Page 5 - Devangshu Datta

Pricing weakness likely to weigh on Indian steel companies stocks

In Q1FY25, Tata Steel and JSW Steel posted flat operating profit margins as higher volumes and lower input prices compensated for low steel prices

Valuations reflecting multiple positives for airlines major IndiGo

India is a very underpenetrated aviation market, which means a strong growth outlook

Any correction in oil marketing companies could be a buying opportunity

The gross refining margins or GRMs and gross marketing margins for OMCs are critical

A banana apocalypse: World's plantations are at risk of being wiped out

A new fungal threat could wipe out the world's banana plantations, which have lost the ability to mutate and produce disease-resistant varieties

Look beyond surrender value rules as growth healthy for life insurers

There is some post-Q1FY25 guidance on growth and margins as follows: HDFC Life targets doubling VNB in four years and hopes to outpace the industry in retail APE (annual premium equivalent) growth

Volume rebound, moderate valuation positive for mining major NMDC

NMDC spent Rs 400 crore on capex in Q1 against the annual target of Rs 2,200 crore for FY25

Apollo Hospitals Enterprise likely to ride on healthy business outlook

APH expects online pharmacy distribution margins to grow to 20 per cent in FY25, from 13.6 per cent currently

Hero MotoCorp to vroom on new launches and uptick in rural growth

Valuation is trading around 22 times expected FY25 earnings per share and investors would have to factor in holdings in Hero FinCorp and Ather after taking a holding company discount

Hindalco: Q1 performance in line with expectations, outlook positive

In FY25, the management expects capex of Rs 5,500-6,000 crore for India operations and capex of $1.4-2.1 billion for Novelis

Red-hot growth projections point to cooler outlook for Voltas stock

Voltas saw strong growth in both UCP (Unitary Cooling product) and EMPS (electro mechanical projects) segments. It reported a profit in EMPS versus expectations of loss

July Budget and slashing of SGBs: A setback for portfolio balancing

Understandable if govt decided not to bear exchange and capital appreciation risks on SGBs anymore, but this would be a pity for investors who would no longer have this option to balance portfolios

Strong growth prospects, mixed valuations seen for Info Edge stock

A continued slowdown in IT hiring remains a risk. IT billings growth slowed to single digits, while non-IT segments grew 14 per cent Y-o-Y and this supported growth

Bangladesh's gamble

As the Awami League's current predicament shows, repressive regimes-even when delivering prosperity-cannot keep their populace content

Prospects healthy for Bharat Forge, but stock fully valued too

Bharat Forge's Q1FY25 revenue growth was driven by defence as other segments saw weak demand. Overseas subsidiaries are showing gradual improvement

Improving outlook may drive further gains in Godrej Consumer Products

GCPL has delivered industry-leading volume growth in India and it may record double-digit earnings growth over FY24-26

Valuations factor in strong earnings growth, better margins for TVS Motor

The strong earnings growth and margin improvement are reflected in the current valuation of 44 times price to price-to-earnings ratio on FY25 earnings

Non-biscuit portfolio key driver of Britannia Industries' growth

Unless there is a sharp upside surprise in terms of volumes, or some unusual gains in margins

Stock market positive on Thermax despite profit margin decline in Q1

The industrial products segment is poised for double-digit growth driven by solutions for water treatment and air pollution

Demand, margin concerns likely to weigh on Tata Motors in near term

The prospects are good enough for analysts to marginally hike EPS estimates by 3 per cent or so for FY25. The stock trades at an estimated 19-20x of FY25 estimated EPS.

Strong volume growth, lower costs positive for Coal India's outlook

While operating profit margins are likely to normalise over the next two fiscals, the net profit estimates are being upgraded by analysts on the basis of higher OBR reversals