It’s been a muted Q3FY25 results season, with a large number of companies seeing negative profit growth. But there have been some bright spots, and we look at the best-performing stocks so far. In this chart of the week, we spotlight a screener of stocks with rising Trendlyne momentum scores, which delivered strong YoY growth in revenue and net profit.
Stocks from the banking, finance (including NBFCs), capital markets, IT consulting & software, and agrochemicals industries show up in the screener. The most notable companies here are Multi Commodity Exchange of India, DOMS Industries, Cholamandalam Investment & Finance, Bajaj Finance, Navin Fluorine International, ICICI Securities, Laurus Labs, and Karur Vysya Bank.
Banking & finance stocks see high growth in Q3FY25
Multi Commodity Exchange of India’s (MCX) Trendlyne momentum score has risen to 57 over the past month after its revenue grew 57.4% YoY in Q3FY25. Meanwhile, the company posted a net profit of Rs 160 crore during the quarter compared to a net loss of Rs 5.4 crore in Q3FY24. This helped the capital markets firm’s revenue to beat Forecaster estimates by 5%. Revenue increased due to growth in the options average daily turnover (ADT), futures ADT and transaction value during the quarter.
The company’s MD and CEO, Praveena Rai, said, “Moving forward, MCX will be continuing to look at launching new commodity derivative contracts, as well as looking at innovations in our existing products and processes, mapping, and studying the evolving needs of the industry.”
Cholamandalam Investment & Finance’s (CIFC’s) momentum score jumped to 52 after its Q3FY25 revenue and net profit grew 34.5% YoY and 24.8% YoY, respectively. The non-banking financial company’s (NBFC’s) revenue rose thanks to improvement in assets under management (AUM), vehicle financing, property loans, and home loans. This helped revenue and net profit beat Forecaster estimates by 3.8% and 3%.
Ravindra Kumar Kundu, MD, states, “CIFC retains its leadership in vehicle financing, with strong AUM growth despite sector challenges like inflation and supply chain disruptions. Infrastructure and capex spending in India will drive growth in heavy commercial vehicle (HCV) financing. Expansion into Tier 3 & Tier 4 towns for home loans will help us longterm.”
Bajaj Finance’s momentum score jumped to 66 after its Q3FY25 revenue and net profit grew 27.4% YoY and 16.7% YoY, respectively. The non-banking financial company’s (NBFC’s) revenue rose, led by new customer additions, improvement in loan disbursals, and assets under management. This helped its revenue and net profit beat Forecaster estimates by 2% and 2.6%.
ICICI Securities’ Trendlyne momentum score increased to 53 over the past month as its revenue and net profit rose 19.9% YoY and 8.3% YoY in Q3FY25. Revenue growth was driven by an improvement in the broking & distribution and issuer services & advisory segments, while net profit rose due to a reduction in commission expenses.
Karur Vysya Bank also features in the screener, with its Trendlyne momentum score rising to 65 after posting a 16.2% YoY and a 20.5% YoY growth in its Q3FY25 revenue and net profit. This bank’s revenue and net profit surpassed Forecaster estimates by 173% and 5.8%. Revenue rose due to improved corporate & retail banking, while net profit increased due to lower provisions and employee benefits expenses.
Analysts at BNP Geojit Paribas believe that India’s loan growth has peaked and expect deposit growth to align with loan growth in FY26-27. They anticipate the bank’s loan book to grow by 10.4% in FY26E and 11.6% in FY27E, while deposit growth is expected to decrease but remain stable at 10.9% for FY26E and 11.8% for FY27E.
Stationery, commodity chemicals and pharma stocks deliver strong results
Pharmaceuticals player Laurus Labs, witnessed its Trendlyne momentum score rising to 71 over the past month due to its revenue and net profit growing 18.4% YoY and 298.9% YoY, respectively in Q3FY25. Both revenue and net profit beat Forecaster estimates by 7.7% and 41.3%, respectively, on the back of an increase in sales from the contract development & manufacturing organisation (CDMO) and formulation (FDF) segments.
DOMS Industries' Trendlyne momentum score increased to 54 in the last month, helped by its revenue and net profit growing 34.9% YoY and 35.9% YoY, respectively, in Q3FY25. Its revenue and net profit beat Forecaster estimates by 4.6% and 8.3%, respectively. This stationery company’s revenue jumped owing to increased sales of school stationery and office supplies.
DOMS’ MD, Santosh Rasiklal Raveshia, said, “The new distribution agreement with FILA will offer significant growth potential in South Africa, Australia, the US, and Europe markets, utilising FILA's strong network in over 100 countries.”
Navin Fluorine International appears in the screener with its Trendlyne momentum score rising to 66 as its revenue increased 20.8% YoY in Q3FY25. Its net profit jumped 7.2% YoY during the quarter. Both revenue and net profit surpassed Forecaster estimates by 4.9% and 17.3%, respectively. Increase in high-pressure processing (HPP) and specialty chemicals segments helped revenue growth, while higher capacity utilisation at the Dahej and Surat plants; and lower inventory and employee benefits expenses assisted in net profit rise.
Analysts at Edelweiss believe that the capacity expansion at Navin Fluorine’s R32 facility will improve optimisation amid a recovery in demand, higher demand in the agro-specialty business, and a recovery in the contract development & manufacturing organisation (CDMO) will help growth in FY26-27. It expects the company’s revenue to grow at a CAGR of 27.2% over FY26-27.
Commenting on its results, Laurus Labs’ Founder and CEO, Satyanarayana Chava, said, “The strong progress in the CDMO business will help to achieve long-term growth. The strategic investment by Eight Roads in our biotech arm will further expand our efforts toward building a commercial scale sustainable manufacturing capability, helping boost revenue growth."
