Latest news with #MotilalOswal
Economic Times
21 hours ago
- Business
- Economic Times
IndusInd Bank shares jump 2% after reporting Q1 results. Should you buy, sell or hold?
Shares of IndusInd Bank jumped 2% to their day's high of Rs 818.60 on the BSE on Tuesday, July 29, after the private sector lender reported a significant decline in its earnings for the first quarter of the financial year 2025–26 (Q1 FY26). The bank posted a 72% year-on-year (YoY) drop in its consolidated net profit for the June quarter, which came in at Rs 604 crore, compared to Rs 2,171 crore in the same quarter last year. ADVERTISEMENT The steep decline in profitability was accompanied by a fall in the bank's Net Interest Income (NII), which stood at Rs 4,640 crore in Q1 FY26, a 14% drop from Rs 5,408 crore in Q1 FY25. Additionally, the bank's Net Interest Margin (NIM), a key profitability metric, narrowed to 3.46% in Q1 FY26 from 4.25% a year ago. IndusInd Bank's net worth in the quarter rose marginally to Rs 62,961 crore, compared to Rs 62,532 crore in Q1 FY25. However, revenue from fees and other income declined to Rs 2,157 crore in Q1 FY26 from Rs 2,442 crore in the year-ago quarter. Nuvama has maintained a 'Reduce' rating on IndusInd Bank with a target price of Rs 600. The brokerage flagged a sharp decline in fee income and a rise in non-performing loans (NPLs), with return on assets (RoA) currently at just 45 basis the bank's management has indicated no significant stress in the commercial vehicle (CV) segment, Nuvama has cut its earnings estimates and reiterated its cautious view. The target price is based on 0.7 times the bank's estimated FY26 book value. The firm also believes RoA is unlikely to reach 1% through FY27. ADVERTISEMENT Motilal Oswal has maintained a 'Neutral' rating on IndusInd Bank, raising the target price to Rs 830 from Rs 800. The brokerage noted early signs of recovery in operating metrics following the Q4 reset. However, business growth remains muted, with retail loans now comprising 60% of the loan book. Demand for vehicle finance is expected to stay bank has exited bulk and certificate of deposit (CD) funding to strengthen its granular retail deposit base. Although asset quality has deteriorated due to stress in the microfinance (MFI) segment, stabilization is expected over the next six months. ADVERTISEMENT Motilal Oswal has marginally raised its FY26 and FY27 earnings estimates by 2.6% and 2.3%, respectively, and projects FY27 RoA at 0.7% and return on equity (RoE) at 6.4%. Key factors to watch include CEO succession and the pace of business revival. (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)
Time of India
a day ago
- Business
- Time of India
IndusInd Bank shares in focus as Q1 PAT plunges 72% YoY. Should you buy, sell or hold?
Shares of IndusInd Bank will be in sharp focus on Tuesday, July 29, after the private sector lender reported a significant decline in earnings for the first quarter of FY26. The bank posted a 72% year-on-year (YoY) drop in consolidated net profit for the June quarter, coming in at Rs 604 crore compared to Rs 2,171 crore in the same quarter last year. The steep decline in profitability was accompanied by a fall in the bank's Net Interest Income (NII), which stood at Rs 4,640 crore in Q1 FY26, a 14% drop from Rs 5,408 crore in Q1 FY25. Additionally, the bank's Net Interest Margin (NIM), a key profitability metric, narrowed to 3.46% in Q1 FY26 from 4.25% a year ago. Explore courses from Top Institutes in Please select course: Select a Course Category Management Data Analytics Digital Marketing Cybersecurity MCA PGDM Product Management Design Thinking Technology Data Science Leadership MBA Artificial Intelligence Operations Management Healthcare Others healthcare Project Management Finance others CXO Public Policy Data Science Degree Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details IndusInd Bank's net worth in the quarter rose marginally to Rs 62,961 crore, compared to Rs 62,532 crore in Q1 FY25. However, revenue from fees and other income declined to Rs 2,157 crore in Q1 FY26 from Rs 2,442 crore in the year-ago quarter. Here's what brokerages say: Nuvama: Reduce | Target Price: Rs 600 Nuvama has maintained a 'Reduce' rating on IndusInd Bank with a target price of Rs 600. The brokerage flagged a sharp decline in fee income and a rise in non-performing loans (NPLs), with return on assets (RoA) currently at just 45 basis points. While the bank's management has indicated no significant stress in the commercial vehicle (CV) segment, Nuvama has cut its earnings estimates and reiterated its cautious view. The target price is based on 0.7 times the bank's estimated FY26 book value. The firm also believes RoA is unlikely to reach 1% through FY27. Motilal Oswal: Neutral | Target Price: Rs 830 (from Rs 800) Motilal Oswal has maintained a 'Neutral' rating on IndusInd Bank, raising the target price to Rs 830 from Rs 800. The brokerage noted early signs of recovery in operating metrics following the Q4 reset. However, business growth remains muted, with retail loans now comprising 60% of the loan book. Demand for vehicle finance is expected to stay weak. The bank has exited bulk and certificate of deposit (CD) funding to strengthen its granular retail deposit base. Although asset quality has deteriorated due to stress in the microfinance (MFI) segment, stabilization is expected over the next six months. Motilal Oswal has marginally raised its FY26 and FY27 earnings estimates by 2.6% and 2.3%, respectively, and projects FY27 RoA at 0.7% and return on equity (RoE) at 6.4%. Key factors to watch include CEO succession and the pace of business revival. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Mint
2 days ago
- Business
- Mint
Bulls and bears clash at 25,200: Will Nifty break free?
Indian stocks could see more volatility this week as the Nifty struggled to hold above the 25,200 level last week. This key resistance has triggered a battle between bulls and bears, amid heavy selling by foreign investors. Bears concluded four straight weeks of negative closing last Friday— the Nifty fell by 3.12% from 27 June to 24,837 on 25 July— with heavy open interest accumulating at the 23,900 strike Nifty call option expiring this Thursday. At closing on Friday, bears raised open positions— outstanding sell positions— of the 24,900 call by a whopping 962% to 86,159 contracts (one contract comprises 75 shares). "The sale shows that bears are confident, at least for now, of the market remaining below 24,900 by the end of this month," said Kruti Shah, quant analyst at Equirus. High levels of call selling reflects trader anticipation of further cuts in the market while heavy put selling indicates bullishness. Shah said that any downside after four weeks of an 800 point fall would be restricted to 24,500-24,600 levels, given the huge support by DIIs (domestic institutional investors). "Unless the market breaks the 25,200 resistance convincingly, it faces the prospect of a further cut to 24,500/600, which are strong supports," added Shah. Chandan Taparia, derivatives and technical head of research, Motilal Oswal added that the index has repeatedly failed to hold above this level. 'My range for now is 24,500 to 22,500," he said. Three failed attempts Since hitting a multi-month low of 21,743 on 7 April, the Nifty has gained 14% to 24,837. But it has failed three times to sustain above 25,200; each time falling sharply afterward. On 15 May, it jumped to 25,116.25 but fell 654 points to 24,462 by 22 May. It then bounced back 698 points to close at 25,160.1 on 9 June, only to slip again—this time by 687 points—to 24,473 on 13 June. A final recovery took the index to 25,669 on 30 June, but by last Friday it had fallen sharply once again by 832 points to 24,837. India lags global peers Indian markets have underperformed most global peers this year, amid tepid earnings growth and high valuations, forcing FPIs to press the sell button in favour of other emerging markets. For instance, while the MSCI India Index delivered a gross return of 6.55% in the calendar year through June, other major Asian markets fared better. The MSCI China Index returned 17.46%, MSCI Korea surged 39.69%, and MSCI Taiwan gained 10.43% during the same period, according to MSCI data. "FPIs are selling India in favour of other EMs as our earnings growth though better than expected doesn't justify the relatively high valuations," explained SK Joshi, consultant at Khambatta Securities. After net buying shares worth ₹8,467 crore in India's cash market last month, FPIs turned net sellers, offloading ₹20,263 crore worth of equities in the month through 24 July, National Securities Depository Ltd (NSDL) data showed. The reversal coincides with tepid earnings momentum—while standalone profits for the June quarter rose 22% year-on-year to ₹1.49 trillion, sequential growth was a mere 0.24%, according to Capitaline.
Economic Times
4 days ago
- Automotive
- Economic Times
Indian auto industry faces subdued FY26 growth amidst weak demand: Report
The Indian auto industry is expected to experience subdued growth in FY26, with most segments anticipating low to mid-single-digit growth, as revealed in a recent report by Motilal Oswal. Motilal Oswal report believes that the Indian Automobile industry is likely to witness just 6-7 per cent of growth rate for FY26. The report further reveals that a key challenge lies in the two-wheeler segment, where the current growth estimates carry a downside risk if demand doesn't pick up momentum in the near present, the key auto segments are facing weakness in demand, which has led to passenger vehicles posting a decline of 1.4 per cent, while two-wheeler ICE registered a decline of 8 per cent in volumes. Additionally, the commercial vehicle segment also booked marginal declines. Specifically, in the two-wheeler segment, motorcycle sales recorded a 9 per cent YoY decline, scooter ICE sales recorded a 5 per cent decline, and mopeds recorded an 11 per cent YoY decline. Additionally, the report also reveals that the car segment posted an 11 per cent YoY decline in Q1, with all players witnessing a decline in volumes. Precisely, the small car segment saw a significant decline in volumes: Alto (-36 per cent), Spresso (-38 per cent), and Celerio (-43 per cent).However, Nalinikant Gollagunta, CEO Automotive Division, MM, believes that "confident of mid to high teens growth in SUVs, strong double digit growth in exports and will stick to guidance of high single digit growth for LCVs for FY26."According to the report, in the CV segment, while MHCV (Medium and Heavy Commercial Vehicles) goods declined 4.5 per cent, LCV (Light Commercial Vehicle) goods marginally declined 0.5 per cent for Q1FY26. Bus continued to witness steady demand, with MHCV buses growing 7.6 per cent and LCV buses growing 8.8 per cent. In the commercial vehicle segment, Tata Motors Limited underperformed in all four CV segments, while VECV VE Commercial Vehicles Limited outperformed in most of the CV segments in Q1. (ANI)
Time of India
5 days ago
- Automotive
- Time of India
Indian automobile industry may grow by 6-7% in FY26 amid damp consumer demand: Report
The Indian automobile sector is expected to grow by 6-7 per cent in the fiscal year (FY26) amid damp consumer demand across most vehicle categories, according to a report by Motilal Oswal. As per the report, volumes in the two-wheeler category fell the highest compared to passenger vehicles (PV) and commercial vehicles (CVs) in the first quarter of FY26 (Q1FY26). The two-wheeler segment remained under pressure due to muted demand. In the April-June quarter of FY26, motorcycle sales fell by 9 per cent year-on-year, ICE scooter sales declined 5 per cent year-on-year, and moped volumes also slid by 11 per cent year-on-year. By contrast, the PV category posted a 1.4 per cent decline in volumes, with the small car segment being impacted significantly due to the volumes of key models such as Maruti Alto, Spresso, and Celerio witnessing sharp year-on-year declines in Q1FY26. The commercial vehicle (CV) segment, meanwhile, saw a marginal decline in volumes. While MHCV goods registered a 4.5 per cent dip, LCV goods fell by 0.5 per cent. However, bus sales remained a bright spot, with MHCV buses growing 7.6 per cent and LCV buses up 8.8 per cent. In terms of OEMs' performance, Tata Motors underperformed across all four CV sub-segments, while VE Commercial Vehicles (VECV) managed to outperform in most, according to Motilal Oswal. 'Our focus would be to deliver industry-beating growth (in FY26) because one, this year is possibly the strongest product cycle for us, and the freshest portfolio. We have a low base for FY25. On the SUV side also, we will be coming with a multipowertrain on Harrier and Safari, including the petrol version,' said Shailesh Chandra, MD, Tata Motors & Tata Passenger Electric Mobility, earlier at the Q4FY25 post-earnings conference call in May. Chandra had said that there would be re-varianting and repositioning of certain products in the portfolio. 'We have the full year for Nexon CNG and also, we will launch Sierra. So, even SUVs are going to be strong…it's going to be a very strong year for us,' he said. The top Tata Motors executive had said that the company will strengthen its value proposition of its existing EV products, in terms of value-price equation. 'It's going to be a strong year for us on the EV side also,' Chandra said. Its homegrown rival, Mahindra & Mahindra, too, is confident of growth this year. Nalinikant Gollagunta, CEO (automotive division) at Mahindra & Mahindra, said the company remains confident of mid-to-high teens growth in the SUV segment, along with strong double-digit export growth. He also reaffirmed guidance for high single-digit growth in LCVs for the full fiscal, according to a report by news agency ANI . The brokerage said that the industry may remain in a cautious phase in the near term, with a rebound largely dependent on rural demand recovery, fuel price stability, and broader economic conditions.
