1. TVS Motor Company:

This two-wheeler manufacturer has surged around 7% in the past week after announcing its Q3 results, driven by a 57% YoY rise in electric scooter sales. Cost control measures and stable raw materials prices helped the EBITDA margin improve by 70 bps YoY to a new high of 11.9%.

TVS reported an operating revenue growth of 10.3% YoY to Rs 9,097 crore in Q3, with net profit growth of 4.2% YoY to Rs 566 crore. While revenue was in line with Forecaster estimates, net profit missed by 13%. Besides TVS Credit, rising losses from its subsidiaries, such as Norton Motorcycles and an e-bicycle company, contributed to the shortfall. A flat average selling price of around Rs 75,000, due to minimal price hikes during Q3, also impacted profitability.

TVS recorded a 10.1% increase in overall sales on a YoY basis, reaching 12.1 lakh units in Q3, driven by a 22% rise in scooter sales. This surge was supported by the rising market share of scooters (both ICE & electric) in the two-wheeler category, which increased to 40% from 31% a year ago.

Regarding the demand outlook, CEO K N Radhakrishnan says, “This is the first year I have seen rural (demand) matching or slightly ahead of urban, which is very positive news.” He expects volumes of entry-level 125cc motorcycles and mopeds to improve, driven by a recovery in rural demand supported by high reservoir levels and expectations of a good monsoon this year.

Axis Securities maintains a ‘Buy’ rating on TVS as sales volume outperformed that of the industry in Q3. The brokerage expects volumes to rise by 13% in FY25, driven by a rural demand recovery and an expanded international presence. It also anticipates the margin to improve as the company recognises PLI benefits from Q4.

2. Suzlon Energy:

This heavy electrical equipment hit its 5% upper circuit for three consecutive sessions following the announcement of its Q3FY25 results on January 29. The company’s revenue surged 90.7% YoY to Rs 2,969 crore, driven by higher sales from the WTG (wind turbine generators) and foundry & forging segments. EBITDA margin rose by 90 bps to 16.8% in Q3, while net profit grew 90% to Rs 387 crore. Both revenue and net profit surpassed Trendlyne Forecaster estimates.

As of January 2024, Suzlon’s order book stood at 5.5 GW. The WTG segment, which contributes the majority of revenue, saw its contribution margin rise by 330 bps YoY to 22.7% in 9MFY25. JP Chalasani, the Group CEO, said, “We’ve always maintained our contribution margin in the high teens. For FY25 and beyond, we expect a steady consolidated margin of slightly over 20%.”

The company has upgraded its Nacelle manufacturing facilities in Daman and Puducherry, increasing its annual production capacity by 45.2% to 4.5 GW. To expand operations further, it is adding two more production lines at its Ratlam and Jaisalmer facilities. Chalasani expects an annual capex of over Rs 350 crore in the next 2-3 years. 

Suzlon’s Vice-Chairman and Co-Founder, Girish Tanti, shared his expectations for Budget 2025, emphasising the need for “policy alignment” between wind and solar energy to support industry growth while keeping tariff costs low. He projects India’s wind energy capacity additions at 3.5-4 GW this year, with further growth expected at a CAGR of 42%, reaching 10 GW by FY28.

Post results, Nuvama upgraded its rating to ‘Buy’ as it expects the firm’s installed capacity to increase by 4.2% to 1.5 GW. It also highlighted the positive impact of Suzlon's acquisition of Renom Energy Services as a key factor driving the company's performance.

3. United Spirits:

This breweries & distilleries company has declined by 5.1% over the past week following its Q3FY25 results announcement. The company’s revenue grew 14.4% YoY to Rs 3,433 crore for the quarter but missed Trendlyne's Forecaster estimates by 1.2%. Net profit declined 4.3% YoY to Rs 335 crore due to higher excise duty, employee benefits and depreciation expenses, as well as a Rs 65 crore exceptional charge related to severance costs for a closed unit. EBITDA margins stood at 17.1% during the quarter.

During the quarter, revenue growth was led by robust consumer demand in the peak festive season and a rapid scale-up in Andhra Pradesh. The company resumed sales in Andhra Pradesh in Q3 after five years, as the state's new liquor policy permitted private retailers to sell spirits. Andhra Pradesh contributed 6.1% to overall revenue in Q3. Hina Nagarajan, the MD and CEO, said, “We anticipate stable demand going forward and remain cautiously optimistic on the demand environment in the short term.” 

Meanwhile, the Prestige & Above (P&A) segment (which constitutes 90% of the revenue mix) was up 16% YoY, while the Popular segment grew by 10% YoY. 

The management reiterated its guidance for double-digit revenue growth for its prestige products in FY25, driven by Andhra Pradesh's market recovery and ongoing innovation across the portfolio. United Spirits expanded its portfolio with the launch of X Series, under McDowell's brand, in five key markets, including Maharashtra, Goa, Uttar Pradesh, Rajasthan, and Madhya Pradesh. The X Series operates in the upper prestige price segment and consists of a premium range of Vodka, Rum, and Gin (priced above Rs 1,000/750 ml). 

Following the company’s results, Motilal Oswal maintains its ‘Neutral’ rating as it expects liquor policies in many states to become more favourable, driving consumer upgrades and increased consumption frequency. It believes United Spirits is well-positioned to capitalise on this large opportunity. Motilal Oswal expects the company’s EBITDA margins to sustain between 17-17.5%.

4. Laurus Labs:

This pharmaceutical company rose by 2% on January 24th after announcing its Q3FY25 results. During the quarter, its net profit rose 298.9% YoY to Rs 92.3 crore due to strong 89% YoY growth in Contract Development and Manufacturing Organization (CDMO) sales. Revenue was up 18.9% YoY at Rs 1,424.5 crore. The company’s revenue beat Forecaster estimates by 7.7%, while net profit beat estimates by 43.1%. It appears on screener for stocks with strong momentum.

The company witnessed strong growth in Q3 on the back of robust demand in its CDMO business. Satyanarayana Chava, Founder & CEO, added, “The CDMO division achieved its highest quarterly sales in the last 8 quarters, nearing Rs 400 crore. Over the first 9 months, the division saw a 33% growth, driven by a ramp up in new assets. The portfolio is shifting towards high-value complex small molecules, and we maintain a positive outlook for the small molecule CDMO industry. We remain committed to our 2025 growth targets, backed by scheduled project deliveries in Q4.”

On future guidance, Mr. Chava said, "We remain confident in our commitment from the last call to achieve an EBITDA close to 20% for FY25 from the current level of 16.6%, as the growth prospects for Active Pharmaceutical Ingredients (API) are expected to improve, driven by new products."

The company has entered into a definitive agreement to secure Rs 120 crore in equity investment from Eight Roads Ventures and F-Prime Capital. Additionally, it is investing Rs 40 crore in the joint venture, which is developing a 400KL fermentation facility in Vizag, set to be completed by the end of CY26.

Motilal Oswal maintains a 'Buy' rating on Laurus Labs as it expects the company’s CDMO business to grow at a 26% CAGR over FY25-27, reaching Rs 2,420 crore, and the non-Antiretroviral (ARV) segment sales to grow at a 29% CAGR over FY25-27, reaching Rs 2,260 crore. The brokerage notes that after six quarters of earnings decline, the company has shown strong financial improvement, estimating a robust 71% earnings CAGR over FY25-27.

5. Macrotech Developers:

This realty company rose 11.3% over the past week following the announcement of its Q3 results. Its net profit surged 87.6% YoY to Rs 944.4 crore, helped by a tax refund of Rs 228.3 crore, beating forecaster estimates by 47.1%. Revenue grew 40.1% YoY to Rs 4,146.6 crore, driven by an improvement in presales and collections. 

Macrotech Developers (Lodha) achieved quarterly pre-sales of Rs 4,510 crore, a 32% YoY growth, while collections jumped 66% YoY to Rs 4,290 crore. In Q3FY25, the company launched its fifth project in Bangalore with a Gross Development Value (GDV) of Rs 2,800 crore. It also introduced 2.7 million square feet (msf) of space in the Mumbai Metropolitan Region (MMR) and Pune. 

Abhishek Lodha, MD & CEO of Macrotech Developers said, “We have now achieved 90% of our full year target for business development, and in spite of heavy investments in land and business development, our debt has come down by over 15%. At the end of this fiscal year, we expect to meet the presales target of Rs 17,500 crore.” Lodha aims to generate Rs 500 crore in annual rental income by FY26 and Rs 1,500 crore by FY31.

For the coming quarter, the company plans to launch 4.3 msf with a GDV of Rs 7,520 crore across locations such as Alibaug, Vikhroli, Palava, Pune, Bangalore, along with new phases of existing projects in the eastern suburbs of MMR. They are expanding their portfolio beyond entry-level and mid-income housing to include luxury and premium residences. However, the focus will remain on mid-income housing that comprises 60% of their sales.

Motilal Oswal maintains its ‘Buy’ rating on this stock with a target price of Rs 1,568. The brokerage expects pre-sales to grow at a 21% CAGR over FY25-26. They estimate revenue of Rs 4,270 crore, EBITDA of Rs 890 crore, and net profit of Rs 330 crore for Q4FY25, driven by upcoming launches and inventory with a ~Rs 7,520 crore GDV.

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