Author: admin

Cyient’s stock plummeted 23% on Friday, touching ₹1,351—a level not seen in 19 months. This dramatic drop marked the largest intraday fall in recent memory, pushing the IT firm’s monthly losses to a staggering 27%. The sell-off came as a response to the company’s weaker-than-expected Q3 performance, revised FY25 guidance, and the abrupt resignation of CEO Karthikeyan Natarajan. The December quarter results were sobering. Net profit dropped 31.7% QoQ to ₹122.3 crore, while revenue inched up 4.2% sequentially to ₹1,926.4 crore. Cyient’s Digital, Engineering, and Technology (DET) segment—a major revenue driver—grew just 2.1% sequentially but shrank 1.9% YoY in constant currency terms. The EBIT margin for DET narrowed to 13.5%, down 72 basis points QoQ, primarily due to wage hikes and currency headwinds. Further adding to investor unease, Cyient slashed its FY25 revenue outlook for the DET segment, now projecting a 2.7% decline YoY instead of flat growth. The EBIT margin guidance for Q4 FY25 was also reduced to 13.5% from the earlier 16%. Despite securing its highest-ever order intake of $312.3 million in the DET segment during Q3, the results failed to reassure markets. Motilal Oswal downgraded the stock to “sell,” citing weaker growth prospects and margin pressures. The firm slashed its earnings estimates for FY25–FY27 by 13% and revised its target price to ₹1,350. JP Morgan followed suit, downgrading Cyient to “neutral” and cutting its target price to ₹1,750.

Paytm shares nosedived over 8% on Friday, hitting ₹773.90 at their lowest point, following reports linking the fintech giant to an alleged cryptocurrency scam under investigation by the Enforcement Directorate (ED). The market reaction was swift, wiping out weeks of gains in a single morning. The report, published by Times of India, alleges that Paytm and seven other payment gateways were implicated in a ₹2,200 crore cryptocurrency scam operated via the HPZ Token app. The scam, masterminded by 10 Chinese nationals, reportedly duped investors across 20 states by promising returns from cryptocurrency mining. While much of the money was funneled abroad, around ₹500 crore was frozen in virtual accounts tied to these gateways, with Paytm accounting for ₹2.8 crore of the frozen funds. Paytm’s parent company, One 97 Communications, was quick to dismiss the allegations, calling them outdated and factually incorrect. In a regulatory filing, the company stated it had not received any new notices or communications from the ED, clarifying that the probe referenced in media reports pertains to historical inquiries involving independent third-party merchants—not Paytm itself. The company emphasized its full cooperation with authorities in the past and assured investors that any material developments would be disclosed in compliance with SEBI regulations.

Dr Reddy’s stock took a sharp tumble this morning, plunging over 6% after its Q3 results left investors unimpressed. Opening at ₹1,247.95—already 3% lower than Thursday’s close of ₹1,289.35—the stock slid further to touch ₹1,203.60 during intraday trading. The pharma giant posted a 2% year-on-year rise in consolidated profit after tax, reaching ₹1,413.3 crore, but the market wasn’t buying it. US sales, a critical revenue driver, barely moved, inching up just 1% YoY to ₹33,834 crore and dropping 9% sequentially. Sales growth in India and emerging markets at 12–14% YoY provided some relief, but not enough to offset concerns. Analysts weren’t kind. Jefferies pointed to “core profitability weakness” and flat US growth, slashing earnings estimates for FY25-27 by 3-6% while sticking to their bearish stance with an ₹1,170 target. They flagged high competition in key products and elevated SG&A costs as culprits, warning that significant catalysts may only materialize post-FY27. JM Financial painted a more balanced picture, noting healthy EBITDA margins at 27.5% despite a slump in generic Revlimid sales and price pressures. The firm is optimistic about the company’s ability to bounce back post-FY26, fueled by Semaglutide and Abatacept opportunities. They reiterated a BUY rating with a higher target of ₹1,723, betting on near-term gains in Canada and other emerging markets.

IndiGo’s Q3 report card is due today, and all eyes are on how the airline weathered the turbulence of rising costs and softer yields. The buzz is that net profit might shrink 34% year-on-year to ₹1,974 crore, a notable dip from last year’s ₹2,998.1 crore. While that’s not ideal, revenue is projected to climb 6% YoY to ₹20,657 crore, with a stronger 22% bump compared to the September quarter, thanks to seasonally stronger travel demand. EBITDAR is expected to hold steady, inching up 1% YoY to ₹5,522 crore, buoyed by better operating leverage from a 12% YoY rise in available seat kilometers (ASKM) and cheaper fuel. But the pressure’s still there—yields are predicted to slip 4%, and passenger load factors might dip by 60 basis points YoY. The real drag comes from aircraft-related costs. Higher lease rentals, depreciation, and financing expenses are likely to weigh on the bottom line, offsetting gains elsewhere. Analysts like JM Finance are optimistic about sequential margin improvement, thanks to lower fuel prices and strong capacity growth, but YoY comparisons remain challenging. IndiGo’s stock, meanwhile, has had a mixed run—down 10% this January but boasting a hefty 42% gain over the past year. Shares rallied 3.22% yesterday to close at ₹4,138.10, hinting that investors may already be factoring in today’s expected results.

Godrej Consumer Products wrapped up its December 2024 quarter with numbers that painted a mixed picture. Net profit took a hit, sliding 14.28% year-on-year to ₹498 crore, down from ₹581 crore the previous year. While total revenue inched up 3% to ₹3,749 crore, it wasn’t enough to offset the challenges brewing in its key segments. Home Care posted a modest 4% growth, and Personal Care revenues rose by just 2%, both trailing behind expectations. The regional story had its own twists. Indonesia shone with a 9% YoY revenue growth to ₹508 crore, while Africa, the USA, and the Middle East faltered, with revenue dipping 8% YoY to ₹771 crore. Latin America was the dark horse, delivering a whopping 165% surge to ₹262 crore, showcasing its potential as a growth engine. Margins, however, bore the brunt of the raw material surge. Rising palm oil prices put a squeeze on the EBITDA margin, which dropped to 22.6%—a sharp fall from last year’s 29%. Personal wash volumes didn’t help either, slipping mid-to-high single digits, although price hikes partially cushioned the blow. Sudhir Sitapati, the company’s MD and CEO, was candid about the headwinds. Urban consumption has hit a rough patch, and soaring palm oil costs—up over 40%—are biting into profitability. Yet, he pointed out gains in market share for premium insecticides and a focus on trimming wasted costs as signs of resilience. With an interim dividend of ₹5 per share and an eye on long-term sustainable growth, GCPL is playing a balancing act between navigating current pressures and setting the stage for recovery.

Pidilite Industries had a bright start to the trading session on Thursday, with its share price jumping nearly 9% to hit an intraday high of ₹2,992.70 on the BSE. This surge came on the heels of the company’s strong Q3FY25 results announced the previous day. By 10:20 AM, the stock was trading 8.5% higher at ₹2,988, reflecting investor optimism. For the December quarter, Pidilite reported a 9% YoY rise in consolidated net sales to ₹3,357 crore, excluding contributions from Pidilite USA and Pulvitec Brazil. Profit after tax (PAT) stood at ₹557 crore, also up 9% YoY, while EBITDA before non-operating income rose 8% to ₹798 crore. On a standalone basis, net sales climbed to ₹3,085 crore, with PAT increasing by 2% to ₹535 crore and EBITDA growing 6% to ₹749 crore. Brokerages weighed in positively on the results. Nuvama Wealth Management retained its “Buy” rating, commending the company’s 9.7% overall volume growth. The Consumer & Bazaar (C&B) segment saw a solid 7.3% growth, while the B2B segment soared with a 21.7% volume increase, driven by industrial and project verticals. Nuvama also noted a 145-basis-point YoY improvement in gross margin, though EBITDA margins stayed flat.

Hindustan Petroleum Corporation Ltd (HPCL) delivered a standout performance in Q3FY25, with consolidated net profit surging more than threefold to ₹2,543.65 crore from ₹712.84 crore a year earlier. This marked a significant rebound from the ₹142.67 crore profit posted in the previous quarter. While gross refining margins (GRMs)—a key profitability metric for refiners—fell to $6.01 per barrel from $8.49 per barrel a year ago, the company’s downstream fuel retailing earnings skyrocketed. The freeze on fuel prices, initially a pre-election move, turned into a strategic cushion for refiners as global crude oil prices declined. Operational highlights include processing 6.47 million tonnes of crude oil during the quarter, up from 5.34 million tonnes a year ago, and achieving a record quarterly sales volume of 12.87 MMT, an 8.2% growth year-on-year. Total sales for the April-December period hit an all-time high of 37.12 MMT, registering a 7.6% increase compared to the same period in 2023. HPCL’s statement attributed the strong results to robust operational efficiencies in both refining and marketing, alongside improved margins. Despite the dip in GRMs, the company has demonstrated resilience, leveraging operational scale and marketing strength to drive profitability. As HPCL navigates a mix of regulatory constraints and market dynamics, its strong sales growth and operational efficiency signal a well-positioned trajectory in India’s competitive energy landscape

Indian Renewable Energy Development Agency (IREDA) is gearing up for a bold fundraising move, aiming to secure ₹5,000 crore through a qualified institutions placement (QIP) in multiple tranches. The Navratna PSU announced its board’s green light for the plan on January 23, with a condition: the President of India’s stake—managed via the Ministry of New and Renewable Energy—mustn’t dip by more than 7% post-issue. Financially, IREDA’s momentum looks solid. The company’s Q3FY25 net profit jumped 27% YoY to ₹425.38 crore, while revenue surged 35.6% to ₹1,698.45 crore. Its net interest income (NII) also soared, climbing 39% to ₹622.3 crore.  IREDA sanctioned ₹31,087 crore worth of loans in the quarter—a 129% leap from last year—and disbursed ₹17,236 crore, up 41% YoY. Its loan book has now ballooned to ₹69,000 crore, marking a 36% YoY growth. Investors, however, have had a mixed year with the stock. From a low of ₹121 in March to a peak of ₹310 in July, IREDA shares have seen wild swings. Currently, the stock trades 35% below its high but still holds a 66% gain from its low.

Hindustan Unilever (HUL) shares took a sharp 4% dive on Thursday, hitting an 8-month low of ₹2,254. Investors reacted strongly to the FMCG giant’s cautious outlook on the consumption goods market, even as the company reported modest sales growth of 2% YoY for Q3FY25. Despite a revenue increase to ₹15,195 crore from ₹14,928 crore in the same quarter last year, underlying volume growth (UVG) disappointed across key segments like Beauty and Wellbeing, Personal Care, and Foods, with only Home Care holding steady. While net profit surged 19% YoY to ₹3,001 crore, thanks to gains from the Pureit divestment, profit excluding exceptional items stagnated at ₹2,540 crore. Adding to concerns, EBITDA margins narrowed slightly to 23.5%, down by 20 basis points. The results underline HUL’s ongoing struggles with urban demand sluggishness and weak consumer sentiment. Even with slight pricing improvements and strategic moves like the Minimalist acquisition, analysts remain skeptical of HUL’s ability to reignite growth in the short term. For now, the stock’s movement hinges on tangible signs of recovery in consumer demand and operational efficiency gains.