Published on: February 3, 2025
Indian stock markets are expected to start the week on a subdued note, with GIFT Nifty futures indicating a lower opening on Monday, February 3, 2025. The benchmark BSE Sensex and Nifty50 ended the week flat, with minor gains. A slew of companies will report their quarterly earnings today, including Aditya Birla Capital, Alembic Pharmaceuticals, Divis Laboratories, and Power Grid Corporation of India, among others.
Key stocks to monitor include GR Infra, which posted a 7.8% increase in net profit for Q3, though its revenue dropped by 20.6%. Vinati Organics reported steady revenues and higher profit margins, while Anant Raj showed a significant 55% jump in net profit. On the flip side, Aarti Industries saw a sharp 63% drop in profit, despite a rise in revenue.
Other notable updates include Hero MotoCorp's increased sales in January, Eicher Motors' strong export growth, and Lupin's successful US FDA inspection. Happiest Minds Technologies also made headlines with its acquisition of Gavs Technologies' Middle East business. Coal India and VST Tillers Tractors reported mixed performance in their production and sales figures for January, signaling potential market reactions.
Published on: February 3, 2025
TVS Motor Company has appointed Gaurav Gupta as President – India for its two-wheeler business, effective immediately. Based in Bengaluru, Gupta will oversee both the internal combustion engine (ICE) and electric vehicle (EV) verticals.
He will report directly to K N Radhakrishnan, the director and CEO of the company. Radhakrishnan expressed confidence in Gupta's leadership, stating that his experience would help further strengthen TVS Motor's market position and set new benchmarks in the industry.
Prior to joining TVS, Gupta held key leadership roles at JSW MG Motor India, where he was an Executive Committee member, Deputy Managing Director, and Chief Growth Officer.
Published on: February 3, 2025
TVS Motor Company has appointed Gaurav Gupta as President – India 2W Business. Based in Bengaluru, Gupta will report to KN Radhakrishnan, Director and CEO of the company. In his new role, Gupta will oversee TVS Motor's two-wheeler operations in India, including both internal combustion engine (ICE) and electric vehicle (EV) segments.
With over 30 years of experience across diverse markets, including India, China, Dubai, and ASEAN regions, Gupta brings a wealth of expertise to TVS Motor.
Prior to joining the company, he spent 6.5 years at JSW MG Motor India, holding several leadership positions, including Executive Committee member, Deputy Managing Director, and Chief Growth Officer.
Published on: February 3, 2025
January auto sales saw several positive developments as Eicher Motors, Mahindra & Mahindra (M&M), and TVS Motor emerged as key winners, reporting strong sales growth. Eicher Motors continued its strong performance, surpassing its monthly sales target for the fifth consecutive month, while M&M saw a 20% sales growth, crossing the 4.5 lakh sales mark for the year. TVS Motor reported a 52% surge in exports, contributing to its 17% overall growth.
Maruti Suzuki's small car segment grew for the second consecutive month, reversing an 18-month decline, while the SUV segment continued its steady growth. Bajaj Auto reported a 7% overall growth but faced a decline in domestic two-wheeler sales, continuing the trend from the previous month.
In contrast, Hyundai, Tata Motors, and Escorts missed estimates, with Hyundai unveiling the Creta EV and Tata Motors showcasing its Harrier EV at the Bharat Mobility Expo, with both brands hopeful for growth in the upcoming fiscal year. The outlook remains promising, with several companies benefiting from strong export performance, strategic launches, and a recovery in key segments like small cars.
Published on: January 31, 2025
Shares of Tata Motors Ltd. showed some recovery in early trade on Friday, rising more than 1% to Rs 707.40, following a significant 7.37% drop in the previous session after the company reported disappointing Q3 earnings. The stock had hit a 52-week low of Rs 684.25 on Thursday due to weak performance from its luxury unit, Jaguar-Land Rover (JLR), and subdued demand outlook in key markets like China.
Despite the recent recovery, several analysts are cautious on the stock's future prospects. Incred Equities lowered its target price to Rs 661, citing concerns over tariff challenges, currency volatility, and increased competition in India’s EV and commercial vehicle segments. CLSA and YES Securities, while maintaining a positive view, revised their price targets to Rs 980 and Rs 892, respectively, citing improving prospects in India and JLR’s profitability, but warned of headwinds due to competitive pressures in the EV space.
Jefferies downgraded the stock to "underperform" and slashed its price target to Rs 660, pointing to weak demand for JLR and rising costs affecting margins. Tata Motors’ Q3 profit fell 22% YoY to Rs 5,451 crore, largely due to a slowdown in JLR's performance, while overall revenue grew 3% to Rs 1.13 lakh crore. However, the company saw a decline in revenue from both the passenger and commercial vehicle segments, reflecting ongoing market challenges.
Published on: January 31, 2025
Tata Consumer Products' stock experienced strong demand on Friday, January 31, 2025, surging up to 5.41% to an intraday high of Rs 1,019.95, even as the company posted muted financial results for Q3FY25. Despite a slight 0.04% year-on-year growth in profit, reaching Rs 278.9 crore, revenue for the quarter rose by 16.8% to Rs 4,443.6 crore.
However, operational performance showed some weakness, with EBITDA dipping 1.3% YoY to Rs 564.7 crore and a contraction in EBITDA margin by 240 bps to 12.7%. The margin pressures were primarily attributed to inflationary tea prices, which impacted the company's profitability.
Despite this, Tata Consumer saw robust volume growth, particularly in its beverage and food segments, with India’s packaged beverage volumes growing by 10% YoY. Analysts have mixed views on the company's outlook. ICICI Securities highlighted the impact of tea price inflation but remained optimistic about Tata Consumer's strategic investments, such as expanding distribution reach and raising tea prices.
Nuvama and Motilal Oswal also adjusted their earnings estimates downwards due to rising tea costs but maintained positive ratings. Goldman Sachs, while noting the sharp margin decline, maintained a ‘Neutral’ rating, with a target price of Rs 1,040, citing Tata Consumer’s strong volume growth compared to competitors like HUL.
Published on: January 31, 2025
Jindal Steel & Power Ltd. (JSPL) saw a sharp 13.82% decline in its share price, dropping to Rs 723.95 during Friday’s intraday trade, after reporting weaker-than-expected financial results for Q3FY25. The company’s net profit plunged 50.7% year-on-year to Rs 950 crore, down from Rs 1,928 crore in the same quarter last year, primarily due to rising operational costs and compressed margins.
EBITDA also fell by 23.2% to Rs 2,184 crore, with the EBITDA margin shrinking to 18.59% from 24.30% YoY. Despite a marginal 0.4% increase in revenue, reaching Rs 11,750.7 crore, the company’s bottom line was significantly impacted by pricing challenges.
Steel production rose by 3% YoY to 1.99 million tonnes (MT), while steel sales increased by 5% YoY to 1.90 MT. The company’s net debt also rose to Rs 13,551 crore, pushing its net debt-to-EBITDA ratio to 1.40x.
JSPL’s stock has underperformed the market in recent months, falling 23% over the last six months, though it has shown a modest 0.4% increase over the past year. As of 10:09 AM, the stock was down 10.06% to Rs 755.55, while the BSE Sensex was up 0.28%.
Published on: January 31, 2025
IndusInd Bank Ltd. reported a nearly 40% decline in its consolidated net profit for the October–December quarter, falling to Rs 1,401 crore, below analysts' expectations of Rs 1,447 crore. This sharp drop was driven by an 80% surge in provisions, which reached Rs 1,744 crore, partly due to additional provisions related to stress in the microfinance institution (MFI) segment.
As a result, the bank’s net interest income also fell to Rs 5,228 crore, down from Rs 5,296 crore a year ago, and its net interest margin (NIM) dropped to 3.93%, lower than the previous quarter's 4.08%. Asset quality also deteriorated, with the gross non-performing assets (NPA) ratio rising to 2.25% from 2.11% in the prior quarter, and net NPA climbing to 0.68%. MFI loans contributed Rs 695 crore to the slippages.
However, the bank remains cautiously optimistic about the recovery of the MFI segment, expecting improvement starting in Q4. Sumanth Kathpalia, Managing Director and CEO, noted that collections are showing signs of stability, with collection efficiency improving to 99.5%. Despite the challenges in the MFI sector, the bank saw a 12% growth in advances, with vehicle financing and non-vehicle financing seeing solid year-on-year increases.
Deposits also rose 11% YoY to Rs 4.09 lakh crore, with 35% of these deposits from current and savings accounts. IndusInd Bank remains focused on improving its NIMs and asset quality, with expectations of a recovery in the microfinance sector in the coming quarters.
Published on: January 31, 2025
Vedanta Limited reported a stellar performance for the third quarter of FY25, posting a profit of Rs 4,876 crore, marking a 70.01% year-on-year growth compared to Rs 2,868 crore in the same period last year. The company’s revenue from operations rose by 10.18%, reaching Rs 38,526 crore, while its EBITDA surged 30% YoY to Rs 11,284 crore, driven by favorable commodity prices and effective cost-saving initiatives.
Vedanta's net debt stood at Rs 57,358 crore, with a net debt-to-EBITDA ratio of 1.4x, an improvement from 1.7x in Q3 FY24. The company also reported a 66% YoY increase in cash and cash equivalents, supported by robust free cash flow of Rs 6,766 crore.
The strong results were driven by performance across several key segments. Aluminum saw its highest-ever production, while Zinc India achieved its lowest cost of production in 15 quarters. Zinc International also delivered record results, with the lowest cost of production in seven years.
Despite a slight dip in steel production, the overall performance reflects Vedanta's strategic focus on cost optimization, production ramp-up, and favorable market conditions. Looking ahead, Vedanta expects this positive trend to continue, driven by its ongoing growth initiatives and integration projects, with the demerger process on track for completion by February 2025.
Published on: January 31, 2025
Shree Cement's shares jumped 2% to an intraday high of Rs 27,339.80 on Friday, January 31, despite a 69% year-on-year drop in net profit for the December quarter, which fell to Rs 229 crore. The decline was primarily due to lower revenue from operations and weak cement prices, although a reduction in power and fuel costs by over 27% YoY provided some relief.
The company’s net revenue from operations dropped 13% to Rs 4,235 crore, while EBITDA also saw a 23% decline, falling to Rs 947 crore. On a sequential basis, however, Shree Cement showed a strong rebound, with profit jumping 146% and net revenue rising 14%. EBITDA also grew 60% sequentially, helped by the seasonally weaker September quarter.
The company expects increased demand from rural consumption, urban housing, and government infrastructure projects. Jefferies and JPMorgan maintained positive views on Shree Cement, with Jefferies revising its target price to Rs 30,670 and JPMorgan setting it at Rs 27,367.
Both brokers highlighted the company's strong cost controls, robust pricing in northern markets, and growth in production capacity, which is expected to reach 80 million tonnes by 2028. Shree Cement is currently expanding its plants in multiple states, with new projects expected to come online by the June quarter.
Published on: January 31, 2025
Bharat Electronics Ltd (BEL) shares rose 3% to Rs 287.25 on Friday, January 31, after the company reported a significant 47.3% increase in profit after tax (PAT) for the third quarter of FY25. PAT for the quarter stood at Rs 1,316.06 crore, up from Rs 893.30 crore in the same period last year. The company’s consolidated revenue for the quarter also showed strong growth, rising 38.6% to Rs 5,770.69 crore.
BEL, a Navratna Defence PSU, reported a turnover of Rs 5,643.25 crore for the quarter, reflecting a 36.97% growth year-on-year. The company's profit before tax (PBT) increased by nearly 50%, reaching Rs 1,754.15 crore. With a robust order book of Rs 71,100 crore as of January 1, 2025, BEL is well-positioned for continued growth in the upcoming quarters.
Following the strong results, brokerage firm Macquarie maintained an 'Outperform' rating on BEL, setting a target price of Rs 350. BEL’s stock has seen a 214% increase over the past two years, despite a 12% drop over the last six months, and now has a market capitalization of Rs 2,03,869 crore.
Published on: January 31, 2025
Benchmark indices Sensex and Nifty saw strong early gains on Friday, supported by buying in Larsen & Toubro following its impressive earnings report, and a firm trend in global markets. The 30-share Sensex rose 188.11 points to 76,947.92, while the Nifty gained 68.6 points to reach 23,318.10, as investors geared up for the Union Budget.
Larsen & Toubro's stock surged over 3% after the company reported a 14% rise in consolidated profit for the December quarter. Analysts anticipate that the Union Budget could bring growth-stimulating measures, including possible cuts in personal income tax, which could lead to a post-budget rally. However, experts noted that the budget's impact may only be short-term, with long-term market trends depending on GDP and earnings growth.
Asian markets showed mixed performance, while US markets closed higher, providing further positive sentiment. Despite Foreign Institutional Investors (FIIs) selling equities worth Rs 4,582.95 crore on Thursday, the market remained resilient. Brent crude prices also saw a rise, settling at USD 77.51 per barrel.
Published on: January 31, 2025
The Sensex and Nifty extended their gains on Friday afternoon after the Economic Survey 2025 forecasted India’s economic growth for FY26 at 6.3-6.8%, aligning closely with the IMF’s projection of 6.5%. The Sensex surged by 754 points to close at 77,514, while the Nifty gained 274 points, ending at 23,523.
Key stocks like Nestle India, L&T, Titan, IndusInd Bank, Maruti, and PowerGrid were among the top gainers, with rises up to 5.33%. The market capitalization of BSE-listed firms climbed by Rs 4.23 lakh crore.
Sectors such as capital goods, consumer durables, and auto stocks saw significant gains, with their respective BSE indices jumping by 2311 points, 1520 points, and 896 points. The BSE midcap and smallcap indices also recorded strong performances, rising by 584 and 727 points, respectively.
Published on: January 31, 2025
The Indian stock markets continued their upward momentum for the second day on Thursday, supported by buying interest in IT, consumer durables, and commodity stocks. The BSE Sensex gained 115.39 points, or 0.15%, to close at 76,520.38, after fluctuating between losses and gains during the session.
The index dipped early on but recovered, climbing as much as 338.55 points, or 0.44%, to hit a high of 76,743.54. Similarly, the NSE Nifty ended 50 points higher, or 0.22%, at 23,205.35.
The market was largely influenced by positive global trends, with key sectors such as IT and consumer durables leading the charge despite the volatile trading session.
Published on: January 31, 2025
On Friday morning, mining stocks saw strong gains, with Pokarna Ltd. leading the charge, up by 10.70%, followed by MOIL Ltd. at 2.05%, and Aro Granite Industries Ltd. at 0.95%. Other mining companies like Lexus Granito, Sandur Manganese & Iron Ores, and KIOCL also showed positive movements.
On the downside, Coal India Ltd. and several other major stocks like NMDC Ltd. and Oriental Trimex Ltd. faced declines. Meanwhile, broader market indices showed a positive trend, with the NSE Nifty50 up by 100.41 points, reaching 23,349.9, and the BSE Sensex rising 245.1 points to 77,004.91.
Notable gainers in the Nifty pack included Tata Consumer Products, Trent Ltd., and Larsen & Toubro, while key stocks such as Bharti Airtel, ICICI Bank, and Bajaj Finserv ended in the red.