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    The Baseline

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    The Baseline
    02 Apr 2025
    Five stocks to buy from analysts this week - April 02, 2025

    Five stocks to buy from analysts this week - April 02, 2025

    By Divyansh Pokharna

    1. Affle (India):

    Sharekhan maintains a ‘Buy’ rating on this internet software firm with a target price of Rs 1,880, indicating an upside of 18.5%. Affle is a digital advertising company that helps brands reach customers via mobile marketing. Analysts note that while the company has no immediate challenges, it’s cautious about possible US tariff hikes that could affect some clients. The company is streamlining its US operations by merging its business units into one entity, to mitigate currency fluctuations and potential tariff risks.

    In 9MFY25, the company’s revenue grew 24% YoY, while net profit rose 32%, driven by a 31.9% rise in revenue from converted users. Affle’s management expects over 20% net profit growth in FY25. They also project EBITDA margins to improve to around 23% in the medium term, up from 19.5% in FY24.

    Analysts expect Affle to deliver steady and scalable results through client conversions, driving growth over the medium to long term. They project a revenue CAGR of 23.2% over FY25-27.

    2. Titagarh Rail Systems:

    Geojit BNP Paribas initiates coverage on this commercial vehicles manufacturer with a target price of Rs 1,050. This indicates a potential upside of 29.6%. The company’s 9MFY25 revenue rose 2% YoY to Rs 2,862 crore. Net profit increased by 6% to Rs 225 crore, helped by stable demand and cost control.

    Analyst Sheen highlights that Titagarh Rail has strong revenue visibility, supported by an order book of Rs 25,333 crore. She notes that the company’s newly introduced verticals, signaling and safety systems, along with shipbuilding & maritime systems, are expected to contribute to revenue from FY26. This growth will be driven by increasing demand for advanced rail systems and maritime solutions.

    Sheen notes that the medium-term growth prospects for Titagarh Rail are positive, supported by strong demand for passenger wagons, metro projects, and Vande Bharat production. This is backed by significant order inflows and expanding manufacturing capabilities.

    3. Suven Pharmaceuticals:

    ICICI Securities upgrades its rating to ‘Buy’ on this pharma company with a target price of Rs 1,400. This indicates an upside of 27.9%. In February 2024, PE firm Advent acquired a controlling stake in Suven and merged its entity, Cohance, with the company. Cohance makes cancer medicines and also produces a key ingredient used in cancer treatments. Analysts Abdulkader Puranwala and Nisha Shetty expect that the merger with Cohance will increase Suven’s revenue by 138% and its net profit by 108% in FY25.

    In December 2024, Suven acquired a 56% stake in NJ Bio for $100 million. Cohance’s acquisition, along with NJ Bio’s capabilities, gives Suven a market opportunity in the antibody drug conjugates (ADC) sector, which has increased from $200 million to $1.4 billion. The company’s acquisition of Sapala Organics also marks its entry into the genetic medicines market.

    Puranwala and Shetty expect the revenue share of the acquired entities to rise to 17% (currently at 10% of FY24 revenue) as the business gains momentum in the coming years. The company’s management aims for $1 billion in revenue by FY30, with plans to scale up to $2 billion by FY35.

    4. Equitas Small Finance Bank:

    BOB Capital Markets initiates coverage on this bank with a ‘Buy’ rating and a target price of Rs 73. This indicates an upside of 28.9%. Equitas Small Finance Bank’s loan book grew at a 22.5% CAGR between FY20-24. Analysts Niraj Jalan and Vijiya Rao note that the bank has shifted focus towards secured portfolios, with secured loans now making up 85.6% of the total (as of December 2024), up from 76.5% in March 2020. 

    Equitas plans to reduce its microfinance (MFI) portfolio share to single digits, from 14.4% in December 2024. Jalan and Rao project advances to grow at 21% CAGR from FY25-27, mainly driven by the secured loan portfolio.

    In 9MFY25, the bank set aside Rs 340 crore in additional provisions, due to stress in its MFI portfolio and to keep its NNPA below 1%, which impacted profitability. Over the past year, the bank’s stock price has fallen by 38.6%.

    5. Brigade Enterprises:

    Motilal Oswal reiterates its ‘Buy’ rating on this Bengaluru-based realty company with a target price of Rs 1,415, indicating a potential upside of 44.5%. The company has achieved a 36% CAGR in presales from FY20 to FY24.

    Brigade’s management aims to develop 15 million square feet (msf) of projects by FY27. Analysts Abhishek Lodhiya and Yohan Batliwala expect that new launches will enhance the company’s pipeline. They project a 24% CAGR in presales growth by FY27, along with a 10% CAGR in the realization of Rs 10,700 per square foot.

    In 9MFY25, Brigade Enterprises launched new projects in Bengaluru and Chennai, along with new phases of existing launches, covering 7.5 msf. The company has added 8 msf of land since January 2025 to its portfolio in YTD FY25 and plans to expand in Kerala and enter the Mysuru market by FY26.

    Analysts expect the Bengaluru region to contribute 50-80% of Brigade's presales by FY27, and anticipate that the listing of Brigade Hospitality Portfolio (Brigade Hotel Ventures) will create long-term growth opportunities for the company.

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

    (You can find all analyst picks here)

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    The Baseline
    28 Mar 2025
    Five Interesting Stocks Today - March 28, 2025

    Five Interesting Stocks Today - March 28, 2025

    By Trendlyne Analysis

    1. Hindustan Aeronautics:

    This defence company surged 9.4% over the past week as it received the first of 99 engines for the Tejas Mk 1A Fighter Jet after a two-year delay. Analysts view this as a crucial step in allaying execution risks.

    Air Chief Marshal A.P. Singh emphasizes the urgency of addressing the jet shortage, stating that the Indian Air Force must add up to 40 jets annually. He adds that HAL has committed to produce 24 Tejas jets annually starting next year. Analysts note that production will scale up gradually and reach full capacity by 2030.

    With HAL expecting twelve jet engines this year, analysts believe they can deliver ten jets in 2026. Forecaster expects revenue growth to be flat this fiscal year due to supply bottlenecks leading to production delays. However, it expects revenue growth of over 18% in FY26. HAL shows up in a screener of stocks where FIIs/FPIs have increased their shareholding over the past quarter.

    HAL currently holds an order book of Rs 1.2 lakh crore. The company is also pursuing contracts for another 97 Tejas jets and 156 light combat helicopters (Prachanda). These contracts are expected to be finalised in the next six months. Thanks to this, management projects an order inflow of Rs 1 lakh crore in FY26, bringing the total order book to Rs 2.2 lakh crore, targeted for execution by 2030.

    ICICI Securities upgrades HAL to ‘Buy’ and calls the delivery of the first F-404 jet engine “a monumental milestone.” The brokerage forecasts revenue growth of around 25% over FY26-27, and an EPS CAGR of 39% during the same period. With a target price of Rs 5,000, HAL has a potential upside of around 20%.

    2. Bharat Forge:

    This forging company has gained 12.6% over the past month, supported by multiple positive developments. On March 27, the company secured an order of over Rs 4,000 crore from the Ministry of Defence (MoD) to supply advanced towed artillery gun systems (ATAGS). Earlier this month, Bharat Forge’s subsidiary, Kalyani Powertrain, partnered with Taiwan’s Compal Electronics to manufacture servers in India.

    Analysts believe the possibility of higher tariffs from the US remains a key risk for the company’s core business growth in the medium term. Bharat Forge is focusing on expanding its non-auto businesses, such as aerospace, defence, and other industrial sectors. Recently, it also entered an agreement with a European company to set up a new aerospace manufacturing facility. However, analysts note that the uneven pace of order execution in these segments could affect its overall growth. 

    During Q3FY25, the company’s revenue fell by 10.1% YoY, mainly due to weak performance in its European business and a slowdown in the defence segment. The forgings segment, which contributes 85% to the company’s total revenue, reported an 8.9% decline. Trendlyne’s Forecaster estimates the company’s revenue will remain flat in FY25 and grow by 9.7% in FY26 as investments materialise.

    Amit Kalyani, Joint Managing Director and Vice Chairman, said, “For FY26, we expect a capital expenditure of around Rs 300 crore. The capex for our US operations is complete. Going forward, investments will only be in Indian subsidiaries and will not exceed Rs 250 crore.” He also said the company aims to improve its profit margins by 250-300 bps over the next 2-3 years through a better product mix and operating leverage.

    Geojit BNP Paribas has downgraded the stock to a ‘Hold’ rating with a target price of 1,302. The brokerage expects steady positive momentum in domestic defence and auto businesses, with overseas operations supporting long-term growth. It also expects the defence order book to grow further, which could help improve profitability.

    3. Kalpataru Projects International:

    This construction & engineering company has risen by 3.8% over the past week after it received new orders worth Rs 2,366 crore in the transmission & distribution (T&D), and buildings & factories (B&F) businesses in India and overseas on March 25. Kalpataru Projects (KPIL) features in a screener of companies where mutual funds increased shareholding in the past month.

    KPIL handles the end-to-end execution of projects in power transmission, water supply, railways, oil & gas, urban mobility, highways, and airports. During March, the company also secured orders worth Rs 2,306 crore across its businesses for projects in India and abroad.

    During Q3FY25, KPIL reported a 0.8% YoY increase in net profit at Rs 142 crore. Revenue grew 17.1%, reaching Rs 5,732.5 crore. EBITDA margin stood at 8.4% for the quarter. Sluggish execution in the water business due to delayed collections weighed on overall growth. However, with Rs 1,000 crore infused in 9MFY25 and the Union Budget’s push for 100% tap water coverage, faster collections and execution should boost momentum.

    The company’s order book stood at Rs 61,429 crore in Q3, with 38% coming from T&D, 22% from B&F, and 16% from water segments. With these new orders, the company’s order inflow stands at Rs 24,850 crore YTD in FY25, providing strong visibility for improved execution and growth. Trendlyne’s Forecaster projects KPIL’s revenue to grow around 27% YoY in Q4FY25.

    Manish Mohnot, MD & CEO, said, “Our T&D order book continues to grow, driven by widening power demand-supply gap, grid upgrades, renewable push, and a focus on improvement of T&D infrastructure. This presents a strong growth opportunity for KPIL”.

    Axis Securties maintains its ‘Buy’ rating on Kalpataru, and sets a target price of Rs 1,350. The brokerage believes the company is poised to benefit from a robust order book, favourable sectoral tailwinds, improved performance of international subsidiaries, and supportive government initiatives.

    4. Mankind Pharma:

    This pharmaceutical company rose by over 8% in the past week. On March 12th, the company launched generic versions of Empagliflozin, a diabetes drug in India. This launch was followed by the expiration of the patent for Empagliflozin in India, which led to an opening for domestic pharma companies to launch generic versions of the drug. The estimated market size for Empagliflozin and its combination therapies in India is around Rs 640 crore. Pharmarack data shows the drug's sales volume has grown at a 1% CAGR over the past five years, with a 3% value growth.

    Regarding this launch, the company's Vice Chairman & MD, Rajeev Juneja, said, "By assigning two dedicated teams to promote these offerings under separate brands, we aim to enhance market penetration and expand our reach in this competitive segment."

    The company announced its Q3FY25 results on January 23. Its net profit had declined by 16.2% YoY to Rs 380.2 crore due to a rise in employee expenses. However, its revenue increased by 23.5% due to strong growth across the domestic, consumer healthcare and export businesses. The company’s revenue beat forecaster estimates by 1% supported by the Bharat Serums and Vaccines (BSV) acquisition in October 2024. It appears on the screener for stocks with annual profit growth higher than sector profit growth.

    Ashutosh Dhawan, Chief Financial Officer of Mankind Pharma, said, “Our capex spend for 9MFY25 was Rs 344 crore, accounting for 3.7% of total revenue, in line with our guidance of 4% to 5%. To maintain financial discipline and a healthy leverage ratio, we repaid Rs 3,000 crore of debt in Q3 using proceeds from the QIP. As of the quarter-end, our net debt to adjusted EBITDA stands at 2.2x, and we aim to reduce it to 2x by year-end.”

    Geojit BNP Paribas recommended an ‘Accumulate’ rating on Mankind Pharma, anticipating positive fiscal outcomes from the restructuring of BSV's pharmaceutical segment. This acquisition is a major step for the company, positioning it as a potential leader in India’s women’s health and fertility drug market, while also granting access to high-entry barrier products in critical care. The brokerage notes that this deal has increased the company’s overall market share to 4.8%, from 4.4% before the acquisition.

    5. Hero MotoCorp:

    This two-wheeler manufacturer surged 3.5% over the past week following its March 20 announcement of an investment in the electric three-wheeler segment. The company is acquiring a 32.5% stake in Euler Motors for Rs 525 crore to diversify its portfolio.

    Euler Motors builds and sells electric three-wheelers, and recently introduced its first electric commercial four-wheeler. This investment strengthens Hero MotoCorp’s position in the electric three-wheeler segment, where electric vehicles are projected to constitute 35% of total vehicle sales by 2030, up from 7.4% as of 2024. 

    In Q3, the company’s revenue grew 5.3% YoY to Rs 10,566.3 crore, while net profit rose 1.3% YoY to Rs 1,107.6 crore, beating Forecaster estimates. The growth was driven by an 11.4% rise in retail sales, a 4.7% YoY increase in the average selling price to Rs 69,756 per vehicle, and an increase in revenue from parts, accessories, and merchandise.

    Vivek Anand, CFO of the company, said, “For FY25, the guidance we have given is for double-digit revenue growth. Looking at our first nine months performance and at this quarter (fourth), we believe that this (a double-digit revenue growth) will repeat next year also.” The growth is expected to be driven by recovery in rural and urban markets, its 125cc motorcycle lineup expansion, and new product launches. The company’s 125cc segment’s market share has increased from 14% to over 21% as of Q3. 

    Hero MotoCorp is expanding its premium portfolio with motorcycles like the Xtreme 250R and Xpulse 210 and premium scooters like the Xoom 125 and Xoom 160. The company’s EBITDA per vehicle has surpassed Rs 10,000 following the launch of Hero Premia stores, which focus on higher-value products. Trendlyne’s Forecaster projects the company's revenue to grow 3.3% YoY and its net profit to increase by 20.1% in Q4FY25.

    Axis Direct maintains a ‘Buy’ rating on the stock and raises target prices to Rs 5,285, citing the company’s focus on core business growth, premium segment expansion, EV investments, and revenue diversification.

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

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    The Baseline
    27 Mar 2025
    Chart of the Week: Most new-age IT IPOs drop in valuations post listing

    Chart of the Week: Most new-age IT IPOs drop in valuations post listing

    By Omkar Chitnis

    In 2024, India became the world’s second-largest equity fundraising market after the US, driven by a surge in IPOs. Many new-age companies are listed at high valuations, attracting significant investments from both domestic and foreign investors. Experts predict that 2025 could be a record-breaking year, with IPOs expected to raise over $20 billion.

    India's IPO market grew significantly in 2024, raising a record Rs 1.6 lakh crore. Many companies capitalized on investor enthusiasm and positive market sentiment, leading to inflated valuations. 

    Aggressive marketing by teams pre-IPO, and high brand recognition for some companies - despite being loss-making – garnered high participation even with steep valuations. These companies saw their valuations fell post-listing as the rules of the public market kicked in: regular financial and sales disclosures, closer business scrutiny, and questions from analysts.

    These companies discover that the valuation rules of venture capital and public markets are very different. Steptrade Share Service founder Kresha Gupta states, “Many new-age unicorns are 'loss-making' because their valuations are largely driven by market share and consumer dominance. However, retail investors start evaluating the company on the basis of fundamentals like revenue, profit margins, and debt when they go public.”

    While some IPOs, like Zomato and PB Fintech, have successfully crossed the bridge into public markets, others such as Swiggy and Ola Electric, have seen significant declines in market value. In this edition of Chart of the Week, we analyze the valuations of top new-age IT companies before and after their IPOs and explore the factors influencing their current market performance.

    Ola and Paytm face valuation decline amid regulatory hurdles

    Ola Electric is facing mounting challenges with every news cycle. CEO Bhavish Aggarwal once stated, "Tesla is for the West, Ola for the rest." That quote has not aged well. Once valued at Rs 46,290 crore during its pre-IPO phase, Ola Electric has seen a significant valuation decline since its stock market debut. Since its IPO in August 2024, the company’s stock has fallen by 27.2%.

    Ola Electric is grappling with operational inefficiencies, customer-related concerns and a PR debacle. Customer complaints on Ola scooters have ballooned and repair centers have been overwhelmed.

    Sales have declined for three consecutive quarters, reducing its market share from 50% in May 2024 to 18% in January 2025. In February 2025, government data showed a market share of 11.4%, while Ola reported 28%, reflecting discrepancies due to sales delays and unregistered scooters, further impacting stock prices.

    Falling revenue, delays in product launches and the exit of key executives contributed to the decline in performance, while legal and regulatory challenges have grown.

    Paytm, once valued at Rs 1.4 lakh crore during its pre-IPO phase, has seen a sharp decline in valuation since its market debut in November 2021. Initially listed at Rs 1,950 per share, its stock dropped 27.7% on the first day, hitting the lower circuit. Since then, Paytm’s market capitalization has shrunk by nearly two-thirds, falling to Rs 47,000 crore. 

    The real plunge occurred after the lock-in period ended, with major investors like SoftBank, Alibaba, and Berkshire Hathaway exiting.

    In January 2024, the RBI ordered Paytm Payments Bank to cease operations due to regulatory violations, severely impacting its digital payments business. Monthly active users fell from 168 million to 68 million by September 2024. Additionally, rising competition from UPI and private players reduced its market share from 40% in 2018 to 5.5% in 2024, raising concerns about its long-term sustainability.

    Swiggy and Nykaa see declining valuations due to margin pressures

    Swiggy debuted on the Indian stock market in November 2024 with a pre-IPO valuation of $11.3 billion (~ Rs 96,008 crore), lower than its initial target of $15 billion (~ Rs 1.3 lakh crore). Since then, its stock has declined by 43.2%, erasing nearly Rs 60,000 crore in market capitalization, bringing its current valuation to Rs 78,889 crore. 

    Swiggy faces rising cash burn, high competition in the quick commerce sector, and a slowdown in its core food delivery business. Operational expenses have surged due to dark store expansion and intense competition - both food delivery and quick commerce being cut-throat markets right now – contributing to increasing net losses.

    Similarly, Nykaa, which was valued at Rs 53,204 crore during its pre-IPO stage, saw its market cap rise to Rs 99,481 crore on listing day. However, by March 2025, its valuation dropped to Rs 49,506.4 crore, with the stock falling 57%. Increased competition from Myntra, Ajio, and traditional retailers and higher marketing expenses have negatively impacted its performance.

    Financially, Nykaa is struggling with slim margins and inconsistent profitability. To stay competitive, Nykaa is investing heavily in expanding its warehouse network. In the most recent quarter, the company allocated 13% of its capex to expanding its network in the first half of FY26. However, rising costs and intense competition have led to a significant drop in Nykaa's valuation and stock price. 

    Zomato and Policy Bazaar’s valuations grow, helped by expansion and strong financials

    Zomato debuted in 2021 with a Rs 1.1 lakh crore valuation, more than double its pre-IPO valuation of Rs 47,147 crore. Since then, its market capitalization has surged to Rs 2.2 lakh crore. This growth was driven by business expansion, rising demand, and strong investor confidence. Its inclusion in the BSE Sensex and Nifty 50 attracted passive investments, which helped push the company’s valuation higher. 

    Between 2021 and 2025, Zomato’s market share in food delivery grew from 47% to 58%. The acquisition of Blinkit strengthened its presence in quick commerce, and by March 2024, Blinkit turned adjusted EBITDA positive. Expanding dark stores and rising order volumes improved profitability, leading to increased investor interest. Multiple brokerages remained bullish, raising margin and profitability estimates. These factors helped Zomato’s stock deliver a 183% return since its listing.

    PB Fintech, the parent company of Policybazaar and Paisabazaar, was valued at Rs 45,187 crore before its IPO. At the time of its listing in November 2021, the company’s valuation was Rs 42,763 crore. Since then, its valuation has increased by nearly 25%, reaching Rs 77,357 crore.  The company expanded into personal finance and lending services through Paisabazaar, diversifying its revenue streams.

    In FY24, PB Fintech reported a 37% year-on-year increase in insurance premiums, along with a significant rise in new protection premiums, including health and term insurance. Additionally, PB Fintech improved its operating profit margin from -23% in FY23 to -5% in FY24 by implementing cost-reduction measures and focusing on operational efficiency.

     The rise in annual renewal income, achieving an 85% margin, has further boosted profitability. To cut risks in unsecured lending, PB Fintech is prioritizing secured loan products like home loans. The company aims to achieve Rs 1,000 crore in net profit by FY27 and is considering a $100 million investment in new ventures

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    The Baseline
    27 Mar 2025
    India's EV race is heating up | Screener: Auto stocks with rising momentum and strong Forecaster numbers

    India's EV race is heating up | Screener: Auto stocks with rising momentum and strong Forecaster numbers

    By Tejas MD

    This month has given investors, who were upset about all the red in their portfolios, some relief. The Nifty 50 snapped its longest losing streak since 1996. The benchmark index is up 6.9% in March and has clawed back all its 2025 losses. The big question is whether we are witnessing the start of a real market recovery or just a temporary bounce.

    Siddhartha Khemka, Research Head at Motilal Oswal Financial Services, says that foreign institutional investors (FIIs) are again shaping market sentiment. "What is driving the domestic market is the return of FII inflows, after a prolonged selling period. Positive global cues after the US President hinted about flexibility in reciprocal tariffs have also helped," he noted.

    Just as FIIs are changing the narrative in the stock market, another industry is seeing a significant transformation—the electric vehicle market. With a record number of EVs set to launch in 2025 and competition heating up, how will carmakers steer through?

    In this week’s Analyticks,

    • The EV battle heats up: Carmakers vie with new models at affordable price points
    • Screener: Auto stocks with rising momentum, and Forecaster predicting revenue and EPS growth in Q4FY25

    Is the Indian EV industry ready for supercharged growth?

    The Indian government had set a goal of having 30% of all passenger vehicles be electric by 2030. However, as of 2024, electric vehicles (EVs) make up only 2.4% of total sales. This has increased by just 0.2% every year over the past three years. Honestly, you are more likely to catch birds while fishing than hit 30% by 2030.

    Looking at more realistic numbers instead, analysts project that the EV market share will double from 2% to 4% in 2025. 2025 could finally be the year of the EV. Car manufacturers are launching new models, prices are becoming more competitive, and charging stations are expanding rapidly, all of which may change the mind of an Indian consumer who has so far, stuck with the gas guzzlers. 

    If you plan is to buy an EV this year, you may feel like a kid in a candy store. Of the 28 new car models set to launch in 2025, 18 are EVs. This is a major jump from the four to five EV models launched annually in the past two years. It hints at a tipping point.

    Car makers target the hot-selling Rs 10-30 lakh EV segment

    Better late than never is Maruti Suzuki's approach, which will finally enter the EV market this year with the e-Vitara. Tata Motors, Maruti Suzuki, and Mahindra are also gearing up, while foreign automakers are introducing new models across different price segments.

    India isn’t immune to the global rise of Chinese EVs. Two Chinese brands, BYD and MG Motors, already sell EVs in India. And MG Motors, which manufactures through a local partnership with the JSW Group, is shaking up the market.

    Tata Motors’ EV dominance is fading

    Tata Motors had a head start in India's EV market. In October 2021, it had announced a $2 billion investment in its EV business, and its stock surged 21% in a single day. Fast-forward to 2025, and the picture looks very different. Its EV sales have been struggling, with nine out of the last eleven months showing declines compared to the previous year. In February 2025, Tata’s EV sales fell 23% YoY, and its stock is down 27% over the year.

    Tata’s EV market share has plunged from 73% in 2023 to 42% in February 2025. The biggest threat? MG Motors.

    MG Motors' market share is rising fast 

    MG has disrupted the market with its Windsor EV, which introduced a Battery-as-a-Service (BaaS) model, where you pay for battery usage at Rs 3.5 per km. This more affordable approach has struck a chord with buyers, pushing MG’s market share from 11% in 2023 to 36.5% by early 2025.

    SUVs now make up 56% of the market, and while Tata Motors offers EVs in this segment, competitors like Mahindra are competing more effectively in power and design (user discussions on the Tata Nexon online have been quiteunflattering).

    Upcoming EV launches from Maruti and Mahindra’s aggressive push in the same price range could also put more pressure on Tata Motors' market share.

    No EV story is complete of course, without mentioning the heavyweights – BYD and Tesla. BYD imports all its cars from China, and is limited to 2,500 units per model annually unless it commits to local manufacturing. Meanwhile, Tesla is hiring in Mumbai, and hinting at an entry, though high import duties and pricing challenges may limit its impact.

    Charging infrastructure in India is the biggest hurdle for buying EVs

    For many potential EV buyers, charging infrastructure remains the biggest concern. “Range anxiety” is holding back mass adoption in India.

    India currently has just one public charger for every 135 EVs—far below the global average of one charger per six to twenty EVs. This is despite the country doubling its charging stations in FY24. 

    Over the past five years, more than $450 million has been invested in this sector, with companies like Charge Zone, Tata Power and Statiq leading the charge.

    Automakers are also stepping in. Maruti plans to install fast-charging stations at its dealerships every five to ten kilometres in the top 100 cities before launching its first EV. 

    Maruti also plans to establish over 1,500 EV-enabled service workshops in more than 1,000 cities. Partho Banerjee, senior executive officer of marketing and sales at Maruti Suzuki, said, “When we begin selling the e-Vitara, the ecosystem will be ready. Anyone driving our EV will have no concerns. Range anxiety is a genuine issue. If we resolve these challenges, EV penetration will grow significantly.” Banerjee expects EV sales to grow tenfold in the next six years. 

    A key player like Maruti prioritizing charging infrastructure helps all buyers, since there is inter-compatibility between charging stations. On February 13, Tata Motors also announced plans to double India's EV charging points by 2027. Fixing the charging infrastructure bottleneck could accelerate EV adoption nationwide.


    Screener: Auto stocks with rising momentum, with Forecaster estimating revenue and EPS growth in Q4FY25

    Forecaster estimates auto parts & 2/3-wheeler revenue to grow in Q4FY25

    As we enter the last week of Q4FY25, we look at the auto stocks where Trendlyne’s Forecaster estimates a YoY growth in revenue during the quarter. This screener shows automobiles & auto components stocks with increasing Trendlyne momentum score MoM, where Forecaster expects a YoY growth in revenue and EPS in Q4FY25.

    Major stocks in the screener are UNO Minda, Schaeffler India, Eicher Motors, Amara Raja Energy, TVS Motor, Sansera Engineering, and ZF Commercial. 

    UNO Minda shows up in the screener after its Trendlyne momentum score jumped 18 points MoM to 47.8. Trendlyne’s Forecaster expects this auto parts & equipment company’s revenue and EPS to grow by 19.2% YoY and 6.8% YoY in Q4FY25. Analysts at KR Choksey believe that despite a slowdown in commercial vehicle demand, its focus on innovation, capacity expansion, product diversification, and investments in emerging technologies positions it for long-term revenue growth.

    Eicher Motors’ Trendlyne momentum score increased by 13.6 points MoM to 64.5. Forecaster expects this ?-wheeler stock’s revenue and EPS to grow by 16.3% YoY and 13.8% YoY, respectively, in Q4FY25. Axis Direct expects the company’s revenue to increase due to strong domestic demand, expansions in Bangladesh, Brazil & Thailand, and new product launches. 

    You can find some popular screeners here.

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    The Baseline
    25 Mar 2025
    Five stocks to buy from analysts this week - March 25, 2025

    Five stocks to buy from analysts this week - March 25, 2025

    By Divyansh Pokharna

    1. Jindal Stainless:

    ICICI Securities maintains a ‘Buy’ rating on this steel manufacturer with a target price of Rs 760. This indicates an upside of 29.2%. Analysts Amit Dixit, Mohit Lohia, and Pritish Urumkar believe the new US tariffs, which apply to all countries, create a level playing field for Jindal Stainless (JSL) to compete in the US market. Additionally, unlike carbon steel players facing a 25% safeguard duty, there is no change in the stainless steel quota for Europe. As a result, they expect the company to maintain its market share in Europe while seeing higher volumes in the US.

    The company's 1.2 million tonnes per annum (MTPA) greenfield stainless steel plant in Indonesia, developed with an investment of Rs 1,500 crore, is progressing as planned. JSL’s share in the project is Rs 715 crore, while Singapore’s New Yaking is the other partner. Upon completion, JSL’s total stainless steel capacity will expand from 3 MTPA to 4.2 MTPA.

    Dixit, Lohia, and Urumkar believe the low capex required for the 1.2 MTPA project in Indonesia will help maintain JSL’s return on equity (RoE) at 16-18% in the near to medium term. They project the company’s revenue and net profit to grow at a CAGR of 12.6% and 14.6%, respectively, over FY25-27.

    2. Bajaj Holdings & Investment:

    Sharekhan maintains its ‘Buy’ rating on this holding company with a target price of Rs 14,346. This indicates an upside potential of 14.6%. Analysts highlight that Bajaj Holdings & Investment (BHIL) holds significant stakes in Bajaj Auto (34.21% stake) and Bajaj Finserv (39.03% stake).

    Bajaj Finserv owns Bajaj Finance, Bajaj Allianz General Insurance, and Bajaj Allianz Life Insurance. Recently, Allianz SE has decided to divest its entire 26% stake in Bajaj Allianz Life and Bajaj Allianz General Insurance to Bajaj group companies. 

    Bajaj Holdings & Investment will acquire a 20% stake in both life insurance and general insurance arms for Rs 18,553 crore, while Bajaj Finserv and Jamnalal Sons will acquire the remaining stake. The deal is expected to close by early FY26. Following the acquisition, the company may explore listing its insurance businesses, potentially unlocking value in the future.

    Analysts note that BHIL’s performance depends upon the performance of its key group companies, which ultimately drive its valuations. With most of the key associates performing well, they expect a healthy outlook for all businesses to drive earnings growth, resulting in a healthy dividend income for the holding company.

    3. Varun Beverages:

    KRChoksey maintains its ‘Buy’ rating on this non-alcoholic beverages company, with a target price of Rs 657, indicating an upside potential of 27%. Analyst Dipak Saha highlights the company's strong CY24 performance was driven by 23.2% volume growth, a better product mix, and strategic acquisitions. Revenue rose 24.7% YoY to Rs 20,008 crore, while net profit increased 25.3% to Rs 2,634 crore.

    The company's sales mix was dominated by Carbonated Soft Drinks (CSD), which contributed 74.2% to total sales, followed by packaged water and Juice-Based Drinks (JBD), which accounted for 19.6% and 6.2%, respectively. The company's net capex stood at Rs 4,500 crore, primarily for new plant setups in India and Africa.

    Varun Beverages has now become net debt-free after repaying loans using QIP proceeds. Saha mentions that the company has expanded its partnership with PepsiCo, strengthening its snack segment with exclusive Cheetos chips manufacturing and distribution rights in Morocco, Zimbabwe, and Zambia. Additionally, it has increased its footprint in South Africa, Tanzania, and Ghana, further solidifying its presence in the African market.

    4. Aurobindo Pharma:

    BOB Capital Markets reiterates its ‘Buy’ rating on this pharma company with a target price of Rs 1,451. This indicates a potential upside of 21.4%. Aurobindo’s Eugia Unit 3 operated at over 70% peak capacity in FY24 but dropped to 50% in Q3FY25, leading to US injectable sales hitting an all-time low of $77 million. Analyst Foram Parekh expects capacity utilization to improve to ~65% in Q4 and exceed 70% in FY26, driving US injectable sales recovery to $100-125 million over the next two to three quarters.

    The company's Pen-G plant in Andhra Pradesh is currently facing a loss of Rs 60 crore due to a slow ramp-up, and a temporary maintenance shutdown. Its production yield dropped to 170 tonnes per month. Parekh expects this to increase to 350 tonnes per month by the end of March 2025 and 650 tonnes per month in FY26.

    Parekh believes increasing market share in the US, higher utilisation at Eugia Unit 3, improved yield at the Pen-G plant, and a strong pipeline of biosimilar products will drive growth. He projects the EBITDA margin to rise from 20.1% in FY24 to 22.4% by FY27.

    5. Voltas:

    Motilal Oswal maintains its ‘Buy’ rating on this air conditioner manufacturer with a target price of Rs 1,710, indicating a potential upside of 20.3%. The company's management notes that the current demand for room air conditioners (RAC) remains strong. Voltas aims to focus on market share by cutting costs instead of raising prices for profitability.

    Analysts Sanjeev Singh, Mudit Agarwal, and Abhishek Sheth note that Voltas lost some market share in January 2025. The company is working to regain its position and expects improvements as production at its Chennai plant scales up. The plant is currently operating at 40-45% capacity and is expected to reach full capacity by FY26.

    Singh, Agarwal, and Sheth highlighted that from April 2024 to January 2025, the industry grew 30% YoY, while Voltas' RAC volumes increased by 35% YoY. They expect strong demand for room air conditioners during the summer season of CY25 to boost the company’s growth in Q4FY25. Over the past year, the company's share price has risen by 33.5%.

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

    (You can find all analyst picks here)

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    The Baseline
    24 Mar 2025
    IPOs This Week: Grand Continent Hotels, Active Infra & Rapid  Fleet, Plus Six New Public Issues

    IPOs This Week: Grand Continent Hotels, Active Infra & Rapid Fleet, Plus Six New Public Issues

    By Divyansh Pokharna

    The Indian stock market recorded its best weekly gain in over four years, with both the Nifty 50 and Sensex rising over 4% last week. The surge was driven by strong domestic investor buying and reduced selling by foreign institutions. Foreign Institutional Investors (FIIs) turned net buyers for the first time in 13 weeks, purchasing equities worth Rs 5,819.1 crore over the week, while Domestic Institutional Investors (DIIs) bought Rs 4,337.9 crore worth of stocks.

    FIIs were selling Indian equities earlier this month, but the pace slowed. VK Vijayakumar, Chief Investment Strategist at Geojit Investment Services, said, “It can be argued that positive domestic fundamentals like pick up in growth, easing inflation, and a weaker dollar have contributed to the change in FII strategy.”

    The mainboard IPO segment has seen no new launches for over a month, but the SME segment remains active. This week, six new SME IPOs are set to open, while three companies will make their market debut, following four listings last week.

    Three SME IPOs are set for listing this week

    Grand Continent Hotels, a hotels chain, will close its IPO on March 24 and list on the NSE SME platform on March 27. By day 2 of bidding, the IPO remained undersubscribed at 0.5X. In FY24, the company’s revenue grew 86% YoY, while net profit rose 3.9X.

    Grand Continent and Active Infra draw HNI bids; Rapid Fleet lags behind

    Active Infrastructures and Rapid Fleet Management will close their IPO bidding on March 25 and list on March 28. By the end of day 1, both remained undersubscribed at 0.2x and 0.1x, respectively.

    Six SME IPOs to open for subscription this week

    Desco Infratech is the first IPO to open this week, with the subscription period from March 24 to 26. The issue size is Rs 30.8 crore, with a price band of Rs 147-150 per share. The IPO is expected to list on the BSE SME platform on April 1.

    Desco Infratech and Indentixweb’s net profit more than double in FY24

    Other IPOs opening for subscription this week:

    • ATC Energies System (March 25-27) has an issue size of Rs 63.8 crore, with a price band of Rs 112-118 per share.
    • Shri Ahimsa Naturals (March 25-27) plans to raise Rs 72.8 crore, with a price band of Rs 113-119 per share.
    • Indentixweb (March 26-28) aims to raise Rs 16.6 crore via a fresh issue, with a price band of Rs 51-54 per share.
    • Retaggio Industries (March 27-April 1) has an issue size of Rs 15.5 crore, with a fixed price of Rs 25 per share.
    • Infonative Solutions (March 28-April 3) is set to raise Rs 24.7 crore, with a price band of Rs 75-79 per share.

    Four new companies listed last week; all declined post-listing

    PDP Shipping & Projects listed on March 18 at a 19.8% discount to its issue price of Rs 135 and is now trading 31.2% lower.

    PDP Shipping and Paradeep Parivahan see weak debuts; others list flat

    Paradeep Parivahan debuted on March 24 at a 20% discount. Its IPO was subscribed 1.6 times the total shares on offer. The stock fell further, trading at a 22.4% discount.

    Super Iron Foundry and Divine Hira Jewellers listed at their issue prices but have since declined. Super Iron Foundry is now down 14.2%, while Divine Hira Jewellers is trading 5% lower.

    What buzzed in the primary market last week?

    • Edtech company PhysicsWallah has confidentially filed draft papers to raise Rs 4,600 crore through an IPO. The offering includes a fresh issue of shares along with an offer-for-sale (OFS) by existing investors. The company is reportedly targeting a valuation of $2.8 billion.
    • SEBI has approved the IPOs of LG Electronics India and Innovision. LG Electronics' IPO is completely an offer-for-sale of 10.2 crore equity shares with no fresh issue. Innovision, which provides manpower services and toll plaza management, plans to raise Rs 255 crore through a fresh issue, along with an offer-for-sale of 17.7 lakh shares.
    • US e-commerce giant Amazon is reportedly considering spinning off its Indian unit and listing it in India. The company is in the early stages of discussions and has engaged with JP Morgan while initiating talks with investment banks in India.
    • Saatvik Green Energy, a solar photovoltaic module manufacturer, has refiled its draft papers for a Rs 1,150 crore IPO after SEBI returned its earlier documents in February. The offering consists of a fresh issue of shares worth Rs 850 crore and an offer-for-sale of Rs 300 crore by promoters.
    • SEBI has put the IPO approvals for Hero FinCorp on hold for nearly eight months and HDB Financial Services, an HDFC Bank subsidiary, for four months. The delay is due to concerns that their share sales might not comply with pre-IPO share sale rules.
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    The Baseline
    21 Mar 2025
    Five Interesting Stocks Today - March 21, 2025

    Five Interesting Stocks Today - March 21, 2025

    By Trendlyne Analysis

    1. BSE:

    This exchange stock rose 22% over the past week after UBS initiated coverage with a ‘Buy’ rating and a target price of Rs 5,350. The brokerage anticipates a share price upside of around 12%, believing the market has not fully priced in the shift in trading volumes from NSE.

    BSE fueled this rise in trading volume by shifting Sensex’s expiry day from Friday to Tuesday. This change increased its market share from just above 16% in December last year to over 22% in February.

    BSE nearly doubled its Q3 revenue and net profit compared to the same period last year. Transaction charges, which form the bulk of its revenue, jumped 157% YoY. Operating expenses rose 86% YoY. This was mainly because of higher contributions to the core settlement guarantee fund – the exchange increased its contribution to the guarantee fund after SEBI introduced a new methodology for computing the minimum corpus requirement.

    Discussing growth in the equity segment, MD & CEO Sundararaman R said, “We are working with market participants (discount brokers) to ensure a level playing field so clients can choose the exchange based on the best price for execution.” He emphasised that once fully implemented, this change will give BSE a 50-50 chance of handling retail orders.

    Forecaster projects the firm’s revenue to grow by around 50%, driven by market share gains. Net profit is expected to rise four times in Q4 compared to the same period last year. UBS analysts see the company’s mutual fund distribution business as a key growth driver and project a 37% CAGR in revenue over FY25-27.

    2. KEC International:

    This heavy electrical equipment manufacturer made headlines today after CBI arrested its Deputy General Manager Suman Singh and Power Grid General Manager Uday Kumar for corruption. Kumar was caught taking a Rs 2.5 lakh bribe, while Singh allegedly favoured certain contractors. The FIR names five individuals, including KEC Vice President Jabraj Singh and the company itself.

    Despite this, the company has surged by 24.9% over the past week after it received new orders worth Rs 1,267 crore across its businesses on March 15. 

    KEC International’s transmission and distribution (T&D) business won 800 kV HVDC and 765 kV transmission line orders from Power Grid Corp, and supply of towers, hardware, and poles in the Americas. Its cables business won an order to supply various types of cables and conductors in India and overseas.

    During Q3FY25, KEC International reported a 33.8% YoY increase in net profit at Rs 129.6 crore. Revenue grew 6.8%, reaching Rs 5,349.4 crore. EBITDA margin expanded by 85bps to 7%. 

    The company’s order intake jumped 115.2% to Rs 8,600 crore in Q3, driven by strong growth in the T&D, civil, and renewables segments. YTD inflows now stand at Rs 25,000 crore, boosting revenue visibility. Trendlyne’s Forecaster projects KEC’s revenue to grow by 12.3% YoY in Q4FY25. 

    Vimal Kejriwal, the MD & CEO, said, “With a solid and diversified order book and L1 (orders where the company is the lowest bidder) of over Rs 41,000 crore, better execution visibility, a stable cost environment, and a robust tender pipeline, we are well positioned for sustained growth in the coming quarters”.

    With a strong order pipeline in place, the focus now falls on the execution of projects. KEC International also expects strong T&D opportunities in Saudi Arabia and Abu Dhabi to drive international orders while maintaining a wait-and-watch stance on US orders.

    Axis Securities maintains its ‘Buy’ rating on KEC International and sets a target price of Rs 1,040. The brokerage believes the company’s strong order book offers healthy revenue visibility for the next 18-24 months. The government’s focus on T&D and the Jal Jeevan Mission extension till 2028 further support its growth prospects.

    3. Steel Authority of India:

    This PSU steel manufacturer has gained 8.9% in the past week following two major announcements. Steel Authority of India (SAIL) plans to invest Rs 30,000 crore to double the capacity of its Rourkela Steel Plant (RSP) to 9 million tonnes per annum (MTPA). After the expansion, RSP will produce about 25% of SAIL’s total target of 35 MTPA by 2030.

    Meanwhile, the Directorate General of Trade Remedies (DGTR) has recommended a 12% safeguard duty on certain steel imports for 200 days, to support domestic producers. This decision follows the US imposing a 25% tariff on steel imports. With US export options becoming limited, major steel-producing countries like China, Japan, and South Korea may look to dump their excess steel into India. This could lead to a surge in imports and put pressure on domestic steel manufacturers. To counter this, the safeguard duty has been proposed.

    SAIL’s earnings are highly sensitive to hot rolled coil (HRC) and coking coal prices. The company’s management expects coking coal costs to decline by Rs 1,000/t in Q4FY25 (current Rs 15,0000/t) due to lower imported coal prices. At the same time, HRC prices rose by over Rs 1,100/t (currently Rs 50,000/t) in early March. Higher HRC prices and lower coking coal prices boost profitability.

    Meanwhile, the company aims to reduce debt and maintain a stable debt-to-equity (DE) ratio during its expansion. Executive Director of Finance Praveen Nigam said, “Borrowings will be reduced to around Rs 30,500 crore by FY25-end from the current Rs 32,600 crore, aligning with FY24 levels. We expect the DE ratio to remain at 1:1, peaking at 1.2:1 during the expansion phase.”

    Axis Securities has upgraded its rating to ‘Buy’ with a target price of Rs 130. The brokerage noted that capital expenditure for the next phase of expansion will begin in H2FY26 and could peak in FY28-29. They expect steel price spreads (price-cost gap) to drive profitability.

    4. Dr. Agarwals Health Care:

    Thiseye hospital chain surged 3.9% on March 20 after Motilal Oswalinitiated a ‘Buy’ call with a target price of Rs 510, citing the significant market share shift from unorganized to organized players in the eye care industry.

    Dr. Agarwals Health Care (DAHL) has anestimated 25% market share among organized players in FY24. The company provides eye care services, including cataract and refractive surgeries, diagnostics, consultations, and non-surgical treatments. The company also sells optical products such as glasses, contact lenses, and eye care-related pharmaceutical products.

    InQ3FY25, the company reported a revenue growth of 28.7% YoY to Rs 443.4 crore and its net profit increased 12.7% YoY to Rs 22.3 crore. The growth was driven by an increase in surgical volumes, a shift towards high-end procedures, particularly in cataract surgeries, and a 19.3% YoY increase in patient footfall over 9MFY25. The company added 12 facilities in Q3, with a focus on expanding its reach in underpenetrated regions.

    DAHL isactively expanding into underpenetrated regions like North India (Punjab, Jammu) and West India (Maharashtra, Gujarat) while also planning to enter non-core states such as Delhi-NCR, Uttar Pradesh, Odisha, and Madhya Pradesh. Adil Agarwal, Director and CEO of the company,said, “In the fourth quarter, we have already launched three new facilities. Looking ahead, in Q4, we are targeting to launch another 8 to 10 additional surgical facilities and seven primary facilities.” 

    The brokerageexpects a CAGR of 21% in revenue and 23% in EBITDA over FY25-27, reaching Rs 2,490 crore and Rs 690 crore, respectively, driven by growth in surgical volumes and pharmacy revenue.

    5. Welspun Corp:

    This iron & steel pipes manufacturing company touched a new 52-week high of Rs 856 on 20th March. On March 17th, the company won new orders worth around Rs 2,400 crore for supply of coated pipes for gas pipeline projects in the USA. With these new orders, the company's consolidated order book stands at approx. Rs 20,000 crore, to be executed in FY26-27. On February 24, the company incorporated its new wholly owned subsidiary, Welspun Europe in Spain. The subsidiary will be focusing on all types of conduits and systems for the transport of fluids.

    The company announced its Q3FY25 results on February 5. In the quarter, its net profit surged 131.7% YoY to Rs 674.7 crore, fueled by a reduction in raw material costs. However, its revenue decreased by 23.2% due to decline in plastic products segment revenue. The company’s revenue beat forecaster estimates by 12% due to growth in its steel products segment. It appears on the screener for stocks with strong momentum.

    Vipul Mathur, Managing Director of Welspun Corp, said, “I would like to emphasize that for the first nine months, our consolidated EBITDA reached Rs 1,356 crore, compared to our full-year FY25 guidance of Rs 1,700 crore. This clearly shows that we are on track to exceed our guidance for the second consecutive year, despite global challenges and concerns. We have a strong order book exceeding Rs 15,000 crore as of Q3, and in line pipes, our combined order book for India and the USA stands at nearly 8,66,000 tons, valued at over Rs 12,000 crore. ”

    The company has invested Rs 1,700 crore in Saudi Arabia for an LSAW (Longitudinal Submerged Arc Welding) plant that manufactures large-diameter pipes. Vipul Mathur said, “The main incentive in Saudi Arabia is its market. We're observing strong return ratios, and we're expecting a payback period of no more than three to four years for this investment.”

    JM Financial recommended a ‘Buy’ rating on Welspun Corp with a target price of Rs 940, citing robust demand outlook from the US market. The brokerage highlighted that the company’s net debt in Q3FY25 sharply reduced to Rs 100 crore as compared to Rs 530 crore in Q2FY25 on the back of better operational cashflows. It notes that all the company’s projects including Saudi Arabia and US remain on track. 

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

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    The Baseline
    20 Mar 2025

    Chart of the Week: Best and worst performing indices over the past year

    By Abdullah Shah

    India's equity market has swung between gains and losses over the past year. While there have been moments of optimism, multiple global factors have pulled the market down, making it unpredictable.

    In the first half of FY25, the Nifty 50 Index surged by 15.6%, but those gains were wiped out in the latter half due to global economic uncertainties, rising trade tensions, FII selling and weaker domestic spending. This downturn has affected several key indices. According to Reuters, Indian stocks have suffered their longest slump in nearly three decades, erasing almost $1 trillion in market value in the past five months. 

    At an event, Radhika Gupta, CEO of Edelweiss Mutual Fund, said, “Nifty is like Shah Rukh Khan – he has had some bad patches but has delivered most of the time.”

    In this edition of Chart of the Week, we look at the top four indices with the highest gains and losses over the past year.

    Strong momentum driven by Government plans boosts SME growth

    The BSE SME IPO Index has gained 58.2% over the past year. The top performers in the index include Mayank Cattle Food, Qualitek Labs, and Gabriel Pet Straps, with returns of 93.1%, 62.3%, and 46.9%, respectively.

    The surge in SME IPOs is driven by a combination of government initiatives, such as the Mudra Scheme, tax benefits, and the Production Linked Incentive (PLI) program, which have created a favorable environment for small and medium enterprises. Additionally, rising investor interest and strong performance across various industries have further fueled growth in this segment.

    The Nifty Midcap Liquid 15 Index includes the 15 most liquid mid-cap stocks listed on the NSE. Over the past year, the index has gained 15.3%, driven by strong performances from its key constituents. Dixon Technologies surged 90.9%, driven by its expansion in electronics manufacturing and collaborations with global brands. The growing shift towards diversifying manufacturing hubs beyond China further boosted its growth.

    Indian Hotels Company gained 38.6%, supported by a strong recovery in domestic tourism and strategic expansion plans, including new hotel developments, contributing to higher earnings. 

    Defensive indices grow in a bearish market

    The BSE Healthcare Index includes companies involved in the pharmaceuticals & biotechnology, and healthcare equipment industries. Over the past year, the index has gained 18.3%. The top gainers in this sector include Blue Jet Healthcare, Wockhardt, and Suven Pharmaceuticals, with gains of 164.3%, 159.4%, and 84.3%, respectively.

    The Centre’s PLI scheme drove growth in healthcare by boosting domestic manufacturing and reducing import dependence, particularly for critical active pharmaceutical ingredients (APIs). In addition, the sector has expanded its contract development & manufacturing organisations (CDMOs), as global pharmaceutical companies diversify supply chains beyond China. Over the past year, theNifty Financial Services index has gained 15.4%. The top performers in this index include Muthoot Finance, Cholamandalam Investment & Finance, and Bajaj Finance, with a gain of 72.9%,  38.6%, and 31.7%, respectively.

    The index gained over the past year due to expectations of interest rate cuts, which boosted credit demand and improved liquidity. Rising domestic gold prices and increased collateral value supported strong demand for gold loans, further supporting earnings. 

    Rising costs lead to a decline in the Nifty Energy and Nifty PSU Bank indices

    The Nifty Energy Index has fallen 15.1% over the past year and contributes 10% to the Nifty 50, making it the third-largest contributor. The index includes companies from the oil & gas and utilities sectors. Firms like Adani Green Energy, Adani Total Gas, and Indian Oil Corporation saw the highest declines at 52.7%, 38.6%, and 22.5%, respectively, over the past year.

    Oil & gas stocks fell due to higher purchase costs after the Centre reduced cheaper gas supplies. Energy price fluctuations, influenced by global demand, geopolitical tensions, and potential US policy changes, added to the pressure.

    Oil and gas firms struggled with losses in the LPG segment as the government kept domestic LPG prices unchanged despite rising raw material costs. The narrowing discount on Russian crude also reduced the price gap between crude oil and refined products, directly impacting the Gross Refining Margins (GRMs) and earnings. The Nifty PSU Bank Index fell by 13.5% over the past year. Punjab National Bank, Canara Bank, and Indian Overseas Bank led the decline, dropping by 24.6%, 24.1%, and 29.9%, respectively, over the same period. Weak quarterly updates drove this decline, as many banks struggled with sluggish deposit growth, leading to concerns about slowing business momentum. 

    Nifty200 Alpha 30 and Nifty Media plunged due to weak spending and a slower growth rate

    The Nifty200 Alpha 30 consists of 30 stocks selected from the Nifty 200, based on ‘Jensen’s Alpha’. Jensen's alpha is used to evaluate the performance of an index or portfolio relative to a benchmark index. The weight of stocks in the index is determined by their alpha scores. The index has declined by 27.4% over the last year. Consumer services hold the highest weightage(16%) among sectoral weights, followed by capital durables (14.5%) and financial services (13.8%). Within the Nifty200 Alpha 30 index, IRFC, Zydus Lifesciences, and Bajaj Auto were among the worst performers, with a fall of 11.8%, 8.1%, and 9.4%, respectively.

    The index’s underperformance was mainly due to the weak performance of its heavyweight sectors. Consumer Durables, which hold a significant weight in the index, struggled due to slower-than-expected economic growth in India. A weaker expansion in manufacturing and consumption, along with reduced government spending, pressured discretionary sectors. 

    The Nifty Media index has declined by 20% over the past year. The beleaguered Zee Entertainment Enterprises (which saw the collapseof its $10 billion merger with Sony, and a $940 million legal dispute with Star India over the termination of a cricket broadcasting deal) holds the highest weight of 25.2% in the index and has fallen by 28.1%. PVR INOX has declined 28.3%, and Network18 Media has dropped 52.5% over the same period.

    Media companies have faced margin pressure due to rising operating, production, and marketing costs.

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    The Baseline
    20 Mar 2025
    Are FIIs buying China and selling India? | Screener: Momentum stocks with high Forecaster price upsides

    Are FIIs buying China and selling India? | Screener: Momentum stocks with high Forecaster price upsides

    By Swapnil Karkare

    A few months ago, Mililing was just another unremarkable village in China. After January 20 though, when DeepSeek released its R1 version, the place was suddenly on the map. Liang Wenfeng, the brain behind DeepSeek, turned out to be from this village. 

    Overnight, Mililing, with a population of just 700, became a tourist hotspot, with 10,000 tourists visiting daily during the spring holidays. Roads were widened, houses were painted, and new trees were planted. No one would have imagined that a young techie could boost tourism like that. 

    DeepSeek's impact has shown up in other ways. Investors have since flocked to buy Chinese tech companies through the Hong Kong Stock Exchange. To buy these shares, investors need Hong Kong dollars. The demand for the dollars rose so much that by February 18, banks ran low on cash. The Hong Kong Monetary Authority had to inject HK$5.5 billion in overnight lending - the biggest intervention in five years. 

    This rush into China seems to have come at India’s expense. FIIs have sold over Rs. 2 trillion in Indian stocks since October last year. The big question: is this just temporary or a sign of a bigger shift in global investor sentiment?

    In this week's Analyticks,

    • Choices, choices: FIIs take another look at their India and China investments
    • Screener: Rising momentum stocks with high Forecaster target price upsides

    Let's check in on this rivalry.

    A twist in the story for Indian markets

    India at the start of 2024, was all positive vibes. Corporates expected healthy profits, the IMF projected steady Indian GDP growth at 6.3% for both FY24 and FY25, and investors bet on policy continuity. Goldman Sachs even called India ‘the port of calm’ in a turbulent world.

    China however, was struggling. GDP growth would fall from 5% in 2023 to 4.2% in 2024. Until mid-September 2024, markets agreed. India was the clear winner: Nifty 50 Index was up by 20%, while China’s SSE 50 Index had fallen by 5%. 

    But as the summer heat faded and we entered September, the mood changed. Worries about high valuations, and a consumption slowdown in India hit market sentiment. And China unveiled an economic stimulus package. Within ten days, China's SSE 50 Index was up by 29%.

    In 2025, DeepSeek’s breakthrough pushed Chinese stocks higher, with foreign investors coming back in.

    is the ‘Buy China, Sell India’ trend real?

    Market experts have been talking about the ‘Buy China, Sell India’ trend this year — but it’s not new. In just the last 15 quarters, it’s played out four times. One example is June 2022, when FIIs pulled money from emerging markets but found value in beaten-down Chinese stocks, especially as Shanghai reopened after long lockdowns.

    But the battle is not necessarily India vs. China. In 8 of the last 15 quarters, investors have either bought both or sold both. Perhaps it's a lack of imagination that drives investors to pit India and China against each other, as if it's always the dragon or the elephant, not both.

    Global sentiment and country-specific triggers matter more than simple either/or choices. And Charlie Dutton from Manulife has a contrarian viewpoint. He believes domestic Chinese investors drove this most recent rally, not FIIs. Unfortunately, we cannot verify this as China does not update FII data regularly.

    Valuations don’t matter…until they do

    Why have FIIs been pulling out of Indian markets in recent weeks? The biggest reason is valuation. India’s stock market capitalisation was around 1.3 times its GDP in 2024 (now down to 1.2x), while it was close to 0.7x in China, making it a more attractive market for many investors. 

    For value-focused funds, India is a tough fit right now. Take GMO’s value fund, for example. Arjun Divecha, Partner at GMO, said, “We're very underweight in India - close to zero - because of the valuation."

    Rising US bond yields and a stronger dollar have also played their part. When safer assets like US bonds and dollars become more attractive, emerging markets like India take a hit.  



    Is the government stimulus enough for China?

    The China stimulus has caught attention, but the results are still unclear. The government cut policy rates by 50 basis points, encouraged property purchases, announced childcare subsidies, increased wages, and subsidised the replacement of old home appliances, automobiles, and electronics with newer, energy-efficient models, among other things.

    The focus is enticing people to buy more. But the response has been lukewarm.

    Retail sales growth slowed from 7.2% YoY in 2023 to 3.5% YoY in 2024. Demand is so weak that consumer inflation turned negative in February — a clear sign of deflation and fading consumer confidence. To keep things moving, the government has raised its fiscal deficit target to 4% for 2025, up from 3% in 2024. But it's not certain if these measures will revive demand and hit the 5% GDP target.

    The wind is on India's back

    While domestic measures are underway, China is also under pressure from shifting global trade patterns, especially ‘China+1’. It won’t happen overnight, but the signs are already visible. For instance, the share of Chinese products in US imports has fallen from 22% to 11% in six years, creating opportunities for countries like Vietnam, Thailand, and India, according to investment firm GMO. 

    China, on the other hand, is setting up factories in other countries to bypass tariffs and remain the world's go-to supplier. At the same time, it doesn’t want to pass the baton to India.  Recent reports show that China is also blocking its companies from investing in India, limiting the flow of Chinese workers and equipment to India, and limiting exports of key materials — all to put roadblocks in India's manufacturing growth.

    Here, China may be fighting the inevitable. When we look at the long term, India is much better positioned. A young population, a growing domestic market, political stability, and deepening global partnerships work in its favour. In contrast, China faces structural weakness — a shrinking, ageing population, heavy dependence on exports and state-owned enterprises, an opaque, non-democratic system, and growing geopolitical tensions that risk isolating it from the West.

    Franklin Templeton’s Brian Freiwald highlights that India’s consistent GDP growth and market returns over the past two decades offer a better broad-based opportunity than China, which still needs careful stock picking. He also pointed out that with global portfolios still underweight on Indian equities, there’s room for significant capital inflows once valuations stabilise. Charlie Dutton from Manulife expects FII interest in India to return in the second half of 2025.

    So the long-term story is intact. As Howard Marks said, ‘You don’t want to miss out on India in the next 10 years.”


    Screener: Rising momentum stocks with high Forecaster 12-month target price upside

    Top Forecaster picks with momentum: High growth potential stocks

    With the Indian market seeing a gradual recovery over the past week, we look at stocks with the highest target price upside potential over the next year, which are seeing an uptick in momentum. This screener shows stocks with an MoM improvement in Trendlyne Momentum scores and high Forecaster estimates 12-month upside %.

    The screener consists of stocks from the aluminium & aluminium products, commodity chemicals, healthcare facilities, housing finance, and iron & steel products industries. Major stocks that feature in the screener are Lloyds Metals & Energy, Aadhar Housing Finance, Deepak Fertilisers & Petrochemicals Corp, Coforge, Minda Corp, Krishna Institute of Medical Sciences, Bharti Hexacom, and Hitachi Energy India.

    Lloyds Metals & Energy shows up in the screener as Forecaster estimates a 40% target price upside over the next year. This coal & mining stock’s Trendlyne momentum score increased by 5.2 points MoM to 57.9. Analysts at ICICI Securities expect the company’s top line to improve on the back of the expansion of its steel plant, while the acquisition of Thriveni Earthmovers is expected to improve margins. They expect the firm’s revenue and EBITDA to grow at a CAGR of 49% and 59% over FY25-27. 

    Deepak Fertilisers’ Trendlyne momentum score jumped by 17.8 points MoM to 61.1.  Trendlyne’s Forecaster expects this commodity chemicals company’s stock price to grow by 28.3% over the next year. Analysts at Keynote Capital believe the firm’s expansion of the technical ammonium nitrate (TAN), weak nitric acid (WNA), and concentrated nitric acid (CNA) capacities, to be completed by H2FY26, will help in revenue growth. They expect its revenue to grow at a CAGR of 13% over FY25-26.

    You can find some popular screeners here.

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    The Baseline
    18 Mar 2025
    Five stocks to buy from analysts this week - March 18, 2025

    Five stocks to buy from analysts this week - March 18, 2025

    By Ruchir Sankhla

    1. State Bank of India:

    Sharekhan maintains its ‘Buy’ rating on this bank with a target price of Rs 980, indicating a potential upside of 33%. State Bank of India expects 14-15% YoY loan growth over the next few quarters. The bank sees growth in personal loans picking up, as the recent slowdown was mainly due to stricter credit approval standards. It has a strong corporate loan pipeline of Rs 4.8 lakh crore.

    The analysts highlight that the bank's asset quality remains stable, with a net NPA of 0.5% and no major signs of loan stress. They expect credit costs to gradually normalize unless a major economic downturn occurs.

    The bank expects net interest margins (NIMs) to remain around 2.9-3% over the next few quarters. The analysts note that the impact of rate cuts on net interest margins should be limited, as only about 28% of the loan book is linked to the repo rate, and the rate cut cycle is expected to be shallow.

    2. Tata Consumer Products:

    Geojit BNP Paribas upgrades its rating to ‘Buy’ on this tea & coffee company with a target price of Rs 1,067. This indicates a potential upside of 12.7%. In Q3FY25, the company’s revenue grew 16% YoY, helped by strong growth in the domestic tea segment. However, its net profit remained flat at Rs 285 crore, mainly due to amortization costs of around Rs 60 crore for the acquisitions of Capital Foods and Organic India. Higher interest costs also impacted profitability.

    Tata Consumer Products has focused on premium offerings with new launches such as Tata Tea Premium Care, Tetley Instant Green Tea Ready Mix, and Monsoon Malabar Coffee. The analysts are positive about the company’s focus on premiumization and expansion into new channels like food services and pharma. They believe this strategy will support growth and estimate a revenue CAGR of 11% over FY25-27.

    3. Tata Communications:

    Coming to yet another Tata pick by analysts - ICICI Securities upgrades its rating to ‘Buy’ on this telecommunications company with a target price of Rs 1,840. This indicates an upside potential of 22.2%. The upgrade follows a stock price decline due to short-term revenue weakness, making valuations attractive. 

    Analysts Sanjesh Jain, Mohit Mishra and Aparajita Chakraborty highlight that Tata Communications faced challenges in FY24, including a cable cut in the Red Sea and slow order book growth. However, with the Red Sea issue resolved and strong double-digit order book growth in FY25, revenue is expected to improve.

    The analysts mention that the company is expanding its digital services portfolio, with a focus on cloud and AI-driven solutions. Digital services revenue is expected to grow at a 17% CAGR over FY25-27, driven by new product launches such as AI Studio and GPU-as-a-Service. Large deal executions are expected to accelerate revenue from Q4FY25, with digital services likely to break even at the EBITDA level by FY27. The company also plans a Rs 5,500 crore capital expenditure over FY25-27, for network expansion and fiber replacement.

    4. Venus Pipes & Tubes:

    Anand Rathi retains a ‘Buy’ rating on this small cap pipes & tubes manufacturer with a target price of Rs 1,700, indicating an upside potential of 30.9%. The company expanded its production capacity 4.1X over five years to 38,400 tons, during which its market share grew from 3.6% to 6.2%. It is now increasing its capacity to 46,800 metric tons by adding high-grade stainless steel and titanium-welded tubes, fittings, and seamless pipes.

    Analysts Parthiv Jhonsa and Prakhar Khajanchi highlight that Venus Pipes has improved its backward integration by producing 14,400 tons of mother hollow pipes, reducing its reliance on external suppliers. Its Rs 180 crore capex plan includes new seamless pipe and tube lines, fittings, and a 4,800-ton piercing line, funded through warrants, long-term debt, and internal accruals.

    Jhonsa and Khajanchi expect revenue, EBITDA, and net profit to grow at a CAGR of 24%, 26%, and 28%, respectively, over FY25-27, driven by expanded capacity, improved backward integration, rising domestic market share, and surging exports, which have grown 36 times since FY20 and now contribute 32.2% of revenue.

    5. Supreme Industries:

    BOB Capital Markets maintains a ‘Buy’ rating on this plastic products manufacturer with a target price of Rs 5,150. This indicates an upside potential of 50.5%. The company signed a memorandum of understanding with Wavin Industries to acquire its Indian piping and fittings business for $30 million (approximately Rs 260 crore) plus net working capital. The acquisition includes exclusive access to Wavin BV’s existing and future technologies for India and SAARC countries for seven years.

    Analyst Utkarsh Nopany notes that Wavin, a subsidiary of the Netherlands-based Orbia Group, entered India’s plastic pipe market in 2017 and operates three plants with a total capacity of 73,052 metric tons per annum (TPA). He also mentioned that this acquisition will expand Supreme Industries’ piping capacity from 820,000 TPA in December 2024 to 973,000 TPA by June 2025, improving its presence in North and South India. Nopany expects a CAGR of 16.2% in revenue and 22.5% in net profit over FY25-27.

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

    (You can find all analyst picks here)

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