1. Narayana Hrudayalaya:
This healthcare facilities company surged 3.1% on February 18 following the announcement of its Q3FY25 results. During the quarter, the company’s revenue rose 13.6% YoY to Rs 1,366.7 crore. Its net profit grew 2.6% YoY to Rs 192.9 crore, beating the Forecaster estimates by 6.6%.
The growth was driven by better realizations, with an Average Revenue Per Occupied Bed (ARPOB) growth of 9% YoY, and increased domestic patient footfalls. However, international patient volumes declined by 51% YoY and 48% QoQ, primarily due to a drop in patients from Bangladesh amid geopolitical issues.
In Q3FY25, revenue from the Cayman Islands rose 14% YoY, accounting for 21% of total sales. Growth was driven by strong outpatient demand at the new Camana Bay hospital. Inpatient department operations began in January 2025, with full operationalization expected by Q4FY25.
Sandhya J, Group Chief Financial Officer of the company said, “We are entering a capex growth phase right now, and are going to add at least 1,400 beds in the next 3 to 4 years.” The company plans to expand further, adding about 2,000 beds over six years.
To support this expansion, the company has allocated a capex of Rs 1,650 crore in FY25, Rs 1,000 crore in FY26, and Rs 850 crore in FY27. Key projects driving this expansion include new hospitals in Bangalore and Kolkata, a 300-bed expansion in Raipur, and a 220-bed facility in Central Bangalore. Additionally, the company is exploring expansion opportunities in existing locations and aims for returns of over 15%.
Post results, Prabhudas Lilladher maintained its ‘Buy’ rating on the company, citing its aggressive expansion plans and strong financial performance, including a 10% YoY increase in EBITDA and 9% YoY ARPOB growth in India. The brokerage also highlights operational efficiencies, improved margins in new India units, and the anticipated ramp-up of the Cayman unit as key factors supporting its recommendation, with a target price of Rs 1,560.
2. Muthoot Finance:
This gold loan NBFC surged by 6.2% on February 13 following the announcement of its Q3FY25 results. Muthoot Finance’s net profit increased 25.9% YoY to Rs 1,389.2 crore, beating Trendlyne’s Forecaster estimates by 4.4%. Revenue grew 35.9% YoY to Rs 5,189.7 crore during the quarter.
During the quarter, the company reported its highest-ever AUM growth of 34% YoY at Rs 1.1 lakh crore. The gold loan segment witnessed remarkable growth of 34% YoY, compared to Q2FY25 (up 28% YoY), driven by higher gold prices and new customer additions. Commenting on this, George Alexander Muthoot, the Managing Director, said, “There is strong demand for gold loans as credit from other sources, including fintech, unsecured, and microfinance lending, has dried up in recent months".
Muthoot Finance witnessed a drop in its microfinance (MFI) lending in Q3. The company’s disbursals were down 47% YoY as it remained cautious, given sector challenges. The MFI sector has been facing pressures due to rising bad loans and slower growth. Muthoot’s GNPA (gross non-performing asset) in the microfinance business rose to 2.9% from 1.9% in Q3FY24. However, conditions are expected to improve over the next few quarters as the company moves its focus to improving its collection efficiency as well as the quality of its loan book.
Going forward, the management maintains its guidance for gold loan growth at 25% YoY in FY25. For FY26, Muthoot Finance projects a 15% growth and expects to surpass the target.
Following the company’s earnings announcement, Nuvama upgraded its rating to ‘Buy’ from ‘Reduce’ and raised the target price to Rs 2,550. The brokerage believes the company is well-positioned for sustained growth. It remains bullish due to Muthoot Finance’s consistent performance, supported by rising gold prices. Trendlyne classifies it as a Turnaround Potential stock.
3. ITC:
This cigarettes & tobacco products company touched a 52-week low of Rs 396.2 on 20th February. The decline in its stock price came after reports suggested that the government may increase the GST on tobacco products once the compensation cess is removed. Currently, cigarettes and other tobacco products are subject to a 28% GST, along with cess and other levies, bringing the total indirect tax to 53%.
The government aims to maintain its tax revenue from tobacco products after the compensation cess ends on March 31, 2026, and is not inclined to replace it with another cess. The GST Council's Group of Ministers (GoM) had previously suggested linking the cess to a product’s maximum retail price instead of its sales value. This proposal was later referred back to the fitment committee and the GoM on rate rationalization.
On February 8, ITC announced its plan to enter the frozen foods and ready-to-cook business by acquiring a 43.8% stake in both ‘Prasuma’ & ‘Meatigo’ for around Rs 300 crore, reportedly. The deal is expected to be completed in over three years. ITC plans to increase its stake to 62.5% in ‘Prasuma’ by April 2027, with the remaining stake to be potentially acquired by June 2028. Hemant Malik, Wholetime Director of ITC, stated, “The deal will enable ITC to develop a portfolio in the frozen, chilled, and ready-to-cook (RTC) segment of the Rs 10,000 crore market, which holds significant growth potential.”
The Company announced its Q3FY25 results on February 6th. During the quarter, its net profit declined by 7.5% YoY to Rs 4,934.8 crore due to muted demand in FMCG and hikes in prices of key input materials like edible oil, leaf tobacco and wood. Revenue was up by 8.6% YoY. The company’s revenue beat forecaster estimates by 6.9%, due to growth in the cigarettes and agri segment revenue. It appears on a screener for stocks with high FII stock holdings.
KR Choksey has maintained a ‘Buy’ rating on ITC but lowered its FY26 and FY27 EPS estimates by 6.1% and 7.5%, respectively, due to the hotel business demerger, weak Q3FY25 performance, soft demand, and inflationary pressures. Despite this, the brokerage remains optimistic about ITC’s long-term prospects, thanks to its strong cigarette market share, solid FMCG execution, and rural demand recovery. Following the demerger, the brokerage has adjusted its valuation to 40% of market capitalization with a 20% holding discount, lowering its target price to Rs 494.
4. ABB India:
This heavy electrical equipment company has fallen by 2.8% over the past week, despite surpassing the Forecaster estimates for revenue and net profit in its Q4CY24 results. The company's order inflow (OI) declined 14% YoY to Rs 2,700 crore, primarily due to a 30% drop in the motion (motors and drives) segment. This segment benefited from a large data centre order in Q4CY23. However, base orders (with completion timelines of 3-12 months) rose 4%, while the order book stood at Rs 9,400 crore.
CFO T. Sridhar said, "The market is easing out, which can lead to lower pricing power on new orders.” Sridhar flagged profit margin pressures, “We expect profit margins to settle in the 12-15% range (15.4% in CY24)," he said.
Sridhar noted that while order growth was strong earlier, sustaining the same pace may be difficult since the company already has a large number of existing orders. However, he expects private capex to rise after the 2025 budget, with growth driven by sectors like power generation, automotive, food & beverages and data centres.
ABB India’s EBITDA margin improved to 19.5% (up 440 bps) due to high-margin orders and better capacity utilization. The company appears in a screener of stocks with growing costs YoY from long-term projects.
ABB’s MD, Sanjeev Sharma, discussed the impact of US tariffs, stating that they could open opportunities for India to expand its role in global trade. While the company has grown its export portfolio, it still accounts for only 10% of its business. The company anticipates exports to contribute positively to India, despite global market fluctuations.
Post results, ICICI Securities upgraded its rating on ABB India to ‘Hold’ with a target price of Rs 5,302. The brokerage believes the company will benefit from the Centre's capex push in renewables, infrastructure, EVs, and manufacturing. Additionally, its strong distribution network enhances its ability to secure industry orders.
5. Cipla:
This pharmaceuticals company has risen 2.1% in the past month in a weak market owing to strong Q3FY25 results, where revenue and net profit grew by 7.5% YoY to Rs 7,294.6 crore and 48.7% YoY to 1,570.5 crore.
On Wednesday, the company invested ZAR 900 million (~Rs 424.9 crore) in its subsidiary, Cipla Medpro South Africa Proprietary, for 4.1 crore shares. The company has a strong presence in South Africa and intends to expand its footprint.
The drug maker also received final approval from the US FDA for a new drug application (NDA) for Nilotinib Capsules and a Form 483 with two observations from the US FDA following a good manufacturing practices (GMP) inspection at its analytical testing facility in Navi Mumbai.
The company’s Q3 revenue and net profit beat Forecaster estimates by 1.9% and 30.4%, respectively. Revenue improved due to increased sales in the Indian, South African, and rest of the world (RoW) markets. However, the US market witnessed a downturn due to Lanreotide supply issues due to temporary lower production at a partner facility.
The company’s Indian business grew due to improvements in branded prescriptions, chronic, and trade generics. Meanwhile, reducing inventory and finance costs, combined with launching high-margin products, helped its net profit grow.
Speaking on its results, Cipla’s MD and CEO, Umang Vohra, said, “Our Emerging Markets & Europe (EMEU) and One Africa businesses together account for more than 25% of total revenue, similar in size to our US business. In 9MFY25, these markets combined have delivered a strong growth of 15% YoY. Our diversification and backlog of our launch pipeline gives us confidence in a resilient business model.”
Post results, Axis Direct retains its ‘Buy’ call on Cipla. It has a target price of Rs 1,700 per share, indicating a potential upside of 15.2%. The brokerage believes that the company’s India business will continue to grow, driven by diversification and a strong launch pipeline. However, it expects the US business to remain sluggish due to the continued supply issues of Lanreotide. Axis Direct expects the firm’s revenue to grow at a CAGR of 8.3% over FY25-26.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
