Market Bizzz

The NII got impacted mainly on account of the cost of resources going up. And we believe that cost of resources, particularly on the deposit side, are peaked out. And we hope to improve the NII going forward.

JM Financial maintains a buy call on Tata Power with a target price of Rs 456. Tata Power reported consolidated revenue of Rs 154 billion and EBITDA of INR 31bn led by regulatory upside in Mundra. The company is well-positioned for growth in transmission, distribution, renewable business, and hydro storage.

The rupee, currently valued around 87-87.5, has depreciated to align with other global currencies. Foreseen measures from the Reserve Bank, including revised foreign currency deposit schemes and eased borrowing criteria, are expected to stabilize it. Market participants believe that further accommodative moves by the RBI in the upcoming policy will calm currency concerns.

Sudip Bandyopadhyay highlights promising sectors such as specialty chemicals, with undervalued companies like SRF and Deepak Nitrite showing recovery. He prefers Vedanta for its potential value unlocking in metals. Though supportive of a rate cut by RBI, he stresses liquidity creation’s immediate impact. He remains positive on the long-term power sector investments like NTPC and BHEL.

Titan shares are under scrutiny following a slight dip in Q3 net profit to Rs 1,047 crore, despite a 25% increase in total income. Analysts are optimistic about Titan’s growth, with Macquarie maintaining an ‘Outperform’ rating and Goldman Sachs giving a ‘Buy’ rating due to strong jewelry segment performance.

Tata chemicals share price: The company recorded an exceptional charge of Rs 70 crore in Q3FY25, resulting from employee termination benefits, the decommissioning of plant and machinery, and other closure-related expenses after halting soda ash production at the Lostock plant in Northwich, UK.

Prashant Khemka, Founder of White Oak Capital Management, anticipates a shift in performance between cyclical and defensive stocks. The Budget may reinforce this phenomenon. Khemka advises maintaining a balanced portfolio, emphasizing stock picking over top-down calls. He also notes the potential positive impact of income tax savings on demand and broad sectoral benefits.

JM Financial has issued a buy call on Bharat Electronics Ltd with a target price of Rs 360, citing robust financial performance. For the quarter ending December 2024, Bharat Electronics reported a 25.08% rise in consolidated total income and a net profit of Rs 1301.27 crore. The company’s strong order inflows and diverse growth strategies offer promising revenue visibility post-FY26.

KV Subramanian, IMF Executive Director, highlights that the finance minister’s tax cuts will put Rs 1 lakh crore into the middle class’s hands, potentially boosting GDP growth by 2.7%, making an overall growth rate of around 8%. Additionally, key focuses include clean tech, MSMEs, innovation, and addressing capacity constraints in capital expenditures.

Axis Securities maintains its buy call on Jyothy Labs with a target price of Rs 450, despite reducing EPS estimates by 1-6% for FY25/FY26 due to short-term challenges. Jyothy Labs reported a consolidated total income of Rs 718.30 crore and a net profit of Rs 87.40 crore for the quarter ending 31-Dec-2024.