Archives: StockReport

Bharat Electronics (BEL) secured new orders worth ₹962 crore, including ₹352 crore since January 28, 2025. These contracts cover anti-drone systems, fuzes, fire detection systems, vessel communication systems, spares, and services. With this, BEL’s total orders for the financial year now stand at ₹11,855 crore. In Q3, BEL’s revenue surged 37% year-on-year to ₹5,643.25 crore, while net profit soared 47% to ₹1,316.06 crore. The biggest highlight was its EBITDA margin expanding by 330 basis points to 28.7%, far exceeding its 23-25% guidance over the last six to eight quarters.

ITC Ltd. posted a resilient performance in Q3FY25, benefitted by recovery in rural consumption even during challenging period where the company faced issues like economic slowdown due to low urban consumption and rising input cost impacting the company’s margins. The company improved its market position through strategic product differentiation and premiumization. The FMCG cigarette segment showed resilience amid rising costs. On the other hand, the FMCG non-cigarette sector faced challenges primarily due to inflationary pressures and growing competition. The agri business experienced significant growth, driven by leaf tobacco and value-added products, although margins were affected by rising costs. However, the boost to the economy by the government during the recent budget suggest a positive outlook for consumption demand especially in the premium category in the near term. Further, the company has demerged its hotel segment with effect from 1 January 2025 and it has been reported as the ‘Discontinued Operations’ in the Q3FY25 financial results. Post-demerger, ITC will focus on its core cigarette and FMCG businesses, benefiting from a more asset-light structure, improving capital efficiency and returns. This shift is expected to improve ITC’s return ratios substantially and improve profitability, thereby offering an attractive long-term upside. With focus on consumer centricity, purposeful innovation, agility and execution excellence, the company remains confident of navigating the short-term challenges and creating sustained value for all stakeholders. 

Zydus Lifesciences shares rose over 2%  after the company reported a strong Q3FY25 performance. Net profit jumped 30% year-on-year to ₹1,023 crore, driven by strong sales in India and the US. Revenue grew 17% to ₹5,269 crore, compared to ₹4,505 crore last year. The company’s EBITDA increased to ₹1,387 crore from ₹1,102 crore, with margins improving to 26.3% from 24.5%. Zydus credited its growth to a strong US portfolio, market share gains in key therapy segments in India, and strategic expansion in global markets. Additionally, forex gains significantly boosted profits, rising to ₹183 crore from ₹21 crore in Q3FY24. The company remains confident in achieving double-digit growth for FY25 with improved profitability. As of 9:45 AM, Zydus Lifesciences stock was trading at ₹997, up 2.05%, reflecting investor confidence in its continued business expansion and solid financial performance.

MTNL shares hit a 20% upper circuit at ₹57.21 on February 5, driven by optimism over its asset monetization plans for FY26. This follows a 7% rise in the previous session after DIPAM Secretary Arunish Chawla reaffirmed the government’s commitment to monetizing MTNL and BSNL assets to clear liabilities. Despite being classified as an NPA last year, MTNL gained momentum after Finance Minister Nirmala Sitharaman announced a broadband scheme for government schools and health centers in Budget 2025. The telecom sector rallied, with the BSE Telecom index up 1.4%. However, the government’s telecom revenue is projected to decline by 33% to ₹82,443 crore in FY26 due to lower spectrum usage charges and deferred spectrum payments. At 10:20 am, MTNL was trading at ₹56.6, up 18.8%, with a 17% gain over the past three months.

Shares of Bajaj Finance rose more than 5%, reaching a new all-time high, and are up over 21% this year, following strong quarterly results for December. Investors are optimistic, expecting a 25 basis point rate cut by the Reserve Bank of India (RBI) later this week, which could further support consumption, especially after the tax relief in the recent budget. The company has improved its loan portfolio, reducing customers with multiple unsecured loans to pre-Covid levels, and expects credit costs to stay below 2% in FY26. Bajaj Finance’s strong performance in Q3FY25 included an 18% increase in net profit, driven by a rise in assets under management. Analysts remain positive, with some setting price targets above Rs 8,000 per share. The company also announced a leadership transition plan, as the current MD’s tenure ends in March, though he will stay involved in the strategic direction.

Private lender IndusInd Bank reported disappointing performance in Q3FY25, primarily due to slower loan growth, elevated slippages, and increased credit costs. These developments were expected, as management has been cautious in disbursing loans, particularly in the MFI segment, where the bank is the second largest lender. This cautious approach has contributed to sluggish credit growth during the quarter. The bank is gradually reducing its exposure in the MFI sector. Vehicle financing activity exhibited muted growth, but there are expectations for improvement in Q4FY25. In previous quarter, management projected a growth of 16%, so it will be important to monitor whether this guidance has been revised in light of recent performance. NIMs experienced compression due to a decline in the high-yielding MFI loan segment and rising deposit costs. However, there is optimism that NIMs will improve if growth in the microfinance sector resumes. In terms of asset quality, both GNPA and NNPA deteriorated, and Return on Assets also declined, indicating increased stress.

Tata Consumer Products Limited, a Tata Group engaged in the business of food and beverages, reported healthy revenue growth in Q3FY25, mainly led by its strong operational performance in the Indian market. During the quarter, the consolidated revenue increased by 17% YoY.  Its beverages business reported a revenue growth of 9%, with tea volumes growing at 7% YoY and strong momentum in coffee continued with 28% revenue growth. The Salt business revenue grew by 7% driven by pricing hike that company took in October 2024 and modest volume growth of 1%. The value added salt segment continued its strong momentum and reported a 31% revenue growth. The company continues to strengthen its market share in salt business. The company’s recently acquired Capital Foods and Organic India have created a momentum with combined revenues crossing Rs. 850 crores. Further, Tata Starbucks, which aims to have 1000 stores by 2028, added 16 new stores and entered 4 new cities bringing total stores count to 473 across 74 cities, reinforcing its position as India’s largest organized cafe operator. Internationally, the company reported a robust revenue growth of 8%, due to strong performance in the UK market. On consolidated level, EBITDA margins were impacted by 234 bps, due to inflation in India tea cost. However, calibrated price increases across tea portfolio have helped the company to partially offset this significant increase in tea cost. 

India’s leading NBFC, Bajaj Finance, showed strong performance in Q3FY25, marked by significant growth in assets under management and an 18% YoY increase in net profit, surpassing estimates. The company experienced a highest number of new loan bookings and a steady customer acquisitions during the quarter. Bajaj Finance holds a 7% overall market share and a dominant 37% share in the NBFC personal loans segment. However, in Q3FY25, there was some deterioration in asset quality and an increase in provisions.  The industry is currently navigating a credit cycle with rising credit costs, although Bajaj Finance’s credit cost is expected to stabilize in the near term. The company has ended co-branded partnerships with RBL Bank and DBS Bank, and management commentary on these will be closely monitored.