1. Zomato: 

This internet software & services company has risen 18.5% over the past month, driven by its plans to acquire One97 Communication’s (Paytm) entertainment ticketing business and positive Q1FY25 results. On Thursday, the company entered an agreement with Paytm to acquire its movie, sports, and events ticketing businesses for Rs 2,048 crore. On Tuesday, Antfin Singapore reportedly sold 20.7 lakh shares (or 2.2% stake) in Zomato worth $556 million (approx Rs 4,667.6 crore) in a block deal. 

In FY24, Paytm’s entertainment ticketing business had a revenue of Rs 239.2 crore. Paytm will transfer the ticketing business to its subsidiaries, Wasteland Entertainment and Orbgen Technologies which will then be acquired by Zomato for Rs 783.8 crore and Rs 1,264.6 crore, respectively. At the company’s concall with Emkay, the Zomato management said that it believes going-out experiences will see strong growth, with traction in lifestyle and consumption. It expects the going-out segment’s gross order value (GOV) at more than Rs1 lakh crore in FY26 with a break-even EBITDA margin. 

The stock had surged by 13.6% in two sessions after posting its Q1FY25 results on August 1, where its revenue and net profit grew by 71% YoY and 126.5x YoY to Rs 4,442 crore and Rs 253 crore, respectively. Both revenue and net profit beat Trendlyne’s Forecaster estimates by 7.5% and 16%. Revenue got a boost from  improvements in the food ordering and delivery, Hyperpure supplies, and quick commerce (Blinkit) segments. The surge in net profit was led by lower overhead costs. 

Deepinder Goyal, Founder & CEO of the company, was bullish on delivery, saying, “We expect the food delivery segment to grow by 25% YoY in FY25. EBITDA margin has been expanding over time and we expect it to reach the range of 5%. Food gross order value (GOV) grew 25%, going forward, we expect it to be closer to the industry average of 30%.”

Motilal Oswal maintains its ‘Buy’ call on Zomato with a higher target price of Rs 300 per share. This indicates a potential upside of 14.2%. The brokerage believes that on its own, the ticketing business could be a small part of Zomato’s business, but if executed correctly, could give Zomato strong revenue growth. It expects the company’s revenue to grow at a CAGR of 37.6% over FY25-26.

2. Central Depository Services (India):

This depository company surged to a new 52-week high of Rs 1664.4 on Friday after rising 22.5% in the past week as it got board approval for a 1-for-1 issuance of bonus shares. Of the two depositories that operate in India, CDSL holds a leadership position with a market share of 77% as of June ‘24.

In Q1FY25, the company reported revenue growth of 65% YoY to Rs 287 crore, exceeding Forecaster estimates by 3.5%. Net profit during the quarter went up by 82.4% YoY to Rs 134 crore, surpassing estimates by 2.3%. During the quarter, the company’s new account openings doubled YoY to 99 lakh, taking the total count above 12.5 crore.

More than half of the revenue for CDSL comes from annual issuer income and transaction charges, which rose 21% and 108% on a YoY basis. Revenue from online data charges also doubled to Rs 53 crore. Meanwhile, revenue from IPO/corporate action charges almost tripled to Rs 27 crore, driven by a surge in new listings over the past year.

MD and CEO, Nehal Vora, said, “India’s capital markets have experienced growth, benefiting from shifting investor preferences toward capital market investments.” He highlights the rapid growth in the number of new demat account openings as rising interest in the Indian equity market continues to attract new investors.

Despite the outperformance, ICICI Securities maintains a ‘Hold’ rating on CDSL, noting that the lower regulatory risk for the company in comparison to brokerages or exchanges is already priced in and is reflected in its current valuation. Analysts forecast revenue and PAT CAGR of 23% over FY25-26 driven by continued growth in capital markets.

3. DLF:

This realty company has risen by over 3.4% in the past week. It announced its Q1FY25 results on July 25th, where the company’s net profit increased by 22.5% YoY to Rs 645.6 crore, while its revenue rose by 13.7% YoY, mainly due to a decline in expenses related to constructed properties and development rights. 

The firm missed Trendlyne’s Forecaster estimates for revenue by 11.5% and for net profit by 7.1%, due to an 83% YoY decline in Q4FY24 pre-sales resulting from a lack of new launches in that quarter. The stock appears in a screener for stocks with high momentum scores.

The firm’s pre-sales in Q1 jumped to Rs 6,400 crore, compared to Rs 1,642 crore in Q4FY24. This surge in pre-sales was primarily driven by the successful launch of the second phase of its new project, Privana West in Gurugram. Ashok Tyagi, Whole Time Director of the firm, maintained his FY25 pre-sales guidance of Rs 16,000 crore and stated: “We are not officially re-guiding a higher number right now. But this guidance figure accounts for about 90%+ sale level on all other launches, and a small introductory sale level on Lux 5 (an ultra-luxury project of the company). Hopefully, that’s where more upside could come in.”

The firm’s rental income in its commercial portfolio increased by 10% YoY to Rs 1,150 crore, led by the completion of its Downtown Chennai asset and a 40 bps rise in occupancy, which resulted in a 10% YoY increase in office rental income.

Commenting on the rental business, Sriram Khattar, Vice Chairman and MD (Rental Business), said: “The increase in rental income is due to two factors: the annual accrual and the commencement of rentals for Downtown 1 and 2 in Chennai. While the exit guidance remains Rs 5,000 crore, the rental jump next year will be substantial with the inclusion of Downtown 4 in Gurgaon, Downtown 3 in Chennai, and full rentals for Downtown 1 and 2, resulting in a significant rise in FY26.”

Motilal Oswal has maintained a “Neutral” rating on DLF, with a target price of Rs 850. The brokerage estimates an 8-10% CAGR growth in prices across its key markets of Gurugram, New Gurugram, Delhi, and Chandigarh. Based on these assumptions, it values the firm’s land parcel at Rs 1,10,900 crore. The brokerage adds that the firm’s current valuation already implies Rs 1,06,000 crore of value for its land, indicating limited upside potential. 

4. Genus Power Infrastructures:

This electric meter manufacturer surged 13.9% over the past week as it secured multiple orders worth Rs 6,534 crore from state electricity boards (SEBs) and private utilities. The orders include the design, supply, and installation of 80 lakh smart meters, as well as the design of advanced metering infrastructure (AMI) systems.

Genus Power has outperformed the consumer durables sector by 14.8% over the previous quarter. Its net profit rose 109.7% YoY to Rs 48.3 crore in Q1FY25, helped by inventory destocking. The firm’s EBITDA grew 2.3 times YoY to Rs 63.2 crores as margins expanded by 440 bps, helped by lower expenses. Revenue grew 57.5% YoY to Rs 441.2 crore during the quarter, but saw a marginal decline compared to the previous quarter due to seasonal fluctuations and delays caused by the Lok Sabha election.

Genus Power holds an order book of Rs 28,000 crore, with Rs 25,000 crore attributed to the AMI segment through Special Purpose Vehicle (SPV). This also includes contracts from various export customers and supply orders. Jitendra Agarwal, Joint Managing Director, said, "Of the Rs 25,000 crore AMI order book, around 70-75% flows back to Genus, while the rest is allocated to project financing and O&M activities. This order book is expected to be completed by mid-FY28, with a significant portion set to be executed within the next 24 months.”

The company plans an equity infusion of Rs 1,700 crore into the platform over the next three to four years, with 20-25% of this amount expected in this year. Agarwal clarified that this infusion will not be purely from debt, as the company currently holds a cash reserve of approximately Rs 500-600 crore.

ICICI Securities maintains its “Buy” rating with an upgraded target price of Rs 445. The brokerage anticipates improved raw material supply and a ramp-up in order execution, projecting a PAT CAGR of 125% over FY25-26.

5. Techno Electric & Engineering Company: 

This electric utilities company primarily generates wind power through wind turbine generators, and also specializes in engineering, procurement, and construction (EPC) services. Its stock was a multibagger, surging 252.3% over the past year and rising 7.9% in the past week. 

The company had delivered strong quarter results, as its net profit grew 288% YoY to Rs 98.1 crore in Q1FY25. Revenue rose 37% YoY to Rs 375.4 crore, driven by a 27.4% rise in the EPC/Engineering services segment. The company appears in a screener of stocks with quarterly growth in net profit with increasing profit margin. Ankit Saraiya, Whole-Time Director, noted that quarterly results vary due to the business cycle: Q1 usually contributes 15% of annual turnover, Q2 20%, Q3 30%, and Q4 35%.

On August 19, the company hit a 5% upper circuit as it entered a partnership with Indigrid to set up two greenfield interstate transmission system (ISTS) projects. Under the partnership, Techno Electric co-developed and invested a minority stake in Indigrid's Ishanagar Power Transmission and Dhule Power Transmission. Saraiya also stated, “We are actively pursuing bids of over Rs 5,000 crore and are expecting to secure orders at least worth Rs 3,000 crore.”

The company’s current unexecuted order book stands at approximately Rs 9,100 crore (a 146% YoY change), with a diverse portfolio that includes Rs 1,260 crore in generation, Rs 4,889 crore in transmission, Rs 2,776 crore in distribution, and Rs 175 crore in data center projects.The company serves both government and private sector clients with a focus on power, infrastructure, and industrial projects. It has also secured L1 status in additional orders worth Rs 1,200 crore, including two Power Grid Corp of India (PGCIL) projects in Nilgarh and Zerovi valued at Rs 478 crore, an Assam Gas Company (AGCL) order worth Rs 522 crore, and an Adani order of Rs 135 crore.

Despite strong results and a robust order book, Emkay has initiated a 'Sell' rating with a target price of Rs 1,600. The brokerage anticipates that the company will benefit from a significant increase in the order book and favorable tailwinds. However, they downgraded the stock from 'Buy' to 'Sell' due to its current valuation and the recent sharp rise in the stock price. They expect revenue and EBITDA to grow at a CAGR of 21% and 25%, respectively, over FY 25-27.

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