Page 7 - Devangshu Datta

L&T likely to outperform guidance after strong Q1 FY25 performance

Assuming valuations at around 30 times price-to-earnings and valuing holdings in listed subsidiaries at a discount of 25% to fair-value, there could still be an upside of 15-20%

Maintaining premium growth, sustained margins key for ICICI Prudential Life

The agency growth was driven by the addition of more than 12,000 agents, plus the launch of new products

Good science, bad communication

Ignorance and misunderstanding are rife in how the media reports on scientific matters. Fiona Fox's book addresses this fissure and how to bridge the divide

Union Budget 2024 remains largely neutral for stock markets in India

A breakout of 3% plus or minus - say 750 points on the Nifty - would reset the medium-term trend but this Budget does not seem to have provided the triggers either way

Near-term outperformance likely to sustain for Polycab and Havells

Polycab's Q1FY25 revenue stood at Rs 4,700 crore, up 21 per cent Y-o-Y, with the operating profit margin up 6 per cent Y-o-Y to Rs 580 crore

Multiple triggers ahead for affordable housing finance companies

Investor interest in AHFCs has increased, given expectations of measures in the Budget to boost the affordable housing market as well as the growth trajectory

Volume outperformance, steady results factored into Bajaj Auto's valuations

The company expects to outperform the 7-8 per cent growth in the domestic 2W industry on the back of growth in the 125cc+ segment and the launch of CNG motorcycle 'Freedom 125'

Demand recovery hopes, valuations to support Hindustan Unilever stock

The FMCG sector is hoping for demand recovery with hopes of a better monsoon helping rural demand and expectations of a pro-consumption Budget

Higher orders and margin boost needed to sustain ABB's valuations

ABB could be a key player given the improved market for short-cycle orders from the private sector and T&D, railways, data centres, and PLIs

Rerating potential in Axis Bank stock, may be among top outperformers

Axis Bank may be capable of growing faster than peers and it may see a decline in operating expenses ratio from current levels

Where play meets politics

Gender rights at Olympics emerge as the next frontier where sports and politics are set to collide

Reliance Jio listing: Tariff hikes a trigger, but spinoff better option

The current minority investors in Jio may prefer the spin off route and RIL could also consider buyout of current institutional stakeholders in Jio after the spin off if it wanted to shore up stake

AI and tech colonialism

Madhumita Murgia's book examines AI's influence on people and the impact of AI crunching huge amounts of data on their lives

Optimism in natural gas distribution co MGL's stock appears fully priced in

MGL distributes gas through an extensive CGD network of pipelines, and supplies CNG to 0.77 million vehicles and PNG to 1.53 million domestic households

Analysts divided on GAIL's prospects; limited fresh gains in the offing

Analysts believe that there could be tariff hikes of 10-12 per cent starting in H2FY25 and continuing through FY26 and this could boost FY26 net profit as well

Downgrades, competition likely to keep Titan Company's stock under pressure

Titan reported sales growth of about 9 per cent Y-o-Y in Q1FY25

Earnings upgrade, valuation uptick for consumer companies' stocks

Increasing trends of premiumisation and volume growth may also expand operating margins by 50-75 basis points, despite higher marketing expenses and competition

Renewables financier Ireda's high valuation may limit further stock upside

Ireda, which provides funding assistance and other services to renewable energy and energy efficiency/conservation projects and is 75 per cent owned by the government of India

AMCs look strong but high valuations risk sharper fall in downturns

Companies have strong cash conversion, predictability and growth runway

Robust production, new initiatives to drive growth for Coal India

NRS offtake may remain high, leading to higher blended realisation because power plants with FSA have sufficient supply