L&T Sees Strong Growth
- 31th January 2025
Aaj Ka Bazaar
The US indices ended up higher yesterday after beating the volatility in the market amidst the slew of key corporate earnings. The sentiments were largely supported by the upbeat commentary from Tesla, which helped mitigate the concerning sentiments stemming from the dull outlook of Microsoft. The Asian market also started the day, supported by the bias from the relatively positive US market. On the commodity front, Gold touched the mark of Rs. 81,000/10g amidst a slowdown in trade in the domestic market, led by heightened anticipation of an upward revision of custom duty on the metal in the Union Budget and tariff concerns from the Trump administration. The dollar also continued to trade higher amidst tariff concerns. The domestic markets are likely to open on a negative note as per the cue from GIFT Nifty, drifting away from the global peer sentiments. The markets are expected to remain highly volatile, as key blue chip earnings are likely to influence the market, in addition to expectations from the Union Budget.
Markets Around Us
BSE Sensex –76,937.97 (0.24%)
Nifty 50 – 23,312.30 (0.27%)
Bank Nifty – 49,187.40 (-0.25%)
Dow Jones – 44,976.97 (0.20%)
Nasdaq – 19,680.70 (0.25%)
FTSE – 8,646.88 (1.03%)
Nikkei 225 – 39,652.63 (0.35%)
Hang Seng – 20,255.11 (0.00%)
Sector: Construction
Larsen & Toubro Ltd. Q3FY25
Engineering giant Larsen & Toubro (L&T) delivered a decent operating and financial performance during the quarter. While the company did not surpass street estimates, its robust order book, record-high order inflows, and ramp-up in execution momentum bode well for future growth. The company anticipates that the Union Budget will prioritize infrastructure development, technology adoption, skill enhancement, and energy transition policies, which could further drive economic momentum. L&T stands to benefit from the government’s continued push towards infrastructure developments and economic growth.
Why it Matters:
The company has been performing well with improved operational efficiency and sustained digital adoption. Its strong near-term order prospects and confidence in maintaining growth momentum position it for continued success in the coming quarters.
NIFTY 50 GAINERS
LT – 3560.00 (4.06%)
TATACONSUM – 1005.35 (4.00%)
BEL – 286.40 (2.74%)
NIFTY 50 LOSERS
ITCHOTELS – 158.30 (-3.02%)
INFY – 1598.00 (-2.61%)
BAJAJFINSV – 1713.40 (-1.82%)
Sector: FMCG
Tata Consumer Products Ltd. Q3FY25
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.
Why it Matters:
The management is strategically focusing on expanding its market share by reaching new geographies, exploring new distribution channels like e-commerce, split route and launching new innovative products and smaller SKUs. Overall, Tata Consumer’s domestic business is poised for further growth, especially in the tea and salt segments which commands significant market share.
Around the World
Asian stock markets remained mostly stable on Thursday as investors reacted to the U.S. Federal Reserve’s decision to keep interest rates unchanged with a cautious outlook. Tech stocks stayed under pressure due to mixed signals on artificial intelligence. Meanwhile, Australian markets outperformed, reaching record highs on expectations of a rate cut by the Reserve Bank of Australia in February. Concerns over potential U.S. trade tariffs under Trump’s policies added uncertainty. Trading volumes were low due to Lunar New Year holidays in major Asian markets like China, Hong Kong, and South Korea. Japan’s stock indexes stayed flat as tech losses balanced gains in domestic sectors, with SoftBank declining further after reports of a $25 billion investment in OpenAI. Australian stocks gained on rate cut bets, though core inflation remains high. India’s Nifty 50 was set for a slight positive open, while Philippine markets dipped after weak GDP data.
Option Traders Corner
Max Pain
Nifty 50 – 23,250
Bank Nifty – 49,300
Nifty 50 – 23,236 (Pivot)
Support – 23,151, 23,054, 22,968
Resistance – 23,334, 23,419, 23,517
Bank Nifty – 49,256 (Pivot)
Support – 49,087, 48,862, 48,692
Resistance – 49,481, 49,651, 49,875
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