1. Coforge:
This IT consulting & software firm jumped 5.2% over the past week after announcing its Q4 results. The rise was also driven by CEO Sudhir Singh expressing confidence in achieving the company’s $2 billion revenue target by FY27, backed by record-high deal wins in FY25. He highlighted that the executable order book for the next 12 months stands at $1.5 billion, up 48% YoY. Singh noted that near-term macroeconomic challenges are not expected to pose a major risk.
The surge in Coforge’s order book is largely driven by a major deal with Sabre Corp, a travel technology company. On March 4, Coforge announced a 13-year, $1.6 billion contract with Sabre, which translates to about $120 million in annual revenue. With this deal making up nearly half of the order book, there is a potential risk of margin pressure, as Sabre may have leverage over pricing. However, the management is confident that it will not hurt margins and aims for an EBITDA margin of around 18% by FY27, up from the current 16.6%.
In Q4, the company’s EBITDA margin rose by 108 bps QoQ to 18.7%. Revenue grew 1.9% QoQ to Rs 3,441 crore, but missed Forecaster estimates by 2.5%. The growth was supported by strong performance in the banking, financial services and insurance (BFSI), travel, and overseas government segments. Speaking about the travel vertical, Singh said. “In North America and Europe, airlines are being cautious, but leisure travel is slowly picking up. Travel demand is strong in Asia, the Middle East, and Africa, so FY26 looks promising for us.”
During the quarter, Coforge acquired a data and cloud asset in the US, generating $6 million in quarterly revenue, and a ServiceNow asset in Australia, contributing $2 million per quarter. This helped offset the revenue loss from the recently divested AdvantageGo business, an insurance software unit. The company sold AdvantageGo for $53.5 million on April 30 as part of a broader strategic restructuring.
Motilal Oswal has given Coforge a ‘Buy’ rating, calling it their top pick among tier-II IT players. The brokerage believes a strong executable order book and consistent client spending across sectors will support the company’s growth. It also expects Coforge’s EBITDA margin to expand by 100–120 bps over the next 12–18 months.
2. R R Kabel:
This wires and cables company surged 18% over the past week after announcing its Q4 results. In Q4, the company reported a revenue growth of 26% YoY, surpassing Forecaster estimates by 8%. Net profit gained 64%, significantly exceeding expectations, led by strong volume gains and price hikes.
RR Kabel shares rallied as this performance came after two quarters of relatively subdued demand, impacted by channel destocking and volatility in raw material prices.
The business gets a majority of its revenue from wires and cables (W&C), while 12% comes from fast moving electrical goods (FMEG). Losses in the FMEG division have gone down by half in Q4, and the company expects this segment to achieve EBITDA breakeven by FY26. The company appears in a screener of stocks with best results last week in terms of revenue and net profit growth on a YoY basis.
RR Kabel’s management is confident of outpacing the industry with a targeted CAGR of 18%, as the W&C industry is projected to grow at a CAGR of 15%. To support this ambition, the company invested Rs 370 crore in capex this year, which is 95% higher compared to last year.
Looking ahead, MD Shreegopal Kabra says, “We have already begun executing our Rs 1,200 crore capex plan for FY26-28, which is primarily aimed at expanding cable capacity to support a 15-20% volume growth and improve margin.” Kabra aims to achieve a topline growth of Rs 4,500 crore with this investment.
Motilal Oswal maintains a ‘Neutral’ rating on the stock. It sees volatility in raw material prices and rising competition as key challenges. Analysts also expect the company’s net debt to increase to Rs 840 crore by FY27 from Rs 110 crore as of FY25, driven by higher capex.
3. Sona BLW Precision Forgings:
This auto parts manufacturer rose 3.3% on May 2 after announcing its Q4FY25 results. The company's net profit grew 10.4% YoY to Rs 164.1 crore, beating Forecaster estimates by 8.5%. The growth was driven by higher other income from interest earned on surplus QIP funds.
However, during the quarter, the company’s operating revenue dropped 2.3% YoY due to uncertainty over US tariffs, weaker demand in the US, intense competition from Chinese OEMs (Original Equipment Manufacturers) in the EU, and the transition of a global EV customer to a new model.
Vivek Vikram Singh, MD & Group CEO of the company, said, “Despite a temporary revenue drop due to model transition, we closed the quarter with record profitability. Our Battery Electric Vehicle (BEV) business is growing rapidly, and with new product launches and orders, our order book is at an all-time high.” The company expects revenue growth to recover in H1FY26 and plans to diversify towards Chinese and other Asian OEMs as the US and EU markets remain weak.
In FY25, BEVs contributed 36% of the company's total revenue, an increase from 29% in FY24. BEV revenue grew by 38% YoY in FY25. The segment also accounts for 77% of the total order book of Rs 24,200 crore. North America remains the largest market, contributing roughly 40% of sales.
About 3% of revenue faces risk from US tariffs. Management noted that the indirect effects of the tariffs could slow down customer demand and disrupt supply chains in the short term. He also highlighted China's recent export restrictions on seven rare earth elements and associated magnets, which could strain electric vehicle (EV) component sourcing. To mitigate this, Sona BLW is developing magnetless motor technology and other non-rare-earth technologies.
The company is expanding its product portfolio with new products such as traction motors, controllers, belt starter generators (BSG), and sensors. It entered the railway equipment business by acquiring Escorts Kubota’s railway division for Rs 1,600 crore. The company is also working on high-voltage traction motors for heavy vehicles and exploring robotics applications for driveline components.
Post results, Motilal Oswal reiterated its ‘Neutral’ rating. The brokerage expects net sales to grow at an 11.7% CAGR and net profit at an 11.5% CAGR over FY26-27, driven by BEV momentum and new business wins.
4. CCL Products India:
This tea & coffee company recorded its best single-day gain in eight months, rising 15.9% on May 6, following the announcement of its Q4FY25 and full year results on May 5. The company reported a 56.2% YoY surge in net profit for Q4FY25, reaching Rs 101.9 crore, driven by an improved product mix and expanding margins. Its revenue rose by 14.9%. The stock appears in a screener featuring strong momentum stocks.
The company beat Trendlyne’s forecaster, Q4FY25 net profit estimate by 55.3% and the revenue estimate by 32.3%. Despite volatility in coffee prices, the company’s gross margins rose by 133 basis points to 44.4%, while EBITDA margins expanded by 328 basis points YoY to 19.5%. Its geographical advantage enabled it to strengthen its presence in international markets, increase market share, and secure new business opportunities. The company also plans to further invest in the UK and US markets.
Challa Srishant, Managing Director of CCL Products, has set a target of 40% volume growth in the domestic market by FY26. The company also aims to increase its global market share from 7% to 10%. Mr. Srishant expects EBITDA/kg to stay steady at approximately Rs 120 per kg and remains confident in meeting volume targets, despite shorter contract periods. He highlighted the completion of the company’s subsidiary (Ngon Coffee) manufacturing facility in Vietnam and noted that, “We are expanding in China, Taiwan, Middle East, and African markets. These are economies we foresee will be driving coffee consumption in the coming decades.”
The company's working capital debt rose to Rs 1,815 crore in FY25, mainly due to high coffee prices and long-term loans taken for capacity expansion. On the debt levels, Srishant said, “With raw material prices now falling 10%, there could be a reduction in working capital loans. Over the next 3-4 years, debt levels will start sliding back.” But he didn’t go into specifics.
Axis Securities has maintained a ‘Buy’ rating on CCL, citing the company’s consistent performance despite volatility in coffee prices. The brokerage highlighted the company’s plans of expanding capacity in value-added products such as freeze-dried coffee (FDC) and small packs in Vietnam. It has increased its FY26 & FY27 PAT estimates by 13% and 14%, respectively.
5. Avenue Supermarts (DMart):
This department stores chain has declined by 5.4% over the past week following the announcement of its Q4FY25 results. Avenue Supermarts’ net profit declined 2.2% YoY to Rs 550.9 crore, and missed Trendlyne’s Forecaster estimates by 5.1%. The dip in profit was due to higher raw materials, employee benefits and finance costs.
During the quarter, revenue increased 16.9% YoY to Rs 14,896.9 crore driven by new store additions. DMart opened 28 new stores, taking its total count to 415. For the full year, the company added 50 stores, up 22% compared to the previous year.
DMart’s like-for-like (LFL) sales fell to 8.1% in Q4FY25 from 10.3% a year ago. The management highlighted that non-metro cities outperformed metros. Quick-commerce's rising popularity has been impacting these markets, which account for ~47% of DMart’s revenue. Despite the perception of D-Mart’s customer as being highly price conscious, quick commerce players have been making inroads.
Neville Noronha, CEO & Managing Director, said, “The rise of Q-commerce is impacting us, particularly in metro stores with high foot traffic and fast inventory turnover”. He added that increased competition in the FMCG space, rising employee costs, and higher investments in service levels have dragged down margins. The company’s EBITDA margins declined 100 bps YoY to 6.4% in the March quarter.
DMart is known for offering the lowest prices on branded fast-moving consumer goods, while Q-commerce players’ advantages are discounted pricing and 10-minute delivery. The company has been offering higher discounts and increasing its delivery services through DMart Ready. It expanded its presence to 25 cities during FY25. Noronha highlighted, “Home delivery is gaining traction in metros, however, losses from the format will likely continue in the near term”.
Following the company’s earnings announcement, Axis Direct reiterated its ‘Buy’ rating with a Rs 4,770 target price. The brokerage highlights DMart’s focus on boosting store productivity, improving profits, and reviving its general merchandise & apparel segment.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
