Dolly Khanna portfolio: Ace investor books profit in THIS BSE 500 stock in Q1FY26; do you own?
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Indian Express
13 hours ago
- Indian Express
Share price under Rs 200: Multibagger railway stock secured over Rs 1600 crore order last week
Multibagger railway stock order win: A multibagger railway PSU stock secured back-to-back orders last week, according to exchange filings. The total value of these new contracts exceeds Rs 1,600 crore. Can you guess which one? Here's a hint – as of July 20 (NSE data), this railway company has a market capitalisation of Rs 17,563.19 crore. This railway company is none other than IRCON International Limited. IRCON is a navratna company under the Ministry of Railways. Last week (July 14-18), IRCON bagged three new orders. These are as follows: In an exchange filing on July 18, the company said, 'Mumbai Metropolitan Region Development Authority has awarded the work to Ircon International Limited for CA-233, Line-6, Package-2: Design, Manufacture, Supply, Installation, Integration, Testing and Commissioning of Power Supply and Traction, E & M, Lifts & Escalators including 5 Years of Comprehensive Maintenance after 2 Years of Defect Liability Maintenance Period of Line 6 [Swami Samarth Nagar to Vikhroli (EEH)] of Mumbai Metro Rail Project of MMRDA.' The project cost is Rs 642,44,02,451.34. In a separate filing, the railway company said, ' Mumbai Metropolitan Region Development Authority has awarded the work to Ircon International Limited for CA-239, Line-5, Package-2: Design, Manufacture, Supply, Installation, Integration, Testing And Commissioning of 220 kV receiving Substation Including 220 kV, 33kV & 25kV Cabling Work, Complete 25kV Overhead Catenary System along with switching station, 33kV Auxiliary Power Distribution System Including 33/0.415 kV Auxiliary Sub-Station (ASS) And Complete SCADA System, Electrical and Mechanical works, Lift & Escalator Works for part of Main Line, Stations & Kasheli Depot of Mumbai Metro Rail Line 5 Project of MMRDA Including 5 Years of Comprehensive Maintenance after 2 Years of Defect Liability and Maintenance Period.' The project cost is Rs 471,29,72,820. In a filing on Friday, the company said, ' IRCON has been awarded with Letter of Award for the project floated by RVNL (Participated in this bid in JV mode with M/s JPWIPL (i.e., IRCON – 70% & JPIWL – 30%).' Here the total project amount is Rs 755,78,21,993.63 (IRCON Share – Rs 529,04,75,395.53),' the company said. Shares of IRCON closed in red on Friday (July 18). The PSU railway stock settled at Rs 186.74 apiece, down 1.60 per cent on NSE. IRCON International Limited is a component of the BSE 500. According to the BSE analytics (as of July 20), shares of IRCON gave negative returns in the last 1 week and 2 weeks, by 2.20 per cent and 6.27 per cent, respectively. Shares of the PSU railway stock also fell in the last 1 year by 40.25 per cent. However, in the past 2 years, 3 years, and 5 years, shares of the company rose 116.15 per cent, 405.27 per cent, and 307.03 per cent, respectively. This year, IRCON paid a dividend of Rs 1.65 in February. Last year, the PSU railway stock declared total dividends of Rs 3.10. IRCON issued bonuses in the ratio of 1:1 for the equity shareholders.
Time of India
15 hours ago
- Time of India
Will meaningful profit growth continue to elude Corporate India?
Indian equities experienced unprecedented growth post-COVID, fueled by improved fundamentals. However, margin expansion is now limited due to global trade imbalances and subdued demand, with revenue growth tapering to low single digits. While corporate balance sheets are strong, cautious capex and high valuations suggest FY26 profit growth may struggle to meet optimistic expectations, advising a multi-asset investment strategy. Tired of too many ads? Remove Ads Margin Pressures and Slowing Revenue Growth Tired of too many ads? Remove Ads Profit Growth Scenarios Scenario 1: Margin Expansion Continues This appears unlikely given that margins are already elevated and global uncertainties persist. The scope for further operating leverage gains is minimal. This appears unlikely given that margins are already elevated and global uncertainties persist. The scope for further operating leverage gains is minimal. Scenario 2: Margin Contraction Begins This is the most adverse scenario. With weak revenue growth and declining margins, profits would face a double headwind. This is the most adverse scenario. With weak revenue growth and declining margins, profits would face a double headwind. Scenario 3: Topline Growth Revives For this to happen, aggregate demand needs to rebound meaningfully. Current indicators, however, point to a demand slowdown across several sectors. The Silver Lining: Balance Sheet Strength Capex showing signs of demand weakness Looking Ahead: Can FY26 Deliver? Tired of too many ads? Remove Ads (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) Post-COVID, Indian equities witnessed a significant re-rating, driven by a stretch of price appreciation that was unprecedented over the last decade. While this initial rally was supported by improving fundamentals, namely, a revival in topline growth coupled with margin expansion , the underlying drivers are now showing signs of expansion in India during this period was primarily a result of improved cost efficiencies, deleveraging, and balance sheet restructuring. These efforts translated into lower interest and credit costs, which, alongside revenue recovery, led to a strong improvement in corporate profitability, a trend that found expression in the market's price the key question now is whether this profit growth is margins are currently at multi-year highs. Given the ongoing global trade imbalances and subdued external demand, the scope for further margin expansion appears limited. Also, the topline growth seems fading, in FY25 BSE500 reported a mere 4% revenue growth which is a very low number.A similar pattern was observed during the early 2000s (As can be seen in the above chart). Margins surged early in the cycle but plateaued thereafter, and then the topline growth remained strong enough to drive profitability. In India, margins are often more a function of cost controls and distribution efficiency than durable pricing power; a structural nuance that tempers long-term margin differentiates the current cycle from the mid-2000s is the absence of strong topline growth. Revenue growth has tapered to low single digits on a year-on-year basis. With margins already peaking, this has begun to reflect in profit growth as well. As of FY25, PAT growth (excluding exceptional items) stands at 6%. This figure includes only companies listed as of FY24 and FY25, thus excluding recent IPOs, so that overall profitability trends are not buoyed by new forward, three scenarios could unfold:In light of these possibilities, the outlook for profit growth appears increasingly these challenges, one notable positive from the current cycle is the improved financial health of corporate India. Debt-to-asset ratios are at historic lows (~16%), suggesting that most assets are now being funded by equity rather than debt, a sign of prudent financial management. This is even lower than the major global markets out flows, while stable, are not translating into higher capital expenditure. Despite having the balance sheet capacity, Indian companies appear hesitant to undertake aggressive capex. This restraint likely stems from subdued demand visibility. In an environment where demand recovery remains patchy, committing to large-scale investments risks diluting profitability - an outcome investor may be reluctant to support, especially at elevated of this brings us to the central question:We don't know but from what it looks like the current indicators suggest it will be a challenging task for companies to meet these elevated profit growth outlook murky and valuations running high, the Nifty 500 trades at 26x, while mid and small-cap stocks command a median multiple of ~44x. Making it hard to find bargains in the this context, a prudent investment approach would be to adopt a multi-asset strategy. Allocating capital across asset classes can help investors manage the risks of elevated equity valuations, while still retaining upside participation through equities.
Economic Times
16 hours ago
- Economic Times
Will meaningful profit growth continue to elude Corporate India?
Post-COVID, Indian equities witnessed a significant re-rating, driven by a stretch of price appreciation that was unprecedented over the last decade. While this initial rally was supported by improving fundamentals, namely, a revival in topline growth coupled with margin expansion, the underlying drivers are now showing signs of fatigue. ADVERTISEMENT Margin expansion in India during this period was primarily a result of improved cost efficiencies, deleveraging, and balance sheet restructuring. These efforts translated into lower interest and credit costs, which, alongside revenue recovery, led to a strong improvement in corporate profitability, a trend that found expression in the market's price action. However, the key question now is whether this profit growth is sustainable. Corporate margins are currently at multi-year highs. Given the ongoing global trade imbalances and subdued external demand, the scope for further margin expansion appears limited. Also, the topline growth seems fading, in FY25 BSE500 reported a mere 4% revenue growth which is a very low number.A similar pattern was observed during the early 2000s (As can be seen in the above chart). Margins surged early in the cycle but plateaued thereafter, and then the topline growth remained strong enough to drive profitability. In India, margins are often more a function of cost controls and distribution efficiency than durable pricing power; a structural nuance that tempers long-term margin differentiates the current cycle from the mid-2000s is the absence of strong topline growth. Revenue growth has tapered to low single digits on a year-on-year basis. With margins already peaking, this has begun to reflect in profit growth as well. As of FY25, PAT growth (excluding exceptional items) stands at 6%. This figure includes only companies listed as of FY24 and FY25, thus excluding recent IPOs, so that overall profitability trends are not buoyed by new listings. ADVERTISEMENT Going forward, three scenarios could unfold: Scenario 1: Margin Expansion Continues This appears unlikely given that margins are already elevated and global uncertainties persist. The scope for further operating leverage gains is minimal. This appears unlikely given that margins are already elevated and global uncertainties persist. The scope for further operating leverage gains is minimal. Scenario 2: Margin Contraction Begins This is the most adverse scenario. With weak revenue growth and declining margins, profits would face a double headwind. This is the most adverse scenario. With weak revenue growth and declining margins, profits would face a double headwind. Scenario 3: Topline Growth Revives For this to happen, aggregate demand needs to rebound meaningfully. Current indicators, however, point to a demand slowdown across several sectors. In light of these possibilities, the outlook for profit growth appears increasingly constrained. ADVERTISEMENT Despite these challenges, one notable positive from the current cycle is the improved financial health of corporate India. Debt-to-asset ratios are at historic lows (~16%), suggesting that most assets are now being funded by equity rather than debt, a sign of prudent financial management. This is even lower than the major global markets out flows, while stable, are not translating into higher capital expenditure. Despite having the balance sheet capacity, Indian companies appear hesitant to undertake aggressive capex. This restraint likely stems from subdued demand visibility. In an environment where demand recovery remains patchy, committing to large-scale investments risks diluting profitability - an outcome investor may be reluctant to support, especially at elevated valuations. ADVERTISEMENT All of this brings us to the central question: Can FY26 deliver a meaningful Profit growth that justifies the optimistic earnings expectations currently baked into valuations? We don't know but from what it looks like the current indicators suggest it will be a challenging task for companies to meet these elevated expectations. ADVERTISEMENT What Should Investors Do? With profit growth outlook murky and valuations running high, the Nifty 500 trades at 26x, while mid and small-cap stocks command a median multiple of ~44x. Making it hard to find bargains in the market. In this context, a prudent investment approach would be to adopt a multi-asset strategy. Allocating capital across asset classes can help investors manage the risks of elevated equity valuations, while still retaining upside participation through equities. (Parth Shah is Product manager at DSP Mutual Fund) (You can now subscribe to our ETMarkets WhatsApp channel) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
