By Trendlyne AnalysisThis airlines company has risen by 5.6% over the past week, and gained around 64.5% from its 52-week low of Rs 2,847. This comes after Elara Securities upgraded its rating to ‘Buy’ from ‘Sell’ and raised the target price to Rs 5,309, while highlighting that the company will be a key beneficiary of the growth in India's aviation sector. The average target from analysts on the company according to Trendlyne’s Forecaster is Rs 4,913.
IndiGo carried 90.7 lakh passengers during November, with its market share increasing to a dominant 63.6%, according to data from the Directorate General of Civil Aviation (DGCA). The company targets to fly around 11.2 crore passengers in 2024, surpassing its previous record of over 10 crore last year. India's air travel industry is witnessing rapid growth, driven by rising domestic and international passenger traffic. In the January to November 2024 period, Indian airline companies carried 14.6 crore passengers, a 5.9% YoY growth.
To meet the growing demand in India’s air travel market, IndiGo is exploring advancing its aircraft rental agreements to February. In April, the company announced an order for 30 wide-body Airbus A350-900 aircraft, with deliveries starting in 2027, and 69 A321XLR aircraft expected in 2025. However, the company stated that it won’t wait until 2027 to introduce these planes. Commenting on this, Pieter Elbers, the CEO said, “To meet the rising demand for international and domestic travel to and from India and considering global supply chain challenges, IndiGo is exploring interim solutions for an earlier induction of long-range aircraft”.
India’s aviation space is projected to grow at a 12% CAGR from FY25-28, driven by capacity expansion and new infrastructure, including new airports in Delhi and Mumbai by April 2025 and terminal upgrades in Bengaluru, Chennai, and Ahmedabad. Elara Securities believes IndiGo is well-positioned to benefit from these tailwinds. According to Trendlyne’s Forecaster estimates, the airline’s revenue is expected to grow by 28.5% YoY in Q3FY25.
Thispharmaceuticals company surged 3.9% on December 19 after Nomuraupgraded Dr. Reddy's Laboratories’ rating to ‘Buy’ from ‘Neutral.’ The brokerage set a target price of Rs 1,500 per share based on the company’s growth potential and investments in emerging markets and key therapeutic areas.
On November 28, the companylaunched Toripalimab, the first and only approved drug in India for nasopharyngeal carcinoma, a rare throat cancer. This drug, marketed under the brand name Zytorvi, works alongside chemotherapy to enhance the immune system's ability to fight the disease. This treatment is only available in a few countries, including India.
InQ2FY25 the company reported a revenue growth of 15.6% YoY to Rs 8,345.7 crore, driven by a 17.2% increase in sales from the pharmaceutical services & active ingredients segment, and a 16.3% rise in the global generics segment. However, net profit declined 15.3% YoY to Rs 1,255.7 crore during the quarter, due to the acquisition of Haleon’s global portfolio of consumer healthcare brands in Nicotine Replacement Therapy.
Dr. Reddy's has significantly increased its investments in manufacturing infrastructure, with capital expenditure (capex) expected toexceed Rs 2,500 crore in FY25. This is more than double the average annual capex of Rs 1,100 crore over the past five years. The increase is primarily for API capacity expansion, particularly for peptide products, including weight loss GLP-1 drugs. CFO M V Narasimhan,said, “We are developing a robust pipeline of small molecules, biosimilars and novel oncology assets, through internal and collaborative efforts, to drive future growth.”
Nomura believes the company is focusing on wellness and unique products, reducing its reliance on traditional therapies that currently make up 41% of sales. This shift is expected to strengthen its product range and improve its position in the market.
This agrochemicals company has fallen by over 3% in the past week. On December 20th, the company raised Rs 3,376 crore through a rights issue at a price of Rs 360 per share. On December 1st, the company completed the transfer of its Specialty Chemical business by way of a slump sale to its wholly-owned subsidiary, Superform Chemistries.
UPL had posted a nominal 9% YoY increase in revenue for Q2FY25. However, its net loss rose to Rs 443 crore due to a jump in net debt and pricing pressure. Trendlyne Forecaster estimates the company’s revenue to rise by 38% in Q3FY25. Meanwhile, analysts from Sharekhan highlight rising food grain production, favorable regulatory reforms for farmers, and significant opportunities from off-patent products as positives for the company. It appears in a screener of stocks with the highest FII stock holdings.
The outlook however, is mixed – company’s management anticipates a slowdown in volume growth during the second half of the year, with expected growth in the mid-single digits, down from 18% in H1. Anand Vohra, CFO of the company, notes, “We continue to maintain our revenue guidance of 4-8% for FY25, driven by an increase in our differentiated product sales and recovery in the US market.” Commenting on the overall agrochemical space, the company’s CEO, Mike Frank, says, “Price pressure continues to weigh on the overall market, partly due to overcapacity issues in China and tight grower margins, specifically in global row crops. However, we continue to perform well in maintaining and growing our market share in most regions.”
Sharekhan has maintained its ‘Hold’ rating on UPL with a target price of Rs 584. The brokerage observes that high channel inventory and pricing pressures, coupled with increasing Chinese supply, will pose growth challenges for both global and domestic agrochemical companies. It anticipates that the demand recovery for the company is expected to be gradual in North America, Europe, and Brazil, with a quicker rebound in Asia. Given these industry challenges, the brokerage anticipates that earnings concerns for UPL will continue in the near term, with a recovery expected in FY25.
This pharma company, which went public in August 2024, gained 19.2% last week after signing a long-term agreement with a leading global pharmaceutical firm to manufacture and supply oral liquid formulations for the European market. The total deal is valued at approximately €200 million (Rs 1,760 crore), including an upfront payment of €100 million (Rs 880 crore) for product development and site approval.
Akums is set to begin the commercial supply of these products in 2027, continuing through 2032. The company also plans to seek European approvals for its oral liquid site, which it aims to utilize for manufacturing these products.
Akums Drugs reported mixed Q2FY25 results, with a 105% YoY increase in net profit to Rs 65.2 crore, despite an 11.9% YoY decline in revenue due to muted volume demand and lower active pharmaceutical ingredient (API) prices. The company operates in three main segments - contract development and manufacturing operations (CDMO), active pharmaceutical ingredients (API), and branded and generic formulations. CDMO led the performance, contributing 79% of Q2 revenue, followed by branded and generic formulations at 16%, and API accounting for 5%.
On November 19, Akums also announced that it had signed an exclusive Master Sales Agreement with Caregen Ltd., a South Korean company in the nutraceuticals segment. Under the agreement, Akums obtained exclusive rights to market specific Caregen products in India.
Sandeep Jain, Managing Director of Akums stated, “Looking ahead, we anticipate demand trends in the second half to remain largely similar to the first half. There is potential for upside if API prices improve and industry volumes pick up, but that remains uncertain.” He believes that either in Q3 or Q4, API prices to at least average out or normalize, which should positively impact their revenue cycle.
This oil exploration and production company rose 1% on December 24 following two developments. Bharat Petroleum Corp (BPCL) initiated pre-project activities for a greenfield refinery and petrochemical complex on the East Coast of Andhra Pradesh, with an estimated cost of Rs 6,100 crore. The refinery reportedly could have a capacity of at least 9 million tonnes (180,000 barrels per day).
On the same day, the company also won NTPC’s 1200 MW solar tender as the lowest bidder, securing 150 MW in capacity. The project, valued at Rs 756.5 crore, will be developed over two years and is expected to generate annual revenue of ~Rs 100 crore by producing 400 million clean energy units.
On December 2, BPCL signed a memorandum of understanding (MoU) with Coal India to explore a coal-to-synthetic natural gas project at Western Coalfields (WCL). According to reports, BPCL and Coal India will invest Rs 12,000 crore in the joint venture, with Coal India holding a 51% stake and BPCL 49%. The investment supports BPCL’s clean energy goals and Coal India’s efforts to diversify coal use. The government will provide Rs 1,350 crore in funding for the project.
The company’s Bina refinery project, which involves an investment of Rs 50,000 crore, is expected to be commissioned by FY28, with a production capacity of 2.2 million metric tonnes per annum of bulk petrochemicals. The propylene project at the Kochi refinery, with a capacity of 4 lakh tonnes per annum, is set to be commissioned by FY27. Speaking about the capex on these projects, VRK Gupta, Director of Finance, said, “We don't anticipate a significant increase in borrowing in the next couple of years. However, from FY27 and FY28 onwards, peak capex will occur for both the Bina and Kochi projects, leading to higher borrowings. In the next 1–2 years, we expect a capex plan of around Rs 18,000–20,000 crore.”
Geojit BNP Paribas has given a ‘Hold’ rating to BPCL with a target price of Rs 326. This indicates a potential upside of 11.1%. The brokerage expects earnings growth in the coming quarters, driven by its expanding market share across segments, aggressive capital expenditure, and strategic partnerships. However, geopolitical uncertainties and volatile oil prices remain key risks that could affect the company's performance.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
