The stock market is always evolving, and investors are keeping an eye on several key players making headlines today. Here’s a look at the stocks likely to move the market based on their recent performance, quarterly earnings, and strategic initiatives.
1. Reliance Industries (RIL)
Reliance Industries, a bellwether for the Indian stock market, reported a 4.8% decline in profit for Q2 FY25, missing analyst expectations. This is the third consecutive quarter of declining profits, primarily driven by weakness in the oil-to-chemicals (O2C) segment. However, Jio Platforms and the digital services arm saw a solid 18% revenue growth, helping to offset some losses.
Key Figures:
- Q2 FY25 Profit: ₹16,563 crore, down 4.8% YoY
- Revenue: ₹2.31 trillion, slight decline
- Jio Platforms Growth: 18% YoY due to telecom tariff hikes
Despite the challenges in its O2C business, analysts remain optimistic about RIL’s long-term prospects, citing the strength of its digital and retail divisions.
2. HCL Tech
HCL Tech continues to deliver solid performance, raising its FY25 revenue growth guidance to 3.5-5%. The company’s Q2 FY25 net profit rose by 10.5% to ₹4,235 crore, driven by strong performances in the telecommunications and media sectors.
Key Drivers:
- Revenue Growth: Driven by telecom and media sectors
- Investment in AI: HCL is investing heavily in AI and digital transformation, positioning itself for future growth.
Analysts recommend buying HCL Tech, citing the company’s potential to continue capitalizing on AI and digital technology innovations.
3. Easy Trip Planners
Easy Trip Planners announced a bonus share issuance to reward its shareholders. The company plans to offer 1 bonus share for every fully paid-up equity share, increasing its share capital to ₹354.408 crore. This move has caught the attention of retail investors, pushing the stock upward.
Why Watch:
- Bonus Share Issuance: 1:1 ratio
- Stock Performance: Positive momentum following the announcement
With a focus on rewarding shareholders, Easy Trip Planners is becoming a favorite among long-term retail investors.
4. JSW Infrastructure
JSW Infra has received a Letter of Intent from the Maharashtra Maritime Board to develop and operate a multi-purpose port at Palghar. This public-private partnership (PPP) will use the DBOOT (Design, Build, Own, Operate, Transfer) model, enhancing JSW Infra’s capabilities in port management.
Key Updates:
- Port Development at Palghar: Multi-purpose port using PPP model
- Expansion: JSW Infra is rapidly expanding its infrastructure projects, particularly in the maritime sector.
5. Hindustan Aeronautics Limited (HAL)
Hindustan Aeronautics Limited (HAL) was recently elevated to Maharatna status, making it one of India’s top-tier public sector enterprises (CPSEs). This new designation provides HAL with greater financial and operational autonomy, allowing it to make larger investments and enter into more strategic partnerships.
Key Highlights:
- Maharatna Status: Offers greater autonomy in decision-making and financial freedom.
- Operational Growth: HAL is now better positioned to expand its defense and aerospace operations, both domestically and globally.
HAL’s strong track record in defense manufacturing, combined with its new status, has generated positive sentiment among investors. With increasing government emphasis on self-reliance in defense, HAL is expected to benefit significantly from new contracts and partnerships in the defense sector.
6. Sula Vineyards
Sula Vineyards reported its highest-ever Own Brands revenue for Q2 FY25, driven by its Elite & Premium portfolio. Despite the positive revenue numbers, the company faces some challenges due to macroeconomic headwinds and issues in key markets like Karnataka and Delhi.
Key Updates:
- Record Own Brands Revenue: Led by Sula’s premium wine portfolio.
- Challenges: Macroeconomic factors and regional issues in key markets like Karnataka and Delhi may impact short-term growth.
While Sula has posted strong results in its core business, it will need to overcome market-specific issues to sustain its growth trajectory.
7. Can Fin Homes
Can Fin Homes is set to hold a board meeting on October 22, 2024, to review its Q2 FY25 results. The company is also expected to discuss raising ₹4,000 crore through non-convertible debentures (NCDs) via private placement.
The funds raised are expected to be used for long-term growth and expansion of its housing finance portfolio.
Why It’s a Stock to Watch:
- Upcoming Q2 Results: Investors are eagerly awaiting the company’s financial performance for Q2 FY25.
- Fundraising: The plan to raise ₹4,000 crore via NCDs will provide the company with more capital for growth.
Industry Outlook and Key Trends
As we head further into Q4 FY25, several factors will shape the performance of the companies mentioned above, including:
- Sector-Specific Growth: Technology and digital services sectors are expected to see strong growth, benefiting companies like HCL Tech. Meanwhile, infrastructure development initiatives will help firms like JSW Infra and Garuda Construction.
- Government Policies: Defense stocks like HAL will likely continue to benefit from government policies aimed at increasing self-reliance in defense manufacturing.
- Consumer Sentiment: Companies like Easy Trip Planners and Sula Vineyards will need to navigate changing consumer behavior, particularly as economic conditions fluctuate in key markets.
Conclusion: Stocks to Watch for Long-Term Gains
The stocks mentioned—Reliance Industries, HCL Tech, Easy Trip Planners, JSW Infra, HAL, Sula Vineyards, and Can Fin Homes are all positioned to benefit from specific industry trends and strategic growth initiatives. Investors should keep a close eye on these companies, especially as they report quarterly earnings and pursue new growth opportunities.
Each of these stocks presents unique opportunities based on the industry they operate in. While tech and infrastructure stocks are expected to continue their upward momentum, companies in sectors like consumer goods and defense will need to navigate a more complex landscape shaped by government policies and market conditions.
Disclaimer
This article is for informational purposes only and should not be considered financial or investment advice. Always consult a professional before making any investment decisions.