CapitalNumbers began its trading journey on the BSE SME platform with a lukewarm debut on January 27, listing at ₹274, a modest 4.18% premium over its IPO price of ₹263. However, the early enthusiasm fizzled out as the stock dropped to ₹260.30, slipping 1% below its issue price by the end of the day. The ₹169.37 crore IPO, which opened for subscription from January 20–22, 2025, was priced between ₹250–263 per share. It comprised an equal split between fresh shares and an offer for sale, each aggregating ₹84.69 crore. Despite the subdued debut, the IPO itself was a blockbuster, subscribed a staggering 134.64 times. Non-institutional investors led the charge with an eye-popping 297.32 times subscription, followed by QIBs at 122.19 times and retail investors at 72 times. CapitalNumbers plans to deploy the IPO proceeds toward advancing cutting-edge technology, fueling business development, investing in subsidiaries, pursuing acquisitions, and other strategic initiatives. While the IPO’s overwhelming subscription showcased strong investor interest, the tepid listing hints at tempered market sentiment, possibly due to broader SME market volatility or cautious evaluations of post-IPO growth prospects. Investors may now watch closely to see if CapitalNumbers can leverage its funding to drive the technological innovation and strategic expansion it has promised.
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Tata Steel’s Profits Take a Hit Amid Sluggish Core Revenues
Tata Steel, the behemoth of India’s steel manufacturing landscape, unveiled a 43% drop in its Q3FY25 net profit, slipping to ₹295.49 crore from ₹522.14 crore in the same period last year. The dip came as revenues from operations slid 2.7% to ₹53,231 crore, driven by softer performance in its core India business. While overall expenses declined by 2.3%, thanks to a 7% cut in employee benefits and an 11.6% reduction in other expenses, the company’s flagship Indian operations saw a 5.5% revenue drop. This segment contributed ₹32,760.45 crore, down from ₹34,685.50 crore last year. On the brighter side, Tata Steel’s European arm showed resilience with a modest 1.9% revenue growth to ₹18,491.24 crore. The disappointment, however, extended to “Other trade-related operational revenues,” which nosedived 29%, signaling challenges in peripheral streams. On the market front, Tata Steel’s shares reflected investor unease, shedding 2.77% to close at ₹126.40. The stock has been on a rollercoaster ride, touching a 52-week low of ₹122.60 just earlier this month, after peaking at ₹184.60 in mid-2024. Over the past five years, the shares have delivered a stellar 200% return but stumbled by 6.26% in the last year amid volatile trading.
ACC’s Profit Skyrockets, But Stock Trades Flat
ACC Ltd posted a jaw-dropping 103% year-on-year surge in consolidated net profit for Q3FY25, clocking ₹1,091.73 crore, compared to ₹537.63 crore in the same period last year. Sequentially, profits shot up a staggering 446.8%. Yet, despite these stellar numbers, the stock treaded water on Monday, trading 0.44% lower at ₹2,048.75 on the BSE by early afternoon. Revenue also painted a promising picture, rising 7.25% YoY to ₹5,207.29 crore, while sequential growth came in at 15.2%. In fact, the December quarter recorded the highest revenue in five years at ₹5,927 crore, boosted by an 11% uptick in trade sales volume and a stronger push for premium products, which now make up 32% of trade sales. EBITDA for the quarter grew to ₹1,116 crore from ₹905 crore in Q3FY24, with margins slightly improving to 18.8%. While the cement sector grew modestly by 1.5-2% in the first half of FY25, a more robust demand is on the horizon. The pro-infrastructure and housing thrust in Budget 2025, combined with increased government spending, is expected to fuel 4-5% growth in cement demand for the full fiscal year.
Laurus Labs Takes a Tumble After Two-Day Rally
Laurus Labs shares took a steep 15% dive on January 27, breaking a two-day streak of gains. Investors seemed eager to pocket profits after the stock’s nearly 6% climb earlier in the week, fueled by better-than-expected Q3 results. But it wasn’t just profit-booking at play – reports of the U.S. halting foreign aid added serious weight to the sell-off. The potential suspension of the President’s Emergency Plan for AIDS Relief (PEPFAR) has rattled nerves. This program, a lifeline for millions relying on antiretroviral medications (ARVs), is under threat as U.S. foreign aid policies face a freeze. With over 20 million people in 55 countries benefiting from ARVs via PEPFAR, any funding disruption could have a ripple effect, including on pharma companies like Laurus. On the brighter side, Laurus Labs’ December quarter results showed a turnaround, with EBITDA margins climbing back to 20%—a level not seen in seven quarters. The company reaffirmed its full-year guidance, aiming for longer-term growth through its CDMO and Bio segments. However, the sluggish API segment remains a drag, with recovery expectations pushed to post-FY26. Brokerage houses seem divided. Choice Broking dialed down its optimism, shifting to a ‘hold’ rating with a target of ₹639, citing medium-term growth potential but cautioning about short-term pressures. Goldman Sachs, however, isn’t convinced, sticking with its ‘sell’ rating and a sharper price target of ₹475, noting a lack of FY25 revenue guidance despite management’s focus on laying the groundwork for future growth. For now, the market remains skeptical, and Laurus has a steep hill to climb to regain investor confidence.
Rupee Slips as Markets Stay Edgy
The rupee stumbled back into its downtrend on Monday, trading at 86.3675 against the dollar by late morning, down from Friday’s 86.2050. Last week’s glimmer of strength – powered by a 0.5% recovery—has faded, as equity outflows and corporate hedging weigh heavy. The optimism from a tariff-free weekend is wearing thin. Donald Trump’s pause on tariff announcements gave emerging market currencies a breather, but that reprieve feels fragile. The rupee’s recent rally had leaned on a softer dollar, itself tied to the Fed’s neutral stance and Trump’s temporary restraint. Adding to the rupee’s woes, Indian equities continue to falter. Foreign investors remain on the sidelines, yanking $7.5 billion out of Indian stocks this month alone. Traders are wary of fleeting rallies as corporate hedging and persistent equity outflows keep the pressure on. The Fed looms large this week, though no policy shifts are expected. The real drama lies in Fed Chair Jerome Powell’s press conference. Markets will be hanging on every word, looking for clues on whether sliding inflation could pave the way for rate cuts – or whether tariff uncertainty might throw a wrench in future plans.
Canara Bank’s Earnings Spark Growth Questions
Canara Bank posted a 12% bump in net profit for Q3 FY25, touching ₹4,104 crore, but the numbers aren’t all sunshine. Net interest income shrank by 3%, slipping to ₹9,149 crore from ₹9,417 crore last year. It’s a curious contrast—profits climbing while core income stumbles. On the brighter side, operational efficiency shone through, with pre-provision operating profit jumping 15% to ₹7,837 crore. The bank’s asset quality showed real grit. Gross NPAs dropped to 3.34% from 4.39% a year ago, and net NPAs followed suit, sliding to 0.89%. Meanwhile, the provision coverage ratio inched up to a solid 91.26%. Yet, despite these improvements, investors weren’t convinced—shares took a 3% hit in Monday’s afternoon session. On the business front, global operations grew 9% year-on-year to ₹24.19 lakh crore. Domestic deposits and advances held steady at 8% and 10% growth, respectively. Retail credit was the real star, surging 35.46%, with housing loans up 12.26% and vehicle loans accelerating by 17.26%. Despite these wins, the market reaction signals lingering scepticism – whether it’s over that dip in net interest income or broader sector concerns, Canara Bank has more to prove.
Indian Stock Market on 24.01.25
Friday brought a whirlwind of action across global markets, with a mix of policy announcements, earnings disappointments, and geopolitical shifts driving the narrative.
Green Energy Stocks Under Pressure Amid Global Headwinds
Friday was a rough ride for green energy stocks as names like KPI Green Energy, ACME Solar Holdings, and Suzlon Energy suffered significant intraday losses on the BSE. KPI Green Energy hit its lower circuit at ₹351.70, down 5%, while ACME Solar tumbled 3% to an all-time low of ₹202.85. Suzlon Energy wasn’t spared either, shedding over 3% during the session. Market experts attribute some of the sector’s recent struggles to geopolitical ripples, notably linked to former US President Donald Trump. His potential return to the White House has raised concerns over clean energy investments. Trump has long been an advocate of fossil fuels, and recent reports suggest a freeze on wind and solar project authorizations on federal lands under his administration. His stance—amplified by calls to boost oil and gas production—has cast a shadow over global renewable energy momentum. Back home, the long-term outlook remains optimistic. Crisil projects a massive ₹31 lakh crore in green investments between 2025 and 2030, driven by India’s ambitious climate goals. These include slashing carbon intensity by 45% by 2030 and pushing non-fossil-fuel energy capacity to 50% of the total. As Amish Mehta, MD & CEO of Crisil, emphasized, achieving net-zero emissions will require scaling up grants, incentives, and blended finance, alongside a robust carbon market. Despite the sector’s current challenges, the road ahead looks transformative for India’s green energy story.
NBCC Secures Big Order but Shares Struggle
NBCC made headlines on Friday, announcing two significant orders totaling ₹229.75 crore. Despite the positive news, the company’s shares failed to hold onto gains, reflecting muted investor enthusiasm. The larger order, worth ₹148.40 crore, came from the Ministry of Health & Family Welfare and involves ambitious projects at AIIMS Bilaspur. These include constructing hostels, lecture halls, and a solar power system. The second order, valued at ₹81.35 crore, was awarded by IIM Visakhapatnam for consultancy services related to building a new hostel, dining facilities, and infrastructure at the institute’s permanent campus. This follows NBCC’s recent MoU with Sarkari Awas Nirman Avam Vitt Nigam Ltd for a mixed-use development project in Lucknow, covering a sprawling 588 acres. These developments highlight NBCC’s continued role as a go-to consultant for large-scale government projects. Despite these milestones, NBCC shares saw a dip, trading 0.90% lower at ₹91.30 by 2:30 PM. The stock briefly recovered from its intraday low of ₹90.68, touching ₹93.55 before profit booking set in. Over the past year, NBCC’s stock has gained nearly 40%, peaking at a 52-week high of ₹139.90 in August. However, it remains far from its highs, reflecting investor caution despite the company’s steady project wins.
Adani Green Shares Sink Amid Sri Lanka Deal Controversy
Adani Green Energy shares took a nosedive on Friday, erasing early gains to drop nearly 6% from the day’s high. The sudden plunge came after reports emerged that Sri Lanka had revoked a $440 million wind power project deal with the company. The stock opened strong at ₹1,039.45 on the BSE, riding on the momentum of its solid Q3 FY25 earnings. Adani Green’s revenue grew 2.33% YoY to ₹2,365 crore, while its PAT skyrocketed 85% YoY to ₹474 crore. Buoyed by these results, the stock climbed 4% to hit ₹1,065.45 intraday. However, sentiment quickly soured as news broke about the alleged project cancellation, pulling the stock down to ₹1,008—a 5.6% dip from its peak. The controversy revolves around a 484 MW wind power project in Mannar and Pooneryn, initially awarded to Adani Green Energy SL Ltd. Sri Lanka’s Cabinet, led by President Anura Kumara Dissanayake, reportedly decided to cancel the deal, fulfilling an election promise to invite international tenders for renewable energy projects. This reverses the prior approval granted under former President Ranil Wickremesinghe. Adani Group, however, swiftly denied the reports, labeling them “false and misleading.” A spokesperson clarified that the project has not been scrapped but is undergoing a standard tariff review by Sri Lanka’s new government.