Latest news with #PrabhudasLilladherCapital
Time of India
23-05-2025
- Business
- Time of India
PL Capital highlights 21 stocks with upside potential up to 35% as market digests geopolitical risks
Shrugging off geopolitical uncertainties, Indian equity markets have staged a sharp rebound over the past six weeks, reflecting investor optimism amid easing global tariff tensions and better-than-expected corporate results. This has prompted domestic brokerage firm Prabhudas Lilladher Capital to pick a bouquet of 21 stocks which could deliver returns of up to 35%. The report identifies the following stocks as top investment picks, with estimated upside potential ranging from 5% for Titan Company to 34.3% for Triveni Turbine: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Baca Undo Large Cap Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. ABB India, Bharti Airtel, Britannia Industries, Hindustan Aeronautics, ICICI Bank, InterGlobe Aviation, ITC, Kotak Mahindra Bank, Mahindra & Mahindra, Max Healthcare Institute, Sun Pharmaceutical Industries, Titan Company Mid / Smallcap Astral, Chalet Hotels, Crompton Greaves Consumer Electricals, Eris Lifesciences, IRCTC, Ingersoll-Rand (India), KEI Industries, Rainbow Children's Medicare, Triveni Turbine Live Events PL Capital noted that the markets appear to have digested uncertainties surrounding global tariff tensions, with hopes pinned on limited disruption and new trade agreements. However, global risks persist, including China's economic slowdown and interest rate dynamics in the US and Japan. Domestically, a further 50 basis point rate cut by the RBI is seen as possible over the next six months, although narrowing rate differentials with major global economies remain a key monitorable. The report highlights 'Operation Sindoor' as a key development redefining the role of advanced military technology, including air warfare, drone systems, and space technology. Also read: BSE share price crashes 66% in a day? Here's what caused this huge drop PL Capital states that India is being viewed as a potential global military superpower, with rising investments in related sectors like air defense systems, smart grids, power solutions, and hydroelectric infrastructure. It also adds that the abeyance of the Indus Water Treaty may open up fresh opportunities in EPC, PSP, and hydroelectric equipment. On the macroeconomic front too, PL Capital says conditions are favourable for a recovery in domestic demand. It attributes this to factors such as low food inflation (1.78% as of November 2021) and the CPI at 3.16%, the lowest since August 2019. Adding to this, the Indian Meteorological Department has forecasted a normal southwest monsoon for 2025 at 106% of the long-period average, which could aid in demand revival. The report further highlights that the personal income tax cuts proposed in the FY26 budget are beginning to reflect in improved demand. PL Capital estimates a demand surge of around Rs 2.5 lakh crore (USD 30 billion) due to the tax cuts, with a stronger impact expected for individuals earning above Rs 1 lakh per month. Sectors seen benefiting from this trend include Travel, Durables, QSR, Apparel, Auto, building materials, and jewellery. PL Capital concludes that demand recovery is visible across segments such as auto, hotels, airlines, durables, household goods, paints, and capital goods, with continued positivity in hospitals, pharma, EMS, travel, and telecom. Also read: Jane Street earns $2.3 billion riding India options trading wave ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
06-05-2025
- Business
- Economic Times
Marico pins FY26 hopes on rural revival, premium push
FMCG major Marico is betting on a broad-based consumption recovery and gradual margin improvement in foods and digital-first segments to power its performance in FY26 after closing FY25 on a steady note. While the company reported margin pressure during the March quarter, it expects to sustain the double-digit growth in revenue and operating profit in the current fiscal year. Analysts have raised earnings estimates by 5-9% for FY26 and FY27 supported by expectations of better top line growth and control on margin. ADVERTISEMENT Marico's consolidated revenue and net profit grew 20% and 8% year-on-year to Rs2,730 crore and Rs345 crore, respectively. The company stated that it expects gradually improving growth in the core categories on the back of moderating retail and food inflation as well as the promise of a normal monsoon season. However, higher raw material costs and advertising, sales and promotion (ASP) expenses pulled the operating margin before depreciation and amortisation (EBITDA margin) down to the 12-quarter low of 16.8%, which was also 260 basis points lower than the year-ago level. As a percentage of revenue, ASP spends was 11.2%, up from 9.9% year-ago as the company focussed on strengthening brands amid intense competition. The input costs relative to revenue increased to 51.4% in the March 2025 quarter from 48.4% in the year-ago period. According to brokerage reports, prices of key inputs including copra and vegetable oils increased by 25-48% year-on-year. Prabhudas Lilladher Capital expects prices to remain high in the near term. 'The usual 18–24 months pricing cycle has been extended, and copra prices are predicted to remain high in the June 2025 quarter,' the brokerage noted in a report. It expects margin pressures to subside after the first half of India business, which contributes over 75% to the top line, growth in volume and revenue was at a 14-quarter high in the three months ended March 2025. Volume grew by 7% compared with a 3% growth in the year-ago quarter. Revenue grew by 23% to Rs2,068 business, comprising the company's products in the haircare, food and beauty segments sold in over 25 countries, registered constant currency growth (CCG) of 16% in the March 2025 quarter. The growth rate has gradually improved from 6% in the December 2023 quarter despite macroeconomic headwinds and currency devaluations. ADVERTISEMENT The company expects to achieve a double-digit EBITDA growth in FY26 compared with 4% growth in the March quarter aided by margin expansion in the foods segment and a stronger product mix in international markets. Emkay has upgraded Marico to 'BUY' from 'Add', raising the target price by 16% to Rs810 while raising earnings estimates by 5-9% over FY26-27. Elara Capital has reiterated its 'Accumulate' rating while increasing the target price to Rs785 from Rs752. The stock was last traded at Rs 720 on Tuesday on the BSE. (You can now subscribe to our ETMarkets WhatsApp channel)
