1. JSW Energy:

This electric utility company rose over 2.8% on December 30 after its subsidiary, JSW Neo Energy, signed a definitive agreement to acquire O2 Power, a renewable energy platform. The platform is a joint venture between Sweden’s EQT Partners and Singapore’s Temasek Holdings. The transaction, valued at around $1.5 billion (approximately Rs 12,468 crore), is the company’s largest acquisition. The deal is expected to close by May 2025.

Renewable energy currently accounts for over 51% of JSW Energy’s capacity. The acquisition of O2 Power will further enhance its renewable energy portfolio. The deal will increase JSW Energy’s generation capacity by 23%, from 20 GW to 24.7 GW.

Commenting on this, Sharad Mahendra, Joint MD, and CEO, said, “We are on track to reach close to 10 GW by March 2025 and for the O2 platform (we will reach) 2.3 GW by June 2025. This deal will also help achieve our renewable capacity growth target of 20 GW by FY30.” Trendlyne’s Forecaster estimates revenue growth of 28.1% in FY25, with net profit growth of 41.5%.

Meanwhile, over the past month, JSW Energy has secured multiple renewable energy projects in the Commercial and Industrial (C&I) power market, increasing the company's total power generation capacity to 20 GW. Its locked-in renewable energy C&I capacity now totals 3.1 GW, including 2,654 MW of JSW Group's captive capacity and 445 MW of third-party C&I capacity.

Motilal Oswal reiterates its ‘Buy’ call on JSW Energy with a target price of Rs 810, indicating a potential upside of 27.7%. The brokerage names JSW Energy as its top pick in the utility space for 2025. It believes the company's strong position in renewable energy augurs well for its growth prospects.

2. Mahanagar Gas:

This gas distribution company rose over 5% in the past week. In late November, the company raised CNG prices by Rs 2 in Mumbai and surrounding areas, excluding Delhi, due to a 20% rise in input costs. Reports indicate that the company may revise CNG prices in Delhi after the assembly elections, which are expected to be scheduled for February. 

The company posted a 13.5% YoY increase in revenue for Q2FY25. However, its net profit declined by 16.3% to Rs 283.5 crore due to a rise in input cost. The Trendlyne Forecaster estimates the company’s revenue to rise by 7.6% in Q3FY25 due to rising demand for commercial and domestic natural gas. Meanwhile, net profit is estimated to decline by 2.5% due to the government's reduced domestic gas allocation to city gas distributors. It appears in a screener of stocks where mutual funds have increased holdings in the past month.

Geojit highlights the company’s robust volume growth of 13.1% in Q2FY25. Regarding the volume guidance, the company’s MD, Ashu Shinghal, noted,“ In the past few quarters, we have successfully added several large-volume customers. In fact, one of our largest customers has reached its full volume. For the first half, we have achieved around 7% growth in volumes. By year-end, we expect an additional 2-3% growth, bringing us close to a double-digit increase for the year. As for next year, we'll see how it unfolds, but the momentum is definitely there.”

Geojit has upgraded to an ‘Accumulate’ rating on MGL with a target price of Rs 1,392. The brokerage expects increased demand for commercial and domestic natural gas, driven by population growth, more CNG and PNG customers, and higher CNG usage in commercial vehicles, to fuel the company's future growth. The brokerage notes that in H1FY25, CNG end-users rose to 10.4 lakh from 9.5 lakh in H1FY24, while PNG end-users grew to 17.6 lakh from 16 lakh. Price hikes and cost-cutting measures are expected to boost MGL’s margins and profitability.

3. Jubilant Foodworks:

This restaurant company surged 7.7% over the past week and hit a 52-week high of Rs 774.8 on Friday, following the announcement of a memorandum of understanding (MoU) with Coca-Cola India on December 26. The agreement allows Jubilant to acquire a range of sparkling beverages and products from Coca-Cola's authorized bottlers.

The partnership with Coca-Cola was longstanding and existed for nearly 20 years (1998-2018). However, the contract was terminated during Pratik Pota's tenure as CEO, as his previous experience with Pepsi enabled him to secure a more favorable deal for Domino’s India (operated by Jubilant Foodworks) at that time. 

After a six-year collaboration with Pepsi, Jubilant FoodWorks has decided to renew its partnership with Coca-Cola, effective April 1, 2025. This decision follows the Bhartia family, promoters of Jubilant Foodworks, recently acquired a 40% stake in Hindustan Coca-Cola Beverages (HCCB), the largest bottling partner of Coca-Cola India, for approximately Rs 12,500 crore. 

In the H1FY25, the company opened over 139 new stores, bringing its total to 3,130 stores across six markets, including India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia. Founder and Co-chairman of Jubilant Bhartia Group, Hari Bhartia, said, “We’re doubling down on reducing delivery times from 30 minutes to 20 minutes and accelerating new store openings, expanding into new cities to capture growing demand.” Domino's India has expanded to 50 new cities in the past year. In the second quarter of FY25, the company added 20 cities, bringing its total presence to 447.

However, the company faces competition in the Indian food delivery market from players like Zomato, Swiggy, and Ola Foods, which could affect its market share. Additionally, Jubilant Foodworks struggles to maintain its margins due to increasing raw material costs and rising competition. Analysts have raised concerns regarding past capital allocations, particularly with investments in DP Eurasia and Barbecue Nation, which have diverted focus from the company’s core business objectives.

Jefferies has reiterated its ‘Buy’ rating on Jubilant Foodworks with a target price of Rs 1,000. The optimism is based on expectations for a recovery in the company's same-store sales growth (SSSG), supported by a low base effect and internal improvement measures.

4. Ashok Leyland:

This commercial vehicles manufacturer rose 6.4% over the past week after announcing a 5% YoY growth in its December 2024 wholesales to 16,957 units, led by a 7.9% growth in total domestic medium and heavy commercial vehicles (MHCV). However, cumulative sales for 2024 declined by 2% to 1.35 lakh units, compared to 1.38 lakh units in 2023.

On December 13, Ashok Leyland (ALL) announced a price hike of up to 3% on all of its commercial vehicles, effective January 2025, citing inflation and rising commodity costs. Similarly, Tata Motors also plans to raise the prices of its trucks and buses by up to 2% starting in January due to higher input costs. Analysts believe these industry-wide price hikes highlight efforts by leading players to maintain pricing discipline in the commercial vehicle segment while focusing on sustaining double-digit EBITDA margins.

The company’s share price has declined by 1.7% over the past quarter. However, it has outperformed its industry by 3.6% points. Trendlyne’s Forecaster estimates profit to increase 4.4% YoY in Q3FY25, with revenue growth of 0.6% YoY.

While discounting is standard across the industry, ALL has reduced discounts and is focusing on its medium-term goals, including a 35% market share in MHCVs, expanding non-CV businesses, and leading alternate fuel vehicles. In the LCV segment, ALL serves 50% of the addressable market and aims to grow it to 80% with new product launches.

Managing Director and CEO Shenu Agarwal said, “We aim for 80-85% participation in the LCV industry, with new product launches driving this goal. The LCV segment has higher growth potential than MHCV in terms of volume due to last-mile delivery and rural penetration.” He also highlighted the company is focusing on expanding geographically and enhancing its product portfolio to gain a better market share.

Sharekhan reiterates its ‘Buy’ rating on ALL with a target price of Rs 268, which indicates a potential upside of 14.5%. The brokerage notes that ALL is expanding its presence in new and existing international markets, aiming for annual exports of 50,000 units. The company is gaining strong traction in the bus segment and continues to secure new orders from state transportation units.

5. Maruti Suzuki India Limited (MSIL):

This car manufacturer has gained 9.5% over the past week following its monthly sales report. In December 2024, total wholesales rose 29.6% YoY to 1.8 lakh units. Maruti Suzuki’s domestic passenger vehicle (PV) sales increased by 24.2% to 1.3 lakh units. The rise is due to new launches, festive offers, and anticipated price hikes in January 2025. 

The demand for CNG models also significantly contributed to the overall numbers. Chief Investor Relations Officer Rahul Bharti stated, “MSIL saw robust customer adoption of CNG vehicles, with one in three cars sold being a CNG model. The company plans to expand its hybrid offerings and enhance its product portfolio with limited-edition launches, including the S-CNG powertrain for the Swift.” He added that the company plans to launch a high-speed electric SUV with a 60 kWh battery by early CY25, aimed at export markets such as Europe and Japan.

MSIL delivered a mixed performance in Q2FY25, with net profit dropping 17.6% while revenue slightly increased. The profit declined due to high commodity prices and higher sales promotion expenses. Recovery in overseas markets and improved realization helped the car maker post a slight revenue growth of 2.8%. Trendlyne Forecaster estimates a 7% YoY increase in revenue for Q3FY25.

ICICI Direct has maintained a ‘Hold’ rating for Maruti Suzuki, highlighting its strong position to leverage the underpenetrated PV market domestically. With ongoing capacity expansion, the brokerage anticipates a 9% CAGR in sales and a 12% CAGR in profit after tax (PAT) for MSIL over FY25-27. The stock's target price of Rs 12,450 indicates an upside potential of 4.3% from the current price.

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