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Business Standard
an hour ago
- Business
- Business Standard
PSBs in focus: SBI, BOB up 2%, Indian Bank hits record high; here's why
Public sector banks share price today Shares of public sector banks were in focus, with the Nifty PSU Bank index gaining 2 per cent on the National Stock Exchange (NSE) in Monday's intra-day trade after State Bank of India (SBI) reported healthy business growth and operational performance aided by treasury gains. Shares of Indian Bank hit an all-time high of ₹667.75, as they rallied 3 per cent on the NSE in intra-day trade. SBI, Bank of Baroda, Union Bank of India, Punjab National Bank, Canara Bank and Bank of India were up in the range of 1 per cent to 2 per cent. At 10:22 AM; Nifty PSU Bank index, the top gainer among sectoral indices, was up 1.8 per cent, as compared to 0.19 per cent gain in the Nifty 50. Q1 results, brokerages view - SBI In the April to June 2025 quarter (Q1FY26), SBI, the country's largest lender, reported healthy business growth and operational performance aided by treasury gains. The bank reported a 12.5 per cent year-on-year (Y-o-Y) rise in net profit to ₹19,160 crore, driven mainly by robust treasury gains. Sequentially, profit was up 2.78 per cent from ₹18,643 crore in Q4FY25. Credit growth remained healthy at 11.6 per cent Y-o-Y, driven by MSME, agri, and retail segment, while corporate growth continued to remain slower. Deposit accretion was strong at 11.7 per cent Y-o-Y, led primarily by term deposits (14.2 per cent Y-o-Y). Asset quality stayed robust with slippages at 75 bps vs 84 bps in Q1FY25, GNPA and NNPA remained flat at 1.83 per cent and 0.47 per cent. Net interest margin (NIM) contracted 10bp QoQ to 2.9 per cent, but management expects a gradual recovery in FY26, supported by improved liquidity from CRR cuts, moderation in deposit cost, and benefits from the recent capital raise. Steady performance despite headwinds showcases resilience. Business growth with focus on RAM segment with relatively resilient margins aided by diversified loan mix and consistent strong asset quality reinforce robust operating profile, ICICI Securities said in a note. Credit growth stood at 12 per cent Y-o-Y, with the unsecured Xpress Credit book remaining flat, while a robust credit pipeline is expected to support a healthy outlook over FY26. Domestic CD ratio remains benign and will be supportive of incremental credit growth. Despite elevated slippages (seasonal trend in Q1), the bank does not anticipate any material stress across lending segments, Motilal Oswal Financial Services (MOFSL) said. Overview - Banks In Q1FY26, margins for all banks experienced contraction due to repo rate cuts; margins are likely to further moderate in Q2 as the effect of the rate cuts is yet to be transferred. Most banks expect earnings growth to bottom out in the H1FY26, with credit costs likely to improve as stress in unsecured lending subsides, MOFSL said. The recent balance sheet repair and improving profitability levels with most PSBs crossing 1 per cent RoA mark, has supported PSB's capitalization levels and enabled them to deliver an improved growth trajectory. FY25 thus stood as the first year in the past fifteen years when PSBs grew at a faster pace than Private Banks. The credit growth gap between Private banks and PSBs has narrowed significantly in recent years. While private banks consistently outpaced the system through much of the past decade, FY23-25 marked a clear shift as PSBs regained balance sheet health, strengthened their capitalization levels, and reported a strong turnaround in sector profitability, the brokerage firm said in a financial sector update. MOFSL expects PSBs to continue reporting moderate growth in the medium term and factor in 10-13 per cent loan growth over FY25-28 across its six coverage PSU banks. While PSBs are now structurally sound, their growth runway appears steady rather than steep, reflecting stability more than scale-led acceleration, it added.
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Business Standard
4 days ago
- Business
- Business Standard
Divi's Labs falls 4% after Q1 miss, analysts trim estimates; check details
Divi's Laboratories share price today: Shares of Hyderabad-based pharmaceutical company Divi's Laboratories continued their downtrend, falling nearly 4 per cent to hit a low of ₹5,960.5 on the NSE in Thursday's intraday trade. In the last two trading sessions, the stock has tanked 7 per cent after the company reported mixed performance in the June 2025 quarter (Q1FY26). The stock has tumbled around 16 per cent from its 52-week low of ₹7,071.5 touched on July 8, 2025. At 1:15 PM, Divi's Lab stock was trading 2.1 per cent lower at ₹6,004.5 per share on the NSE. In comparison, NSE Nifty50 was down 0.72 per cent at 24,39.5 levels. The market capitalisation of the company stood at ₹1.59 trillion. Divi's Laboratories Q1 results Divi's Laboratories reported a 14 per cent year-on-year (Y-o-Y) jump in revenue at ₹2,410 crore in Q1FY26, compared to ₹2,118 crore in the year-ago period. The company's net profit grew 27 per cent Y-o-Y to ₹545 crore from ₹430 crore last year. Operating profit (Ebitda) rose 16.3 per cent to ₹756 crore, against ₹650 crore in the same quarter last year. Operating margin expanded by 70 basis points to 31.4 per cent from 30.7 per cent. Divi's Laboratories Q1 results analysis - Motilal Oswal Financial Services Analysts at MOSFL said that Divi's Labs reported revenue, Ebitda, and PAT below their estimates, affected by lower traction in the generics segment and increased operational expenditure. However, Q1FY26 was the seventh consecutive quarter of robust YoY growth in earnings. "Custom synthesis business has been witnessing strong growth momentum, driven by robust engagement across clinical phases and at the commercial stage. Divi's continues to build technology platforms and add capacities to support manufacturing requirements for innovator customers," the brokerage said. Additionally, the company is making efforts to sustain market share in the generics API space. It is also working on the manufacturing value chain to keep profitability intact. MOFSL slashed their earnings estimates by 8 per cent and 6 per cent for FY26 and FY27, respectively, factoring in the current pricing pressure in the generics segment, incremental operational expenditure related to new projects, and revenue being back-ended. "We estimate 20 per cent earnings CAGR over FY25-27 on the back of improved business prospects in the CS segment as certain contracts are currently undergoing pilot study/qualification and subsequently expected to scale up to the commercial level. Notably, peptide is expected to be the next breakthrough opportunity for DIVI. However, the current valuation leaves limited upside," MOFSL said in a note. The brokerage maintained a 'Neutral' rating on the stock with a target price of ₹6,320. InCred Equities According to analysts at InCred Equities, Divi's Laboratories posted a healthy Q1FY26 performance but missed on the margin front. The custom synthesis business grew by 23 per cent Y-o-Y while the generics segment was weak. "The Kakinada plant aids in backwards integration, and its units 1 and 2 are freed for GMP manufacturing. FY26F capital expenditure (capex) revised to ₹20 billion from ₹14 billion earlier," the brokerage said. InCred Equities trimmed their FY26F/27F estimates to factor in slower-than-expected growth in generics and margin improvement. The brokerage maintained an 'Add' rating on the stock with a target price of ₹6,800 (₹7,100 earlier), noting that Divi's premium valuation (significantly above SD+1 level) is likely to remain buoyant, underpinned by structural tailwinds and margin expansion. InCred highlighted that any slowdown in the custom synthesis business could pose downside risks.
Time of India
4 days ago
- Business
- Time of India
BSE shares in focus ahead of Q1 earnings. Here's what to expect
Shares of BSE will be in focus today as India's oldest stock exchange will announce its Q1 earnings along with over 270 BSE listed companies. It is expected to report a robust net profit growth up to 94% over the same quarter in the year ago period while revenue could also see a 61% jump according to estimates given by a couple of brokerages. Nuvama Institutional Equities has estimated a net profit of Rs 475 crore for BSE in the April-June quarter of FY26, which is a 94% year-on-year surge and a 20% sequential growth. Meanwhile, Motilal Oswal Financial Services (MOFSL) pegs the bottom line at Rs 477 crore, up 81% YoY while declining 3.2% quarter-on-quarter. Revenue could see a 59%-61% YoY jump in the quarter under review according to the brokerages. The topline could be in the range of Rs 963 crore to Rs 979 crore. On a sequential basis the uptick of 14%-16% is expected. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) is estimated in the range of Rs 584 crore and Rs 597 crore, witnessing a likely uptick of 106%-110% on a YoY basis. On a QoQ basis, it could 21%-23%. In its preview note, Nuvama said that BSE's strong 26.5% QoQ growth in index option ADPTV will likely result in strong Adjusted PAT growth. MOFSL has also listed several trigger points for BSE's growth. It said that BSE's market share continues to rise in F&O notional and option premium turnover, boosting revenues. Moreover, cash volumes sequential ramp-up in 1QFY26 is leading to increase in transaction charges. Continued momentum with respect to new listings will likely boost revenue from service to corporates. Decline in regulatory and clearing costs will improve profitability for the bourse. Investors should keep an eye on the impact guidance due to the change in expiry day while the cash market share improvement, as well. BSE had reported a consolidated net profit of Rs 494 crore in Q4FY25 which was a growth of 362% YoY while the revenue surged 69% YoY to Rs 926 crore. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
5 days ago
- Business
- Time of India
LIC Q1 results preview: PAT may rise 5% YoY, VNB to record up to 25% growth. 5 things to watch out for
Life Insurance Corporation of India ( LIC ) is set to announce its Q1 earnings on Thursday, August 7, where India's largest life insurer is expected to report a robust 42% sequential growth in net profit, albeit a single-digit rise in profit after tax (PAT) on a year-on-year basis. The company's Annual Premium Equivalent ( APE ) is expected to rise between 1% and 22% YoY, according to estimates from five brokerages. Forecasts for LIC's Value of New Business ( VNB ) also vary widely. The estimates from YES Securities, Motilal Oswal Financial Services (MOFSL), Kotak Institutional Equities, JM Financial, and Antique Stock Broking have been considered. Profit After Tax (PAT) MOFSL: Rs 10,954 crore, up 5% YoY and down 42% QoQ JM Financial: Rs 10,984 crore, up 5% YoY and down 42.2% QoQ Despite YoY improvement, PAT is projected to decline QoQ due to reduced investment income and a high base in Q4 from exceptional performance. APE Estimates YES Securities: Rs 14,078 crore, up 22% YoY and 25% QoQ MOFSL: Rs 12,228 crore, up 6% YoY and down 35% QoQ Kotak Equities: Rs 11,677 crore, up 1% YoY and down 38.1% QoQ JM Financial: Rs 11,964 crore, up 3.5% YoY and down 78.9% QoQ Antique Broking: Rs 12,020 crore, up 4% YoY VNB Estimates YES Securities: Rs 2,006 crore, up 25% YoY and 43% QoQ MOFSL: Rs 1,956 crore, up 22% YoY and down 45% QoQ Kotak Equities: Rs 1,743 crore, up 8.3% YoY and down 50.7% QoQ JM Financial: Rs 1,699 crore, up 5.5% YoY and down 51.9% QoQ Antique Broking: Rs 1,720 crore, up 6.8% QoQ VNB Margin YES Securities: Estimated QoQ contraction of 450 bps Kotak Equities: 14.9%, up 100 bps YoY, down 382 bps QoQ Antique Broking: 14.3% in Q1FY26 vs. 13.9% in Q1FY25 YES attributed the VNB margin contraction to expected changes in business mix and LIC's accounting policy based on actual cost. New Business Premium (NBP) LIC's NBP is projected to rise 10% YoY and 8% sequentially to Rs 63,047 crore. YES, in its preview note, said it based its new business growth assumptions on trends observed until May 2025, when LIC showed NBP/APE growth or de-growth of 1%/-15% for the first two months of Q1FY26 (April and May 2025) compared to the same period in Q4FY25 (January and February 2025).
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Business Standard
5 days ago
- Business
- Business Standard
Alembic Pharma dips 3% post Q1 results; MOFSL retains Neutral, here's why
Alembic Pharma share price today: Shares of Vadodara-based pharmaceutical company Alembic Pharma fell around 3.5 per cent on Wednesday, on the NSE, after the company reported its June 2025 quarter (Q1FY26) results. The stock touched an intraday low of ₹913.4. At 1:35 PM, Alembic was trading 1.7 per cent lower at ₹931 on the NSE. In comparison, the NSE Nifty was trading lower by 0.13 per cent at 24,618.45. The stock has crashed around 27 per cent from its 52-week high of ₹1,303.9 touched on October 9, 2024. CATCH STOCK MARKET UPDATES TODAY LIVE In addition, the overall muted sentiment around pharma stocks after US President Donald Trump hinted at as much as a 250 per cent tariff rate in 12 to 18 months also impacted the stock. The Nifty Pharma index fell as much as 1.8 per cent on Wednesday. Alembic Pharmaceuticals Q1 results The company reported a 14 per cent increase in consolidated net profit year-on-year (Y-o-Y) to ₹154.33 crore for the Q1FY26 compared to ₹131.21 crore in the year-ago period. Revenue from operations also rose by 10 per cent Y-o-Y to ₹1,710.72 crore against ₹1,561.73 crore in Q1FY25. Alembic's India branded business witnessed 5 per cent Y-o-Y growth to ₹599 crore in the quarter under review. United States generic revenue also grew 13 per cent to ₹523 crore, on the back of four new launches in the market. The company secured six abbreviated new drug application (ANDA) approvals during the quarter, bringing total approvals to 223. The active pharmaceutical ingredient (API) business grew marginally by 1 per cent, with revenue of ₹261 crore for the quarter. Alembic Pharma Q1 results analysis - Motilal Oswal Financial Services According to analysts at MOFSL, Alembic Pharma delivered a largely in-line performance for 1QFY26 as superior execution in the export market led to Y-o-Y growth in revenue/Ebitda/PAT for the quarter. However, this growth was offset, to some extent, by a muted show in the domestic formulation (DF) and API segments. Alembic Pharma maintained its growth momentum in the US market on the back of new launches. Notably, upcoming introductions such as g-Entresto have the potential to further strengthen growth in the US generics segment. That said, a broader scope of business would be necessary to enhance capacity utilisation and, in turn, improve the profitability of the US generics segment, MOFSL said in a note. "After a muted performance in FY25, ALPM is working to improve business prospects across its key markets. Growth in export markets is strengthening on the back of new launches and superior supply chain management. Considering these aspects, we expect a 24 per cent earnings compound annual growth rate (CAGR) over FY25-27. The current valuation largely factors in the earnings upside," the brokerage said. MOFSL has maintained a 'Neutral' rating on the stock with a target price of ₹990. About Alembic Pharma Incorporated in 2010, Alembic Pharmaceuticals is engaged in the business of development, manufacturing, and marketing of pharmaceutical products, including formulations and active pharmaceutical ingredients. Its products can be broadly classified into active pharmaceutical ingredients (APIs), formulations, and international generics. Alembic's customers include pharmaceutical companies for APIs, healthcare facilities and patients for formulations, and healthcare facilities and patients for international generics. It has presence across 33 states and union territories in India and 78 countries globally.
