Latest news with #Nuvama
&w=3840&q=100)
Business Standard
9 hours ago
- Business
- Business Standard
Mid, smallcap indices can dip up to 9% from here; analysts turn cautious
Historically, the combination of narrowing earnings differential, high valuations and prolonged outperformance, Nuvama said, has led to a large period of underperformance for SMIDs (2018-19) Listen to This Article The rally in the small-and midcap indices (SMIDs) is showing signs of fatigue amid a sharp rebound from April lows in the backdrop of tepid earnings growth and high valuations, suggest analysts. These indices, technical charts hint, may drop up to 9 per cent from the current levels. Nifty/SMIDs have bounced 12 per cent / 20 per cent from April low amid earnings downgrades and continuing economic slowdown. This, said analysts at Nuvama Institutional Equities, has led to an unprecedented wedge between growth and valuation—with the BSE 500 median PE at 40x, while trailing median earnings growth is just 9
Mint
10 hours ago
- Business
- Mint
Stock Picks: Sagar Doshi suggests Jindal Steel, Ajanta Pharma, Godrej Agrovet shares to buy today
Stock market today: India's stock benchmarks began the day on a positive note on Wednesday, driven by better-than-anticipated earnings from the major infrastructure company Larsen & Toubro. The Nifty 50 increased by 0.28% to reach 24,890.4 points, while the BSE Sensex rose by 0.32% to hit 81,594.52 as of 9:15 IST. At the same time, investors are likely to tread carefully in anticipation of the Federal Reserve's policy announcement later today, as well as due to worries regarding a possible India-U.S. trade agreement. On the technical front, Sagar Doshi of Nuvama believes Nifty 50 is yet not out of the woods and currently stands at the retest of head and shoulder breakdown. Doshi recommends three stocks to buy today. Here's what he say about the overall market. Nifty 50 recovered all of its previous day's losses as the initial pattern target of bearish head and shoulder breakdown was seen completing at 24,600. A short covering move was seen ahead of monthly expiry due tomorrow. Nifty 50 is yet not out of the woods and currently stands at the retest of head and shoulder breakdown. Only a close above 25,010 negates any potential down move while another 400 pt downside can commence if Nifty 50 closes below 24,600. Hence, for the balance of this week, we are estimating for a rangebound trade between 24,600 – 25,010. Bank Nifty has been nearing its 5 month rising trendline support at 55,800 odd as the index continues to outperform Nifty 50 since the start of this calendar year. On hourly charts as well, the index gave a break below its rising channel in the start of this week but pulled back in reinstating its underlying strong amongst insides. Trend on Bank Nifty remains positive for a move towards 56,800 / 57,100 unless a close below support of 55,800 is not confirmed on daily charts. On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks - Jindal Steel & Power Ltd, Ajanta Pharma Ltd, and Godrej Agrovet Ltd. Countering the broader market trend, stock was up over 4% in last week's trading as it broke out from its 1 year trendline. Currently the price is retesting its 1 year trendline breakout for an up move towards previous all time highs. Stock has broken out from a 10 month falling trendline on daily charts along with this it indicates a breakout from a 6 month consolidation / base formation on weekly charts for atleast a 8-10% upside from CMP. Adding to this, stock has also given a crossover above its 200 DMA in mid-June and has been holding above the same which is a positive sign. Breaking out from its 1 year consolidation, stock has also given a bullish cup and handle pattern breakout on daily and weekly charts. A retest of the breakout has also played out at the start of this week as broader marked cooled off. Stock is now open to hit at least 10% as its initial target on the upside. 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.
Economic Times
a day ago
- Business
- Economic Times
Tata Steel Q1 results preview: PAT may surge up to 55% YoY despite revenue dip; Europe losses seen narrowing
Tata Steel will announce its Q1 earnings on Wednesday, July 30. The steel major is expected to report a sharp year-on-year rise in profitability for Q1FY26, driven by improved margins in its India business, supported by higher steel realizations and lower input costs, particularly coking coal. ADVERTISEMENT Despite a likely decline in volumes due to plant maintenance and export headwinds, operating performance is projected to improve significantly. Losses from European operations are expected to moderate due to cost optimization, especially in the Netherlands. However, revenue growth is projected to remain tepid, with most brokerages forecasting a year-on-year and sequential decline. YES Securities: Rs 1,486 crore (up 55% YoY, up 14% QoQ) Rs 1,486 crore (up 55% YoY, up 14% QoQ) Nuvama: Rs 1,680 crore (up 26% YoY, down 1% QoQ) Rs 1,680 crore (up 26% YoY, down 1% QoQ) Kotak Equities: Rs 1,773 crore (up 35% YoY, up 5% QoQ) Rs 1,773 crore (up 35% YoY, up 5% QoQ) JM Financial: Rs 1,789 crore (down 27.3% YoY, up 43.6% QoQ) YES Securities: Rs 54,116 crore (down 1.2% YoY, down 3.7% QoQ) Rs 54,116 crore (down 1.2% YoY, down 3.7% QoQ) Nuvama: Rs 51,691 crore (down 6% YoY, down 8% QoQ) Rs 51,691 crore (down 6% YoY, down 8% QoQ) Kotak Equities: Rs 50,515 crore (down 8% YoY, down 10% QoQ) Rs 50,515 crore (down 8% YoY, down 10% QoQ) JM Financial: Rs 54,208 crore (down 0.4% YoY, down 2.7% QoQ) Nuvama attributed the 15% QoQ drop in sales volume (to 4.75 mt) to scheduled plant maintenance shutdowns and muted export demand. YES' revenue projections assume a drop in volumes from Q4FY25. Kotak highlighted weak volume trends as a drag on topline despite better realizations. YES Securities: Rs 6,947 crore (up 61 bps YoY, up 117 bps QoQ) Rs 6,947 crore (up 61 bps YoY, up 117 bps QoQ) Nuvama: Rs 7,179 crore (up 7% YoY, up 9% QoQ) Rs 7,179 crore (up 7% YoY, up 9% QoQ) Kotak Equities: Rs 7,361 crore (up 10% YoY, up 12% QoQ) Rs 7,361 crore (up 10% YoY, up 12% QoQ) JM Financial: Rs 7,168 crore (up 11.9% YoY, up 6.7% QoQ) On the margin front, YES expects the company to benefit from the rise in steel prices in India, while falling coking coal prices are likely to support EBITDA. Kotak attributes the improvement to lower coal costs and a 4% QoQ improvement in Indian realizations. Nuvama expects higher EBITDA per tonne, driven by better pricing and lower input costs in India. ADVERTISEMENT Kotak Equities estimates EBITDA margins at 14.6%, rising 234 bps YoY and 290 bps QoQ, supported by operating leverage and favorable commodity trends. ADVERTISEMENT Losses in Tata Steel Europe are expected to narrow QoQ. Nuvama estimates EBITDA at -$28/t, improving from -$39/t in Q4FY25, driven by lower raw material costs in the Netherlands. EBITDA per tonne is expected to rise to $38/t (vs $8/t in Q4FY25), while losses in the UK may shrink due to lower fixed estimates Europe to break even with $2/t EBITDA (vs -$36/t in Q4FY25), aided by $48/t EBITDA at Dutch operations and reduced losses in UK operations during the quarter. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
a day ago
- Business
- Economic Times
Zen Technologies shares slump 9% in 2 days post Q1 results
Zen Technologies' shares declined following Q1 results, revealing a drop in order backlog and concerns about future growth. Despite management's optimism for increased order inflows and potential exports, brokerage firms have downgraded ratings due to anticipated earnings slowdown. While some maintain a 'Buy' rating citing strong fundamentals and growth potential, others adopt a more cautious 'Hold' stance amid order delays. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Zen Technologies dropped nearly 9% over two days to Rs 1,603 on the BSE following the company's Q1 results , which showed muted performance and a slowdown in order inflows A report by Nuvama highlights that the consolidated order backlog has declined to Rs 7.54 billion (0.7x FY25 sales), down from Rs 11.6 billion in June 2024, raising concerns about future growth visibility. However, management remains optimistic about achieving Rs 6.5 billion in order inflows in Q2FY26, supported by potential US/NATO exports and India's defense emergency procurement orders throughout brokerage firm has downgraded its buy rating to 'HOLD' as they find an approaching earnings trough with a recovery likely only from H2FY27E (if and when ordering picks up). 'We are cutting FY26E/27E EPS by 8%/19% and target PE to 40x (earlier 45x) with rollover to Sep-27E for a TP of Rs 1,800 (earlier Rs 2,170), " the report consolidated revenue of Zen Technologies was reported at Rs 158.22, and the PAT was reported at Rs 47.75 crore.'Our Q1FY26 results reflect moderation in topline growth, we believe this is a temporary adjustment phase with a much stronger long-term growth trajectory. Despite this temporary moderation, our business fundamentals remain strong. We have successfully maintained our EBITDA and PAT margins, reflecting strong operational discipline and cost efficiency. Our consolidated order book stands at₹754 crores and maintains a debt-free balance sheet,' Ashok Atluri – Chairman and Managing Director, said in the filing with the ahead to H1FY26, we remain confident in achieving our order inflow guidance of Rs 800 crores. Out of which we have secured orders amounting to ₹150 crores till date, with the remaining Rs 650 crores expected to materialize within the first half. In addition, we expect orders to be placed under the government's emergency procurement plan, particularly for anti-drone systems,' Atluri further mentioned that, 'Our robust pipeline, combined with continued policy support for indigenous manufacturing, positions us well for sustained growth. While FY26 is likely to be a year of consolidation, we remain focused on executing our long-term strategy and are confident in maintaining our targeted cumulative revenue of Rs 6,000 crores over the next 3 financial years.'Elara Capital assigns a buy rating with a target price of Rs 2,225. The brokerage firm mentioned in its release that, 'We pare our TP to INR 2,225 on 40x (unchanged; in line with private defence companies) June FY27E P/E. However, we reiterate Buy given the growing demand for domestic defence as also ZEN's product portfolio along with increase in scope for exports, and robust performance by subsidiaries (on inflows and sales).''We reiterate Buy as successful demonstration of ZEN's equipment in the recent India-Pakistan conflict should drive demand on domestic and export fronts, along with robust performance by subsidiaries on the inflows and sales front. We expect an earnings CAGR of 26% in FY25-28E with an average ROE and ROCE of 19% each through FY26E-28E,' ICICI Securities further brokerage firm, ICICI Securities, downgraded the rating to hold from buy previously, with a target price of Rs 1,700. "Given the delays in ordering, we reduce our FY26/FY27 EPS estimates by 30%/22%. We downgrade the stock to HOLD, from Buy, with a revised target price of INR 1,700, based on 35x FY27E EPS,' it added in its release.
News18
a day ago
- Business
- News18
IndusInd Bank Shares Rise 2% Despite 72% YoY Profit Drop In Q1; Should You Invest?
Last Updated: IndusInd Bank share price today: IndusInd Bank reported a 68% slump in standalone net profit IndusInd Bank Share Price: Shares of IndusInd Bank climbed 2% to an intraday high of Rs 818.60 on the BSE on Tuesday, July 29, even as the private sector lender reported a sharp 72% year-on-year (YoY) decline in consolidated net profit for the first quarter of FY26. The bank posted a net profit of Rs 604 crore in Q1FY26, down from Rs 2,171 crore in the same period last year. The steep fall in earnings was accompanied by a deterioration in key financial metrics. Net Interest Income (NII) dropped 14% YoY to Rs 4,640 crore, compared to Rs 5,408 crore in Q1FY25. The Net Interest Margin (NIM) also shrank to 3.46%, down from 4.25% a year earlier. Motilal Oswal maintained a 'Neutral' view on IndusInd Bank with a target price of Rs 830, indicating limited upside potential. The brokerage acknowledged the bank's return to profitability after one-off events but flagged concerns over asset quality, particularly stress in the microfinance segment. 'We slightly raise our earnings estimates by 2.6%/2.3% for FY26/27 as the bank focuses on cost control and a profitability-first approach," the firm noted. It projects Return on Assets (RoA) and Return on Equity (RoE) of 0.7% and 6.4% respectively for FY27. The appointment of a new CEO and pace of recovery will be key factors to watch, it added. Nuvama retained its 'Reduce' rating with a sharply lower target price of Rs 600, citing a weak core performance. The brokerage said Q1FY26 will serve as a new base for the bank, noting a 47% YoY and 32% QoQ decline in core pre-provision operating profit (PPOP). 'RoA fell to 45 basis points from 103 bps in Q3FY25 and 168 bps YoY. We see the risk-reward as unfavourable," Nuvama stated. It also pointed to declining loan disbursals in the microfinance and corporate segments, a 35% drop in fee income, and overall weakness across revenue lines. Reported gains were supported by trading income, while core performance lagged. NIM dropped to 3.35% from 4.25% YoY. HDFC Securities maintained its 'Reduce' rating with an unchanged target price of Rs 665. The brokerage flagged challenges such as elevated credit costs, succession overhang, senior management exits, and pressure on the deposit franchise. Despite a 3% QoQ decline in deposits, the CASA ratio fell to 31.5% as current account balances normalized. HDFC Securities expects muted return ratios and single-digit loan CAGR over the medium term. 'We believe that IndusInd Bank requires a complete overhaul under enhanced regulatory scrutiny to restore stakeholder trust," the firm added. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
