Latest news with #Reuters-Refinitiv
Time of India
7 days ago
- Business
- Time of India
Which global equity index gave most returns in last 11 years? Here's an annual performance tracker
Reuters-Refinitiv. *2025 returns are YTD as of 17 June 2025 closing. Other years' returns are based on first and last trading day closings. Returns are normalised to Indian rupee Strong investor sentiment, buoyed by positive economic growth prospects, helped German markets outperform in 2025 year-to-date. This was followed by Brazil, where expectations of steady interest rates and comparatively better valuations led to a surge in the Bovespa Index. In contrast, interest rate uncertainty and mixed economic signals limit gains in the US Nifty 50 underperformed its global peers in 2025 due to concerns over high valuations, weak earnings growth, and volatile FPI flows.
Time of India
16-06-2025
- Business
- Time of India
Cement stocks set to rise due to these four reasons
March quarter tailwinds Academy Empower your mind, elevate your skills Mid-to-long term view Birla Corporation The company reported an excellent performance in the March 2025 quarter, with revenue and net profit exceeding Reuters-Refinitiv estimates by 5% and 92% respectively. While the volumes jumped 17%, realisations registered 7% growth on a sequential basis. This, coupled with cost optimisation measures, aided EBITDA, which grew 115% quarter-on-quarter. The capex plan of Rs.4,340 crore is aimed at increasing grinding and clinker capacity, which will increase production capacity from 20 MMT (million metric tons) currently to 27.6 MMT by 2028-29. The funding of capex will be through internal accruals, which will restrict the expansion of net debt. The management has guided that the net debt to EBITDA ratio shall remain below 2 for the next two years. An Elara Capital report says that the company's limited presence in the surplus market of south India, continued incentive income, focus on premiumisation, and savings from coal mines bode well for long-term performance. Dalmia Bharat Aided by lower costs and operating leverage benefits, the firm posted a decent operating performance despite muted revenue growth. While revenue missed Reuters-Refinitiv estimates by 4.7%, net profit exceeded estimates by 40%. Decline in volumes impacted revenue growth, whereas higher other income and lower than expected depreciation boosted net profit. The management is strengthening the dealer network and distribution channels as well as investing in brand building. It anticipates demand recovery in 2025-26, led by increased government spending and pent-up demand. The planned capex of around Rs.3,500 crore for 2025-26 is marked for expansion projects in Karnataka and Maharashtra. The company¡¦s capacity is lower than its peers and capacity expansion plans will address such concerns to some extent. A Motilal Oswal report says that Dalmia Bharat is among the low-cost producers in the cement industry, backed by a higher blending ratio (the proportion of different materials used to produce cement), green power share, and lower freight costs. Moreover, the recent price hikes in its core markets may help improve margins. It reported a strong performance in the March 2025 quarter, aided by volume growth and lower operating costs. Revenue and net profit surpassed Reuters-Refinitiv estimates by 9.1% and 10.3%, respectively. Market share gains in the central India region boosted volumes, which grew 16% year-on-year. On the other hand, reduction in pet coke prices and operating leverage gains led to cost reduction. The ongoing capacity expansion plans will boost production capacity from 24.3 MMT in 2024-25 to 30.3 MMT in 2025-26. The company¡¦s ability to generate strong operating cash flows will help limit the expansion of net debt. An Elara Capital report says that JK Cement is well-positioned for healthy volume growth, aided by a strong pipeline of ongoing capacity expansion projects. It lists steady price trend in north India, cost-saving measures, and its plans to enter the high-margin Kashmir market as the key growth catalysts. The company met the revenue estimates compiled by Reuters-Refinitiv in the March 2025 quarter, aided by decent volume growth and modest realisations. Decline in operating costs (including raw materials, power, and fuel) and increase in green power mix supported EBITDA, which grew by 12% year-on-year. The management has announced a capex plan of Rs.1,500 crore, aiming for efficiency projects in India Cements and Kesoram Industries (acquired companies). Such projects are expected to aid overall profitability in the future. While the company¡¦s net debt swelled due to acquisitions, the ability to generate strong operating cash flows will help reduce net debt over the next two years. A Systematix report maintains a positive outlook on the company¡¦s long-term growth potential, driven by its strong market leadership, disciplined cost management, and ambitious capacity expansion plans. The firm's focus on deleveraging and integration of recently acquired assets are other positives. Ambuja Cements It reported a strong operating performance in the March 2025 quarter, aided by volume growth and better realisation. Revenue surpassed Reuters-Refinitiv estimates by 2.5%. While volume growth of 13% year-on-year was aided by the ramp-up of acquired assets (Sanghi Industries and Penna Cement), cost efficiencies and sequential decline in raw materials and fuel costs supported EBITDA, which grew by 110% quarter-on-quarter. The management has reiterated its cost reduction guidance of Rs 500 per ton by 2027-28 by increasing the share of green power and long-term supplier agreements. A Prabhudas Lilladher report expects the company to keep gaining market share, aided by the ramping up of Penna/Sanghi assets. Moreover, the gradual improvement in the green power mix and targeted synergy benefits will support EBITDA growth over the next few years. After a weak first half in 2024-25, cement companies saw improved volumes and revenues in the March 2025 quarter. Data from Reuters-Refinitiv covering 27 cement firms (with market capitalisation of over Rs.500 crore) shows aggregate revenue rising 11% year-on-year, from 4.4% in the December 2024 the first half of 2024-25, the sector's performance was affected by the general elections, extreme heatwave, and labour shortages. Muted demand also pressured prices and realisations, weakening concerns are evident in share price performance. Over the past year, the group of 27 companies delivered an equal-weighted average return of -4.8%, lagging the Nifty 500's 7% gain. Sixteen stocks posted negative returns, and 19 underperformed the index. Returns are as of 10 June like pent-up demand, increased government spending, revival in rural demand, a low base, and selective price hikes aided the performance in the March 2025 quarter. However, despite stability in prices, the realisations for most companies declined on a year-on-year basis due to market resistance and year-end demand triggers, lower operational expenses—especially power and fuel costs supported by stable pet coke and diesel prices—drove a sequential improvement in EBITDA margins. Margins improved for 21 of the 27 companies in the March 2025 quarter compared to the three months ended December revival of construction activities across key markets led to a sharp jump in the cement prices in April 2025. Though the increase in prices moderated in May, the current prices are the highest in the past 15-17 months. In the first two months of 2025-26, all India average prices have jumped by 7-8% year-on-year, according to data compiled from a JM Financial saw the sharpest sequential rise in the southern and eastern regions, while remaining largely flat elsewhere. The price hikes, along with cost efficiencies, are expected to support cement companies' financial performance in the June 2025 Elara Capital and JM Financial flagged near-term concerns due to an early monsoon potentially curbing demand growth, reports from Axis Securities, Centrum Broking, PhillipCapital, Nuvama, Systematix, Prabhudas Lilladher, and ICRA remain constructive on the sector's long-term growth prospects. The ICRA report expects cement volumes to grow by 6-7% year-on-year, backed by demand from the housing and infrastructure in residential and commercial real estate, recovery in rural spending, and increased urbanisation are the factors driving cement demand. Moreover, government investments in infrastructure and programmes such as the Smart Cities Mission, Bharatmala Pariyojana, PM GatiShakti, and Housing for All will provide additional support to the the adoption of green technologies by cement companies (waste heat recovery, alternative fuels etc) is expected to support margins by imparting cost of efficiencies. In addition, the ongoing capacity expansion by key players will boost industry volumes. A Centrum Broking report says that the industry will see additional organic capacity additions over the next 2-3 years and that it expects the industry's capacity utilisation levels to increase from 74% to 77%. Here are the five cement companies with decent analyst coverage and with good buy ratings.
Time of India
09-06-2025
- Business
- Time of India
Stock picking: Improving operating profit could signal long-term market outperformance
How do you pick winners when global equity markets are rocked by trade uncertainties and there is persistent weakness in domestic demand? One effective way is to closely check your company's EBITDA ( earnings before interest, taxes, depreciation, and amortisation) margins. In a nutshell, these are fundamentally sound companies that effectively minimise value erosion amid periods of high market volatility. Why EBITDA is a winner EBITDA is calculated by subtracting operating expenses (excluding depreciation) from the sales revenue. On the other hand, EBITDA margin is calculated by dividing EBITDA by the sales revenue. For example, a company with an EBITDA margin of 10% means that the company is generating Rs.10 as operating profit on every Rs.100 worth of sales. A study conducted by ET Wealth shows that the companies that have consistently improved EBITDA margins over the last four quarters have significantly outperformed the market benchmark in the last one year whereas the companies with consistent deterioration in EBITDA margins significantly underperformed the market benchmark. An analysis of 1,508 companies (excluding those in banking, finance, and insurance) reveals that 29 companies have maintained positive EBITDA margins and consistently improved them over the last four quarters. In contrast, 28 companies have shown a steady decline in EBITDA margins during the same period. The latest data pertains to the March 2025 quarter and has been sourced from the Reuters-Refinitiv database. In the last one year, the group of 29 companies (with positive EBITDA margins) has generated an equal-weighted average return of 30.3%, whereas the group of 28 companies (with negative EBITDA margins) has generated -9.8% returns. The Nifty 500 equal-weighted index delivered 7.8% returns in the last one year. The returns are based on 30 May 2025 closing prices. Experts agree. 'Improving EBITDA margins increases the RoE of the business, which in turn improves the growth and profitability of the business and the stock price of the company,' says Saurabh Joshi, Head of Research, Marwadi Shares and Finance Limited (MSFL). Significance of EBITDA margins EBITDA provides an accurate picture of the company's competitive strengths as it excludes the effect of non-cash charges (or depreciation), varying capital structures and taxes. 'EBITDA is the preferred metric for investors who want to know how a company performs at its core before financing decisions and accounting treatments cloud the picture,' says Om Ghawalkar, Market Analyst, a stock brokerage firm. A strong EBITDA indicates efficiency and the company's ability to generate value. Analysts suggest that investors should consider EBITDA margins over a period of time to spot good quality companies with sustainable business models and sound financial health. Corporate India performance Corporate India saw a modest improvement in both revenue and EBITDA in the March 2025 quarter compared to the December 2024 quarter. Based on a sample size of 1,508 non-BFSI companies. Growth is year-on-year. 'Consistent improvement in EBITDA margins signals superior execution, pricing power, cost control, and positive operating leverage. It reflects a company's ability to increase profits faster than expenses,' says Sonam Srivastava, Founder and Fund Manager at Wright Research PMS.'. EBITDA in a soft quarter The recent quarter performance of corporate India indicates ongoing growth challenges. Despite muted revenue growth, the operating profit growth improved relative to the December 2024 quarter, helped by cost control initiatives, operational efficiencies and input cost benefits in certain segments (see graphic). EBITDA climbers favoured by analysts Going forward, analysts expect demand to improve, aided by rural revival, steady urban consumption, normal monsoons and increased government spending. However, input costs present a mixed picture. Ghawalkar says the softer crude oil prices and the strong coal supply may ease costs for sectors like aviation and chemicals, but other sectors are likely to face pressures. While cotton MSP hikes will hit input costs in the textiles segment, rising logistics costs may squeeze margins in cement. Additionally, wage inflation in IT and healthcare is likely to keep operating costs elevated in these sectors. Here are the five companies from the group of 29 with rising EBITDA margins that have a strong analyst coverage: Orient Electric The electrical equipment manufacturer specialises in home appliances, including fans, lighting and switchgears. The company has reported strong March 2025 quarter: revenue up 9% year-on-year (y-o-y), net profit up 144%. Growth was driven by the lighting and switchgears segment, on the back of distribution expansion, new products, and premium category demand. EBITDA margin expanded 390 bps y-oy, supported by cost optimisation and Project Sanchay. The fans segment is poised for market share gains via improved DTM strategy and Hyderabad plant scale-up. Centrum Broking cites DTM, premiumisation, alternate channels, and Hyderabad plant as key growth and margin drivers. Affle 3i The global technology company specialises in mobile advertising, digital consulting, and software development. In the March 2025 quarter, revenue was up 19% y-o-y, net profit up 17.8%. Growth was led by developed markets (+27.3% y-o-y); India grew nearly 15.9%. EBITDA margin up 290 bps y-o-y, driven by lower employee costs and operational gains. Management targets 20% revenue growth in 2025-26 with gradual margin improvement. Ambit Capital sees tailwinds from integrated platform, stronger processes, sales push, premiumisation, and exposure to high-growth markets and segments. Brigade Enterprises The Bangalore based real estate developer has a diversified portfolio, including residential, commercial, hospitality and retail projects. The March 2025 quarter pre-sales was up 9% y-o-y, driven by strong new launches. EBITDA was down 4% y-o-y, but margin expanded 307 bps on cost control and premium property sales. Robust launch pipeline in residential and commercial segments underpins 2025-26 growth visibility. It expects 15-20% pre-sales growth in 2025-26. Antique Stock Broking highlights geographic expansion beyond Bengaluru, strong launch pipeline, and rising rental asset occupancy as the key positives. Jupiter Life Line Hospitals The multispeciality healthcare provider offers tertiary and quaternary care across various medical specialties. In the March 2025 quarter, revenue was up 12.5% y-o-y, EBITDA up 25.7%, driven by better case mix and higher ARPOB. EBITDA margin expanded 260 bps yo-y due to cost control and operational efficiency. It is on track to reach 2,500 beds across 6 hospitals in Western India in 3-4 years. Exploring growth via acquisitions and greenfield projects. Prabhudas Lilladher expects sustained growth from expansion, rising occupancy, margin gains, and strategic moves in high-density western markets. National Aluminium The PSU company is engaged in in mining, alumina refining and aluminium smelting. In March 2025 quarter, revenue was up 47% y-o-y, EBITDA up 149%, driven by strong alumina and aluminium performance. EBITDA margin surged 2133 bps y-o-y, supported by lower costs and higher alumina realisations. Targeting 36-37% EBITDA margin in 2025-26 via volume growth and cost efficiencies. Axis Securities flags near-term EBITDA risk from falling alumina prices, but sees partial offset from strong cost control and higher alumina sales guidance.
Time of India
09-06-2025
- Business
- Time of India
Metals lead in profit growth: Know how various sectors of Nifty 100 index performed over the last 8 quarters
Source: Reuters-Refinitiv. Numbers in brackets are the number of companies in each sector. 95 companies of the Nifty100 index are considered for the analysis. LP: Loss to profit. PL: Profit to loss. Nifty 100 index represents about 67% of the free float market capitalisation of the stocks listed on NSE at the end of March 2025. Earnings growth slows amid weak demand The weakness in consumption and demand is evident in the earnings performance of the Nifty 100 index, with 95 out of 100 companies reporting an aggregate consolidated net profit growth of just 12.7% year-on-year. While the performance appears better when compared to the December 2024 quarter, with 10.9% growth, there is a marked decline compared to the 23.5% growth in the March 2024 quarter. The metals sector, particularly steel companies, delivered strong performance driven by lower raw material costs and a seasonal rise in demand from the construction industry. In contrast, the construction materials (cement) sector faced headwinds from both demand and rising costs. However, the sector's overall growth was supported by solid earnings from Grasim and UltraTech Cement . The banking sector's performance was dragged down by IndusInd Bank , which reported a consolidated net loss amid higher provisions and lower interest income. The financials sector reported a modest performance, aided by healthy growth in disbursements. The IT sector continues to see challenges amid global uncertainties. The sector is seeing stress in multiple verticals, including manufacturing, automotive, retail, and logistics. Live Events The consumer staples sector showed mixed results—rural demand improved, but urban slowdown and input cost pressures weighed on performance. A 210% profit jump in the Nifty 100 was largely driven by ITC 's exceptional gains from its hotel business sale. Among the largest five heavyweight stocks of the Nifty 100 index, Bharti Airtel , ICICI Bank and HDFC Bank reported the highest year-on-year growth in the consolidated net profits of 432%, 15.7% and 6.9% respectively.
Time of India
02-06-2025
- Business
- Time of India
Investing in these 3 chemical sector stocks can give good returns now as sector is reviving
After a lull of about three years, India's chemicals sector now appears poised for an upgrade. If you are looking for a contrarian investment strategy , then you might want to take a small exposure to this sector. Here's why. On a rebound The sector saw a marginal but noticeable improvement in performance during the January–March 2025 quarter. While much of the gain can be attributed to the low base effect, analysts remain optimistic. Of the 32 companies tracked by Reuters-Refinitiv (with estimates from at least two analysts), 19—or 59.3%—beat net profit expectations for the quarter. Anuj Jain, Co-founder of Green Portfolio PMS, says the March quarter results signal the beginning of an upcycle in the chemicals industry after a pause of nearly 2–3 years. Though valuations remain high for several large-cap stocks in the sector, many mid- and small-cap companies are still available at attractive valuations. A bleak past The chemicals sector has faced persistent headwinds over the past few quarters due to muted demand, weak realisations amid pricing pressures, inventory destocking in the agrochemicals segment, and heightened competition from China. Data compiled from the Reuters-Refinitiv database for 139 chemical companies with a market cap of more than Rs.100 crore shows dismal aggregate revenue growth of just 2% and 3.4% in the June and September quarters of 2024-25, on a year-on-year basis. Nearly 54% of these companies underperformed the Nifty 500 index over the last year, while 66% lagged the broader market benchmark in 2025 year-to-date. Live Events Brokers upbeat, but wary A pick-up in domestic demand for RACs (room air conditioners) and the sheer rise in demand for gas used in refrigeration and air conditioning is expected to bode well for the sector. While a B&K Securities report highlights that the weakening of competition from within the European Union will open up export opportunities for Indian companies, it also cautions against the continued threat of strong competition from China. On the other hand, a gradual recovery is expected in the agrochemicals segment, supported by the rising demand for newer, innovative products and biological alternatives. A Motilal Oswal report released in March 2025 notes that prices in the global crop protection industry are likely to bottom out in 2025 across all key regions and product segments, paving the way for a more stable growth trajectory ahead. The B&K Securities report notes that a sustained recovery in demand from the EU27 block is crucial to boosting the export growth potential of the Indian chemicals industry. It adds that with inventory de-stocking now largely complete in European markets, both demand and volumes are expected to drive growth going forward. Challenges The US trade tariffs, low-cost dumping by Chinese manufacturers, and weak demand in Europe remain some of the major concerns for the sector. An April 2025 Kotak Securities report expresses hope for a decent recovery over 2024–25 and 2026–27. However, in the event of a prolonged tariff war, it cautions that there could be more substantial downside risk to these expectations. Here are three companies worth considering for a small exposure. These firms have reported double-digit growth in net earnings for the March 2025 quarter and enjoy the highest level of analyst coverage within the sector. SRF Q4 revenue and net profit beat estimates by 7.4% and 9.3%. Strong performance in specialty chemicals, refrigerant gases, and packaging films. 2025-26 revenue guidance at 20% growth. Elara Capital maintains an 'accumulate' rating, expecting gains from recovering demand. Navin Fluorine Q4 revenue and EBITDA beat estimates by 2.4% and 7.9%. CDMO (Contract Development and Manufacturing Organisation) and high-performance products drove growth. Refrigerant gas demand and better pricing supported performance. Management targets ~25% EBITDA margin in 2025-26. Prabhudas Lilladher sees strong long-term growth potential. UPL Q4 revenue and EBITDA beat estimates by 3.6% and 9.9%. Growth is driven by strong volumes, and inventory normalisation. 2025-26 revenue growth guided at 4-8%, led by volumes. Recovery in key markets and new products to aid growth. Antique sees balance sheet improving and growth momentum continuing.
