Market Bizzz

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.

The Budget has been praised by Atul Lall, VC & MD of Dixon Tech, for its favorable impact on the electronics industry. Key measures include the rationalization of the duty structure for IFPD, reduction of duties on mobile components, and regulatory reliefs. These changes are anticipated to significantly boost manufacturing and overall industry growth.

While many were talking about the need for interest rate cuts, the real issue at this point was the slowdown in consumption. The government has put money in the hands of people at the lower end of the income spectrum through tax reductions. This was the need of the hour and, in that context, it was the right budget for this stage of the economic cycle.

There was a visible shift in tilt towards supporting consumption through lower taxes on middle class households, relative to the public capex-driven growth push witnessed over the past few years. Through this budget, the consumption story gets the much-needed push, while the capex story continues broadly as earlier.

The budget aims to balance fiscal discipline, infrastructure growth, and middle-class support. It highlights a target to reduce the fiscal deficit, increase capital expenditure, and overhaul the new tax regime to boost consumption. The focus on growth with fiscal prudence is set to enhance economic prospects.

Ajay Bagga highlights concerns over India’s financial health, pointing out unsustainable government debt levels compared to household income. He emphasizes the need for significant monetary policy measures, which typically take months to impact the economy. Sector-wise, IT and public sector banks are expected to perform well, while global uncertainties like US tariffs and China’s stimulus also weigh on market sentiments.

Top brokerages suggest investment themes for Budget 2025, highlighting sectors like infrastructure, defense, and railways poised for significant growth. Analysts expect increased capex allocation and fiscal deficit targets, alongside potential boosts for financials, health, consumption, automobiles, real estate, and power sectors.

IndusInd Bank reported a 39% year-on-year decline in standalone net profit for Q3FY25 to Rs 1,401 crore, surpassing Street estimates. Interest income rose 11% YoY, while deposits grew by 11%. However, net interest income fell, NIM contracted, and asset quality deteriorated with higher NPAs.