Published on: January 24, 2025
The sugar sector saw a decline in Friday’s session, with several key players experiencing significant losses. Sakthi Sugars Ltd. led the fall, down 3.45%, followed by Avadh Sugar & Energy Ltd. (down 3.17%), Bajaj Hindusthan Sugar Ltd. (down 2.83%), and others such as KM Sugar Mills Ltd., EID Parry (India) Ltd., and Dalmia Bharat Sugar and Industries Ltd.
Among the few gainers in the sector, DCM Shriram Industries Ltd. managed a modest rise of 0.25%. Meanwhile, the broader market ended on a weak note, with the NSE Nifty50 index dropping by 113.15 points to close at 23,092.2, and the BSE Sensex shedding 329.92 points to settle at 76,190.46.
While sugar stocks struggled, the Nifty pack saw strong performances from companies like Hindustan Unilever Ltd. (up 2.0%), Britannia Industries Ltd. (up 1.78%), and Eicher Motors Ltd. (up 1.77%). On the flip side, stocks such as Dr. Reddy's Laboratories Ltd. (down 5.05%), Trent Ltd. (down 4.25%), and Mahindra & Mahindra Ltd. (down 2.95%) dragged the market lower, contributing to a broadly negative session.
Published on: January 24, 2025
Shares of Capri Global Capital Ltd. jumped more than 12% on Friday, reaching a one-month high after the company's third-quarter results revealed a more than two-fold increase in net profit. The net profit for the quarter ended December surged to Rs 108 crore, compared to Rs 51.3 crore in the same period last year.
Total income rose 26.5% to Rs 604 crore, up from Rs 478 crore in Q3 FY24. Despite the impressive earnings, the company's gross non-performing assets (GNPA) and net non-performing assets (NNPA) stood at 1.67% and 1.02%, respectively.
he stock saw a massive surge in trading volume, with activity reaching 228 times its 30-day average. Capri Global Capital's stock price rose as much as 12.79% to Rs 205 per share, the highest level since December 13, before paring some gains to trade 12.24% higher at Rs 204.01 as of 11:56 a.m.
This movement came amid broader market gains, with the NSE Nifty 50 Index advancing by 0.60%. In addition to strong financial performance, Capri Global announced key leadership changes. Abhishek Yada was appointed as the new Chief Compliance Officer, while Vikram Vaswani was named the new Head of Insurance and Principal Officer.
Both appointments are effective from January 23, 2025. Despite a 14.54% decline over the last 12 months, analysts remain positive, with a consensus 'buy' rating and a 24.7% upside potential based on the average 12-month target price.
Published on: January 24, 2025
Adani Energy Solutions Ltd. received a bullish recommendation from brokerage Investec, which has maintained a 'buy' rating on the stock and set a target price of Rs 1,352, signaling a 67% upside from its previous close. The positive call follows the company's strong third-quarter (Q3FY25) performance, where its net profit surged by 73% year-on-year to Rs 562 crore, driven by robust Ebitda growth and a reversal of a net deferred tax liability of Rs 185 crore, primarily from the divestment of the Dahanu plant in Adani Electricity Mumbai Ltd.
Revenue for Q3 rose by 27.8% to Rs 5,830 crore, fueled by newly commissioned projects and higher energy sales. Investec also highlighted the company's strong operating income growth, supported by treasury income and steady regulated Ebitda from AEML, which has been improving its distribution loss consistently.
The company's under-construction transmission pipeline has expanded significantly to Rs 54,761 crore, up from Rs 17,000 crore in the previous quarter, with five new project wins so far this year. As of 10:25 a.m., Adani Energy Solutions shares were trading 2% lower at Rs 789 apiece, amid a flat NSE Nifty 50 index.
Despite the recent decline of 24% in the last 12 months, analysts remain optimistic, with all six analysts covering the stock maintaining a 'buy' rating. The average 12-month target price of Rs 1,369 suggests a potential upside of 74%.
Published on: January 24, 2025
Indus Towers Ltd. saw its share price rise by 2.07% to Rs 374.20 in early trading on Friday, following the company’s strong third-quarter (Q3FY25) results. The mobile tower company reported a significant increase in net profit, which more than doubled to Rs 4,003 crore compared to Rs 2,200 crore in Q2FY25, surpassing analyst expectations.
The growth was driven by a sharp increase in operating profit (Ebitda), which surged by 94% year-on-year to Rs 6,958 crore, largely due to the recovery of Rs 2,900 crore in past dues from Vodafone Idea (VI), including a Rs 1,900 crore lump sum payment received in January 2025. Citi analysts highlighted three key positives from Indus Towers’ Q3 performance: the recovery of past dues, a significant increase in tenancies, and strong free cash flow (FCF) generation.
Tenancy additions from Vodafone Idea improved dramatically, with around 2,500-3,000 new tenancies added, reaffirming the company's dominant market position. Additionally, free cash flow rose sharply from Rs 1,400 crore in Q2 to Rs 2,700 crore in Q3, with expectations of continued growth in Q4, potentially leading to a dividend payout.
Despite slightly missing revenue expectations, with a 4.4% year-on-year increase to Rs 7,547 crore, Indus Towers’ operating performance was impressive, with an Ebitda margin expansion to 92.2% from 49.8% in Q3FY24.
As of 10:12 a.m., the stock was trading 0.57% higher at Rs 368.70, showing a 60.34% rise over the past year. Analysts remain bullish on the company, with 13 out of 24 analysts maintaining a ‘buy’ rating and a 9.7% upside in the average 12-month price target.
Published on: January 24, 2025
OneSource Ltd., a Contract Development & Manufacturing Organization (CDMO) and soft gelatin business spun off from Strides Pharma Science Ltd., made a strong debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Friday, January 24, 2025. The stock opened at Rs 1,800 per share on both exchanges, reflecting a 6.9% premium over its pre-open discovery price of Rs 1,610.7.
The company, which specializes in biologics, high-end drug devices, oral technologies, and sterile injectables, received final approval for listing on both exchanges on January 22, 2025. OneSource’s spin-off from Strides Pharma was approved by the National Company Law Tribunal (NCLT) in November 2024, following which Strides Pharma shareholders as of December 6, 2024, received one fully paid equity share of Rs 1 each in OneSource for every two shares they held in Strides Pharma.
This strategic spin-off aims to create synergies, enhance business supervision, and position OneSource for future growth and sustained value creation for shareholders. OneSource is now poised as India’s first specialty pharma pure-play CDMO, marking a significant step in the country's pharmaceutical sector.
Published on: January 24, 2025
Nippon Life India Asset Management (AMC) saw its share price slip by 5.38% to Rs 618.70 on the BSE in Friday’s intraday trade, following the company’s third-quarter (Q3FY25) earnings report. While the asset management firm reported a 4% year-on-year increase in profit after tax (PAT) to Rs 295.4 crore, the sequential decline of 18% compared to the previous quarter raised concerns among investors.
Despite the drop in PAT, the company posted a strong 39% increase in revenue from operations, which reached Rs 587.9 crore compared to Rs 423.3 crore in Q3FY24. Nippon Life AMC’s quarterly average assets under management (QAAUM) grew 51% year-on-year to Rs 5.7 trillion, reinforcing its position as the fourth-largest AMC in India.
The company also highlighted positive growth in market share and investor engagement, with an 8.31% market share in Q3, up 63 basis points year-on-year, and a record-high investor folio base of 31 million, including 2.3 million new folios added during the quarter. Systematic Investment Plan (SIP) flows also saw robust growth, reaching Rs 9,910 crore in Q3, up 9.7% from the previous quarter.
Despite these positive indicators, the market reacted negatively to the sequential profit decline, leading to the sharp drop in share price. Nippon Life AMC currently has a market capitalization of Rs 1,359.91 crore, with a price-to-earnings ratio of 6.15 and earnings per share of Rs 21.97.
Published on: January 24, 2025
Indian stock markets are likely to open on a positive note on Friday, January 24, 2025, supported by global market gains, especially after Wall Street surged on comments from US President Donald Trump advocating for lower interest rates and cheaper oil. Asia-Pacific markets also saw positive movements this morning, with Japan's Nikkei and South Korea's Kospi leading the way.
However, the Indian markets could face consolidation in the near term due to sluggish Q3 earnings results and sustained foreign investor selling. On Thursday, January 23, the BSE Sensex closed with a modest gain of 0.15% at 76,520, while the NSE Nifty50 ended 0.22% higher at 23,205.
Market watchers are now focusing on the Q3 results of 81 domestic companies, including major names such as Alkyl Amines, AU Small Finance Bank, and JSW Steel. Among these, JSW Steel is expected to face challenges due to softer steel prices and weak demand, while IndiGo is anticipated to report a sequential improvement in earnings.
The IPO market also remains active, with several IPOs closing today, including Denta Water and Infra, while the SME platform sees the debut of EMA Partners India. Investors will also keep an eye on potential Budget 2025 proposals, including key policy changes expected for the maritime and renewable energy sectors.
Analysts suggest that while the market may continue to face selling pressure at higher levels, technical indicators hint at potential pullbacks if the Nifty remains above key support zones. The ongoing Q3 results and global trends will likely steer market sentiment today.
Published on: January 24, 2025
Indian markets are expected to see a positive start on Friday, January 25, 2025, following a favorable close on Thursday. The key benchmarks—the BSE Sensex and Nifty50—closed with moderate gains, with the Sensex rising 0.15% to 76,520.38 and Nifty50 gaining 0.22% to settle at 23,205.35.
For Friday, several stocks are in focus as they announce their quarterly earnings. Major companies reporting their Q3 results include ICICI Bank, NTPC, IDFC First Bank, Yes Bank, Balkrishna Industries, Go Fashion (India), JK Cement, and more. Additionally, EMA Partners India is set to make its debut on the NSE SME.
Notable earnings reports to watch include:
Dr. Reddy's Laboratories: A 2.5% increase in profit, driven by 15.9% higher revenue, despite a drop in EBITDA margin.
UltraTech Cement: A 17.3% fall in net profit due to weak price realizations, though revenue saw a slight increase.
Indus Towers: A strong rise in net profit and revenue, with EBITDA margin climbing significantly to 92.71%.
HPCL: Significant Q3 profit surge, beating estimates with improved GRM.
United Spirits: Strong profit growth, surpassing expectations with a 17.13% EBITDA margin.
Tejas Networks: An impressive turnaround, reporting a significant profit after a loss last year, driven by higher revenue and improved margins.
Other stocks to keep an eye on include Mankind Pharma, Adani Green Energy, Suryoday Small Finance Bank, Ujjivan Small Finance Bank, and Greaves Cotton, all of which reported mixed earnings results for Q3.
Also, several companies like NHPC, Adani Wilmar, Intellect Design Arena, and Syngene International are making headlines with corporate updates and new partnerships. Investors should track these developments closely as they could influence stock performance on Friday.
Published on: January 23, 2025
Jaguar Land Rover (JLR), owned by Indian automaker Tata Motors, is grappling with profitability issues due to weak demand and shifting consumer preferences in China. The Chinese market, which has seen a decrease in overall consumer spending on luxury vehicles, is now dominated by local electric vehicle (EV) manufacturers such as BYD, impacting sales of traditional top-end cars like those offered by JLR.
In the September quarter, JLR's wholesale volumes in China dropped 38% year-on-year, contrasting with growth in North America and Europe. Tata Motors’ Group CFO, P B Balaji, emphasized that while JLR's performance in China has remained resilient, the company is adjusting its inventory levels to match the market downturn. Despite the challenges, JLR is committed to investing in new products and technologies to improve revenue and profitability.
In India, Tata Motors is ramping up its electric vehicle offerings, including an all-electric Jaguar, to compete in the rapidly growing green vehicle segment. Balaji also confirmed the company is on track to achieve a net cash position by the end of the financial year, making JLR debt-free as part of its long-term strategy.
Published on: January 23, 2025
NTPC Green Energy Ltd., a subsidiary of NTPC Ltd., is set to announce its financial results for the quarter ending December 31, 2024, on January 25. The company's board will meet in New Delhi to approve the unaudited results, which will then be reviewed by the Audit Committee of the Board.
The trading window for NTPC Green Energy's securities will remain closed until January 27. Despite its significant renewable energy capacity of 3,071 MW from solar and 100 MW from wind projects, NTPC Green Energy has seen a 6.43% drop in its stock price over the last five trading sessions.
The stock has fallen by 15.13% in the past month and is down over 6% since its IPO debut in November 2024. The IPO, which raised funds to clear debts and invest in capital expenditure, was listed with a small premium but has faced challenges in recent market performance.
Published on: January 23, 2025
The Indian rupee weakened by 5 paise to 86.40 against the US dollar in early Thursday trade, driven by a stronger greenback. Despite a drop in crude oil prices and a rise in domestic equity markets providing some support, the rupee remained volatile, with forex traders forecasting it to trade between 86.20 and 86.60 during the day.
Opening at 86.46, the rupee briefly dropped to 86.52 before recovering to 86.40, down 5 paise from Wednesday's close of 86.35. Exporters are expected to remain cautious, with a stop-loss strategy set at 86.25 amid persistent US dollar demand. The dollar index rose by 0.08% to 108.25, while Brent crude traded lower at $78.73 per barrel.
Meanwhile, the domestic equity market showed positive movement, with the BSE Sensex and Nifty both experiencing gains. However, Foreign Institutional Investors (FIIs) continued their selling trend, offloading shares worth Rs 4,026.25 crore on Wednesday.
Published on: January 23, 2025
Indian corporates are likely to see a decline in their net leverage ratio, expected to fall to 2.7x in FY26 from 3.1x in FY25, driven by improved earnings before interest, taxes, depreciation, and amortization (Ebitda). Fitch Ratings forecasts the leverage could dip further to below 2.5x by FY27.
The credit agency attributes the improvement to rising Ebitda margins, projecting them to surpass 16% by FY27, despite high capital expenditure (capex) across sectors. However, Fitch highlights several risks that could hinder this optimistic outlook, such as potential increases in energy prices, volatility in the Indian rupee, and trade protectionism measures that could dampen exports.
The report notes that the credit metrics for most corporates are expected to improve, except for a few companies, including entities from the Adani Group, Tata Steel, and Greenko Energy, which face negative outlooks. Fitch also points to a stable Indian GDP growth forecast of 6.5% in FY26, with strong infrastructure spending expected to benefit sectors like cement, steel, and energy.
The improved health of India's banking sector is likely to support corporate credit access, with banks’ enhanced balance sheets and a favorable interest rate environment.
Published on: January 23, 2025
Tata Steel has filed a curative petition with the Supreme Court of India, seeking the invocation of extraordinary jurisdiction concerning the tax imposition on its mineral-bearing land in Odisha. The petition, filed on January 17, 2025, challenges the Supreme Court's September 24, 2024, order that dismissed a series of review petitions related to the constitutional validity of the tax imposed under the Orissa Rural Infrastructure and Socio-Economic Development Act, 2004.
The case stems from the court's earlier ruling in July 2024, which upheld the state’s right to impose taxes on mineral rights under the Mines and Minerals (Development & Regulation) Act of 1957.
While the ruling clarified the state’s authority, Tata Steel has now turned to the curative petition to request a reconsideration of the dismissal of its review petitions. This legal move represents the company’s final attempt to challenge the decision before the Supreme Court.
Published on: January 23, 2025
Wipro's share price surged 5% on Thursday, hitting a three-year high of ₹324.55, driven by a healthy outlook and impressive earnings. The stock surpassed its previous high of ₹319.95 from December 2024, marking its highest level since January 2022. The rally follows a strong performance in Q3 FY25, with the company's EBIT margin reaching a 12-quarter high of 17.5%, up 70 basis points from the previous quarter.
Wipro's recent growth was fueled by improved offshoring, cost optimization, and productivity, which helped the company meet its aspirational margin targets. Despite a slight decline in total contract value (TCV) for Q3, Wipro's 17 large deals were a positive takeaway, and analysts remain optimistic about the company's prospects.
While Wipro’s Q4 revenue growth guidance is slightly softer, expected to be between -1% and +1% QoQ, analysts are bullish on the stock due to strong margin performance, a favorable portfolio mix, and a promising deal pipeline. Nuvama Wealth Management recently upgraded its rating on Wipro with a target price of ₹350 per share, while JM Financial Institutional Securities and ICICI Securities also maintain 'Buy' ratings with target prices of ₹360 and ₹350, respectively.
Despite challenges in certain sectors, including BFSI and EMR, Wipro's deal pipeline and focus on margin stability continue to drive investor confidence.
Published on: January 23, 2025
Infosys Ltd. has announced plans to expand its IT campus in Pocharam, Hyderabad, as part of its ongoing partnership with the Telangana government. The expansion will create an additional 17,000 jobs and further establish Telangana as a key technology hub in India.
The announcement was made at the World Economic Forum in Davos during a meeting between Infosys CFO Jayesh Sanghrajka and Telangana’s IT and Industries Minister, D Sridhar Babu. Infosys, which currently employs over 35,000 people at the Pocharam campus, will invest ₹750 crore in the first phase of the expansion, set to be completed within 2-3 years.
The new phase will involve constructing additional IT buildings, accommodating up to 10,000 employees. The expansion is part of Infosys’s broader vision to drive innovation and strengthen the IT landscape in collaboration with the Telangana government.
Minister D Sridhar Babu highlighted the state government’s commitment to fostering a thriving tech ecosystem, creating opportunities, and nurturing talent. This strategic expansion underscores Telangana’s proactive approach to boosting its technology sector and fostering sustainable growth in the region.