1. Blue Star:

A major government tax reform has provided a significant boost to this consumer electronics company, sending its stock up 3.4% in the last week. The Indian government’s GST overhaul slashed the tax on electronics like air conditioners from a steep 28% down to 18%.

Fueled by this news, the company’s managing director, B. Thiagarajan, has doubled the sales growth forecast for the upcoming festive season to 30%. He confirmed that the full benefit of the tax cut will be passed on to customers, predicting that the entire industry could see 20% growth in the next financial year thanks to the lower prices.

This positive outlook comes despite a recent speed bump. Unexpected early rains led to a 28.4% YoY drop in the company's Q1FY26 net profit, as sales in its cooling products segment fell by 13% compared to the previous year. However, the company’s overall business is still growing. Total revenue climbed 3.8% YoY, beating Forecaster estimates by 5.5%, thanks to strong performance in its commercial refrigeration and engineering project divisions. The stock features in a screener of companies which have given consistent returns over the past five years.

Drilling down into its operations, the company's commercial projects division is sitting on a robust order book worth Rs 5,080 crore, with strong demand from data centers and the healthcare sector. On the other hand, its room air conditioner business faced challenges from the unusual weather. With a current market share of 14%, the company aims to increase this to 15% in the coming years.

Looking ahead, brokerage firm Sharekhan is optimistic. It believes the company is positioned to benefit from growing demand for air conditioners in India and has opportunities to export to the US and Europe. The firm highlights huge long-term potential, noting that AC ownership in India is still very low compared to the global average. With rising incomes and increasing urbanization, Sharekhan has maintained its ‘Buy’ rating on the stock, setting a target price of Rs 2,000.

2. Netweb Technologies India:

This cloud infrastructure company surged over 37% last week, hitting an all-time high of Rs 3,182.5 on August 5. The rise was fueled by a Rs 1,734 crore order to supply servers built on Nvidia's Blackwell architecture (AI-focused chips). As part of the contract, Netweb Tech will deploy an AI infrastructure facility using the latest GPU-accelerated platforms. This landmark deal, awarded under the IndiaAI Mission, excites analysts as India steps onto the global AI stage, currently dominated by the US and China. 

The order size represents around 102% of the company’s estimated sales for the current financial year and 72% for the next. Trendlyne’s Forecaster estimates Netweb’s profit to rise 48% in FY26, with revenue growth of 46.5% to Rs 1,683 crore. Also, it's worth noting that the promoters hold a substantial 71% stake in the company.

The company’s latest results showed revenue and net profit nearly doubling YoY in Q1 FY26. The AI segment contributed 29% of revenue with a 300% YoY growth. CEO Sanjay Lodha said, “AI’s share will continue growing at the same pace of 40% CAGR as before. We are raising the AI contribution guidance from 20% to 22% for FY26.”

While Netweb shows growth potential, its valuation is a point of discussion. The stock currently trades at an expensive PE of 115, giving it a low valuation score of 24. However, it's not all red flags – the current PE is still below its average and median, placing it in a neutral zone.

Ventura has given a ‘Buy’ rating for Netweb, citing optimism about its total order book of Rs 4,142 crore. The brokerage notes that AI investments and private cloud adoption are driving computing demand in India, while the company also plans to expand in Europe and the Middle East. They expect Netweb’s revenue and net profit to grow at a CAGR of 36% and 64% over FY25-28.

3. Ashok Leyland:

This vehicle manufacturer rose 2.7% over two trading sessions after the company unveiled on September 1 a Rs 5,000 crore investment plan to develop battery manufacturing in India over the next decade. As a first step, the company will invest Rs 300-600 crore into a new lithium iron phosphate (LFP) battery pack facility within the next three years.

To power this ambitious supply, Ashok Leyland has entered into a long-term partnership with the Chinese battery firm CALB Group. This collaboration will focus on technology sharing and joint research, with core goals of reducing vehicle manufacturing costs and lowering India’s dependence on imported battery components.

"The new battery business shall first focus on the automotive sector, and then move to non-automotive areas, including energy storage systems,” said Shenu Agarwal, the company’s MD and CEO. The new manufacturing capacity is set to be a key supplier for its own electric vehicle arm, Switch Mobility, while also serving other vehicle manufacturers in the market.

Following the announcement, Nomura maintained its Buy rating but cautioned that the battery business will face initial margin pressure. The brokerage noted that profits will likely be thin at first, but will improve as production scales up significantly. With operations scheduled to begin in the first half of FY27, any delays in the timeline could impact cash flow and returns.

This strategic pivot comes at a time of strong performance for the company. In Q1FY26, the company’s revenue grew 9.2% YoY to 11,708.5 crore, driven by higher sales in its core commercial vehicles segment. Meanwhile, management is confident its EV division will break even within the next year, fueled by a strong order book and soaring demand. Switch Mobility currently holds a market share of approximately 41% in India’s e-bus market.

In a separate but significant boost, the GST Council recently slashed the tax on commercial vehicles from 28% to 18%. Ashok Leyland’s CFO, KM Balaji, explained that previously, a tax disparity encouraged customers to buy a vehicle chassis and have the body built separately to save money. The new, unified 18% rate removes this incentive, simplifying the buying process and likely increasing demand for Ashok Leyland's fully-built vehicles.

4. Kaynes Technology India:

This electronic component manufacturer jumped 8% on September 1 after its subsidiary, Kaynes Semicon, announced a partnership with technology services firm UST. The tie-up will fast-track Kaynes’ semiconductor packaging facility in Sanand, with UST providing equipment, technical know-how, and customer connections. Management sees a revenue potential of Rs 1,500 crore from this venture by FY28.

Revenue mix has shifted towards innovative, design-led, and high-margin businesses. In the first quarter of FY26, printed circuit board (PCB) assembly accounted for 45% of sales, while system-level integration (box-build) fell to 19%. Meanwhile, contributions from original design manufacturing (ODM) and product engineering skyrocketed to 36%, a huge leap from just 2% a year ago.

This pivot lifted the EBITDA margin to 16.8%, up 350 basis points YoY, and powered a 47% jump in net profit, beating expectations. CFO Jairam Sampath said, “For the remaining nine months, you can expect an EBITDA margin similar to the first quarter.” Revenue grew 34% YoY in Q1 but missed estimates slightly, as demand in the box-build segment softened.

New orders worth Rs 1,480 crore in Q1 lifted the backlog to Rs 7,400 crore, nearly 2.7 times FY25 sales, providing visibility for future growth. The industrial sector has been a key driver, with orders soaring by over 40% YoY and now accounts for more than half of total revenue. Chairman Ramesh Kannan said, “We are seeing strong traction in aerospace, industrials, and railways, which will continue to grow through FY26, giving us confidence that the order book will only strengthen from here.”

Macquarie initiated coverage on the stock with an ‘Outperform’ rating and a target price of Rs 7,700. The brokerage is bullish on Kaynes’ pivot to high-value electronics manufacturing, its strategy of bringing more production in-house, and plans for global expansion. It argues that while the stock trades at rich valuations, they are supported by the trillion-dollar opportunity in India’s Electronics System Design & Manufacturing industry.

5. TBO Tek:

This travel support services firm saw its stock soar over 15% on September 3 following the acquisition of US-based Classic Vacations for approximately $125 million (Rs 1,100 crore). TBO Tek also features in a screener of stocks where mutual funds have increased their holdings over the past two months.

At its core, TBO Tek runs a digital marketplace for the travel industry, handling bookings for everything from flights and hotels to cruises and rail. Classic Vacations, on the other hand, is a specialist in premium luxury travel with a network of over 10,000 travel advisors. With this acquisition, TBO Tek gains direct access to this advisor network, enabling it to sell its high-end travel offerings and expand its presence in the North American market.

During Q1FY26, the company's revenue grew by a healthy 22% compared to last year, reaching Rs 511 crore, thanks to a boom in its hotels and packages segment. The hotels division alone grew by 32%, fueled by global expansion and the ramp-up of JumboOnline, a European company TBO acquired in December 2023. However, the air ticketing business faced significant headwinds, hit by disruptions like the Pahalgam incident, the India-Pakistan border clash, and the Air India crash in mid-June.

Looking to the future, TBO Tek believes it is in a prime position to ride the wave of a booming global travel market. Joint Managing Director Gaurav Bhatnagar stated, "The travel industry is expected to grow at an 8.2% CAGR, reaching nearly $2.6 trillion by 2027." He also highlighted a new trend: strong interest in niche travel, such as study abroad programs, luxury getaways, and cruises, particularly among customers in India's Tier 2 and 3 cities.

While the company's heavy investment in international expansion has temporarily squeezed its margins, which fell by 440 bps in Q1, analysts are optimistic. Brokerage firm Anand Rathi believes that as this spending phase concludes, TBO Tek is on track for revenue growth of 22-23% annually for the next few years, with margins expected to steadily improve from 2027. Reflecting this confidence, it has a 'Buy' stance with a higher target price of Rs 1,725.

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