&w=3840&q=100)
Bajaj Auto's premium segment revival needs more than just a kickstart
KTM's tune-up will decide whether automaker can regain its premium balance
Ram Prasad Sahu Mumbai
Listen to This Article
Bajaj Auto — the country's most valuable two-wheeler (2W) company by market capitalisation — met Street expectations in the January–March quarter (Q4) of 2024–25 (FY25) but still ended Friday as the worst performer on the Nifty 50, slipping 3.1 per cent.
While operating margins held steady during the quarter, the market is uneasy about the company's shrinking share in the domestic motorcycle segment. Any further upside for the stock will hinge on how soon KTM turns the corner. Analysts believe gains in electric two-wheelers (e2Ws) and exports are already priced in.
Q4 sales came in slightly ahead of expectations, rising
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
22 minutes ago
- Mint
Indian stock market: 8 key things that changed for market overnight - Gift Nifty, US jobs openings to crude oil prices
Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, following upbeat global market cues. Asian markets rallied, while the US stock market ended higher overnight led by gains in tech stocks. On Tuesday, the Indian stock market ended sharply lower amid growing concerns over stretched valuations and foreign capital outflows. The Sensex dropped 636.24 points, or 0.78%, to close at 80,737.51, while the Nifty 50 settled 174.10 points, or 0.70%, lower at 24,542.50. 'There is no outcome yet on the global trade settlement involving major economies, which is creating a lot of uncertainty amongst the investors and prompting them to slash their equity bets at regular intervals. Also, with no solution yet to the conflict between Russia & Ukraine, the risk-off sentiment continues with the investors,' said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. Here are key global market cues for Sensex today: Asian markets traded higher on Wednesday following a tech stocks-driven rally on Wall Street. Japan's Nikkei 225 gained 0.83%, while the Topix index rose 0.47%. South Korea's Kospi index rallied 1.57% to hit a 10-month high, while the Kosdaq surged 1.06%. Hong Kong's Hang Seng index indicated a weaker opening. Gift Nifty was trading around 24,730 level, a premium of nearly 55 points from the Nifty futures' previous close, indicating a positive start for the Indian stock market indices. US stock market ended higher on Tuesday, led by gains in technology stocks and optimism over trade talks between the United States and its trading partners. The Dow Jones Industrial Average gained 214.16 points, or 0.51%, to 42,519.64, while the S&P 500 rose 34.43 points, or 0.58%, to 5,970.37. The Nasdaq Composite closed 156.34 points, or 0.81%, higher at 19,398.96. Nvidia share price rallied 2.9%, Broadcom stock price gained 3.2% to hit a fresh record high, Tesla share price rose 0.46%, Wells Fargo shares rose 1.2% and Dollar General stock surged 15.8%. Kenvue stock price dropped 6%, Reddit share price fell 1.1%, while Pinterest shares rose 3.8%. US job openings increased in April, but layoffs picked up. Job openings, a measure of labor demand, rose 191,000 to 7.391 million by the last day of April, the Job Openings and Labor Turnover Survey, or JOLTS report, showed. Data for March was revised higher to 7.200 million open positions instead of the previously reported 7.192 million. Economists polled by Reuters had forecast 7.10 million vacancies. New orders for US-manufactured goods dropped sharply in April. Factory orders fell 3.7% after an unrevised 3.4% jump in March. Economists polled by Reuters had forecast factory orders declining 3.1%. They rose 2.0% on a year-on-year basis in April. Japan's service-sector activity growth slowed in May on weaker demand. The final au Jibun Bank Japan Services purchasing managers' index (PMI) fell to 51.0 in May from 52.4 in April, although it was higher than flash 50.8. The US dollar drifted lower on Wednesday. The dollar index, which measures the currency against six other counterparts, was flat at 99.159. The dollar was down 0.09% at 143.82 yen and the euro was up 0.13% at $1.1385. Crude oil prices fell after two days of gains. Brent crude oil prices fell 0.17% to $65.52 a barrel after closing at a three-week high, while the US West Texas Intermediate (WTI) crude futures declined 0.20% to $63.28. (With inputs from Reuters) Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
23 minutes ago
- Time of India
Can rising EPS estimates restore investors confidence despite tariff uncertainties?
Mumbai: Investors may have a reason to cheer amid elevated uncertainties over the fallout of tariffs in the near term. Analysts have increased the earnings per share (EPS) estimates of most large companies following the March quarter, reversing two straight quarters of downgrades. Of the companies on the Nifty 500 index tracked by at least five analysts or more, 315 saw EPS upgrades in the fourth quarter compared with the December quarter, according to data from Eikon. EPS estimate upgrades signal improving earnings outlook, boosting investor confidence and often driving stock prices higher. "After two consecutive quarters of disappointing earnings, we've now seen some early rounds of earnings upgrades from analysts across selective companies following the fourth quarter numbers," said Aniruddha Sarkar, chief investment officer and portfolio manager at Quest Investment Advisors. "Government capex picking up sharply in the last four months is largely responsible for the same, along with a pickup in consumer spending." Analysts had moderated the earnings outlook in the previous two quarters after profits slowed to single digits amid concerns over an economic slowdown. The EPS growth of Nifty 50 was at 4.1% in the June quarter and 8.9% in the September quarter from the year-ago periods. In January-March, EPS grew at 10.9% from the same period a year ago. The EPS growth for FY25 was at 9% year-on-year. Live Events Agencies Slowing corporate earnings and the resultant downgrades by analysts were reasons for the sell-off in Indian equities between September-end and March, as investors found stock valuations rich in the face of the squeeze in profitability. Money managers expect further recovery in earnings in the quarters ahead. The Nifty's EPS is expected to grow at about 13% on a compounded basis between FY25 and FY27, up from 10.9% in the fourth quarter, supported by a lower base of FY25, accommodative monetary policy, and continued government spending , said Nikhil Rungta, co-chief investment officer - equity at LIC Mutual Fund. "Banks benefited from improved asset quality, while the auto sector saw steady domestic demand and successful new launches," he said. "Government-led capex supported infrastructure and real estate, and a rural demand revival boosted consumption." The pace of upgrades will be crucial for determining the direction of the market. "We believe the first quarter of FY26 could see some more modest upgrades but the pace of upgrades across the broader market could pick up from Q2 onwards as the low base of FY25 will come into play," said Sarkar.
Mint
31 minutes ago
- Mint
Recommended stocks to buy today: Top stock picks by market experts for 4 June
Indian stock markets extended their losing streak for a third straight session on Tuesday, 3 June, as weak global cues, stretched valuations, and persistent foreign capital outflows weighed on investor sentiment. The Sensex opened at 81,492.50, slightly higher than its previous close of 81,373.75, but soon tumbled nearly 800 points—or 1%—to hit an intraday low of 80,575.09. The Nifty 50 followed a similar trajectory, opening at 24,786.30 versus the previous close of 24,716.60, before slipping to an intraday low of 24,502.15, also down about 1%. By the end of the day's trading session, the Sensex had shed 636 points, or 0.78%, to end at 80,737.51, while the Nifty 50 closed at 24,542.50, down 174 points, or 0.70%. On to the top stock recommendations for today by some of India's top market experts. . Stocks to trade today, recommended by Trade Brains Portal for 4 June The company operates in two key segments: Enterprise Solutions, which contributes 80% of its revenue, and Trust Services, which accounts for the remaining 20%. eMudhra is uniquely positioned as the only Indian company offering a unified platform for identity, signing, cryptography, and certificate automation. It continues to lead the Indian market in the Trust Services segment, providing a wide range of digital certificates, including digital signature, SSL/TLS, and S/MIME certificates. In FY25, the company's international business grew 57.3% year-on-year, now contributing 62% of total revenue. eMudhra plans to expand further into the European Union in FY26. It also made strategic acquisitions in the U.S., including Ikon and Two95, to strengthen its presence and create cross-selling opportunities in the American market. Financially, eMudhra reported a total income of ₹527.8 crore in FY25, up 38.9% YoY, driven by strong global demand for its services and solutions. Adjusted EBITDA rose 15.7% YoY to ₹141.3 crore, with a 4-year CAGR of 35%. Adjusted PAT stood at ₹94.6 crore, up 17.3% YoY, with a robust margin of 17.9%. The company remains debt-free, with cash and cash equivalents of ₹188.56 crore as of FY25. In FY25, BHFL surpassed ₹1 lakh crore in assets under management (AUM), reaching ₹1,14,684 crore. Its AUM is well-diversified: home loans make up 56.2%, lease rental discounting 19.1%, developer finance 12.5%, loans against property 10.7%, and other segments the remaining 1.5%. The company now operates 216 branches across 174 locations in 22 states. Since FY18, BHFL's AUM has grown at a staggering 64% CAGR. Total income in FY25 rose 25.7% YoY to ₹9,576 crore, while loan disbursements increased 25% YoY to ₹14,254 crore. Profit after tax for the year stood at ₹2,163 crore, also up 25%. The operating expense (OPEX) ratio has improved dramatically—from 74.6% in FY18 to 20.8% in FY25—reflecting strong cost control. Return on equity has strengthened to 13.4% in FY25 from 7.8% in FY21. Asset quality remains robust, with gross NPAs at just 0.11% and a provision coverage ratio of 60%. Net interest margin remains healthy and stable at 4% in Q4FY25. Looking ahead, management has guided for 24–26% AUM growth over the medium term. The OPEX ratio is expected to fall further to 14–15%, and ROE is projected to improve to 13–15%. GNPA levels are expected to remain within 40–60 basis points. Leverage, currently at 5.2x, is targeted to increase to 7–8x, while the debt-to-equity ratio stood at 4.1x in FY25. BHFL plans to invest aggressively in its Strategic Business Units and expand into non-metro markets in FY26 to sustain its growth momentum. Two stock recommendations for today, 3 June, by MarketSmith India Why it's recommended: Strong R&D capability, robust financial position. Key metrics: P/E: 13.74 | 52-week high: ₹ 274.70 | Volume: ₹155.17 crore Technical analysis: Reclaimed its 200-DMA Risk factors: Volatile raw material prices, monsoon dependency, and environmental compliance Buy at: ₹208.42 Target price: ₹240 in three months Stop-loss: ₹195 Why it's recommended: Diversified revenue streams, strategic expansion plans. Key metrics: P/E: 13.45 | 52-week high: ₹677 | Volume: ₹103.13 crore Technical analysis: Bullish flag pattern breakout Risk factors: Commodity price volatility Buy at: ₹551 Target price: ₹610 in three months Stop-loss: ₹525 Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader MarketSmith India: Trade name: William O'Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543 Trade Brains Portal is a stock analysis platform. Its trade name is Dailyraven Technologies Pvt. Ltd, and its Sebi-registered research analyst registration number is INH000015729. Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
