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Business Standard
14 hours ago
- Business
- Business Standard
This MFI lender's stock soars 7% even as Q1 profit plunges; Here's why
Shares of CreditAccess Grameen rose over 7 per cent on Wednesday even after the company reported an 85 per cent year-on-year (Y-o-Y) to ₹60.2 crore for the quarter ended June 2025 (Q1FY26). The micro finance lender's stock rose as much as 7.05 per cent during the day to ₹1,370 per share. The stock pared gains to trade 5.3 per cent higher at ₹1,347 apiece, compared to a 0.43 per cent advance in Nifty 50 as of 1:10 PM. Shares of the company have been range-bound since July, and at day's high, the stock was at the highest level since July 2, 2024. The counter has risen 52 per cent this year, compared to a 6.2 per cent advance in the benchmark Nifty 50. CreditAccess Grameen has a total market capitalisation of ₹21,496.25 crore, according to BSE data. CreditAccess Grameen Q1 results The microfinance lender's net profit declined 85 per cent Y-o-Y primarily to ₹60.2 crore contraction in net interest income and higher provisioning. Sequentially, the net profit rose 27.5 per cent from Rs 47.2 crore in the quarter ended March 2025 (Q4FY25). The lender's net interest income (NII) declined 1.6 per cent to ₹937 crore. Sequentially, NII grew 7 per cent from ₹876.1 crore in Q4FY25. Its net interest margin (NIM) dropped to 12.8 per cent in Q1FY26 from 13.0 per cent in Q1FY25. However, it improved from 12.7 per cent in Q4FY25. The company's gross non-performing assets (NPAs) rose sharply to 4.70 per cent as of June 2025, up from 1.46 per cent a year ago. It, however, declined from 4.76 per cent at the end of March 2025. Analysts bullish on CreditAccess Grameen While the microfinance industry (MFI) is still navigating stress, JM Financial believes CreditAccess Grameen is best positioned to recover early. This is due to its strong stress recognition framework, along with an accelerated write-off policy and high expected credit loss coverage. Management expects elevated credit costs to persist in Q2FY25, before moderating to 3-3.5 per cent in the second half of FY25. FY26 guidance for loan growth and return on equity (RoE) has been maintained at 14-18 per cent and 11.8-13.3 per cent, respectively, with stronger momentum expected in the second half, particularly from the retail finance book. JM Financial expects around 15 per cent assets under management CAGR over FY25-27. Given the improving outlook, the brokerage has upgraded the stock to 'Buy' and revised the target price to ₹1,475. Analysts at Motilal Oswal said that the lender has successfully navigated a period of industry-wide challenges, demonstrating remarkable resilience and a return to normal operational efficiency. The company will continue to prioritise balance sheet normalisation through accelerated write-offs and prudent provisioning, it said.
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Business Standard
15 hours ago
- Business
- Business Standard
JSW Infra shares gain 3% as Q1 profit growth meets estimates; details here
Shares of JSW Infrastructure rose over 3 per cent on Wednesday after the company posted a jump in its net profit for the June quarter of the current financial year (Q1FY26). The port and port services firm's stock rose as much as 3.56 per cent during the day to ₹328.5 per share. The stock pared gains to trade 1.8 per cent higher at ₹323 apiece, compared to a 0.44 per cent advance in Nifty 50 as of 12:21 PM. Shares of the company have risen for the third straight session, and at day's high, the stock was at the highest level since January 6 this year. The counter has risen 1.5 per cent this year, compared to a 6.2 per cent advance in the benchmark Nifty 50. JSW Infra has a total market capitalisation of ₹67,809.05 crore, according to BSE data. JSW Infra Q1 results The Sajjan Jindal-promoted firm reported a 31.54 per cent Y-o-Y rise in net profit for Q1FY26, coming in at ₹384.68 crore. The growth was supported by a 5 per cent increase in cargo volumes, which reached 29.4 million tonnes during the quarter. The company's revenue from operations for the quarter also grew by 21.2 per cent Y-o-Y on the back of higher volumes. On the back of revenue growth, the earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased by 10 per cent YoY, to ₹671 crore. The cargo volume increase in the quarter was driven by the robust performance at the company's coal terminals, along with contributions from interim operations at the Tuticorin Terminal and the Jawaharlal Nehru Port Authority (JNPA) liquid terminal. The growth was partially offset by lower cargo volumes at the iron ore terminal in Paradip. In Q1 FY25, the cargo volumes handled by the company had grown by 9 per cent Y-o-Y. JM Financial on JSW Infra Q1 results The Q1 performance was largely in line with estimates, with the management maintaining its FY26 volume growth guidance of 10 per cent, which JM Financial considers achievable. The brokerage views the company as a strong proxy for India's steel demand and the rising coastal coal movement. In addition to the announced capex pipeline of ₹40,000 crore, JSW Infra is estimated to have capacity to incur annual capex of ₹3,000–4,000 crore while maintaining its net debt-to-Ebitda ratio below the target of 2.5x, JM Financial said. With the commissioning of key projects such as Jatadhar and Keni, along with ongoing capex, JM Financial projects Ebitda could reach ₹8,000-10,000 crore by FY30. The brokerage also notes that if a QIP is undertaken to reduce promoter stake, it could support an additional ₹25,000 crore of capex. This could potentially add ₹90-100 per share to the target price, the brokerage. It has a 'Buy' rating with a target price of ₹385 per share.
Mint
15 hours ago
- Business
- Mint
FPI selloff worth ₹6,000 crore fails to dent Indian stock market: Are big boys of D-Street losing control?
FPI Selloff: There was a time when foreign portfolio investors (FPIs) sneezed — and Indian investors' portfolios caught a cold. But over the last few years, this trend hasn't held ground. The latest FPI selloff in July is one such example. According to NSDL data, FPIs have become sellers in the Indian stock market this month, offloading stocks worth ₹ 5,826 crore so far. This selling, which followed three months of heavy buying, has failed to dent the benchmarks Sensex and Nifty like it used to, as indices have lost just over 1% this month. FPIs sold heavily in IT, FMCG, consumer durables, autos, and healthcare, while rotating into services, metals, oil & gas, capital goods, and financials. They also remained active in IPOs, attracted by better valuations and long-term growth potential. Meanwhile, so far in 2025, even as FPIs offloaded stocks worth ₹ 83,727 crore, Sensex has added 5% to its value, highlighting the reduced clout of the "Big Boys" of Dalal Street and a power shift that's underway. Experts believe the robust domestic institutional and retail participation is increasingly cushioning the impact of foreign selling. "The modest decline in benchmark indices despite significant FPI outflows reflects the growing resilience of domestic markets. Moreover, sectoral rotation within FPI activity suggests a shift rather than a complete exit, with inflows continuing in select cyclical and primary market opportunities," said Anil Rego-Founder and Fund Manager at Right Horizons PMS. The growth in demat accounts, which was tremendous during the pandemic (+35.4% in FY21 and 63.4% in FY22) as retail participants flocked to the equity markets in the face of adversity, has persisted post the pandemic also, rising 27.8% in FY23, +31.9% in FY24 and +26.7% in FY25, according to data shared by JM Financial. The demographic shift is clearly visible as retail participants with <30-years age group has risen from 22.6% of total in FY19 to 39.5% in FY25, while the share of the 60+ population has meaningfully fallen from 13.1% in FY19 to 7.1% in FY25. One obvious reason for the same is the rise of mobile-first broking platforms and increased SIP penetration in India. Not just direct equity, but retail investors have also participated via mutual funds. Total mutual fund folios rose from 42 million in FY15 to 235 million in FY25 at a 19% CAGR, driven primarily by retail segments. "SIPs have emerged as a stable retail inflow mechanism, with annual SIP contributions rising from ₹ 43,900 crore in FY17 to ₹ 2,89,400 crore in FY25. India's mutual fund AUM has expanded from ₹ 17.5 lakh crore in FY17 to ₹ 65.7 lakh crore in FY25, registering a CAGR of 18%, outpacing the Nifty 50's CAGR of 12.5% over the same period," said JM Financial. Analysts also pointed out that, unlike before, retail investors are staying put during cycles of market downturn, lending support during such periods. "SIPs are touching record highs, whereas demat accounts have also crossed 15 crore accounts in 2025. Retail participation has increased in direct equity, ETFs and IPO applications as well. Also, SIP flows tend to be sticky in market downturns as well," said Vaqarjaved Khan, CFA - Sr. Fundamental Analyst, Angel One. Deepening capital markets, growing SIP flows, and increased retail trading also reflect a shift from physical to financial assets. Rego said improved financial literacy, digital access, and favourable demographics are accelerating this trend. Retail investors now play a stabilising, long-term role in markets, reducing reliance on foreign capital and their consistent participation has enhanced market resilience, while contributing to India's growing prominence in the global equity landscape, Rego added. While FPI selling Indian stocks has failed to dent the stock market in any meaningful way, it has stalled the upward trajectory of the Indian stock market. Analysts believe FPI flows are likely to remain selective and event-driven in the near term, influenced by global macro volatility, US rate trajectory, and trade dynamics. However, India's relative macroeconomic strength, policy continuity, and earnings visibility provide a strong long-term case for renewed allocations, said Rego. "While short-term caution may persist due to elevated valuations in some segments, FPIs are expected to favour sectors aligned with capex, manufacturing, and domestic consumption themes. As global uncertainties stabilise, incremental inflows could resume, especially if supported by moderation in global yields and clearer risk appetite," he added. Khan believes that while FPIs may move out of India on account of a tactical exit but structurally they are very bullish on India as it continues to remain one of the best placed economies globally and in terms of best GDP growth rate and retail inflation of less than 2.5%. He added that once there is a clearer path of rate cut by the US Fed and global liquidity improves, then India is expected to become a top destination among EM economies on account of strong growth, governance and continued capex cycle.
Mint
15 hours ago
- Business
- Mint
FPI selloff worth ₹6,000 crore fails to dent Indian stock market: Are big boys of D-Street losing control?
FPI Selloff: There was a time when foreign portfolio investors (FPIs) sneezed — and Indian investors' portfolios caught a cold. But over the last few years, this trend hasn't held ground. The latest FPI selloff in July is one such example. According to NSDL data, FPIs have become sellers in the Indian stock market this month, offloading stocks worth ₹ 5,826 crore so far. This selling, which followed three months of heavy buying, has failed to dent the benchmarks Sensex and Nifty like it used to, as indices have lost just over 1% this month. FPIs sold heavily in IT, FMCG, consumer durables, autos, and healthcare, while rotating into services, metals, oil & gas, capital goods, and financials. They also remained active in IPOs, attracted by better valuations and long-term growth potential. Meanwhile, so far in 2025, even as FPIs offloaded stocks worth ₹ 83,727 crore, Sensex has added 5% to its value, highlighting the reduced clout of the "Big Boys" of Dalal Street and a power shift that's underway. Experts believe the robust domestic institutional and retail participation is increasingly cushioning the impact of foreign selling. "The modest decline in benchmark indices despite significant FPI outflows reflects the growing resilience of domestic markets. Moreover, sectoral rotation within FPI activity suggests a shift rather than a complete exit, with inflows continuing in select cyclical and primary market opportunities," said Anil Rego-Founder and Fund Manager at Right Horizons PMS. The growth in demat accounts, which was tremendous during the pandemic (+35.4% in FY21 and 63.4% in FY22) as retail participants flocked to the equity markets in the face of adversity, has persisted post the pandemic also, rising 27.8% in FY23, +31.9% in FY24 and +26.7% in FY25, according to data shared by JM Financial. The demographic shift is clearly visible as retail participants with <30-years age group has risen from 22.6% of total in FY19 to 39.5% in FY25, while the share of the 60+ population has meaningfully fallen from 13.1% in FY19 to 7.1% in FY25. One obvious reason for the same is the rise of mobile-first broking platforms and increased SIP penetration in India. Not just direct equity, but retail investors have also participated via mutual funds. Total mutual fund folios rose from 42 million in FY15 to 235 million in FY25 at a 19% CAGR, driven primarily by retail segments. "SIPs have emerged as a stable retail inflow mechanism, with annual SIP contributions rising from ₹ 43,900 crore in FY17 to ₹ 2,89,400 crore in FY25. India's mutual fund AUM has expanded from ₹ 17.5 lakh crore in FY17 to ₹ 65.7 lakh crore in FY25, registering a CAGR of 18%, outpacing the Nifty 50's CAGR of 12.5% over the same period," said JM Financial. Analysts also pointed out that, unlike before, retail investors are staying put during cycles of market downturn, lending support during such periods. "SIPs are touching record highs, whereas demat accounts have also crossed 15 crore accounts in 2025. Retail participation has increased in direct equity, ETFs and IPO applications as well. Also, SIP flows tend to be sticky in market downturns as well," said Vaqarjaved Khan, CFA - Sr. Fundamental Analyst, Angel One. Deepening capital markets, growing SIP flows, and increased retail trading also reflect a shift from physical to financial assets. Rego said improved financial literacy, digital access, and favourable demographics are accelerating this trend. Retail investors now play a stabilising, long-term role in markets, reducing reliance on foreign capital and their consistent participation has enhanced market resilience, while contributing to India's growing prominence in the global equity landscape, Rego added. While FPI selling Indian stocks has failed to dent the stock market in any meaningful way, it has stalled the upward trajectory of the Indian stock market. Analysts believe FPI flows are likely to remain selective and event-driven in the near term, influenced by global macro volatility, US rate trajectory, and trade dynamics. However, India's relative macroeconomic strength, policy continuity, and earnings visibility provide a strong long-term case for renewed allocations, said Rego. "While short-term caution may persist due to elevated valuations in some segments, FPIs are expected to favour sectors aligned with capex, manufacturing, and domestic consumption themes. As global uncertainties stabilise, incremental inflows could resume, especially if supported by moderation in global yields and clearer risk appetite," he added. Khan believes that while FPIs may move out of India on account of a tactical exit but structurally they are very bullish on India as it continues to remain one of the best placed economies globally and in terms of best GDP growth rate and retail inflation of less than 2.5%. He added that once there is a clearer path of rate cut by the US Fed and global liquidity improves, then India is expected to become a top destination among EM economies on account of strong growth, governance and continued capex cycle. Disclaimer: This story is for educational purposes only. 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.
India Today
17 hours ago
- Business
- India Today
Paytm posts Rs 123 crore profit in Q1: Is it a good time to buy the stock?
One97 Communications, the parent company of Paytm, reported a net profit of nearly Rs 123 crore for the quarter ended June 2025. This marks its first-ever quarterly profit across all major financial metrics, a significant milestone for the fintech player that has spent years trying to prove its business company's EBITDA stood at Rs 72 crore for the quarter, underlining a clear shift in the operating trajectory. The stock, however, slipped 1.60% to Rs 1,034.20 in early trade on the Bombay Stock Exchange, possibly due to profit-booking after a strong rally in recent the dip, brokerage houses are seeing long-term value. Brokerage firm JM Financial has maintained a 'Buy' rating on Paytm, with a target price of Rs 1,320 by June 2026. In its latest note, analyst Sachin Dixit highlighted that the company reported Rs 1,920 crore in revenue—a 4% increase over the previous quarter—along with a sharp rise in contribution margin to 60%, up 560 basis points to JM Financial, this margin expansion and improved operating leverage enabled Paytm to deliver its first-ever reported EBITDA and PAT profitability in the same quarter — a feat it believes signals a new phase of business maturity. The management's revised guidance of maintaining a mid-to-high 50s contribution margin (higher than earlier estimates of 54–56%) has further boosted Financial expects Paytm's profitability to scale sharply over the next two years, forecasting a net profit of Rs 1,450 crore by FY27, driven by high-margin financial services and monetisation opportunities like merchant discount rate (MDR) on UPI and a potential comeback of the Paytm Wallet. The brokerage values the stock at 40 times its projected FY27 adjusted EBITDA, reaffirming a bullish long-term to the results: the company said its turnaround has been powered by AI-led operational efficiencies, a rising share of financial services, and tighter control on from operations grew 28% year-on-year to Rs 1,918 crore, driven by a surge in subscription-paying merchants, stronger payment processing margins, and a steep rise in income from lending and credit-related services. Contribution profit jumped 52% year-on-year to Rs 1,151 crore, while contribution margin rose 10 percentage points to 60%, reflecting a healthier revenue payment revenue rose 38% to Rs 529 crore, aided by higher adoption of device-based payment subscriptions. Financial services revenue, on the other hand, doubled to Rs 561 crore, thanks to rising merchant loan volumes, stronger loan collections, and recurring trail income from its Default Loss Guarantee (DLG) now has a merchant base of 1.3 crore, and claims improved productivity of its sales team, along with falling hardware costs, helped it lower capital expenditure even as it expanded its network. The company closed the quarter with a cash reserve of Rs 12,872 crore, which it says provides ample runway for further growth in AI-led services and merchant ahead, Paytm believes the total addressable market is still under-penetrated. It estimates that over 10 crore merchants in India will accept digital payments in the coming years, and 40–50% of them may opt for subscription-based services. Management remains optimistic about sustaining and improving profitability through scale and sharper investors may want to weigh the sustainability of these gains. While the numbers are promising, the competitive landscape remains tough, with UPI still largely zero MDR, RBI regulations constantly evolving, and consumer preferences shifting fast.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
