Published on: January 29, 2025
The Indian equity market continued its upward momentum for the second consecutive day, with the NSE Nifty 50 rising by 0.90% to close at 23,163.10 and the BSE Sensex gaining 0.86% to settle at 76,555.36. Key contributors to the rally included Shriram Finance, BEL, and Tata Motors.
Realty and IT sectors were the top performers, while FMCG stocks struggled. The broader market outperformed with the BSE Midcap and Smallcap indices surging 2.54% and 3.28%, respectively.
The market breadth favored buyers, with 2,981 stocks advancing. Meanwhile, the Indian Rupee weakened against the US Dollar, closing at 86.55. Market participants are eyeing further bullish potential, with immediate resistance for Nifty seen at 23,270 and support at 23,000.
Published on: January 29, 2025
Tata Steel’s Q3 FY25 results defied market expectations, reporting a 36.3% drop in consolidated profit to Rs 326.6 crore, despite challenges from geopolitical factors and a global economic slowdown. Revenue fell by 3% YoY to Rs 53,648 crore.
However, strong domestic deliveries and improvements in European operations helped the company beat analysts' estimates. With a focus on operational efficiency and capacity ramp-ups in Kalinganagar, Tata Steel remains optimistic about its long-term growth prospects, despite facing near-term headwinds in the global steel market.
Analysts are maintaining a positive outlook on the company, with revised target prices reflecting its resilience.
Published on: January 28, 2025
Motilal Oswal Financial Services (MOFSL) posted a 14% year-on-year decline in its consolidated net profit for the December quarter, totaling Rs 565 crore, down from Rs 660 crore in Q3FY24. However, the company saw a 12% growth in total revenue from operations, which rose to Rs 1,999 crore from Rs 1,791 crore in the same quarter last year.
Despite the revenue growth, the profit after tax (PAT) fell significantly by 50% sequentially, compared to Rs 1,120 crore reported in the previous quarter. The topline also saw a notable 30% drop on a quarter-on-quarter basis, reflecting some challenges for the company in Q3FY25.
Analysts noted that while the broader market showed optimism, particularly in large-cap stocks due to fair valuations and expectations of a market bottom, mid- and small-cap stocks continued to struggle with overvaluation. The volatility is expected to persist, driven by upcoming events such as the Union Budget and global economic meetings, including the FOMC meeting and F&O expiry.
Published on: January 28, 2025
Cipla, one of India's leading pharmaceutical companies, reported a stronger-than-expected third-quarter profit, bolstered by strong domestic demand, especially for respiratory and urology-related drugs. The company’s consolidated net profit surged nearly 49% to Rs 15.71 billion ($181.6 million) for the October-December quarter, surpassing analysts' estimate of Rs 12.12 billion.
Total revenue climbed 7.1% to Rs 70.73 billion, driven by a 10% growth in the Indian market, which offset a slight 1% decline in sales from North America. Despite concerns over the U.S. pausing foreign aid for some drug programs, including anti-HIV funding, Cipla’s Global CEO, Umang Vohra, reassured investors that the company would not face significant impact, citing the relatively low margins of PEPFAR products.
The stock rose 3% following the results, despite broader market declines triggered by the U.S. funding freeze. Cipla’s strong performance is a positive sign for the company, even amidst the challenges faced by Indian generic drugmakers in the U.S. market.
Published on: January 28, 2025
Cipla, one of India's largest pharmaceutical companies, reported a better-than-expected third-quarter profit for the October-December period, driven by strong demand, particularly in the North American market.
The company’s consolidated net profit surged nearly 49% to Rs 1,571 crore ($181.6 million), exceeding analysts' estimates of Rs 1,212 crore. Total revenue rose 7.1% to Rs 7,073 crore, surpassing expectations of Rs 6,951 crore. The company’s growth was partly fueled by robust sales of its tumor drug, Lanerotide, despite supply chain challenges in the quarter.
Cipla had previously warned of ongoing supply issues with the drug until Q4. In contrast, rival Dr. Reddy’s posted a weaker-than-expected profit due to sluggish U.S. sales, highlighting the challenges faced by Indian generic drugmakers amidst pricing pressures and delayed drug approvals.
Published on: January 28, 2025
The basis of allotment for CLN Energy’s Rs 72.30 crore SME IPO is set to be finalized today, January 28, 2025, after the public offering closed. The IPO, which consisted of a fresh issue of 2.89 million equity shares priced between Rs 235-250, was oversubscribed by 5.42 times. Investors can check the IPO allotment status on the official BSE and Bigshare Services websites once the allotment process is complete.
The grey market premium (GMP) for CLN Energy IPO shares remains flat at Rs 250, the upper end of the price band, suggesting a potentially tepid listing on the BSE SME segment scheduled for Thursday, January 30, 2025. However, GMP trends are not always an accurate reflection of listing performance, and the actual listing results may differ.
CLN Energy, a manufacturer of customized lithium-ion batteries and motors for electric vehicles, will use the proceeds to fund machinery purchases, working capital, and general corporate purposes. The company operates manufacturing facilities in Noida and Pune and offers solutions for electric mobility and stationary applications.
Published on: January 28, 2025
Suzlon Energy is expected to report a strong performance for the quarter ended December 31, 2024, with analysts predicting substantial growth in both revenue and net profit. According to Nuvama Institutional Equities, Suzlon’s revenue is anticipated to reach Rs 2,762.9 crore, marking a 77% YoY and 31% QoQ increase.
The company’s EBITDA is projected at Rs 413.1 crore, reflecting a 67% YoY and 40% QoQ rise, while core PAT is expected to grow by 55% YoY and 58% sequentially. The EPC segment remains strong, and the company has seen a solid inflow of orders in the quarter.
Analysts at JM Financial also forecast a strong performance, with net sales estimated at Rs 2,915 crore (up 87% YoY, 39% QoQ) and net profit expected at Rs 322.2 crore (up 59% YoY, 59% QoQ). Suzlon’s EBITDA is likely to increase by 65% YoY and 39% QoQ, with margins staying flat at 14%.
However, despite the positive outlook, Suzlon's shares fell over 4.5% on Monday to Rs 50.19, marking a nearly 42% drop from its 52-week high in September 2024. Investors will be keen to hear management's commentary on future execution plans and guidance during the concall scheduled for later today.
Published on: January 28, 2025
Kris Gopalakrishnan, co-founder of Infosys, and former IISc Director Balaram, along with 16 others, have been named in a case under the Prevention of SC/ST Atrocities Act. The case was filed at the Sadashiva Nagar police station in Bengaluru, based on the directions of the 71st city civil and sessions court.
The complaint was lodged by Durgappa, a faculty member at the Indian Institute of Science (IISc), who alleges that he was falsely implicated in a honey trap case, dismissed from his job in 2014, and subjected to caste-based abuse and threats.
The case also names other individuals, including faculty members and staff from IISc. At the time of the filing, there has been no response from the accused, including Gopalakrishnan, who is also a member of the IISc Board of Trustees.
Kris Gopalakrishnan is known for his pivotal role in founding Infosys and for his contributions to the Indian IT industry. He served as CEO and MD of Infosys from 2007 to 2011 and received the Padma Bhushan award in 2011. He has been involved in various industry leadership roles, including as president of the Confederation of Indian Industry (CII) for 2013-14.
Published on: January 28, 2025
Wipro Ltd. will turn ex-dividend today, following its announcement of an interim dividend of Rs 6 per share after its December quarter results. The payment is expected to be made on or before February 15, 2025. This comes after Wipro’s shares got ex-bonus in a 1:1 ratio last month.
Despite this, the company’s shares fell 3.78% on Monday, although they have risen 17.47% over the past six months. Analysts highlight Wipro’s stable margin performance driven by higher offshoring and fixed-price contracts, with a recovery expected in its consulting business and an improving demand environment.
However, despite these positive signs, Wipro’s stock continues to trade at a discount compared to peers like Tata Consultancy Services (TCS) and Infosys due to slower growth, margin concerns, and a historically lower dividend payout. Brokerages are divided on the stock’s outlook. Systematix Institutional Equities has set a revised target price of Rs 252, citing a potential for improved earnings but a challenging growth environment.
Elara Securities sees improvements in margins and deal wins, but with valuations that may limit future upside. Meanwhile, JM Financial remains more optimistic, forecasting higher-than-consensus earnings and a revised target price of Rs 360.
Published on: January 28, 2025
Route Mobile's share price dropped 5.46% to Rs 1,134.10 on Tuesday's intraday trade following a decline in net profit for Q3FY25. The company posted a 3.8% Y-o-Y increase in revenue from operations, reaching Rs 1,183.79 crore, but faced a significant rise in total expenses, which grew 17.1% Y-o-Y to Rs 1,085.47 crore.
This led to a 24.8% Y-o-Y fall in profit, which amounted to Rs 85.47 crore compared to Rs 113.64 crore in Q3 FY24. For the nine months ended December 31, 2024, the company reported a 13.1% Y-o-Y revenue growth, but its profit for the period declined by 6.8%.
Route Mobile's share price has underperformed the market, falling 30% in the last six months and 27% in the last year, while the BSE Sensex has seen a decline of 6.8% over the past six months and a 7.1% rise in the past year.
Despite these challenges, the cloud communications company, which provides services such as messaging, voice, SMS filtering, and analytics, maintains a market capitalization of Rs 7,251 crore. As of 1:47 PM, Route Mobile shares were priced at Rs 1,151 on the BSE, while the Sensex rose 1.15%.
Published on: January 28, 2025
Maruti Suzuki is expected to report a solid performance for Q3FY25, with analysts predicting a revenue increase of up to 17.3% year-on-year (Y-o-Y) to Rs 39,068.3 crore. The growth is expected to be driven by a 4% rise in passenger vehicle (PV) production and the premiumisation of its offerings.
Various analysts have a positive outlook, with Elara Capital forecasting a 16.2% Y-o-Y rise in revenue to Rs 38,702.6 crore, while Sharekhan predicts a 14.2% increase, projecting a revenue of Rs 38,038.5 crore. Analysts also expect a strong growth in recurring PAT, with estimates ranging from 11.5% to 23.4% Y-o-Y growth, reflecting robust demand for Maruti's PVs.
Despite expectations for strong revenue growth, some analysts, like those at Nuvama, forecast a slight contraction in Ebitda margin due to higher discounting. The key focus will be on Maruti's order bookings for new electric vehicles (EVs) and the outlook for future demand in the sector.
At midday on Tuesday, Maruti Suzuki’s shares were trading slightly lower at Rs 11,965.15, while the broader BSE Sensex was up 1.01%.
Published on: January 28, 2025
Swiggy's share price fell 5% to Rs 389.25 on Tuesday, dipping below its issue price of Rs 390 per share, marking its lowest level since its November 2024 listing. The stock has now dropped 37% from its 52-week high of Rs 617, reached in December 2024.
Year-to-date, the company's shares have fallen by 28%, underperforming the BSE Sensex, which is down just 3%. Despite its strong footprint in food delivery and grocery services, Swiggy faces challenges in achieving profitability. The company's growth in both food delivery and quick commerce has slowed compared to its competitor Zomato.
In Q3FY25, Swiggy's gross order value (GOV) growth for food delivery and quick commerce was much lower than Zomato's. Analysts remain cautious, forecasting a potential path to break-even by Q3FY26, with quick commerce expected to reach profitability by Q2FY27. Swiggy's stock price has fallen by 19% in the last six trading days, following a mixed performance from Zomato, which has raised concerns about future profitability in quick commerce.
Analysts suggest that while Swiggy is working on improving execution, its heavy reliance on quick commerce could keep it trading at a valuation discount relative to Zomato, which continues to deliver stronger financial results.
Published on: January 28, 2025
Bajaj Auto is set to announce its Q3FY25 results on January 28, 2025, with analysts expecting moderate growth across key metrics. Revenue is projected to rise by 3.2% to 6.9% year-on-year, driven by a 7% increase in two-wheeler production and improved realisations from premiumisation.
Operating margins are anticipated to remain flat sequentially, as lower input and forex costs are offset by scale-related challenges. Profit After Tax (PAT) is expected to grow by up to 6.5% YoY.
Analysts from Anand Rathi, Elara Capital, and Sharekhan have provided varied but positive outlooks, with revenue estimates ranging from Rs 12,502 crore to Rs 12,954 crore, and PAT forecasts from Rs 2,090 crore to Rs 2,175 crore.
Despite strong festive season sales, margin contraction is expected for some players due to shifts in product mix and increased promotional activity. Bajaj Auto shares ended 0.28% lower at Rs 8,380.35 ahead of the results announcement.
Published on: January 28, 2025
Nakul Jain, the managing director and CEO of Paytm Payments Services Ltd. (PPSL), has announced his resignation, effective March 31, 2025, or an earlier agreed date, according to a statement from parent company One 97 Communications Ltd.
Jain, who joined Paytm in June 2022, cited his decision to pursue an entrepreneurial journey. With over 20 years of experience in payment and retail banking, Jain’s departure comes amid Paytm’s efforts to secure regulatory approval from the Reserve Bank of India for its resubmitted Payment Aggregator license application.
PPSL is actively searching for a new CEO while remaining focused on driving growth. Shares of One 97 Communications dropped 3.4% following the announcement.
Published on: January 28, 2025
After two consecutive sessions of declines, India's Sensex and Nifty indices closed higher on January 28, driven by a nearly 2% rise in Nifty Bank stocks, following the Reserve Bank of India's liquidity-boosting measures
These moves, aimed at easing liquidity stress in the banking system, sparked hopes of a potential rate cut in February. Rate-sensitive stocks such as HDFC Bank and Axis Bank saw significant gains, while healthcare and FMCG stocks underperformed.
Despite the rally in large-cap stocks, broader markets continued to face challenges, with mid-cap and small-cap indices struggling. Investors are also bracing for volatility ahead of key events, including the U.S. Federal Reserve’s rate decision and India’s Union Budget.