July 31, 2026

TOP NEWS

War update: The United States military launched powerful strikes on Iran in retaliation for Tehran’s attacks targeting U.S. bases in Jordan as the war in West Asia reignited. Both sides carried out military strikes in the last 24 hours that once again risk a return to all-out war . Brent down by ~1% to $85.6/barrel.  Asian markets opened up well and gift nifty indicates a positive start for the day. Dowjones was up almost 1.2% with Software stocks sold-off overnight as a result of the rally in chip names. Shares of Salesforce, Adobe, Accenture, Cognizant, all fell between 4% to 6% on Thursday. The US-listed Infosys ADR also fell over 5% overnight. Nearly every chip stock, barring Nvidia, saw double-digit gains on Thursday. Nvidia itself rose 2.5%. However, its peers, AMD, Intel, Micron, gained between 11% to 18%, the SK Hynix ADR gained 18%, while shares of Sandisk were up 26% overnight. The chip stocks were buoyed by results of Microsoft, whose 15% rally. The rally in chip and AI stocks is positive for AI and DC stocks such as MTAR etc.

AWL Agri: Net Profit up 48.3% to Rs 350 crore versus Rs 236 crore YoY. Revenue up 17.5% to Rs 20,048 crore versus Rs 17,059 crore YoY. Ebitda up 88.8% to Rs 693 crore versus Rs 367 crore YoY. Ebitda Margin at 3.5% versus 2.2% YoY.

GNG Electronics: Net Profit up 56.2% to Rs 28.9 crore versus Rs 18.5 crore YoY. Revenue up 32% to Rs 412 crore versus Rs 312 crore YoY. Ebitda up 52.6% to Rs 49.3 crore versus Rs 32.3 crore YoY. Ebitda Margin at 12% versus 10.3% YoY.

Thermax: Net Profit down 83.4% to Rs 25.2 crore versus Rs 152.4 crore YoY. Revenue up 6.7% to Rs 2,303 crore versus Rs 2,158 crore YoY. Ebitda down 69.5% to Rs 68.6 crore versus Rs 225 crore YoY. Ebitda Margin at 3% versus 10.4% YoY. Weak results.

Mazagon Dock: Net Profit up 21.5% to Rs 549 crore versus Rs 452 crore YoY. Revenue up 12% to Rs 2,943 crore versus Rs 2,626 crore YoY. Ebitda up 48% to Rs 446.6 crore versus Rs 301.7 crore YoY. Ebitda Margin at 15.2% versus 11.5% YoY.

GRSE: Received a Rs 1,032.07 crore Notification of Award from ONGC for construction of four Platform Supply Vessels, to be executed over 48 months.

Astra Micro: Received an order worth Rs 2,205.23 crore from HAL Order for procurement of components for Uttam Radar programme Contract will be executed over a five-year period Order book stood at Rs 2,610 crore at the end of FY26.

MACRO WRAP

• China’s contracted in July, snapping four straight months of expansion as the export rush that powered a second quarter rebound began to unwind, piling pressure on Beijing to boost domestic demand. The manufacturing production index and new orders index stood at 49.9 and 48.5, down 1.5 and 2.7 points MoM, By sector, general equipment and computer, communications and electronic-equipment industries recorded both production and new-orders indices above 53.0, signalling brisk activity and faster output-demand growth. Non-metallic mineral products, ferrous-metal smelting and rolling, and autos posted both indices below the 50 thresholds, reflecting weak supply-demand conditions.
• China’s non-manufacturing business activity index fell to 49.0 in July, down 1.2 ppt month-on-month, indicating a pullback in non-manufacturing activity. The services business activity index declined to 49.3, down 1.1 ppt, showing softer market activity.  The input price indices continued to decline. The purchase-price index for major raw materials was 53.2 and the factory-gate price index 47.8, both down for a fourth month amid recent commodity-price volatility. Price indices for non-ferrous metal smelting and rolling were both below 45.0. Large price swings weakened firms’ procurement intent, pulling the purchasing-volume index down to 49.4. sentimentally negative for metal mining sector.
• US GDP grew at a 1.5% annualized rate in Q2 2026, down from 2.1% in Q1 and below the 2.1% forecast. The drag on growth came from net exports (-1.0 ppt) Business investment cooled, structures contracted again, and government spending fell. final sales to private domestic purchasers, rose 3.9% in Q2, more than double the pace of the previous quarter and the strongest reading since early 2023. Consumer spending was a bright spot, accelerating to 3.2%
• US PCE fell 0.1% m/m in June after a 0.5% rise in May, with goods prices down 0.6% and services up 0.1%. Core PCE rose 0.1%, below the 0.2% forecast. Year-on-year, headline PCE slowed to 3.7% and core to 3.3%, both as expected.
• BoE kept the Bank Rate at 3.75% in a 6–3 vote, versus expectations of a 7–2 split. It warned that higher energy prices could push inflation up later this year and said upside risks to inflation have increased, while noting that Middle East developments could still materially change the outlook.
• WGC reports China market gold demand (jewellery, bars, gold ETFs and industrial) totalled 155 tonnes, down 41% YoY — the weakest Q2 since 2022. Jewellery demand fell 28% YoY and gold ETFs recorded net outflows of 22 tonnes, the primary drivers of the decline, India’s gold demand fell 6% YoY in the June quarter, driven by weak jewellery purchases.
• US markets rallied the S&P 500 surged 1.7% to 7,437.63 on Thursday. The Dow rose 1.2% to 52,208.06.  The Philadelphia Semiconductor Index surged 9.2%, driven by a recovery in memory chip ames (Micron+18.3%, SanDisk +26%). After hours: Amazon jumped 9% after AWS net sales grew 37% ex-FX, well ahead of the 31.3% estimate. Apple fell 7% after guiding Q4 revenue growth of 9%–11%, below the 12.1% consensus, citing component supply shortages. Microsoft soared 16%, its best day since October 2008, adding a record ~$450 billion in market cap in a single session after its Azure cloud segment grew 43% y/y.

INVESTMENT CALL

First Cut: Aarti Industries Ltd: Low cost inventory support EBITDA which may not continue in 2Q27

• FX tailwinds and low cost inventory pushed EBITDA growth
• Volumes of various key products were lower on Q-o-Q basis
• AIL had taken steps to optimise the product and geography mix to manage the situation, resulting in improved EBIDTA
• Working capital increased due to increase in input prices and exports leading to higher debt and finance cost
• We currently have a BUY rating with a TP of Rs 570 We have a call at 10:30 AM today
• Segment wise: MMA volumes were down and its share dropped to 38% in Q1Fy27 from mid 40’s )a key stock driver)
• Key Monitorable from call: MMA volumes picking up?  sustainability of margins?

First Cut: Bajaj Finance – Q1FY2027

Strong Growth and Improving Asset Quality Drive PAT Beat

• Net Interest Income (NII), in line with estimates, grew strongly by 22.9% y-o-y and 6.7% q-o-q to Rs. 12,571 crore. Despite robust AUM growth, Net Interest Margin (NIM) slightly compressed by 7 bps y-o-y as yields on portfolio declined faster than funding costs.
• Pre-Provision Operating Profit, surpassed estimates slightly, rising 19.4% y-o-y and 5.1% q-o-q to Rs. 10,137 crore. Opex to AUM reduced, coming in at an annualized 3.72% (down 2 bps y-o-y and 5 bps q-o-q).
• Credit Costs came in below expectations by 24 bps at an annualized 1.46% of AUM—declining 46 bps y-o-y and 12 bps q-o-q driven by underlying improvements in overall asset quality.
• Profit After Tax, beat estimates by 5%, reaching Rs. 6,081 crore (up 27.6% y-o-y and 9.5% q-o-q), primarily fueled by strong PPOP growth and lower credit costs.
• Asset Quality, continued to strengthen as Gross NPA fell by 7 bps y-o-y and 5 bps q-o-q to 0.96%. Net NPA also fell to 0.39%, down 11 bps y-o-y and 2 bps q-o-q.
• AUM grow 23.9% y-o-y and 7.2% q-o-q to Rs. 546,944 crore despite focus on asset quality in MSME segment and running down of captive two-wheeler portfolio. Mortgages, urban/rural sales finance, gold loans, car loans, and commercial lending were the key AUM growth drivers.

View: The company delivered a strong quarterly performance, driven by robust AUM expansion (up 23.9% YoY) and improving asset quality (GNPA at 0.96%). NIM slightly compressed though cost efficiency and lower credit costs boosted earnings, allowing PAT to beat estimates.  We have a buy rating on stock with target price of Rs. 1,125. We will come out with detail note soon ASAP.

First Cut Q1FY2027

Company, Mirae Asset Sharekhan Research

Actual Vs. Estimates

Company, Mirae Asset Sharekhan Research

Key Ratios

Company, Mirae Asset Sharekhan Research

Asset quality (%)

Company, Mirae Asset Sharekhan Research

First cut Q1FY27: Satin Creditcare Network Limited

Robust Growth Anchored by Expanding Network and Better Asset Quality

• Net Interest Income rose by 13.9% YoY and 16.8% QoQ to Rs. 401 crore (excluding foreign borrowing charges) on strong AUM growth.
• Pre-Provision Operating Profit rose 33.0% YoY and 5.6% QoQ to Rs. 267 crore, driven by robust NII growth and a 70 bps YoY fell Opex/AUM.
• Asset Quality sharply improved thus credit cost fell 191 bps YoY to 2.66% (annualized on AUM). GNPA fell sharply to 2.20% (down 150 bps YoY and 90 bps QoQ), alongside a drop in Net NPA.
• Net profit surged 172% YoY to Rs. 123 crore. Annualized RoA expanded by 163 bps YoY to 3.08% of AUM, despite minor quarterly seasonality.
• AUM grew 27.5% YoY to Rs. 15,935 crore, led by robust growth in MSME, and Housing segments, and MFI segment also saw strong growth. Disbursements surged 69.2% YoY to Rs. 3,495 crore. The branch network expanded by 25% YoY to 2,045 across India, including entry into Kerala. Promoters of the company is expected to invest Rs. 100 in equity for capital growth, besides Rs. 3,000 crore raised as a debt for expansion.

View: Strong AUM growth, sharp asset quality improvement, and operating leverage drove stellar profit growth. Capital infusion and network expansion position the firm well for sustained long-term momentum. We will come out with detail note and review our target price post conference call today at 11:00.

First Cut Q1FY2027

Actual/Estimates

Key Metrics

Asset Quality

Stock update: Vguard – Price hikes and summer demand led the growth

Rating: Buy                  Reco. Price: Rs. 317             Price Target: Rs. 430

• Revenue rose 24% y-o-y, led by growth across segments Electronics (23%), Electricals (28%), Consumer Durables (19%) business Sunflame (18%). Blended realizations rose 14% whereas volume growth is at 9%; demand was strongly supported by strong summer in south regions.
• OPM rose 225 bps to 8.9%, beating expectations due to product mix and cost optimisationalso turnaround in consumer durables segment was seen.  PAT grew 93% y-o-y. 
• Management reiterated long-term growth guidance of 15% but expects a higher number for FY27 due to significant realisation growth. Margins are seen at 9-10%
• We retain a Buy with a unchanged PT of Rs. 430, given a positive business outlook factoring in strong growth from the electricals & electronics businesses.

  Valuation (Consolidated)                                       (Rs. crore)

Result Summary                                                                                              Rs Crore

Stock Update: Vinati Organics– Margins slide on RM inflation; Recovery hinges on 2H27

Reco: BUY                CMP: Rs. 1,298            Target: 1,450

• Revenue grew 28% y-o-y to Rs 696 crore, supported by higher AO volumes and export benefits from a weak rupee. However, EBITDA margin fell 497 bps y-o-y to 24.5% due to sharp raw material inflation and delayed price pass-through. PAT rose 4% y-o-y to Rs. 109 crore.
• EBITDA margin guidance maintained of 26% for FY27 despite the weak start. Recovery is expected through price hikes, easing input costs and an improved product mix in H2FY27.
• Growth in FY27/FY28 is expected to be driven by higher ATBS utilization, AO volume growth and contribution from Veeral Organics ->although meaningful benefits are likely to emerge only gradually.
• Stock is trading close to -2std 1 yr fwd PE which provides limited downside risk, but we believe there is no near-term catalyst for an immediate rerating. We maintain BUY on VO with a revised TP of Rs 1,450.

OTHER NEWS

Vedanta Aluminium. Vedanta Aluminium Metal on Thursday reported a more than threefold year-on-year (YoY) jump in consolidated net profit to Rs 5,629 crore for the first quarter of FY27, as the recently listed company announced its first quarterly results following its mega demerger. Q1 Results: Net profit soars 3x YoY to Rs 5,629 crore; Rs 8/share dividend declared

Tata Steel has reported 12% year-on-year (YoY) growth in net profit to ₹2,318 crore in the first quarter (Q1) ended June 2026 on strong product prices. Net Profit at Rs 2385 crore versus est of Rs 2391 crore; revenues at Rs 60794 crore versus est of Rs 57998 crore.