lal Pathlabs Ltd. (3,049.10, -6.4%).

IIFL Finance Ltd. (407.15, -3.1%) was trading at 9.4 times of weekly average. Escorts Kubota Ltd. (3,494.55, -5.6%) and Hindustan Unilever Ltd. (2,505.10, -5.8%) were trading with volumes 9.1 and 7.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

6 stocks made 52 week highs, while 7 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Coforge Ltd. (7,699.05, 1.9%), Radico Khaitan Ltd. (2,296.10, 2.7%) and Max Financial Services Ltd. (1,287.80, 1.3%).

Stocks making new 52 weeks lows included - Birla Corporation Ltd. (1,152.50, 1.4%) and IndusInd Bank Ltd. (1,280.05, 0.5%).

23 stocks climbed above their 200 day SMA including Sona BLW Precision Forgings Ltd. (729.45, 13.3%) and Navin Fluorine International Ltd. (3,411.50, 3.2%). 18 stocks slipped below their 200 SMA including KPIT Technologies Ltd. (1,410.85, -13.7%) and Hindustan Unilever Ltd. (2,505.10, -5.8%).

 
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The Baseline
24 Oct 2024
Five stocks to buy from analysts this week - October 24, 2024
By Divyansh Pokharna

1. Gopal Snacks:

Emkay initiates a ‘Buy’ rating on this packaged food manufacturer with a target price of Rs 600. This indicates an upside of 28.6%. Analysts Nitin Gupta and Pinky Mahato note that the company is exploring mergers and acquisitions (M&A) in eastern and southern India to expand its capacity and drive growth in new markets.

During Q2FY25, Gopal Snacks’ sales grew 12.5% YoY to Rs  402.6 crore, driven by a rise in wafers (up 47%) and other snack products (up 20%) segments. However, the EBITDA margin contracted by 110 bps to 11.6%, due to higher advertising and promotional spending – this jumped to Rs 5.5 crore from Rs 2 crore. The company’s business in Gujarat increased by 6%. Gupta and Mahato said, “We expect double-digit growth in the second half, as the 6% growth in Gujarat during Q2 indicates that business pressures are beginning to ease.”

Gopal Snacks has expanded its distributor network to 828, up from 667 in March 2024, and aims to reach 1,100 distributors by March 2025. It also plans to add one distributor per day in FY26. The analysts expect a revenue CAGR of 16.3% and a net profit CAGR of 34.4% over FY25-27.

2. Mastek:

Sharekhan maintains a ‘Buy’ call on this  IT software firm with a target price of Rs 3,610, indicating a potential upside of Rs 27.8%. Mastek reported a revenue growth of 13.2% YoY to Rs 867.4 crore in Q2FY25, beating the analysts’ estimates by 2.1%. This growth is primarily driven by strong performance in the health and lifesciences, retail, and manufacturing & financial services verticals.

The company says that it is confident it can fully absorb the impact of wage hikes in Q3, ensuring strong performance in Q3 and Q4. Its EBITDA margin improved by 125 bps QoQ to 16.5%, with a target of reaching 17% or higher in the upcoming quarters. Analysts believe Mastek is on track for industry-leading growth, supported by a strong start to FY25. The firm saw strong momentum in North America's healthcare sector. Additionally, its expansion in the UK is benefiting from the new government's support for digital transformation initiatives. 

Mastek added 14 new clients in Q2FY25, bringing the total number of active clients to 380. The 12-month order backlog reached Rs 2,194.7 crore, reflecting a 17.9% increase in rupee terms and 10.9% in constant currency. The analysts highlight that the strong and stable order backlog offers solid revenue visibility for the company.

3. State Bank of India:

ICICI Securities maintains a ‘Buy’ rating on the bank with a target price of Rs 1,000, indicating an upside of 27.2%. In FY24, SBI reported an improvement in its domestic loan-to-deposit ratio (LDR) to 69%, up from below 65% in FY23. The bank's gross non-performing assets (GNPA) stand at 2.21% in FY24, down from 4% in FY22. It has gained market share in retail and SME segments, outperforming other public sector banks, with a 16% YoY growth in corporate loans in FY24.

Analysts Jai Prakash Mundhra, Chintan Shah and Hardik Shah are optimistic about SBI's potential to gain credit market share, estimating a 15% CAGR in loans over FY25-26. They believe the bank’s leadership in retail products and improved loan offerings, particularly in the SME segment, positions it favorably despite heavy competition. SBI has maintained a credit market share of 22-23%, with expectations of sustaining this range in the coming years. 

The analysts believe that SBI’s focus on enhancing digital banking services and investing in technology will strengthen its competitive position. The improvements in customer experience and operational efficiency could potentially attract more customers over the long term.

4. Newgen Software Technologies:

ICICI Direct assigns a ‘Buy’ rating to this IT software company, with a target price of Rs 1,465, indicating an upside potential of 18.7%. In Q2FY25 its net profit surged by 47.2% YoY to Rs 70.3 crore. Revenue grew by 25.5% to Rs 379.7 crore, driven by improvements in the Indian, Europe, the Middle East and Africa (EMEA), Asia-Pacific (APAC), and US markets.

Analysts Bhupendra Tiwary, Anjini Sharma, and Deep Thosani note that the company's focus on larger deals and scaling down of smaller accounts, with an aim to increase the average deal size from $700K to $2 million, has contributed to this growth. Analysts highlighted that the management plans to aggressively invest in achieving its goal of $500 million in revenue over the next 3-4 years, implying a CAGR of 36%. The order book of the company grew by 22% YoY in H1FY25.

Tiwary, Sharma, and Thosani expect revenue to grow at a CAGR of 23.8% between FY25-27, and EBITDA margin of 24.7%, 24.2%, and 24.2% for FY25, FY26, and FY27, respectively.

5. HDFC Life Insurance Company:

KRChoksey maintains its ‘Buy’ rating on HDFC Life Insurance, with a target price of Rs 845, with a potential upside of 16.8%. This life insurance company reported a net profit growth of 14.8% YoY to Rs 433 crore in Q2FY25. Revenue increased by 23.8% to Rs 28,489.3 crore, owing to improvements in annual premium equivalent (APE) and new business premium.

Analyst Dipak Saha highlights that the company expects annualized equivalent premium (APE) growth between 18-20%, and value of new business (VNB) growth in the 15-17% range for FY25. He notes that the company focuses on product innovation and expanding distribution channels, especially in tier 2 and 3 cities, while strengthening its partnership with HDFC Bank to enhance geographic reach.

Saha believes the company is well-positioned for sustainable growth in the coming quarters, supported by the management's strategic flexibility in addressing regulatory changes, disciplined pricing, and a strong solvency ratio. The brokerage expects a CAGR of 16.6% in net premiums, 15.8% in VNB, 24.4% in net profit and 19% in embedded value (EV) over FY 25-26.

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

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
23 Oct 2024
Market closes lower, Bajaj Finserv's revenue rises 29.5% YoY to Rs 33,703.7 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 24,435.50 (-36.6, -0.2%) , BSE Sensex closed at 80,081.98 (-138.7, -0.2%) while the broader Nifty 500 closed at 22,841.10 (26.7, 0.1%). Market breadth is in the green. Of the 2,293 stocks traded today, 1,360 were on the uptrend, and 904 went down.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,435.5 points.  The Indian volatility index, Nifty VIX, rose 1.5% and closed at around 14.6 points. Persistent Systems closed deep in the green after its net profit grew 23.4% YoY to Rs 325 crore in Q2FY25, revenue up 20.2% YoY to Rs 2,943.7 crore.

Nifty Midcap 100 and Nifty Smallcap 100 closed higher. Nifty IT and Nifty India Digital closed in the green, among the best performers of the day. According to Trendlyne’s sector dashboard, Software & Services emerged as the best-performing sector of the day, with a rise of 1.8%.

European indices are trading lower. Major Asian indices closed mixed. US index futures are trading mixed, indicating a cautious start to the trading session. Tesla, Coca-Cola, T-Mobile US, and Thermo Fisher Scientific, among others, are set to report their earnings later today.

  • Coforge sees a long buildup in its October 31 futures series, with open interest increasing by 24% and a put-call ratio of 0.5.

  • Bajaj Finserv rises as its Q2FY25 revenue rises 29.5% YoY to Rs 33,703.7 crore, driven by improvements in the insurance and retail financing segments. Net profit grows 8.2% YoY to Rs 2,087 crore during the quarter. The company shows up in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Craftsman Automation's net profit declines by 34.7% YoY to Rs 61.7 crore in Q2FY25 due to higher sales & services and employee benefits expenses. However, revenue grows by 3.1% YoY to Rs 1,220.4 crore, driven by the powertrain and industrial & engineering segments. It shows up in a screener of stocks with declining profits for the past three quarters.

  • RailTel Corp of India is rising as it receives a work order worth Rs 36.7 crore from South Eastern Railway. The contract involves providing electronic interlocking systems and signaling arrangements, both indoor and outdoor, at Bondamunda K, D, E, and J Cabins.

  • The Office of the Commissioner of Indirect Taxes & Customs, Hyderabad, penalizes Suzlon Energy for short reversal of input tax credit under the CGST Act, 2017. The company received the penalty order on October 22, following an audit observation by the Superintendent - SAG41, Hyderabad.

  • KPIT Technologies is falling as its Q2FY25 net profit falls marginally 0.2% QoQ to Rs 203.7 crore due to higher tax expenses. However, revenue grows 7.8% QoQ to Rs 1,471.4 crore, beating Forecaster estimates by 1.3%. It appears in a screener of stocks underperforming their industry price change in the past quarter.

  • Can Fin Homes is rising as its net profit grows 33.8% YoY to Rs 211.5 crore in Q2FY25, driven by improvements in provisions for expected credit loss and write-offs. Revenue increases 10.5% YoY to Rs 962.7 crore during the quarter. The company appears in a screener of stocks with increasing revenue every quarter for the past eight quarters.

  • Amber Enterprises surges to its all-time high of Rs 6,788.3 per share as it posts a net profit of Rs 19.2 crore in Q2FY25 compared to a net loss of Rs 6.9 crore in Q2FY24. Revenue increases by 81.2% YoY to Rs 1,702.5 crore, driven by growth in the consumer durables and electronics manufacturing services (EMS) segments. It features in a screener of stocks with high Trendlyne Momentum scores.

  • India’s Finance Ministry is reportedly considering the removal of the windfall tax on domestic crude oil. Tarun Kapoor, advisor to the Prime Minister stated the imposition of windfall tax on crude oil has no relevance due to significantly lower global oil prices compared to 2022, when it was first levied.

  • Coforge surges as its Q2FY25 revenue grows 27.6% QoQ to Rs 3,062.3 crore, driven by improvements in the Americas and Europe, Middle East & Africa markets. Net profit rises 51.8% QoQ to Rs 202.2 crore during the quarter. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • Olectra Greentech is rising as its net profit grows 1.6X YoY to Rs 47.6 crore in Q2FY25. Revenue rises 70.5% YoY to Rs 523.7 crore, driven by higher sales from the insulator and e-vehicle divisions during the quarter. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • Jyoti Structures is rising as it secures a letter of acceptance (LoA) for a Rs 450 crore order from Adani Energy Solutions in Gujarat. The project involves constructing a 765 kV transmission line, including tower supply, foundation, and commissioning, set for completion by April 2026.

  • Zomato hikes its platform fee by 67% from Rs 6 per order to Rs 10, citing festive season demand. The company attributes the platform fee as one of the key reasons, for improving its margins.

  • Zensar Technologies is rising as its net profit beats the Forecaster estimates by 2.6% despite falling 1.7% QoQ to Rs 155.7 crore in Q2FY25, driven by higher expenses on purchase of traded goods. However, revenue increases 1.5% QoQ to Rs 1,308 crore during the quarter. The company appears in a screener of stocks with increasing revenue every quarter for the past two quarters.

  • Bajaj Finance rises sharply as its net profit grows 80.8% YoY to Rs 5,613.7 crore in Q2FY25. Revenue increases 27% YoY to Rs 14,491.8 crore due to higher assets under management (AUM). It appears in a screener of stocks with improving book value over the past two years.

  • JSW Energy's step-down subsidiary, JSW Renew Energy Eleven, signs a power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) for a 700MW solar project. The 25-year deal offers solar power with a Rs 2.56/kW tariff.

  • Reports suggest that 1.8 crore shares (0.5% equity) of Bharat Heavy Electricals, amounting to Rs 402 crore, have changed hands in a large deal.

  • SRF's net profit falls 33% YoY to Rs 201.4 crore in Q2FY25. However, revenue rises 7.8% YoY to Rs 3,424.3 crore, driven by improvements in the technical textiles business (TTB) and packaging firm business (PFB) during the quarter. The company appears in a screener of stocks with declining profits every quarter for the past two quarters.

  • Max Financial Services' net profit declines 23.9% YoY to Rs 112.6 crore in Q2FY25. However, revenue grows by 31.3% YoY to Rs 13,376.1 crore, helped by higher average premium equivalent (APE) and new business premium. It shows up in a screener of stocks with a decrease in provisions.

  • Adani Green Energy is falling as its net profit declines 25.8% YoY to Rs 276 crore in Q2FY25. However, revenue rises 37.6% YoY to Rs 3,055 crore, driven by improvements in the power supply and sale of goods/equipment & related services segments during the quarter. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Suresh Narayanan, Chairman and Managing Director of Nestlé India, highlights the sluggish demand in the FMCG sector, with growth in food and beverages dropping to 1.5-2% compared to double-digit figures in previous quarters. He points out the significant rise in prices for fruits, vegetables, and oils, warning that if these costs become unmanageable, they will inevitably lead to higher prices for consumers.

  • Persistent Systems rises sharply as its net profit grows by 23.4% YoY to Rs 325 crore in Q2FY25. Revenue increases by 20.2% YoY to Rs 2,943.7 crore, driven by improvements in the banking, financial services & insurance (BFSI), healthcare & life sciences, and software, hi-tech & emerging industries segments. It appears in a screener of stocks with increasing revenue for the past eight quarters.

  • John Cockerill India is rising as it secures an order worth approximately Rs 103 crore from John Cockerill Industry North America. The order includes detailed engineering for an annealing and pickling line, along with the supply of key equipment like an annealing furnace and hydraulic and lubrication systems. It also covers the pre-assembly of refractory materials and the installation and commissioning of the line.

  • Indus Towers' Q2FY25 net profit surges by 71.7% YoY to Rs 2,223.5 crore, helped by a return of Rs 1,076.6 crore from doubtful receivables. Revenue grows by 4.8% YoY to Rs 7,579.2 crore during the quarter. It features in a screener of stocks with rising net cash flow and cash from operating activities.

  • Zomato is falling as its Q2FY25 net profit misses Forecaster estimates by 32.3% despite growing 3.9X YoY to Rs 176 crore. Revenue increases 68.5% YoY to Rs 4,799 crore, driven by a 97.7% YoY increase in Hyperpure supplies (B2B Business) and a 1.3X YoY rise in quick commerce sales during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Nifty 50 was trading at 24,511.95 (39.9, 0.2%) , BSE Sensex was trading at 80,137.88 (-82.8, -0.1%) while the broader Nifty 500 was trading at 22,854.60 (40.2, 0.2%)

  • Market breadth is in the green. Of the 1,933 stocks traded today, 1,101 were on the uptrend, and 785 went down.

Riding High:

Largecap and midcap gainers today include Coforge Ltd. (7,557.80, 11.1%), Persistent Systems Ltd. (5,718.75, 10.9%) and Max Financial Services Ltd. (1,271.90, 8.7%).

Downers:

Largecap and midcap losers today include Gujarat Fluorochemicals Ltd. (4,387.60, -6.9%), ABB India Ltd. (7,703.80, -5.8%) and Siemens Ltd. (6,872.05, -5.1%).

Volume Rockets

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

Top high volume gainers on BSE included Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,118.75, 16.5%), Firstsource Solutions Ltd. (350.90, 12.1%) and Coforge Ltd. (7,557.80, 11.1%).

Top high volume losers on BSE were Rajesh Exports Ltd. (242.70, -8.1%), Mahindra & Mahindra Financial Services Ltd. (267.55, -5.0%) and Bharat Heavy Electricals Ltd. (223.70, -3.9%).

Gujarat Mineral Development Corporation Ltd. (355.50, 8.3%) was trading at 15.0 times of weekly average. Persistent Systems Ltd. (5718.75, 10.9%) and Can Fin Homes Ltd. (871.30, 4.6%) were trading with volumes 8.9 and 8.9 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

9 stocks made 52 week highs, while 22 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Firstsource Solutions Ltd. (350.90, 12.1%), Multi Commodity Exchange of India Ltd. (6,686.05, 4.0%) and Coforge Ltd. (7,557.80, 11.1%).

Stocks making new 52 weeks lows included - Birla Corporation Ltd. (1,136.65, -0.9%) and IDFC First Bank Ltd. (66.58, -2.6%).

25 stocks climbed above their 200 day SMA including BLS International Services Ltd. (380.95, 8.6%) and Varun Beverages Ltd. (628.75, 5.8%). 41 stocks slipped below their 200 SMA including APL Apollo Tubes Ltd. (1,486.90, -2.8%) and Action Construction Equipment Ltd. (1,275.85, -2.3%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
22 Oct 2024
Market closes lower, Supreme Industries' net profit falls 15% YoY to Rs 206.6 crore in Q2
By Trendlyne Analysis

Nifty 50 closed at 24,472.10 (-309, -1.3%) , BSE Sensex closed at 80,220.72 (-930.6, -1.2%) while the broader Nifty 500 closed at 22,814.45 (-448.8, -1.9%). Market breadth is highly negative. Of the 2,309 stocks traded today, 192 were in the positive territory and 2,107 were negative.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,472.1 points.  The Indian volatility index, Nifty VIX, rose 4.6% and closed at around 14.4 points. Hyundai Motor India closed 7.2% lower after its shares made their debut on the bourses at a 1.3% discount to the issue price of Rs 1,960. 

Nifty Midcap 100 and Nifty Smallcap 100 closed lower.  Nifty Metal and Nifty Consumer Durables closed in the red. According to Trendlyne’s sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 1.6%.

European indices are trading lower, except for Russia’s RTSI and MOEX. Major Asian indices closed mixed. US index futures are trading mixed, indicating a cautious start to the trading session. GE Aerospace, Danaher Corporation, Philip Morris International, and Verizon Communications, among others, are set to report their earnings later today.

  • Money flow index (MFI) indicates that stocks like Amber Enterprises India, Multi Commodity Exchange of India, and Gujarat Fluorochemicals are in the overbought zone.

  • Kajaria Ceramics falls sharply as its Q2FY25 net profit declines 22.8% YoY to Rs 85.5 crore due to higher raw materials and employee benefit expenses. However, revenue increases by 5.1% YoY to Rs 1,179.3 crore, helped by an improvement in the tiles segment. The company shows up in a screener of stocks with profits declining from the past three quarters.

  • Goodyear India falls to its new 52-week low of Rs 1,030.1 as its net profit falls by 58.5% YoY to Rs 15.7 crore in Q2FY25 due to higher cost of materials. Revenue decreases by 1.3% YoY to Rs 682.3 crore during the quarter. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Supreme Industries is falling as its net profit declines by 15% YoY to Rs 206.6 crore in Q2FY25, helped by inventory destocking. Revenue decreases 1.4% YoY to Rs 2,288 crore owing to a reduction in the plastic piping products and consumer products segments. It appears in a screener of stocks with growing costs YoY for long-term projects.

  • Kotak Institutional Equities highlights a significant reversal in Indian markets in October, following a nine-month rally that made them the most expensive globally. Foreign portfolio investors (FPIs) withdrew a record Rs 82,479 crore from Indian equities this month. The brokerage also raised concerns about excessively high market valuations across most sectors. However, it believes the overall market sentiment remains quite euphoric.

  • NBCC (India) receives multiple work orders totaling Rs 127.5 crore from various clients. These include orders worth Rs 51 crore from Oil India, Rs 26 crore from IIFCL, Rs 20.4 crore from the Intelligence Bureau, Rs 16.9 crore from GS1 India, Rs 9.9 crore from EDCIL, and Rs 3.3 crore from Munitions India for the execution of interior fit-out works in office spaces.

  • Route Mobile's net profit grows 21% YoY to Rs 10.7 crore in Q2FY25. Revenue increases 9.7% YoY to Rs 1,113.4 crore, driven by improvements in the domestic business (up 29% YoY) and overseas business (8.5% YoY). The company appears in a screener of stocks with book value per share improving over the past two years.

  • ICICI Securities' net profit grows 24.9% YoY to Rs 529 crore in Q2FY25. Revenue increases 36.6% YoY to Rs 1,706.7 crore, attributable to improvements in the treasury, broking & distribution, and issuer services & advisory segments. It shows up in a screener of stocks with increasing revenue for the past eight consecutive quarters.

  • Yogesh Malhotra, CEO of Gravita India, projects volume growth of 23-27% in FY25. He believes EBITDA margins may increase by 50 bps in select verticals, and expects RoCE of more than 20%. Malhotra highlights that the Finance Ministry’s Reverse Charge Mechanism and policy changes under GST are tailwinds for the company.

  • Varun Beverages is rising as its net profit grows by 23.7% YoY to Rs 619.6 crore in Q2FY25. Revenue increases 25.3% YoY to Rs 4,932.1 crore as sales volume rises 21.9% YoY to 267.5 million cases during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Cyient DLM falls sharply as its net profit misses estimates by 24.8%, despite rising 5.5% YoY to Rs 15.5 crore in Q2FY25. Revenue grows 33.4% YoY to Rs 389.5 crore during the quarter. The company appears in a screener of stocks underperforming their industry price change in the past quarter.

  • Realty stocks like Raymond, DLF, Godrej Properties, and Brigade Enterprises plunge more than 3% in trade. All constituents of the broader Nifty Realty index are also trading in the red.

  • Abhyuday Jindal, Managing Director of Jindal Stainless, anticipates the stainless steel sector will grow by 8-9% in FY25, driven by strong domestic demand fueled by infrastructure projects, including those from the Railways and Metro initiatives. However, rising imports from China and Vietnam pose a challenge. Additionally, Jindal notes that export markets such as the US and EU remain sluggish, primarily due to high freight rates and geopolitical tensions impacting performance.

  • Jana Small Finance Bank falls sharply as its net profit declines by 21.3% YoY to Rs 96.7 crore in Q2FY25. However, its revenue increases 19.1% YoY to Rs 1,166.1 crore, driven by improvements in the treasury, corporate, and retail banking segments. The bank's asset quality improves as its gross non-performing assets contract by 53 bps during the quarter. It appears in a screener of stocks with promoters decreasing their shareholdings.

  • Mahindra Logistics' net loss narrows by 32.5% YoY to Rs 10.8 crore in Q2FY25. Revenue grows by 11.5% YoY to Rs 1,521 crore, helped by an improvement in the supply chain management segment. The company shows up in a screener of stocks where mutual funds increased their shareholding in the past quarter.

  • One97 Communications falls sharply as its revenue declines by 31.1% YoY to Rs 1,834 crore in Q2FY25. However, it posts a net profit of Rs 928.3 crore in Q2FY25 owing to lower payment processing, marketing & promotional, and employee benefits expenses. It appears in a screener of stocks with an increasing trend in non-core income.

  • Kamlesh Shah, CFO of Elecon Engineering, says the company is on track to meet its revenue guidance of Rs 2,225 with an EBITDA margin of 24% in FY25, helped by a healthy order book. He attributes the company’s muted performance in Q2 to the Lok Sabha Elections, but expects a shift on a quarter-on-quarter basis.

  • Ambuja Cements' board of directors approves the acquisition of a 72.8% stake in Orient Cement for a total consideration of Rs 5,903 crore.

  • Gravita India's Q2FY25 net profit rises by 24.4% YoY to Rs 72 crore, driven by inventory destocking. Revenue increases 13.8% YoY to Rs 967.8 crore, driven by higher sales from lead and aluminium segments during the quarter. It features in a screener of stocks with zero promoter pledge.

  • Hyundai Motor India’s shares debut on the bourses at a 1.3% discount to the issue price of Rs 1,960. The Rs 27,870.1 crore IPO received bids for 2.4 times the total shares on offer.

  • Macquarie initiates an 'Outperform' rating on Hyundai Motor India with a target price of Rs 2,235. The brokerage believes Hyundai deserves to trade at a premium PE multiple versus its peers. It notes that the company's market share in core segments has stabilized and improved from recent lows. Macquarie also highlights Hyundai's favorable portfolio mix and premium positioning in the market.

  • ICICI Securities upgrades HDFC Asset Management to 'Buy' from 'Hold' with a higher target price of Rs 5,500 per share. This indicates a potential upside of 18.7%. The brokerage believes the company's improving equity mix and higher market share in systematic investment plan (SIP) flows will help expand profitability. It expects the firm's net profit to grow at a CAGR of 28% over FY25-27.

  • Bajaj Housing Finance rises as its Q2FY25 net profit grows 20.9% YoY to Rs 545.6 crore. Revenue increases by 26.1% YoY to Rs 2,410.2 crore due to higher assets under management (AUM) and loans. It features in a screener of stocks with rising net cash flow and cash from operating activities.

  • 360 One Wam is falling as its Q2FY25 net profit misses Forecaster estimates by 6.1% despite growing 32% YoY to Rs 245.5 crore. Revenue increases 42.9% YoY to Rs 890.4 crore due to strong growth in average recurring revenue assets under management (ARR AUM) and higher transactional/brokerage income during the quarter. It features in a screener of stocks with increasing revenue every quarter for the past three quarters.

  • Union Bank of India is rising as its net profit grows by 34.4% YoY to Rs 4,719.7 crore in Q2FY25, helped by lower provisions and tax expenses. Revenue increases by 13.3% YoY to Rs 32,036.5 crore, driven by the treasury, retail, and wholesale banking segments. The bank's asset quality improves as its gross and net NPAs decline by 202 bps YoY and 32 bps YoY, respectively.

  • Nifty 50 was trading at 24,832.40 (51.3, 0.2%), BSE Sensex was trading at 81,189.78 (38.5, 0.1%) while the broader Nifty 500 was trading at 23,284.85 (21.6, 0.1%).

  • Market breadth is in the red. Of the 1,928 stocks traded today, 702 were on the uptick, and 1,187 were down.

Riding High:

Largecap and midcap gainers today include Varun Beverages Ltd. (594.55, 2.8%), Hindustan Zinc Ltd. (513.60, 2.4%) and Tube Investments of India Ltd. (4,486.35, 2.3%).

Downers:

Largecap and midcap losers today include Mazagon Dock Shipbuilders Ltd. (4,158.35, -10.9%), Supreme Industries Ltd. (4,485.90, -9.9%) and Punjab National Bank (94.95, -7.2%).

Volume Shockers

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

Top high volume gainers on BSE included City Union Bank Ltd. (168.51, 11.9%), Poly Medicure Ltd. (2,524.25, 3.0%) and Tube Investments of India Ltd. (4,486.35, 2.3%).

Top high volume losers on BSE were Supreme Industries Ltd. (4,485.90, -9.9%), Punjab National Bank (94.95, -7.2%) and PNC Infratech Ltd. (342.30, -6.7%).

Jyothy Labs Ltd. (504.30, -2.6%) was trading at 27.1 times of weekly average. Route Mobile Ltd. (1,534.90, -2.1%) and Torrent Power Ltd. (1,940, -1.4%) were trading with volumes 3.8 and 3.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks hit their 52 week highs, while 16 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Multi Commodity Exchange of India Ltd. (6,431.05, -3.0%), Torrent Power Ltd. (1,940, -1.4%) and Whirlpool of India Ltd. (2,349, 0.0%).

Stocks making new 52 weeks lows included - IDFC First Bank Ltd. (68.32, -3.0%) and IndusInd Bank Ltd. (1,274.35, -2.6%).

5 stocks climbed above their 200 day SMA including City Union Bank Ltd. (168.51, 11.9%) and Varun Beverages Ltd. (594.55, 2.8%). 74 stocks slipped below their 200 SMA including Supreme Industries Ltd. (4,485.90, -9.9%) and Jupiter Wagons Ltd. (468.15, -8.5%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
21 Oct 2024
Market closes lower, L&T Finance's net profit up 16.9% YoY to Rs 695.6 crore in Q2FY25
By Trendlyne Analysis

Nifty 50 closed at 24,781.10 (-73.0, -0.3%) , BSE Sensex closed at 81,151.27 (-73.5, -0.1%) while the broader Nifty 500 closed at 23,263.25 (-177.5, -0.8%). Market breadth is sharply down. Of the 2,335 stocks traded today, 506 were on the uptrend, and 1,806 went down.

Indian indices closed in the red, with the benchmark Nifty 50 index closing at 24,781.1 points. The Indian volatility index, Nifty VIX, rose 5.6% and closed at 13.9 points. HDFC Bank’s net profit grew 5.3% YoY to Rs 16,821 crore in Q2FY25. Revenue rose 9% YoY to Rs 85,499.6 crore, owing to improvements in the retail and wholesale banking segments.

Nifty Midcap 100 and Nifty Smallcap 100 closed in the red, following the benchmark index. S&P BSE Midsmallcap and S&P BSE Large MidCap were among the top index gainers today. According to Trendlyne’s Sector dashboard, Hardware Technology & Equipment emerged as the worst-performing sector of the day, with a fall of over 3%.

Asian indices closed mixed while European indices are trading in the red except Russia’s MOEX and RTSI index. US index futures traded in the red, indicating a cautious start to the trading session. Brent crude oil futures are trading in the green. JP Morgan observed significant Q3 earnings downgrades across major regions, with ongoing cuts in both the U.S. and Eurozone. Additionally, it noted that Brent, a key global benchmark typically correlated to sales growth, is indicating potential downside.

  • Relative strength index (RSI) indicates that stocks like Motilal Oswal Financial Services, Mastek, and Anand Rathi Wealth are in the overbought zone.

  • CG Power and Industrial Solutions is falling as its net profit declines 8.8% YoY to Rs 221 crore in Q2FY25. However, revenue rises 20.5% YoY to Rs 2,412.7 crore during the quarter, driven by higher sales in the power and industrial systems segments. It features in a screener of stocks with zero promoter pledge.

  • Mangalore Refinery And Petrochemicals falls sharply as it reports a net loss of Rs 696.9 crore in Q2FY25 compared to a net profit of Rs 1,051.7 crore in Q2FY24 due to higher cost of raw materials and lower inventory sales. However, revenue increases 26% YoY to Rs 28,785.9 crore during the quarter. The company appears in a screener of stocks underperforming their industry price change in the past quarter.

  • L&T Finance's Q2FY25 net profit grows by 16.9% YoY to Rs 695.6 crore. Its revenue increases by 25.1% YoY to Rs 4,019 crore due to improvements in interest and fees & commission incomes. The company appears in a screener of stocks with book value per share improving over the past two years.

  • Reliance Industries’ exports reach multi-quarter lows, both in absolute terms and as a percentage of its oil-to-chemicals (O2C) revenue in the latest quarter, amid ongoing volatility in the global oil market since the pandemic and recent geopolitical tensions. In Q2FY25, the company reported exports of Rs 70,631 crore, down 16% YoY.

  • Jio Financial Services' net profit grows by 3.1% YoY to Rs 689.1 crore in Q2FY25. Revenue increases 14.1% YoY to Rs 693.5 crore during the quarter, helped by higher interest and dividend income. It shows up in a screener of stocks where mutual funds increased their shareholding in the past quarter.

  • RBL Bank plunges to its 52-week low of Rs 175.5 per share as its net profit falls by 24.3% YoY to Rs 222.5 crore in Q2FY25 owing to a tax expense of Rs 69 crore compared to a tax return of Rs 203.5 crore in Q2FY24. However, revenue grows by 20.1% YoY to Rs 4,458.3 crore, driven by the treasury, retail, and corporate banking segments. It features in a screener of stocks with high interest payments compared to earnings.

  • TD Power Systems is rising as it signs a five-year contract with an Indian subsidiary of a major international company to supply traction motors for the European market. The company receives an initial order valued at Rs 18 crore, scheduled for delivery in April 2025. The total contract value is expected to reach Rs 300 crore over the next five years.

  • Rajiv Bajaj, CEO of Bajaj Auto, expects the company will achieve growth close to double digits by December. He highlights the 125cc+ segment has been growing 40% higher than the industry. Bajaj expects a cumulative volume of 45 lakh by year-end, and 47 lakh in FY25, driven by higher exports.

  • Axis Direct retains its 'Buy' call on Nestle India with a lower target price of Rs 2,640 per share. This indicates a potential upside of 12%. The brokerage remains positive on the company's long-term growth owing to improved rural penetration, new product launches, premiumisation of core categories like Maggi noodles, and expansion into new categories. It expects the firm's revenue to grow at a CAGR of 10.7% over FY25-27.

  • Tata Consumer Products falls sharply as its Q2FY25 revenue misses Forecaster estimates by 2.4% despite growing by 11.4% YoY to Rs 4,260.4 crore, attributed to improvements in the Indian and international businesses. Net profit rises by 7.7% YoY to Rs 364.4 crore owing to higher inventory destocking. It shows up in a screener of stocks with weakening technicals and share price decline.

  • Refex Renewables & Infrastructure rises to its 5% upper limit as its wholly-owned subsidiary, Refex Green Power, secures an order worth Rs 480 crore from NTPC to set up a 100 megawatt (MW) solar power project.

  • Foreign institutional investors (FIIs) offload a record Rs 77,701 crore (approx $9.25 billion) worth of shares till October 18, highlights Ace Equity. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, notes that FII funds are shifting to Chinese stocks, which remain relatively cheap. For context, Hong Kong's Hang Seng index had a price-to-earnings (P/E) ratio of nearly 12, compared to the Nifty50's roughly 23.

  • JSW Steel and JFE Steel Corp’s joint venture, JSquare Electrical Steel Nashik, enters a share purchase agreement to acquire 100% equity interest in Thyssenkrupp Electrical Steel India for Rs 4,051.4 crore, subject to closing adjustments.

  • IndiaMART InterMESH's Q2FY25 net profit grows by 18% QoQ to Rs 135.1 crore. Revenue increases 7.5% QoQ to Rs 413.2 crore, driven by improvements in the web & related services and accounting software services segments. It shows up in a screener of stocks with increasing revenue for the past eight quarters.

  • ICICI Lombard General Insurance's net profit grows by 20.2% YoY to Rs 694 crore in Q2FY25. Revenue increases 17.1% YoY to Rs 6,147.3 crore during the quarter, driven by higher sales in the fire, marine, health, crop, and motor segments. It features in a screener of stocks with increasing revenue every quarter for the past 3 quarters.

  • Sunil D’Souza, MD and CEO of Tata Consumer Products, highlights improved demand in rural areas, but urban demand has softened. He expects increased volumes in Q3FY25, compared to Q2. D’souza believes the company will achieve EBITDA margin growth of 50-100 bps YoY, and remains bullish about H2FY25.

  • Godrej Properties acquires 3 acres of land in Vastrapur, Ahmedabad, for a residential project with a saleable area of 0.9 million sq. ft. The project, primarily premium apartments, has an estimated booking value of Rs 1,300 crore.

  • Kotak Mahindra Bank falls sharply as its net profit misses Forecaster estimates by 1.9% despite growing by 4.8% YoY to Rs 3,343.7 crore in Q2FY25. Revenue rises by 17.7% YoY to Rs 15,900.5 crore, driven by improved treasury, retail, and wholesale banking segments. The bank's asset quality improves as its gross NPA contracts 23 bps YoY. However, its net NPA expands by 6 bps YoY.

  • Netweb Technologies India is rising as its net profit grows by 66.5% QoQ to Rs 25.7 crore, led by inventory destocking. Revenue increases 68.1% QoQ to Rs 251.1 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding in the last quarter.

  • Hitesh Doshi, Chief Managing Director of Waaree Energies, highlights the company's plans to utilise the IPO funds to increase its capacity from 13 GW to 21 GW. As of June 2024, its utilized capacity stands at 45%. He adds that the firm plans to launch a 5.4 GW cell manufacturing facility in FY25, which is expected to enhance margins as it becomes operational.

  • PNC Infratech plunges to its 20% lower circuit as the Ministry of Road Transport & Highways (MoRTH) disqualifies the company and its special purpose vehicles (SPVs), PNC Khajuraho Highways and PNC Bundelkhand Highways from its tenders for one year.

  • HDFC Bank rises sharply as its net profit grows 5.3% YoY to Rs 16,821 crore in Q2FY25. Revenue increases 9% YoY to Rs 85,499.6 crore, owing to improvements in the retail and wholesale banking segments. However, the bank's asset quality declines as its gross and net NPA grow by 2 bps and 6 bps YoY, respectively. It appears in a screener of stocks near their 52-week highs with significant volumes.

  • Garden Reach Shipbuilders & Engineers is rising as it receives a contract worth Rs 491 crore from the Naval Physical and Oceanographic Laboratory under the Ministry of Defence's Defence Research and Development Organisation (DRDO) in Kochi. The contract covers the design, development, construction, equipment integration, testing, certification, commissioning, and supply of an Acoustic Research Ship (ARS).

  • Tech Mahindra rises sharply to its 52-week high of Rs 1,745 per share as its net profit grows by 46.8% QoQ to Rs 1,250.1 crore in Q2FY25. Revenue increases 5.2% QoQ to Rs 13,834.7 crore, helped by improvements in the IT and business process services (BPS) segments. It features in a screener of stocks with decreasing provisions.

  • Markets rise on early trading, Nifty 50 was trading at 24,935.75 (81.7, 0.3%), BSE Sensex was trading at 81,676.39 (451.6, 0.6%) while the broader Nifty 500 was trading at 23,513.85 (73.2, 0.3%).

  • Market breadth is in the green. Of the 2,009 stocks traded today, 1,141 were on the uptick, and 817 were down.

Riding High:

Largecap and midcap gainers today include Bajaj Auto Ltd. (10,500.50, 4.3%), Oberoi Realty Ltd. (1,995.55, 3.3%) and Zomato Ltd. (265.70, 3.2%).

Downers:

Largecap and midcap losers today include Tata Consumer Products Ltd. (1,017.05, -7.0%), Jindal Stainless Ltd. (698.85, -5.9%) and ABB India Ltd. (8,279.70, -5.7%).

Volume Rockets

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

Top high volume gainers on BSE included Amber Enterprises India Ltd. (6,344.45, 17.4%), Tejas Networks Ltd. (1,318.60, 11.0%) and Tata Chemicals Ltd. (1,189, 9.3%).

Top high volume losers on BSE were IndiaMART InterMESH Ltd. (2,508.60, -16.7%), RBL Bank Ltd. (176.14, -14.2%) and Tata Consumer Products Ltd. (1,017.05, -7.0%).

TVS Holdings Ltd. (14,000, 3.7%) was trading at 10.3 times of weekly average. Dalmia Bharat Ltd. (1,830.80, -1.2%) and Kama Holdings Ltd. (2,684.15, 2.5%) were trading with volumes 8.9 and 8.8 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

13 stocks made 52 week highs, while 8 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - HCL Technologies Ltd. (1,843.60, -0.8%), JM Financial Ltd. (147.05, -7.3%) and Multi Commodity Exchange of India Ltd. (6,629, 1.0%).

Stocks making new 52 weeks lows included - IDFC First Bank Ltd. (70.40, -1.6%) and IndusInd Bank Ltd. (1,308.25, -2.9%).

8 stocks climbed above their 200 day SMA including Kama Holdings Ltd. (2,684.15, 2.5%) and L&T Technology Services Ltd. (5,255, 2.4%). 35 stocks slipped below their 200 SMA including PNC Infratech Ltd. (366.80, -20%) and IndiaMART InterMESH Ltd. (2,508.60, -16.7%).

 
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The Baseline
18 Oct 2024
Five Interesting Stocks Today - October 18, 2024

1. HDFC Asset Management Company:

Thisasset management company rose 6.8% over the past week after announcing itsQ2FY25 results on October 15. The company’s net profit surged by 31.8% YoY to Rs 576.8 crore, while revenue improved by 38% to Rs 887.2 crore, led by a strong growth in assets under management (AUM). Its quarterly average AUM was 75.8K crore, representing a 44.6% growth. The company appears in ascreener of stocks with book value per share improving over the past two years.

HDFC AMC's market share in quarterly AUM increased by 30 basis points YoY, reaching 11.5%.  With a 49.4% rise in unique customers, the firm now has 11.8 million unique customers and 20.7 million live accounts. HDFC AMC saw faster growth in smaller cities (B-30) compared to larger cities (T-30), driven by 24 new branches and stronger distribution. B-30 locations constituted 19.5% of the average AUM in September.

Over the past 3-4 years, HDFC AMC has introduced nearly 100 new products. The management has indicated that there may be fewer product launches in the next couple of quarters but aims to increase its market share across key categories, including equity MFs, debt funds, liquid funds, and SIPs. MD and CEO Navneet Munotsaid, "We are looking to attract funds from NRIs in our existing products. We have established a wholly owned subsidiary in GIFT City, HDFC AMC International IFSC, where one of our products will launch soon, followed by three more, all supporting domestic mutual funds." 

Munot mentioned that HDFC AMC has made significant investments over the past 25 years, resulting in a diverse product range. He expects continued growth as the company aims to increase its market share (11.5% currently) and expand its participation in the industry.

Post results, KR Choksey hasmaintained a ‘Buy’ rating with a target price of Rs 5,388, indicating a potential upside of 14.4%. The brokerage highlights that the company is well-positioned to benefit from the growing trend of systematic investments and increasing financial literacy among retail investors.

2. HCL Technologies:

This IT consulting firm surged to a new 52-week high of 1,885 on Wednesday after rising 2.7% over the past week, as it announced Q2 results. HCL reported revenue growth of 8.4% YoY at Rs 28,376 crore, with net profit up 10.5% at Rs 4,235 crore. Both revenue and profit exceeded Forecaster estimates by 1.7% and 5.7%, respectively.

If we look at the revenue mix, the IT & Business services segment, accounting over 75% of the total revenue, witnessed growth of 8.3% on a YoY basis in Q2. Meanwhile, HCL Software, which made up over 10% of total revenue, outperformed other segments with 14.5% growth. With growth across all verticals, the company has raised the lower end of its FY25 revenue guidance from 3% to 3.5%, and is now targeting YoY growth between 3.5% to 5%.

HCL won 20 deals in Q2 – 12 from services and 8 from HCL Software – with a total contract value of $2.2 billion (Rs 18,500 crore). Commenting on orders in the GenAI segment, MD & CEO, C. Vijayakumar, said, “We had strong order wins in GenAI-related programs. Most of the deals are now getting embedded with AI capabilities.” He also highlighted the wide adoption of HCLTech's GenAI platform, AI Force, for the transformation of services with AI capabilities.

Motilal Oswal has named HCL Tech as its top pick among large-cap IT firms, based on its IMPACT framework. This framework evaluates companies on factors like industry exposure, margin expansion, partnership, automation threat, client strategies and next-gen readiness. They believe the firm is well positioned to benefit from the GenAI revolution. With a target price of Rs 2,300, this IT firm has a potential upside of 23.8%.

3. Nestle India:

This packaged foods company declined by 3.4% after its result declaration on 17th October. The company’s net profit rose by 6.9% YoY to Rs 746.6 crore in Q2FY25, while its revenue rose by 3.6% on the back of rising domestic sales. The results were a disappointment, and missed Trendlyne’s Forecaster estimates for revenue by 9.7% and the net profit estimate by 16.5% due to declining export sales. The stock appears in a screener for stocks with PE higher than the industry PE.

In Q2FY25, the company’s EBITDA margin shrunk by 130 basis points to 22.9%, falling short of the analyst poll expectation of 24.2%. HDFC Securities highlighted that the demand environment for the FMCG sector remains challenging due to subdued macro indicators, inventory corrections by some companies and adverse weather conditions affecting cold beverage consumption. However, they anticipate a sector recovery in H2FY25, driven by healthy reservoir levels that should enhance rabi season crop output.

The company’s e-commerce business saw a 38% growth, the highest in seven quarters.It contributed 8.3% to domestic sales, largely due to quick commerce. Organized trade also grew, fueled by demand for noodles, beverages, and premium products. The company emphasised that its ‘Rurban’ strategy helped penetration and distribution in rural markets, adding over 800 new touchpoints, including cash distributors and wholesale hubs. 

Nestle India Chairman and Managing Director Suresh Narayanan said that some key brands like ‘nescafe’ coffee saw pressure due to softer consumer demand and high commodity prices, especially for coffee and cocoa. In the last nine months, he said that 65% of their top 12 brands, including ‘Maggi’ noodles, ‘Milkmaid’ and ‘Munch’ chocolate have shown positive double digit volume growth. He said: “Despite a challenging external environment with muted consumer demand, we remained resilient in our pursuit to deliver growth.” 

In April, the company faced controversy over sugar in its infant product, ‘Cerelac.’ In response MD, Sunil Narayanan announced the launch of 14 variants with no refined sugar. 

HDFC Securities has given a ‘Accumulate’ rating to Nestle with a target price of Rs 2,700. The brokerage projects the company’s revenue/PAT/EBITDA to grow at a 9%, 14%, 12% CAGR respectively from FY25 to FY27, driven by increased competitive intensity in infant nutrition, undoing of price laddering in bundle packs of Maggi, and downtrading in coffee business to weigh on revenue growth.

4. KEI Industries:

This electrical equipment maker has declined by over 14% in the past three days since the announcement of its Q2FY25 results on October 15. During the quarter, net profit missed Trendlyne’s Forecaster estimates by 6.4% despite growing by 10.4% YoY to Rs 154.8 crore. The company’s EBITDA margins contracted by 70 bps to 9.7% due to higher raw material costs, finance costs, and employee expense benefits. The volatility in copper and aluminum prices also impacted margins. The company hiked prices by 10% to offset this. However, the management believes this will average out over six months.

Revenue for KEI increased by 17.5% YoY to Rs 2,296.6 crore, driven by the cables & wires (C&W). During the quarter, the cables segment (which constitutes 93% of the revenue) grew by 21% YoY. The engineering, procurement & construction (EPC) projects segment (which contributes ~6% to the revenue) declined  58% YoY, mainly due to delays in the execution of projects. As of September 2024, KEI Industries’ pending order book stands at Rs 3,847 crore. 

The wire maker has announced a Rs 2,000 crore QIP (qualified institutional placement) to support the Sanand project. The project requires a capex of Rs 1,800-1,900 crore. The QIP will help the company avoid additional borrowing as it aims to become debt-free. Commercial production at the plant is set to begin in Q1FY26 and has a revenue potential of Rs 5,000 crore.  

Going forward, KEI Industries anticipates strong demand from the solar renewable energy and transmission sectors. Thermal power projects, pump storage projects, data centers, and highway tunnelling projects are also expected to drive demand. CMD Amit Gupta said, "We expect recovery due to strong demand from the energy sector as well as capacity additions. For FY25, we expect revenue growth of ~17% and margins at 10.5-11%. Over the longer term, we aim to grow our revenues by 15-16% CAGR". 

Anand Rathi highlights that KEI is seeing strong demand from data centres, solar and wind renewable energy. The brokerage believes the company will benefit from the structural demand for cables and wires. It maintains its ‘Hold’ rating, with a target price of Rs 4,796.

5. PNC Infratech:

This roads & highways company rose 4.4% on October 16, and touched its one-month high after securing two engineering, procurement and construction (EPC) orders worth Rs 4,630 crore from Maharashtra State Road Development Corp (MSRDC). The first project involves the construction of the Pune Ring Road, spanning 13.8 km from Indori to Chimbali, valued at Rs 2,268 crore. The second project includes building a 28.9 km expressway connector from Jalna to Nanded, valued at Rs 2,362 crore.

The company also rose 2.3% on October 14 after receiving a Rs 2,039.6 crore order from the City & Industrial Development Corporation of Maharashtra (CIDCO). This contract includes integrated infrastructure development of roads, construction of major and minor structures such as flyovers, minor bridges, vehicular underpasses (VUPS), pedestrian underpasses (PUPS), and allied electrical works, including street lighting.

T. R. Rao, Director (Infra) of PNC Infratech, said that the company has revised its revenue guidance for FY25, and is now expecting a 10% YoY decline instead of 10% YoY growth. However, they anticipate revenue to grow 15% YoY in FY26. As of June 30, the company’s unexecuted order book stands at Rs 19,098 crore, which is 2.5 times of FY24 revenue. PNC Infratech aims to secure new orders worth Rs 13,000 - 15,000 crore in FY25.

In Q1FY25, the company reported a net profit growth of over 2X YoY to Rs 575.2 crore, driven by a 29.7% decline in material costs, while revenue grew 4.1% YoY to Rs 2,197.8 crore. This company is currently in a strong PE buy zone.

Geojit BNP Paribas upgraded its rating for PNC Infratech from “Hold” to “Accumulate,” with a target price of Rs 526. The brokerage anticipates sales growth of approximately 17.2% and an EBITDA margin of around 13.4% in FY26.

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