1. Zee Entertainment:
This broadcasting & cable TV company has risen over 13% in the past week after sharing a positive business outlook. Zee announced plans to achieve breakeven in its digital platform, Zee5, which reported an EBITDA loss of Rs 548 crore in FY25.
The company says that it is moving away from a ‘growth-at-any-cost’ strategy to a more focused and disciplined approach. To support this turnaround, it aims to cut costs, improve content monetization, and boost user engagement. Zee5 has been weighing down the company’s overall performance in recent years, and a turnaround is likely to be challenging.
Zee aims to improve its EBITDA margin to 18–20% in FY26, up from 14.4% in FY25. The firm is also targeting a rise in TV viewership share to 17.5%, compared to 16.8% last year. The stock has declined 7% over the past year.
On June 16, the company’s board approved issuing up to 17 crore fully convertible warrants to promoter group entities at Rs 132 per warrant, around 2.6% above SEBI’s floor price. This move will bring in about Rs 2,240 crore in capital and increase promoter shareholding from around 4% to over 18%.
Analysts believe the promoters are funding the warrant purchase using money recovered from Essel Group dues — about Rs 600 crore has been recovered recently, with a potential recovery of up to Rs 1,800 crore over the next 12–18 months. The Essel Group (Zee’s promoter) had borrowed heavily and pledged Zee shares to repay other debts. While Zee hasn’t specified how the fresh funds will be used, analysts see the move as sentimentally positive.
In FY25, the company’s revenue declined by 4%, largely due to a 11% drop in domestic advertising revenue, impacted by a weak macro environment and a packed sports calendar. Mukund Galgali, Deputy CEO and CFO, said, “We are targeting improvement in ad revenue through re-entry into free-to-air channels (free TV channels), launch of new genres such as mini-series, and a focus on regional content. We are hopeful of an 8–10% increase in advertising revenue during FY26.”
Motilal Oswal maintains a ‘Neutral’ rating on the stock, as the company hasn’t clarified how the newly raised funds will be used, and a market purchase of shares may have been a better option. The brokerage also believes that a steady recovery in advertising revenue is crucial for Zee to achieve its targeted 8–10% revenue CAGR with its current portfolio.
2. KPIT Technologies:
This IT consulting & software company fell over 6% on June 24 after it released a mid-quarter update about the uncertainty surrounding its business. Rising geopolitical concerns and confusion around US’ auto tariffs have spooked clients across geographies. Management highlights that even though the order pipeline remains strong, conversions are much slower. In the medium term, management expects offshoring to grow further, with auto OEMs hoping to lower overall costs as the dust surrounding tariffs settles.
In FY25, the company reported revenue growth of 22% and net profit growth of 41%. Revenue came in line with estimates, while net profit was 6% ahead of estimates. Forecaster projects 10% YoY revenue growth in Q1 FY26; however, expects net profit to be flat YoY. The acquisition of Caresoft’s Global Engineering Solutions business is expected to close by the end of Q1, which is expected to boost consolidated revenue by 4% starting Q2.
The company gets 50% of its revenue from the UK and Europe, 30% from the Americas region, and the remaining 17% from the rest of the world. KPIT in its latest update, notes that Europe is looking positive while the US and Asia are somewhat uncertain. This is a stark contrast to Q4, where revenue from Asia grew by 73% and the US grew by 4% YoY, while declining by 6% YoY in Europe.
Co-founder and Chairman Ravi Pandit, said, “The deal closures have been going up consistently – from $202 million in Q1 to $280 million in Q4, while revenues haven’t yet fully reflected this,” noting that the pipeline is strong. He acknowledged that clients have turned cautious following Trump’s recent auto tariffs, but expressed confidence that trade agreements will likely be resolved within the next three to four months.
Geojit maintains a ‘Buy’ rating on the stock with a lower target price of Rs 1,456 per share. Despite investment in technology and salary hikes, analysts at Geojit expect margins to stabilise at 20-21% for FY26. The brokerage highlights that delays in the integration and ramp-up of large-scale projects due to global trade tensions could impact revenue, affecting short-term financial performance and growth projections.
3. Grasim Industries:
This cement & cement products company touched a 52-week high on 27th June as its paints subsidiary, Birla Opus Paints started operations of its resin manufacturing plant in Mahad (Maharashtra) this week. This plant has an installed capacity of 22 million litres per annum (MLPA), with which Grasim expects to meet its resin needs for paint manufacturing in-house.
Since entering the decorative paints market in 2021 under the Birla Opus brand, Grasim Industries has been a disruptor, capturing over 10% revenue share in the organized paints sector. Deep discounts, strategic hires, and well-placed manufacturing units have helped its market cap jump 84% in four years, while rivals like Asian Paints, Berger, and Kansai Nerolac saw a 23% decline.
The company posted a 13.4% increase in revenue for FY25, but net profit fell 34.2% due to higher costs of key raw materials, particularly cellulosic fibre used in textiles and packaging. It marginally surpassed the Forecaster operating revenue estimate by 1.1% led by a positive growth in the cement and paint businesses. The company appears in a screener of stocks with strong momentum.
Himanshu Kapania, MD & Business Head of Birla Opus, said, “ We have achieved the fastest capacity ramp-up in the world, with 5 out of 6 plants commercialized by March 2025, adding 1,096 MLPA in FY25, a 21% share of the organized decorative paints capacity. Our final plant in Kharagpur is set to be launched in H1FY26, which will raise our total capacity to 1,332 MLPA. With the launch of the Kharagpur plant, Birla Opus will achieve a 24% capacity share in the sector, paving the way to scale up from our current high single-digit revenue market share to one that better reflects our capacity leadership.”
Geojit BNP Paribas has retained a ‘Buy’ rating on Grasim Industries with a higher target price of Rs 3,033. The brokerage believes Grasim’s diverse portfolio positions it to tap into emerging growth opportunities. It expects strong growth in the cement segment, driven by government infrastructure spending and rural demand. In paints, the company is likely to gain ground in the premium segment through new plant launches and high capacity utilisation at Birla Opus.
4. IndiaMART InterMESH:
Thisretail company rose 6% on July 25 after Nuvama Institutional Equitiesupgraded it to a 'Buy' rating from 'Reduce', with a target of Rs 3,800 per share. The brokerage expects the company to enter a new demand cycle in Q2 and Q3 of FY26, driven by increased subscriber additions, an expansion of the in-house sales team, and higher marketing expenditures.
IndiaMART operates a business-to-business (B2B) online marketplace that connects buyers with suppliers. The company controls 60% of the market. Most of its revenue comes from paid subscriptions available to the suppliers listed on the platform. These subscription plans include Platinum and Gold plans, which contribute 75% of total revenue, while the entry-level Silver plan accounts for the remaining 25%.
The brokerage highlights that the company has improved the platform segment and expanded its in-house sales team to reduce churn in the Silver segment. Indiamart projects revenue to grow at an 18% CAGR over FY26–28.
Average revenue per user (ARPU) improved by 11% to Rs 61,000 in FY25, driven by a price hike in gold and platinum subscription plans. Dinesh Agarwal, CEO,said, “For FY26, we aim to maintain ARPU growth of 9–10% by addressing churn and improving product-market fit.”
The silver subscription segment had a monthly customer churn rate of over 7% in Q4 FY25. Agarwalsaid, “We have achieved a 66% reduction in supplier cancellations in the silver segment, and we aim to reach 80% by the end of Q2 FY26. By improving lead quality and user experience, we expect to retain more silver segment suppliers, boost subscriber growth, and drive higher revenue.”
The company’s net profitrose 64.9% to Rs 550.7 crore in FY25, beatingForecaster estimates by 15%, driven by higher other income and lower marketing and sales expenses. Revenue grew 16% to Rs 1,388.3 crore, driven by improved realisation from suppliers and a broader customer base.
In FY25, the company’s EBITDA margin stood at 38%. Jitin Diwan, CFO,said, “Margins will likely normalise to 33%–35% from the current 38%–40% once customer churn in the silver segment reduces, and we plan to increase advertising spend to Rs 50–100 crore annually, which could reduce margins by up to 500 basis points.”
5. NLC India:
Thismining and power company rose 2.3% on June 23 after receiving anorder from Tamil Nadu Green Energy Corp. The order is for the development of three Battery Energy Storage System (BESS) projects, with a combined capacity of 250 MW/500 MWh, located at Ottapidaram, Annupankulam, and Kayathar in Tamil Nadu.
In FY25, the company beat its revenue and net profitForecaster estimates. Its revenuerose 17.6% to Rs 15,280.7 crore and its net profit grew 41.4% to Rs 2,621.4 crore. Strong coal and lignite productiondrove this growth.
The commissioning of a new unit at the Ghatampur thermal plant in Q4 contributed over Rs 700 crore in revenue.Favourable tarifforders also added around Rs 600 crore to net profit, as NLC was able to recover pending dues and interest from state power distribution companies.
Commenting on future plans, Director (Finance) Prasanna Kumar Acharya,said “We want to have a lignite mining capacity of 104.4 million tonnes, a thermal power generation capacity of 10,020 MW and renewable energy (RE) capacity of 10,110 MW by 2030, making the RE capacity more than conventional capacity”
The company hasguided a capex of Rs 1,16,880 crore for this expansion by FY30. Acharya mentions that this expansioncould more than double NLC India’s revenue to Rs 37,000 crore and nearly double its net profit to Rs 5,300 crore by FY30, implying a CAGR of 19% and 14%, respectively.
However, NLC India may face somechallenges. Land acquisition is a major issue, especially at Neyveli, where lignite output is expected to be only 3 million tonnes in FY26 against a capacity of 7 million tonnes. Power plants are often directed by state load dispatch centres to reduce their generation, especially during the daytime when solar generation is high, which affects their revenue. The Ghatampur unit,despite generating revenue, reported losses as it could not run at full capacity. Projects like the Pachwara coal block and the lignite-to-ethanol plant are also delayed because of pending approvals and re-tendering.
Axis Direct hasmaintained its ‘Buy’ rating on the stock, citing strong growth visibility from capacity expansions across thermal, mining, and renewable energy. It also highlighted the company’s plans to list its green energy business, NLC India Renewables, by Q2FY27, to fund its renewable energy expansion.
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