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Mint
21 hours ago
- Business
- Mint
Adani Ports, Cipla, Trent and 25 other Nifty 50 companies beat Q4 net profit estimates. Do you own any?
Q4 earnings review: The March quarter earnings brought much-needed relief to the Indian stock market, as corporate performance beat Street estimates, led by OMCs, PSU banks, automobiles, healthcare, technology, and capital goods, easing valuation concerns to some extent. This recovery in performance, after three consecutive quarters of subdued growth, was largely driven by lower input costs and moderating inflation, which supported operational profitability. Although the net profit growth for Nifty 50 companies remained in the single digits — marking the fourth consecutive quarter of such growth since the pandemic (June 2020) — it still exceeded analysts' projections. Adjusted net profits of the Nifty 50 index rose 3.7% year-on-year, coming in 3.8% above Kotak Institutional Equities' expectations. Similarly, adjusted net profits of the BSE Sensex increased 3.6% year-on-year, which was 5.3% above KIE's expectation of a 1.6% year-on-year decline. While the reported net income of the Nifty 50 index rose 2.4% year-on-year and 4.8% quarter-on-quarter. Several companies, including Asian Paints, Bharti Airtel, Tata Steel, Dr. Reddy's, and Sun Pharma, reported extraordinary items in Q4FY25. According to Kotak Institutional Equities (KIE), among the Nifty-50 stocks, 28 companies significantly outperformed their net income estimates in Q4FY25. These include Adani Ports, where the beat was driven by strong performance across both port operations and marine/logistics businesses. Cipla delivered better-than-expected results, supported by strong traction in the US, One Africa, and EM/EU regions. Coal India reported higher other income, contributing to its outperformance. The brokerage further said that Dr. Reddy's also benefitted from higher other income, primarily led by forex gains. Eicher Motors outperformed due to increased other income, while SBI reported a strong beat on the back of robust non-interest income. Tata Steel and Tech Mahindra both posted higher other income and benefited from lower-than-expected effective tax rates. Titan also exceeded the brokerage estimates owing to higher-than-expected revenues, and Trent outperformed due to strong other income. On the other hand, companies that underperformed KIE's net income estimates include Asian Paints, which showed weakness across all metrics; Grasim, impacted by a weaker-than-expected performance in its chemicals and VSF businesses; and IndusInd Bank, which reported higher-than-expected losses after recognizing several discrepancies in income and expenses from previous years, leading to a large reversal of past income. Tata Motors also fell short of estimates, primarily due to lower-than-expected profitability in its Jaguar Land Rover (JLR) business. At the EBITDA level, companies that exceeded KIE's expectations were M&M, driven by stronger-than-expected sales and gross margins; Nestle, which reported a solid gross margin print and lower other expenses; and Titan, which again benefited from higher-than-expected sales. However, some Nifty-50 companies underperformed at the EBITDA level. These included Asian Paints, which continued to show weakness across the board; Coal India, affected by weak volume and realizations; and Dr. Reddy's, which was weighed down by lower gross margins and higher staff costs. Further, Grasim, again reflecting pressure in the chemicals and VSF segments, and Maruti Suzuki, where a bunching up of certain expenses impacted performance, according to the brokerage. 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 taking any investment decisions.
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Business Standard
3 days ago
- Business
- Business Standard
Rising US yield, weakening dollar are everyone's problem, says KIE
KIE flags rising tremors in US debt and dollar that could rattle global markets Mumbai Listen to This Article The recent jump in US bond yields, driven by weakening US macroeconomic fundamentals, is sparking concern about broader effects on global economies. A report from Kotak Institutional Equities (KIE) explains that higher yields reflect bond markets pricing in a ballooning US fiscal deficit alongside mounting macroeconomic and policy uncertainty. This has pushed investors to demand steeper returns to offset growing risks, potentially straining the US fiscal and debt outlook as new bonds are issued at elevated rates. The 10-year US Treasury yield climbed 24 basis points (bps) to 4.4 per cent in May. Meanwhile, the yield on the 10-year Indian
Yahoo
26-05-2025
- Business
- Yahoo
Is SPDR S&P Insurance ETF (KIE) a Strong ETF Right Now?
A smart beta exchange traded fund, the SPDR S&P Insurance ETF (KIE) debuted on 11/08/2005, and offers broad exposure to the Financials ETFs category of the market. Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy. Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency. If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies. This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics. This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results. The fund is managed by State Street Global Advisors, and has been able to amass over $938.93 million, which makes it one of the average sized ETFs in the Financials ETFs. KIE seeks to match the performance of the S&P Insurance Select Industry Index before fees and expenses. The S&P Insurance Select Industry Index represents the insurance segment of the S&P Total Market Index. Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same. Annual operating expenses for KIE are 0.35%, which makes it one of the least expensive products in the space. KIE's 12-month trailing dividend yield is 1.63%. ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation in the Financials sector - about 100% of the portfolio. Taking into account individual holdings, Palomar Holdings Inc (PLMR) accounts for about 2.24% of the fund's total assets, followed by Oscar Health Inc Class A (OSCR) and Wr Berkley Corp (WRB). The top 10 holdings account for about 20.71% of total assets under management. So far this year, KIE has added roughly 2.65%, and was up about 16.23% in the last one year (as of 05/26/2025). During this past 52-week period, the fund has traded between $48.97 and $62.03. The ETF has a beta of 0.76 and standard deviation of 18.35% for the trailing three-year period, making it a medium risk choice in the space. With about 55 holdings, it effectively diversifies company-specific risk. SPDR S&P Insurance ETF is a reasonable option for investors seeking to outperform the Financials ETFs segment of the market. However, there are other ETFs in the space which investors could consider. Invesco KBW Property & Casualty Insurance ETF (KBWP) tracks KBW Nasdaq Property & Casualty Index and the iShares U.S. Insurance ETF (IAK) tracks Dow Jones U.S. Select Insurance Index. Invesco KBW Property & Casualty Insurance ETF has $483 million in assets, iShares U.S. Insurance ETF has $819.18 million. KBWP has an expense ratio of 0.35% and IAK charges 0.39%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Financials ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Insurance ETF (KIE): ETF Research Reports W.R. Berkley Corporation (WRB) : Free Stock Analysis Report iShares U.S. Insurance ETF (IAK): ETF Research Reports Invesco KBW Property & Casualty Insurance ETF (KBWP): ETF Research Reports Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report Oscar Health, Inc. (OSCR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Mint
22-05-2025
- Business
- Mint
Maharatna PSU SAIL declares date to announce Q4 results 2025, final dividend for FY25
Maharatna public sector undertaking (PSU) Steel Authority of India (SAIL) on Thursday, May 22, announced that its board will meet next week to announce the results for the March quarter of the financial year 2024-25, along with a final dividend. The board meeting is slated to take place on Wednesday, May 28. 'The meeting of the Board of Directors of Steel Authority of India Limited (SAIL) will be held on 28th May, 2025 at New Delhi to, inter-alia, consider, approve and take on record the Audited Standalone and Consolidated Financial Results of the Company for the Quarter and Year ended 31th March, 2025, and recommend final dividend for the financial year 2024-25, if any,' SAIL said in an exchange filing today. According to estimates by Kotak Institutional Equities, SAIL will likely post a muted set of numbers for the March quarter on a year-on-year (YoY) basis, although the performance could be robust sequentially. As per KIE's estimates, the company is likely to post a 15% YoY drop in Q4 net profit to ₹ 860 crore, as against ₹ 1011 crore recorded in the same period a year ago. Net sales growth is seen flat at 0.7% YoY at ₹ 26,252 crore. Sequentially, however, the Maharatna PSU company is expected to post a 584% jump in PAT while sales are seen rising over 7%. KIE estimates volumes to increase 3.5% YoY (+6.5% QoQ) in the quarter. "We estimate steel realisations to increase 0.6% QoQ ((-)2.7% YoY) due to an improvement in HRC prices during the quarter," KIE said. In the past 12 months, the state-owned company has declared an equity dividend amounting to just ₹ 1.00 per share. However, since January 2005, SAIL has announced 31 dividends, according to Trendlyne data. At the prevailing share price, SAIL's dividend yield comes out to be low at 0.79%. Despite volatility in the Indian stock market, PSU stock SAIL has gained over 10% in 2025 so far. While the stock is down 26% in the past one year, it has risen 357.88% in the last five years, delivering multibagger gains to investors. As of 1.45 pm today, SAIL share price was at ₹ 125.40, up 0.41% apiece on the BSE. 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.
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Business Standard
22-05-2025
- Business
- Business Standard
Unique MF investor count up 20% YoY at 54 mn in 2025; target mid, smallcaps
The mutual fund industry has seen a rise in number of investors in the last few years with the count of new / unique investors hitting the 54 million mark in 2025, up a healthy 20 per cent (45 million) compared to 2024, and a staggering 42 per cent (38 million) rise when compared to 2023, suggests a recent note by Kotak Institutional Equities (KIE). A bulk of their flows, the KIE note said, is concentrated around midcap, small-cap and thematic funds. While flow to the midcap, smallcap and thematic funds totaled ₹153 billion, ₹175 billion and ₹169 billion respectively in 2025, the large-cap and large & midcap funds garnered Rs 111 billion and ₹120 billion respectively during this period, the Kotak report suggests. Only the flexicap category with flows totaling ₹220 billion has garnered more attention in 2025, the KIE note suggests. That said, the average retail investor who was rewarded handsomely given the surge in the markets in the last few years, KIE believes, have turned more cautious now. Any downturn in general investment sentiment, wrote Sanjeev Prasad, managing director and co-head of Kotak Institutional Equities in a coauthored note with Anindya Bhowmik and Sunita Baldawa, can test the holding power of the average retail investor. "An improved domestic macroeconomic outlook, dubious positive narratives about India and certain sectors may have supported the positive sentiment, even as business conditions and earnings outlook have seen some deterioration. The strong upturn in net FII flows, likely supported by the above-mentioned positives, has been able to paper over the weakness in DII flows," Prasad added. Assets under management As of March 2025, the mutual fund industry's assets under management (AUM), according to the AMFI Annual Report for fiscal 2025, hit an all-time high of ₹65.74 trillion. This milestone was largely driven by record net inflows of ₹8.15 lakh crore during the fiscal year—reflecting strong investor confidence and robust market participation. "Systematic Investment Plans (SIPs) have continued to gain popularity, with a notable year-on-year increase in SIP contributions. The consistent rise in SIP accounts and a detailed analysis of investment trends indicate a growing preference among investors for disciplined, long-term investing over short-term speculation. This shift underscores a more mature and patient investor mindset," said Venkat N Chalasani, chief executive officer at AMFI. Within the MF space, equity-oriented schemes dominated net inflow, at ₹4.17 trillion, with income / debt-oriented, hybrid and passive schemes (included in others) recording net flows as well, indicating a diversification strategy employed by investors, AMFI said in its annual report. Inflows into debt funds (₹1.38 trillion), AMFI said, rebounded after three years of successive outflows, as investors sought relatively stable returns and lower risk offered by the category. Lowering of the repo rate to 6.25 per cent in February 2025 from 6.50 per cent by the Reserve Bank of India, with expectations of further rate cuts, and decline in yields also attracted investors to the category.
