Trendlyne Marketwatch
Trendlyne Marketwatch
07 Feb 2025
Market closes lower, M&M's EBITDA margin expands 200 bps YoY in Q3
By Trendlyne Analysis

 

Nifty 50 closed at 23,559.95 (-43.4, -0.2%), BSE Sensex closed at 77,860.19 (-198.0, -0.3%) while the broader Nifty 500 closed at 21,646.15 (-26.3, -0.1%). Market breadth is sharply down. Of the 2,401 stocks traded today, 781 were on the uptrend, and 1,591 went down.

Indian indices closed lower, with the benchmark Nifty 50 index closing 23,560. The Indian volatility index, Nifty VIX, fell 3.5% and closed at 13.7 points. Bharti Airtel closed 3.6% higher as its net profit grew 5X YoY to Rs 14,781.2 crore in Q3FY25, driven by a one-time gain from consolidating a majority stake in Indus Towers.

Nifty Smallcap 100 closed in the red, while Nifty Midcap 100 closed in the green. Nifty PSU Bank and BSE Oil & Gas closed lower. According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the worst-performing sector of the day, with a fall of 1.7%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading mixed, indicating a cautious start to the trading session in anticipation of the US job data set to come out later today. Southern Copper Corp, Fortive Corp, Kimco Realty Corp, Avantor, Plains All American Pipeline, Cboe Global Markets, and Construction Partners are set to report their earnings later today.

  • Money flow index (MFI) indicates that stocks like Navin Fluorine International, Eris Lifesciences, Bajaj Finance, and IndusInd Bank are in the overbought zone.

  • Britannia Industries falls as it plans a 4-4.5% price hike by the end of FY25. During Q3FY25, its net profit rises 4.5% YoY to Rs 581.7 crore. Revenue increases 7.9% YoY to Rs 4,592.6 crore, surpassing Forecaster estimates by 2.1%. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Bikaji Foods International is falling as its net profit declines 38.7% YoY to Rs 28.6 crore in Q3FY25 due to inflationary pressures and unfavourable raw material prices. Revenue increases 14.5% YoY to Rs 714.9 crore during the quarter. The company appears in a screener of stocks with book value per share improving over the last two years.

  • Mahindra & Mahindra is rising as its Q3FY25 net profit grows 19.6% YoY to Rs 3,180.6 crore. Revenue increases 17% YoY to Rs 41,881.4 crore, led by improvements in the automotive, farm equipment, financial services, and industrial businesses & consumer services segments. It appears in a screener of stocks with increasing revenue over the past eight quarters.

  • Samir Dhir, CEO of Sonata Software, aims for a $1.5 billion revenue run rate by Q4FY27 but projects a delay of 1-2 quarters. He highlights that the company's Q4 revenue declined by 2.5-3% due to client ramp-downs and seasonal factors. EBITDA dropped by 360 bps during the quarter, with wage hikes contributing 70-80 bps.

  • Caplin Point Laboratories rises as its net profit grows 17% YoY to Rs 140.1 crore in Q3FY25. Revenue increases 13.2% YoY to Rs 493 crore, helped by improvements in the US, regulated, and emerging markets. It features in a screener of stocks with increasing revenue for the past eight quarters.

  • PI Industries is falling as its net profit declines 16.9% YoY to Rs 372.7 crore in Q3FY25, driven by higher material costs and employee benefit expenses. Revenue increases marginally YoY to Rs 1,900.8 crore during the quarter. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Motherson Sumi Wiring India is falling as its net profit declines 16.6% YoY to Rs 140 crore in Q3FY25, caused by higher raw materials, inventory, employee benefits and depreciation & amortisation expenses. However, revenue grows 8.8% YoY to Rs 2,300.9 crore, led by an improved product mix. It shows up in a screener of stocks with PEG greater than industry PEG.

  • Project financing stocks like REC and Power Finance Corp. are rising as RBI Governor Sanjay Malhotra extends the deadline for implementing the liquidity coverage ratio and new project finance norms. He highlighted the need for more time, assuring that no new project finance regulations will be introduced before March 31, 2026.

  • Dr Reddy’s Laboratories' subsidiary partners with Shanghai Henlius Biotech to develop and commercialise HLX15, an under-development cancer drug. The agreement gives the company exclusive marketing rights in the US and Europe, with payments to Henlius totalling Rs 1,146 crore, including Rs 389 crore upfront.

  • ZF Commercial Vehicle Control Systems India rises sharply as its Q3FY25 net profit grows 24.4% YoY to Rs 125.5 core, owing to lower inventory and finance costs. Revenue increases 5.5% YoY to Rs 978.9 crore, helped by higher sales of products and services. It features in a screener of stocks in the buy zone based on days traded at current PE and P/BV.

  • PG Electroplast is rising as its net profit grows 106% YoY to Rs 39.5 crore in Q3FY25, driven by inventory destocking. Revenue increases 81.9% YoY to Rs 967.7 crore during the quarter, helped by higher sales from the product segment. The company appears in a screener of stocks outperforming their industry price change in the quarter.

  • Motilal Oswal anticipates a 100 bps QoQ improvement in Mahindra & Mahindra's tractor segment margins, reaching 18.5% in Q3FY25. However, it expects the automobile segment margin to decline by 50 bps QoQ due to discounts and promotional spending. The brokerage forecasts a 20% YoY growth in the tractor segment during the quarter.

  • Raymond's step-down subsidiary, Ten X Realty West, signs a joint development agreement for a residential project in Mahim West, Mumbai. This marks Raymond's second project in the area, with an estimated revenue potential of Rs 1,800 crore.

  • Sonata Software plunges to its 52-week low of Rs 446.1 per share as its Q3FY25 net profit declines 1.4% QoQ to Rs 105 crore due to higher raw materials and employee benefits expenses. However, revenue grows 30.8% QoQ to Rs 2,864.3 crore, attributed to an improvement in the Indian market. It shows up in a screener of stocks with low Piotroski scores.

  • Krishna Institute of Medical Sciences is falling as its net profit misses Forecaster estimates by 5% despite increasing 23.5% YoY to Rs 88.7 crore in Q3FY25, driven by inventory destocking. Revenue rises 27.5% YoY to Rs 772.4 crore during the quarter. The company appears in a screener of stocks with declining ROE over the past two years.

  • RBI Governor Sanjay Malhotra projects real GDP growth of 6.7% for FY26. The central bank revises the Q1 growth forecast to 6.7% from 6.9%, Q2 to 7% from 7.3%, and Q3 and Q4 to 6.5%. Malhotra notes that the global economy remains challenged, growing below the historical average, though high-frequency indicators show resilience.

  • JSW Energy's subsidiary, JSW Neo Energy, signs a renewable energy (RE) power purchase agreement with Amazon for 180 MW of wind power. This raises the company's locked-in commercial and industrial RE capacity to 4 GW.

  • Gulf Oil Lubricants India is rising as its net profit grows 22.2% YoY to Rs 97.9 crore in Q3FY25, helped by stable raw material costs. Revenue increases 12.6% YoY to Rs 920.4 crore during the quarter. The company appears in a screener of stocks where mutual funds increased their shareholding over the past two months.

  • Aurobindo Pharma is rising as its revenue grows 8.3% YoY to Rs 8,135.8 crore in Q3FY25, helped by improvements in the Europe formulations, growth markets, and antiretroviral (ARV) segments. However, net profit declines 9.7% YoY to Rs 845.8 crore due to higher raw materials, inventory, employee benefits, and finance costs. It appears in a screener of newly affordable stocks with good financials and durability.

  • The Reserve Bank of India (RBI) lowers the repo rate by 25 bps to 6.25% while maintaining its ‘Neutral’ stance during the Monetary Policy Committee meeting. This is the first rate cut by the central bank in nearly five years.

  • NCC plunges more than 10% as its net profit declines 12.4% YoY to Rs 193.2 crore in Q3FY25 due to higher raw materials, construction, sub-contractor, employee benefits, and finance costs. Revenue grows 1.8% YoY to Rs 5,382.9 crore, led by an improvement in the construction segment. It shows up in a screener of stocks underperforming their industries over the past quarter.

  • Hero MotoCorp is rising as its Q3FY25 net profit grows 1.3% YoY to Rs 1,107.6 crore owing to inventory destocking and lower finance costs. Revenue increases 5.3% YoY to Rs 10,566.3 crore, driven by higher motorcycle and scooter sales. It features in a screener of stocks with rising net cash flow and cash from operating activities.

  • Bharti Airtel is rising as its net profit grows 5X YoY to Rs 14,781.2 crore in Q3FY25, driven by a one-time gain from consolidating a majority stake in Indus Towers. Revenue increases 19.1% YoY to Rs 45,129.3 crore during the quarter. The company features in a screener of stocks with improving cash flow from operations over the past two years.

  • Nifty 50 was trading at 23,593.45 (-9.9, 0.0%) , BSE Sensex was trading at 78,119.60 (61.4, 0.1%) while the broader Nifty 500 was trading at 21,644.85 (-27.6, -0.1%)

  • Market breadth is in the red. Of the 1,912 stocks traded today, 653 were in the positive territory and 1,209 were negative.

Riding High:

Largecap and midcap gainers today include Bharti Hexacom Ltd. (1,465.80, 11.9%), Tata Steel Ltd. (138.31, 4.4%) and Jindal Steel & Power Ltd. (844.55, 4.4%).

Downers:

Largecap and midcap losers today include GAIL (India) Ltd. (171.05, -4.1%), Cummins India Ltd. (2,871.90, -3.1%) and Oil And Natural Gas Corporation Ltd. (248.90, -2.8%).

Volume Rockets

20 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Godfrey Phillips India Ltd. (5,470.45, 18.9%), Bharti Hexacom Ltd. (1,465.80, 11.9%) and ZF Commercial Vehicle Control Systems India Ltd. (11,867.70, 9.3%).

Top high volume losers on BSE were NCC Ltd. (207.30, -12.7%), Sonata Software Ltd. (489.30, -11.3%) and Bikaji Foods International Ltd. (659.25, -10.2%).

Aadhar Housing Finance Ltd. (401.15, 2.1%) was trading at 13.1 times of weekly average. Welspun Corp Ltd. (801.75, 7.1%) and JM Financial Ltd. (117.35, 6.3%) were trading with volumes 7.9 and 6.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks overperformed with 52 week highs, while 7 stocks hit their 52 week lows.

Stocks touching their year highs included - Kotak Mahindra Bank Ltd. (1,929.25, 0.7%) and Laurus Labs Ltd. (641.35, 0.7%).

Stocks making new 52 weeks lows included - 3M India Ltd. (28,167.25, -1.1%) and Rajesh Exports Ltd. (181.37, -6.3%).

15 stocks climbed above their 200 day SMA including Godfrey Phillips India Ltd. (5,470.45, 18.9%) and JM Financial Ltd. (117.35, 6.3%). 14 stocks slipped below their 200 SMA including KPR Mill Ltd. (894.15, -3.3%) and Maharashtra Scooters Ltd. (9,414.25, -2.0%).

 
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