By Trendlyne AnalysisThis internet software & services company has declined by 10.9% over the past week after announcing its Q3FY25 results on January 20. Its net profit declined 57.2% YoY to Rs 59 crore due to investments in expanding Blinkit's store network. The quick commerce (Blinkit) business reported a loss of Rs 103 crore, a 14% increase YoY and nearly doubling QoQ.
Over the past two quarters, Zomato added 368 new stores (152 in Q2FY25 and 216 in Q3FY25), incurring over Rs 370 crore in capital expenditure. The company's total store count stands at 1,007 as of Q3 FY25. Deepinder Goyal, MD and CEO of the company said, “We will get to our target of 2,000 stores by December 2025, much earlier than our previous guidance of December 2026.” This expansion is expected to increase losses due to the ramp-up time for new stores.
Akshant Goyal, Chief Financial Officer of the company said, “We do expect the investments in Blinkit to go up. And as a result, the losses will go up in the next one or two quarters.” The management expects Blinkit's profitability to improve once the current phase of aggressive store expansion slows down, which is expected after they reach their 2,000-store target in December 2025.
Despite the lower profitability, Zomato’s revenue grew by 61.3% YoY to Rs 5,657 crore, driven by higher sales across all its businesses. Its food ordering & delivery business saw a growth of 21.6% YoY, its hyperpure (B2B supplies) business rose 94.5% YoY, and its quick commerce (Blinkit) business surged ~1.2X YoY.
The company’s going-out segment saw a 2.5X YoY growth in revenue. Commenting on this business, Zomato’s senior executive, Rahul Ganjoo said, “We expect this business to grow at more than 40% YoY at least for the next couple of years.”
Post results, Motilal Oswal reiterated its “Buy” rating on the stock but lowered the target price to Rs 270 from Rs 320. The brokerage attributed this to reduced profitability caused by higher capital expenditures and increased investments in expanding the dark store network amid intense competition. It expects the company to add 4,000 stores between FY25-30 and achieve a revenue CAGR of 53.3% over FY25-27.
ThisIT consulting & software firm surged over 12% on Thursday following the announcement of its Q3 results. This rise was fueled by CEO Sudhir Singh’sstatement that “They (Verticals at Coforge) are all not just growing, but they're all growing very robustly.” The company also announced theacquisition of a US-based firm Xceltrait for $17.9 million. This will help Coforge expand its services in the property & casualty insurance industry.
In Q3, the companyreported QoQ revenue growth of 8.4% at Rs 3,318 crore, with net income up 5% at Rs 268 crore. Revenue beatForecaster estimates by 3.5%, while net profit missed estimates marginally. The firm signed four large deals (over $5 million) in Q3, with a total order intake of $501 million. EBITDA improved by 122 bps sequentially, driven by the improvement in operating efficiency of Cigniti Technologies (Coforge took over operations in July last year).
Coforgederives 56% of its revenue from the Americas, around 34% from Europe, Middle East & Africa (EMEA) and the rest from other regions. Of its total revenue, around 45% comes from services in banking, finance & insurance. With easing interest rates in the US, the firm witnessed significant traction in its business from the Americas, resulting in a YoY revenue surge of 69.2% from the region.
Commenting on the operations of Cigniti Technologies, Singhsaid, “Two quarters post-acquisition, EBITDA margin for Cigniti has improved from 12% (in Q1) to 17.3% this quarter, while its revenue growth is also shaping up strongly.” He also highlighted the consolidated revenue growth of 60% over the past two years, reaching $1.6 billion, thanks to the successful integration of Cigniti.
Singh pointed to a YoY surge of over 40% in the order book executable over the next twelve months, which stood at $1.4 billion at the end of Q3. He expressed confidence in achieving $2 billion in revenue in the medium term, owing to the growth in core and emerging verticals along with the increasing adoption of GenAI to optimise existing services.
This department stores company has declined by 5.6% over the past week after announcing its Q3FY25 results on January 15. During the quarter, its net profit rose 41.7% YoY to Rs 52.2 crore due to improved margins in private brands. Revenue was up 12.9% YoY at Rs 1,402 crore. The company’s revenue beat Forecaster estimates by 8.5%, while net profit beat estimates by 54.8%. It appears on screener for stocks where mutual funds have increased shareholding in the past month.
The company’s management noted mixed demand trends in Q3FY25, with strong like-for-like (LFL) growth in October due to the festive season, followed by a weaker November. They launched several brands, including Kiro, Stila, Prada Beauty, and INTUNE, with the fragrances and perfumes segment standing out, growing by 14%. CEO & MD, Kavindra Mishra, said, “We’ve increased our non-apparel share, particularly in the premium category, growing from 64% to 72%. In Beauty, we’ve opened high-end stores at QuestMall Kolkata, Bangalore T2 Airport, and three Armani stores.”
On future guidance Mr. Kavindra added, “We expect a solid Q4. At the start of my last call, we mentioned that in H2FY25, we would be aiming for around 5% like-for-like (LFL) sales growth, and we will maintain that forecast for the upcoming quarter. I anticipate six stores will open in Q4. For FY26, we expect to open between 12 and 15 new stores.”
The company's management has highlighted aggressive store expansion plans for its fast fashion brand, Intune aiming to open 90-100 stores in FY26, with a break-even expected by Q3-Q4FY26. However, HDFC Securities believes its performance has been below expectations. The brokerage notes that expansion has paused due to construction restrictions in Delhi NCR. The company closed 4 department stores and 8 beauty stores in Q4, in contrast with the guidance of opening 6 department stores and 26 Intune stores.
Motilal Oswal has maintained Shoppers Stop at a ‘Neutral’ rating and raised the target price to Rs 700. The brokerage notes that the company is focusing on the high-growth and margin-accretive Beauty segment. It sees a ~10% EBITDA CAGR for the company over FY25-27.
This specialty chemicals company rose over 5.4% on Thursday after announcing its Q3 results. Pidilite Industries’ revenue grew by 8.1% YoY to Rs 3,424.7 crore. The company's net profit increased to Rs 552.4 crore for Q3FY25, an 8.2% YoY rise. Revenue exceeded Trendlyne's forecaster estimates by 0.7%, though net profit fell short by 4.1%. Despite the profit miss, the stock gained momentum due to revenue growth and stable margins.
Growth in both the consumer & bazaar (C&B) and B2B segments drove performance. C&B, which accounts for nearly 82% of Pidilite's revenue, posted 6.9% YoY revenue growth to Rs 2,670 crore. The B2B segment delivered a 20.8% YoY surge in revenue, contributing Rs 760 crore.
Bharat Puri, Managing Director, stated, “Looking ahead, we remain cautiously optimistic about better demand conditions due to the favorable monsoon and increased construction activities.” He added that despite subdued demand across urban and rural areas, Pidilite reported steady progress. Domestic subsidiaries, including Nina Percept, Fevicol Company, and CIPY Polyurethanes, delivered double-digit revenue growth driven by brands like Fevicol, Dr. Fixit, and M-Seal.
Noting the Q3 performance, Nuvama Wealth Management kept a 'Buy' rating on the stock with a target price of Rs 3,735, indicating an upside potential of over 28.6%. It is positive on the company's outlook, citing optimism for stronger demand. But Motilal Oswal holds a 'Neutral’ view on the stock. The brokerage highlights that the company’s domestic subsidiaries saw double-digit revenue growth and better EBITDA margins. However, due to global economic uncertainty, inflation, and political instability in some countries, its international subsidiaries saw slow sales growth.
Thiselectrical equipment maker has risen by 3.5% over the past week after announcing itsQ3FY25 results on January 22. During the quarter, net profit grew by 9.4% YoY to Rs 164.8 crore, but missed Trendlyne’sForecaster estimates by 6%. The company’s EBITDA margin contracted by 80 bps to 10.3% due to higher raw material costs, finance costs, and employee expense benefits. The volatility in copper and aluminum prices also impacted margins.
Revenue for KEI Industries’ rose by 19.8% YoY to Rs 2,467 crore, beating estimates by 1.2%. During the quarter, the cables segment, which contributes a majority of the revenue, grew by 26% YoY. The company reported export sales of Rs 301 crore for the quarter, a 6% YoY increase. As of December 2024, KEI’s order bookstands at Rs 3,871 crore.
CEO & MD Amit Gupta highlights that over the last few months, orders for power cables have slowed due to capacity constraints. However, the company has completed a brownfield capacity expansion at Chinchpada, which aims to resolve these constraints and he expects revenue growth of 19-20% in FY26. Gupta added that the market outlook is favourable and will support the company’s growth expectations.
The company also plans to invest over Rs 800 crore in greenfield expansion for low tension (LTE) and high tension (HT) cables in Sanand, Gujarat. Guptasays, “We began construction in Sanand in March 2024 and will invest an additional Rs 700 crore in FY26 to complete the project.” He expects a volume CAGR of 19-20% post-completion of the project.
Post results, Edelweissmaintains its ‘Buy’ rating on KEI with a target price of Rs 5,250. This indicates a potential upside of 23.4%. The brokerage believes the cable and wire industry is in a structural upcycle, driven by strong demand across sectors like power, distribution, and solar. KEI's capex investments, strong margins, and healthy balance sheet are expected to boost performance.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
