1. Marico:

This FMCG company touched its all-time high of Rs 719.8 on Thursday following its business update. Q2FY25 volume growth shows signs of recovery, with mid-single-digit (around 5-6% YoY) growth. The company attributes this uptick to improved performance in its flagship Parachute coconut oil brand (contributing around 37% of the total revenue), recovering from a weaker 2% YoY volume growth in the previous quarter. The brand recorded double-digit revenue growth, helped by price hikes taken at the start of the year and falling inflationary pressures.

The company also highlighted that its consolidated revenue grew by high-single-digits (around 7-9% YoY) during the quarter. International business witnessed double-digit growth in the MENA (Middle East and North Africa) and South African regions. In Q1, Marico’s revenue had risen by 6.7% YoY to Rs 2,643 crore,  driven by improvements in the Indian and international markets. According to Trendlyne’s Forecaster, the company’s revenue is expected to grow by 6.9% YoY In Q2FY24. Marico is set to declare its Q2 results on October 29.

In the business update, the FMCG giant also highlighted stable demand trends with rural outperforming urban on a YoY basis for the third consecutive quarter. In contrast, its peer Dabur reported a sharp revenue decline due to weak demand in its food and beverage segment, impacted by floods and heavy rain across different regions. However, it hopes to bounce back starting in October.

Marico expects revenue growth to move into double digits in the second half of this year,  driven by improving rural demand and pricing actions, despite ongoing inflationary pressures on raw materials. The company remains optimistic about managing competition from unorganised players and believes that recent price increases will drive future growth. The Parachute oil maker took another round of price hikes at the end of the quarter, as copra prices increased higher than expected. 

According to analysts, Marico’s business update offers reassurance amid a generally weak performance in the sector. Nuvama expects sustained growth in the international markets and a gradual improvement in the domestic business. The brokerage maintains its ‘Buy’ rating on the stock with a target price of Rs 780. 

2. Angel One:

This broking firm surged 7.5% over the past week after it announced that it will increase brokerage charges for equity delivery transactions. Effective November 1, Angel One will charge Rs 20 or 0.1% with GST (whichever is lower) per executed order compared to the zero brokerage levied earlier. Analysts expect this move to increase revenue per user but could potentially affect the company’s market share if other discount brokers continue to charge zero brokerage.

Of the gross broking revenue of Rs 920 crore in Q1FY25, 84% came from the derivatives segment. This is a growing business risk, considering the recent F&O curbs proposed by SEBI like allowing only one weekly expiry of index derivatives per exchange and increasing the value of contract size to above Rs 15 lakh (up by around 2.5 times) is expected to negatively impact derivative volumes in the coming quarter. Zerodha CEO, Nithin Kamath says this move by SEBI could impact 60% of their overall trades and 30% of overall orders, assuming that those trading weekly don't move on to trading monthly.

As of Q1FY25, the total client base of the company increased 11.2% QoQ to 24.7 million. This led to a higher market share of 18.9% in the overall equity segment, up from 18.1% a quarter ago. Revenue from operations increased 74.1% YoY to Rs 1,405.5 crore in Q1, while net profit jumped 32.6% YoY to Rs 293 crore. Forecaster estimates revenue growth of 5.8% YoY, with net profit growth of 39.5% YoY in Q2FY25.

Chairman and Managing Director, Dinesh Thakkar, said, “Customers don't mind paying a few rupees extra per order or paying for cash segment. What is important for them? They should get the best service on this platform.” If volumes are intact, analysts expect around an 8% increase in overall revenue from all the fee changes.

Motilal Oswal maintains a ‘Buy’ rating on Angel One as their analysis highlights zero impact on earnings in FY26. They expect the hike in brokerage fees to offset the decline in volumes. They also highlight that new product categories such as distribution of loans and fixed income instruments, wealth management and AMC, will start contributing meaningfully over the next couple of years, adding to the firm’s profitability.

3. ITD Cementation India:

This construction & engineering company rose by over 19% over the past week. On October 3rd the company won an order worth Rs 1,937 crore to construct a multi-story commercial building in Uttar Pradesh. The acquisition of the contract is expected to strengthen the company's growth trajectory and expand its portfolio of completed projects.

In Q1FY25, the company’s net profit had surged by 91.9% YoY to 100.2 crore, while its revenue rose by 30.2% YoY driven by a 30.3% QoQ rise in order book to Rs 1,053 crore. The firm beat Trendlyne’s Forecaster estimates for revenue by 8.1% and net profit estimate by 6%. The stock appears in a screener for stocks with strong momentum.

Until FY24, 49% of the company’s order book consisted of government orders, followed by 33% in private sector orders and the remaining 18% from PSUs.  The current government approved Rs 3 lakh crore worth of infrastructure projects in the first 100 days of its third term. Major initiatives include the Rs 76,200 crore Vadhavan port in Maharashtra, which is projected to be among the world's top 10 ports, and construction of 62,500 km of roads under PMGSY-IV. These projects offer significant opportunities for the company in road, bridge, tunnel, railway, and port construction, aligning with the company’s expertise.

India's infrastructure sector is estimated to reach $204.1 billion (Rs 17.2 lakh crore) in 2024 and $322.3 billion (Rs 26.7 lakh crore) by 2029, growing at a CAGR of 9.5%. Projections suggest the sector could hit $1.4 trillion by 2025, driven by government initiatives, changing consumer preferences, and tech advancements. 

Reports indicate that both the Adani Group and RPG Group’s KEC International are interested in acquiring the 46.6% stake that its promoter Italian-Thai Development Public Co. holds in ITD Cementation. However, the company’s management has stated that no decision has been reached yet regarding the proposed divestment. The management has reassured its stakeholders that there are no significant technical deficiencies, reinforcing their capacity to operate independently.

Asit C Mehta Investment has initiated an ‘Accumulate’ rating on ITD Cementation with a target price of Rs 758. The brokerage is optimistic about the company's growth story and guides a revenue CAGR of 17% for FY25-26 and a forward P/E multiple of 27X based on FY26E EPS of Rs 28.08.

4. Alembic Pharmaceuticals:

This pharma stock has risen by 3.9% in the past week, after the USFDA issued an establishment inspection report (EIR) for its oral solid formulation facility, following an inspection in July 2024. The company now has EIRs for all its facilities approved by USFDA.

The company also got final approval from the USFDA for its Lamotrigine tablets in 200 mg, 250 mg, and 300 mg doses. These tablets are used to treat certain types of seizures in patients and have an estimated market size of $268 million. Alembic now has 216 abbreviated new drug application (ANDA) approvals, including 188 final approvals. It also received approval for its Albendazole tablets, which are used for treating parasitic infections. This drug has an estimated market size of ~$200 million.

Trendlyne’s Forecaster projects the company’s net profit will grow 27.2% YoY in the upcoming Q2FY25 results, while revenue will increase 3% YoY during the quarter. In Q1FY25, the company had reported a revenue growth of 5% YoY to Rs 1,563 crore, thanks to strong performance in the US and high single-digit (9% YoY) growth in India. Alembic has faced a double-digit price erosion on some of its products. To counteract this pressure, it intends to sell certain products at higher prices than its competitors.

The company’s US business, which accounts for ~30% of the total sales, grew by 18% YoY in Q1FY25, with the launch of two new products in the US market. Managing Director Pranav Amin said, “We expect the US business to grow by about 10% - 12% in FY25, factoring in both increasing competition and ongoing price erosion.” He also noted that the API segment, which declined by 15% in Q1 due to pricing pressure, is expected to return to growth, with a projected 10% YoY increase in FY25.

KR Choksey maintains a ‘Hold’ rating on the firm, noting that despite challenges like price erosion in the US market and rising costs, it expanded profitability margins. The brokerage expects the company to drive growth through new US product launches, improved capacity utilization, and continued outperformance in the Indian market.

5. SJVN:

This electric utilities company rose 6.2% on September 27, following the announcement of two memorandums of understanding (MoUs) with the Government of Maharashtra for the development of energy projects in the state.

The first MoU was signed with the State's Department of Water Resources to develop five Pumped Storage Projects (PSPs) with a combined capacity of 8,100 megawatts (MW). The second MoU was inked with Maharashtra State Power Generation Company (MAHAGENCO) for a 505 MW Floating Solar Project at the Lower Wardha Dam in Amravati district.

The total estimated investment for these projects is around Rs 48,000 crore, which is expected to generate approximately 8,400 direct and indirect employment opportunities. Sushil Sharma, Chairman and Managing Director of SJVN, highlighted that these MoUs will facilitate the company to undertake survey, investigations, and the preparation of detailed project reports (DPRs). 

SJVN reported strong financial results in Q1FY25, with net revenue growing 29% YoY, driven by a 56% YoY increase in power generation, which reached 3,292 million kilowatt-hours. The company has set an ambitious target of achieving 50,000 megawatts (MW) of installed capacity in renewable energy by 2040. In the near term, SJVN plans to expand its renewable energy capacity, aiming to add 2,638 megawatt (MW) in FY25 and a further 5,673 MW in FY26.

Monarch Networth Capital has maintained its ‘hold’ rating on SJVN, with a target price of Rs 144. The brokerage noted that while delays in the commissioning of SJVN’s projects are typical risks in this sector, the current delays were not unusually long. Analysts expect the company’s capacity to reach 9.3 gigawatt (GW) in FY26 and 11.3 GW in FY27.

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