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Economic Times
9 hours ago
- Business
- Economic Times
Kaynes Technology shares rally 11% post Q1 results. Should you buy, sell or hold?
Shares of Kaynes Technology climbed as much as 11.4% on Thursday, July 31, to Rs 6,282 on the BSE, after the electronics manufacturer reported strong Q1 FY26 earnings marked by a 50% jump in net profit and robust margin expansion. ADVERTISEMENT The company posted a 49.96% year-on-year increase in consolidated net profit to Rs 74.61 crore for the quarter ended June 2025, while revenue from operations rose 33.63% to Rs 673.46 crore. Profit before tax climbed nearly 50% to Rs 96.08 crore, and EBITDA surged 69% to Rs 113 crore, helping margins expand by 350 basis points to 16.8%. Brokerage firms were broadly positive on the results, even as revenue came in slightly below expectations. JM Financial noted that 'Kaynes' 1Q revenue at Rs 6.7 billion rose 34% YoY and missed our and consensus estimate by 6% and 9% respectively,' but flagged a major upside surprise on the margin front. 'Gross margin at 41.3% improved significantly over 27.3% YoY, indicating a superior product mix,' JM Financial said, adding that EBITDA performance was 'in-line with our estimate and 6% ahead of consensus,' despite a steep increase in employee and other expenses. Motilal Oswal, which has a 'Buy' rating on the stock, also emphasised operating strength and said that the 'operating performance beats our estimates. EBITDA rose 69% YoY to Rs 1.1 billion (est. Rs 1 billion). EBITDA margins expanded 350bp YoY to 16.8% (est. 13.8%).' Behind the margin expansion was a shift in revenue mix. Kaynes' industrial vertical, largely driven by smart meter demand, led growth with a 43% YoY revenue increase and now accounts for 59% of total sales, up from 55% last year. Meanwhile, the automotive and railway segments posted slower growth of 24% and 17%, respectively. ADVERTISEMENT The real standout was Kaynes' move into higher-margin design-led manufacturing. 'The highlight here is the pickup in Kaynes' ODM & Product Engineering vertical, which posted revenue of Rs 24 billion, its share rising to 36% vs. 1% YoY,' JM Financial noted. 'This appears to be a key driver of the gross margin expansion.'That shift coincided with weaker performance in legacy segments. The box-build business shrank 48% YoY, while its share of revenue fell to 19% from 49% a year earlier. Core PCB Assembly grew 23% but saw its contribution drop to 45%. Kaynes' orderbook climbed to Rs 7,401.1 crore as of June 30, up nearly 47% from the previous year, reflecting sustained demand across end markets. ADVERTISEMENT Still, analysts flagged questions heading into the company's earnings call. JM Financial highlighted the need for clarity on the "driver of gross margin expansion and its sustainability, reason for significant increase in employee costs and sharp increase in other expenses, and update on commencement of OSAT and PCB manufacturing.'Kaynes' Q1 performance underscores a company in transition, from a traditional contract manufacturer to a higher-margin, design-led electronics player. Brokerages like Motilal Oswal maintain a bullish stance, citing the margin-led earnings beat and long-term demand tailwinds. ADVERTISEMENT Also read | 6,415% return! NSE's Rs 59 crore investment turns to Rs 3,840 crore in NSDL According to Trendlyne data, the average target price for Kaynes Technology stands at Rs 6,245 per share. Of the 24 analysts tracking the stock, nine have a 'buy' rating, 10 recommend holding, and three advise selling. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
11 hours ago
- Business
- Mint
Nifty 50 tends to gain in August, shows 10-year history. Can the trend sustain amid Trump's tariff curveball?
Indian stock market: Benchmark indices paused for breath in July after a stellar multi-month rally, as disappointing corporate earnings and persistent foreign outflows weighed on sentiment. Investor caution was further heightened by uncertainty around a potential trade deal, which ultimately failed to meet expectations. US President Donald Trump threw a curveball in the form of a 25% tariff on imports, along with a warning of unspecified penalties for energy and defence-related purchases from Russia. This promoted worries that August, which is generally a positive month for the Indian stock market, may see tempered gains as global headwinds and cautious investor sentiment persist. Historically, July and August are among the most seasonally positive months for Indian equities. The Nifty 50 index has shown a positive trend during the month of August, delivering gains in six out of the past 10 years, according to data from JM Financial, with a median return of 1.4%. While markets bucked the trend in July, declining 1.7% so far (till July 30), analysts believe that while August may be characterised by volatility, it is likely to exhibit a positive trend. Harshal Dasani, Business Head, INVasset PMS, said that August could present a turnaround. With the ambiguity around the US–India trade stance gradually resolving — even if via an adverse outcome like tariff escalation — the market may begin to stabilise, Dasani said, adding that historically, equities consolidate when the 'event risk' transitions into known outcomes. Ashish Chaturmohta, Managing Director & Fund Manager, Apex PMS, JM Financial, also opined that despite some weakness in July 2025, primarily due to a softer outlook from the IT sector and elevated provisioning in the BFSI segment, the outlook for August remains constructive. His optimism is supported by above-average monsoon rainfall and improved reservoir levels, which are expected to boost rural demand and support agriculture, and a decent earnings season. "External environment, particularly the US tariff on Indian exports, remains the key monitorable and could influence market sentiments. Overall, the market sentiment for August 2025 appears positive and aligned with historical averages," said Chaturmohta. While analysts foresee an impact of Trump's tariff threat on export-heavy sectors, barring a full-blown trade war, they see limited downside. Emkay Global, in a note today, said that although trade talks appear to have stalled, we believe this saga is far from over. "Beyond pure economics, such negotiations carry significant geopolitical weight. Despite a potential shift in the balance of negotiation power, we believe both sides are still likely to push for a deal soon," it said. India's exports to the US are only 2% of GDP, with much lower value-added embedded in them. According to Emkay's estimates, previous static analysis suggests that India's US exports could drop by $30-33 bn (0.8-0.9% of GDP) at 25%+ tariffs, not adjusting for the complexity of dynamic cross-country hits/responses. While the announcement adds some downside tail risk, it is too early to consider actual forecast changes, it added. "In fact, with the rupee stabilising near ₹ 87.5 and Brent crude easing below $73, key macro stressors seem priced in. The geopolitical risk premium is also no longer expanding. Given that the uncertainty has peaked, and past Augusts tend to favour bulls, we could now see a shift from risk-off to recalibration mode—especially if global yields cool," Dasani added. As the market is expected to be volatile amid event-driven swings, Khushi Mistry, Research Analyst at Bonanza, advised adopting a cautious and selective approach. "It is prudent to emphasise quality large-cap companies with strong balance sheets and steady domestic demand exposure, such as financials and consumption sectors, rather than chasing risky small and midcap stocks." Gradual accumulation on market dips can capture value while maintaining discipline, Mistry recommended. Jashan Arora, Director at Master Trust Group, also advised investors to stay selectively invested, focusing on quality large-caps and sectors like banking, capital goods, and auto. "Caution is advised in small caps. A staggered approach to investing may help navigate any near-term volatility." Major drivers for August could include global interest rate signals, crude oil prices, domestic inflation and GDP data, and any geopolitical developments, along with FII stance, added Arora. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
a day ago
- Business
- Economic Times
Swiggy Q1 Preview: Losses may widen YoY despite up to 56% jump in revenue on Instamart push
Swiggy is set to report its Q1FY26 earnings on Thursday, July 31, where brokerages anticipate continued net losses despite a sharp year-on-year rise in revenue. While food delivery is expected to show steady growth, the quick commerce vertical, Instamart, remains a key area of concern due to ongoing investments and intense competition. ADVERTISEMENT The estimates given by brokerages ICICI Securities, Kotak Institutional Equities, and JM Financial have been taken into account. ICICI Securities expects Swiggy's net loss to widen to Rs 1,060 crore, compared to Rs 611 crore in Q1FY25, though slightly better than the Rs 1,081 crore loss in Equities pegs the loss at Rs 763 crore, narrowing YoY, though relatively flat QoQ, while JM Financial projects the steepest loss of Rs 1,130 crore, expanding YoY and QoQ. ADVERTISEMENT ICICI Securities forecasts Rs 5,098 crore in adjusted revenue, up 46.6% YoY and 8% QoQ, while Kotak estimates topline at Rs 4,811 crore, a 49.3% YoY and 9.1% QoQ Financial is the most bullish with a revenue forecast of Rs 5,021 crore, up 56% YoY and 14% QoQ. ADVERTISEMENT ICICI sees adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) loss at Rs 788 crore, widening sequentially from Rs 733 crore loss in Q4FY25 and higher projects EBITDA loss at Rs 6,118 crore while JM Financial expects it at Rs 990 crore. ADVERTISEMENT ICICI expects an adjusted EBITDA margin of -15.4%, down 543 bps YoY but up 9 bps forecasts a margin loss of 12.7%, with a 388 bps YoY contraction, but a 169 bps QoQ recovery. ADVERTISEMENT Kotak sees 129% YoY revenue growth for Instamart, driven by 113% GMV growth and expansion to 1,171 stores. However, EBITDA losses are estimated at Rs 850 crore, remaining flat QoQ due to fixed costs despite margin margin trends in food delivery amid rising delivery costs, along with competitive intensity in quick commerce from rivals like Zomato. The Street would also like to hear the company's commentary on the path to profitability in Instamart and store expansion plans. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
News18
2 days ago
- Business
- News18
Larsen & Toubro Jumps 4% On Strong Q1 Earnings: What Should Investors Do?
Last Updated: Shares of Larsen & Toubro (L&T) surged over 4% in morning trade on July 30; Should you buy, sell or hold? L&T Shares Price: Shares of Larsen & Toubro (L&T) surged over 4% in morning trade on July 30, after the engineering and infrastructure major posted robust financial results for the June quarter. The stock was trading at Rs 3,651, making it the top performer on the Nifty 50 index. On July 29, the company reported a consolidated net profit of Rs 3,617 crore for Q1 FY26, registering a 30% year-on-year (YoY) increase from Rs 2,786 crore in the same quarter last year. Revenue from operations rose 15.5% YoY to Rs 63,679 crore, compared to Rs 55,120 crore in Q1 FY25. The company also reported a 33% YoY rise in order inflows, which came in at Rs 94,453 crore for the quarter ended June 30, 2025. L&T attributed this to strong demand, particularly from the Middle East region. Global brokerage Jefferies reiterated its 'Buy' call and raised its target price to Rs 4,230 per share, up from Rs 3,965 earlier. The firm noted that Q1 EBITDA was 7% ahead of estimates, driven by better-than-expected execution. It also said that the company is well-positioned to meet its guidance, though it flagged that the 15% revenue growth outlook appears conservative, given the strong order book. Domestic brokerage JM Financial also maintained a 'Buy' rating on the stock and raised its target price by 12% to Rs 4,313, implying an upside of over 23% from the previous close. The firm called L&T's performance a 'strong positive surprise," especially with order inflows of Rs 94,500 crore, significantly above its own estimate of Rs 56,600 crore. JM Financial added that L&T remains its top infrastructure sector pick, backed by a structural uptick in project tendering in the Middle East. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
2 days ago
- Business
- Business Standard
Gail shares fall as Q1 profit dips 25%; Should you hold or exit?
Shares of Gail (India) Ltd slipped over 1 per cent on Wednesday after its net profit in the June quarter of the financial year 2026 (Q1FY26) dipped 25 per cent, as losses in the petrochemical and unallocated segments widened. The Public Sector Undertaking (PSU) company's stock rose as fell as 1.4 per cent during the day to ₹180.4 per share. This compares to a 0.02 per cent decline in Nifty 50 as of 9:55 AM. Shares of the company extended their fall after a one-day gain in the previous session. The counter has fallen 5.3 per cent this year, compared to a 5.2 per cent advance in the benchmark Nifty 50. Gail has a total market capitalisation of ₹1.19 trillion. Track LIVE Stock Market Updates Here Gail Q1 results The gas distribution company reported a net profit of ₹2,369.20 crore for Q1 FY26, down 25.5 per cent year-on-year (Y-o-Y) from ₹3,182.93 crore in the same quarter last year. On a quarter-on-quarter (Q-o-Q) basis, the profit was down 4.9 per cent from ₹2,491.76 crore in Q4 FY25. The company registered a marginal increase of 1.7 per cent in its revenue from operations, coming in at ₹35,428.81 crore from ₹34,821.89 crore in Q1 FY25. However, on a sequential basis, the revenue declined 3.1 per cent from ₹36,551.15 crore in the previous quarter. The management lowered its FY26 pipeline volume guidance to 127-128 mmscmd from 138-139 mmscmd, citing Q1 weakness. However, it retained FY26 marketing profit-before-tax (Pbt) guidance at ₹4,000-₹4,500 crore. ALSO READ | Analysts on Gail Q1 earnings Emkay Global said that Gail's standalone Ebitda and net profit missed estimates by 12 per cent and 16 per cent, though broadly in line with consensus expectations. The earnings miss was driven by a 31 per cent shortfall in marketing Ebitda, along with weaker performance in the petrochemical and unallocated segments, it said in a note. On the positive side, gas transmission and LPG segments outperformed, aided by a ₹130 crore claim settlement in the transmission business. The outlook for the petrochemical segment remains cautious, with no profitability guidance provided for FY26, Emkay said. Emkay has cut FY26-27 earnings per share (EPS) estimates by 5-6 per cent. The March 2027 target price has been lowered by 5 per cent to ₹210, maintaining a 'Buy' rating on the stock. JM Financial noted that Gail's petrochemical segment underperformed due to negative operating leverage from a maintenance shutdown, while earnings from the LPG and other hydrocarbons (OHC) segment also came in below expectations. JM Financial maintains a 'Buy' rating with a revised target price of ₹220, citing the likely near-term tariff hike in the gas transmission business and a healthy 5-6 per cent CAGR in transmission volumes over the medium to long term. The brokerage also expects gas trading profitability to remain robust in the near to medium term. Antique Stock Broking maintained its 'Hold' rating with a target price of ₹185. The brokerage believes the Street may be overestimating the value of Gail's pipeline business and the scalability of its trading earnings.
