February 03, 2026

LATEST NEWS

>> 2:45 PM

Result Update: Saregama: Strong sequential performance driven by margin expansion

·         Revenue grew by 13.2% q-o-q to Rs 260 Cr, largely driven by music and artist management.

·         Gross Profit grew 20.1% q-o-q to Rs 180 Cr, driven by lower operating costs led by improved operating efficiency.  

·         EBITDA improved by 33.4% q-o-q  (up 8.7% y-o-y) to Rs 92 Cr, resulting in EBITDA Margin expansion of 534bps q-o-q to 35.2%.

·         APAT improved by 33.2% q-o-q to Rs 58 Cr, however declined y-o-y due to lower other income.

·         APAT Margin stood at 22.4%, up 335bps q-o-q (+948bps y-o-y).

TOP NEWS

India-US tariff deals: Trump revealed the deal slashes U.S. tariffs on Indian goods from 25% to 18%, effective immediately, while claiming India will drop its tariffs on U.S. products to zero, halt Russian oil imports, and commit to over $500 billion in American purchases. But full terms still waited for a clarity. So lets break it down

What has happened:

·         With tariff reduction from 25% to 18% this will be an immediate and across-the-board relief, not sector specific. Net effect: Indian exports become more competitive overnight! In export-driven industries, this margin shift will be huge

·         India has lower tariff compared to competing export economies India 18% Indonesia 19% Vietnam 20% Bangladesh 20% China: 34%

·         What would be macro impact: Export growth without currency depreciation and Improved global confidence in Indian manufacturing.

·         In a trade off: There will be a energy shift with India stopping the Russian oil and Buy more oil from USA. (To remind USA oil is market price where as Russian oil is at discounted price). This would certainly raise energy import bill, partially offsetting export gains!!

·         India also committed to no tariffs on US imported goods. Therefore there will be more competition to Indian domestic manufacturers

Bottom line: This tariff cut is economically positive, strategically expensive, and geopolitically significant. Markets should watch export data, energy imports, and sectoral margins very closely.

Key export stocks which should be in positive focus: Gokaldas exports, Garware Hitech, Apex Forzen foods, Bharat Forge, Senco Gold etc.

PG Electroplast: Revenue grew by whopping 45.92% to Rs 1412.13 Cr (+115.47%QoQ), EBITDA grew by 36% to Rs 126 crore. Margins down by 120 bps but execution played around. PAT jumped to Rs  61.95 Cr (+56.68%YoY | +2145%QoQ). FY26 PAT guidance remained unchanged at Rs 310 crore implying Rs 180+ crore PAT in Q4FY26.

The US-India trade agreement, as well as the reduction in tariffs on Indian goods are beneficial to graphite electrode manufacturers like HEG Ltd, which counts the United States as one of its main export customers in a regulatory filing. (Positive)

NMDC: NMDC's Jan'26 production volume increased by 9% YoY to 5.56 MT, bringing the total volume for FY26 (YTD) to around 42.5 MT, up 18% YoY. Today company is going to announce its quarterly result. (Positive)

MOIL: Company's board have approved the formation of a joint venture with Madhya Pradesh (MP) state mining corporation for Manganese ore mining in MP. Although Company's net profit declined to Rs 529.2 million from Rs 636.8 million YoY in 3QFY26. (Mixed)

Bajaj Housing Finance: Q3FY2026 results - Bajaj Housing Finance reported a strong set of financial results for the quarter, with net profit rising 21% y-o-y to Rs 665 crore, aided by steady loan growth and higher core income. NII rose 19 % y-o-y to Rs 963 crore. Margins were broadly stable. Opex to net total income stood at 19.0%, compared with 19.8% in Q3FY25.  The company's asset quality remained resilient. Gross NPA stood at 0.27% as of December 31, 2025, contracting from 0.29% a year earlier. The lender's loan losses and provisions rose to Rs 56 crore in Q3 FY26 from Rs 35 crore in Q3FY26, including a Rs 10 crore management overlay release during the quarter. Loan assets grew 23% y-o-y to Rs 1,17,305 crore as of end-December, compared with Rs 95,570 crore a year earlier. AUM also increased 23% to Rs 1,33,412 crore.

Godrej Properties : The company sold plots worth over Rs. 1,000 crore at the launch of Evora Estate, its first plotted development in Panipat. The project saw sales of 600+ plots covering ~8 lakh sq. ft. since December 2025, making it GPL’s most successful plotted launch by value. Spread over 43 acres on NH-44A, the premium township features a Mediterranean theme and strong lifestyle amenities, benefiting from Panipat’s improving infrastructure and connectivity.

Awfis Space Solutions : The company delivered a solid Q3 FY26 performance, driven by strong demand from enterprise and GCC clients. Operating revenue rose 20% YoY to Rs. 382 crore, led by the co-working segment which grew 32% YoY to Rs. 322 crore and formed 84% of revenues. EBITDA increased 30% YoY to Rs. 139 crore, with margins expanding 270 bps to 36.5% due to operating leverage and a higher share of mature centres. Profit grew 43% YoY to Rs. 21.6 crore, reflecting steady execution and network expansion.

PREVIEW

MACRO WRAP

• India and the US reached a trade deal cutting tariffs on Indian goods to 18% from 50, following a call between President Trump and Prime Minister Modi. Trump also agreed to remove an additional 25% duty imposed over India’s purchases of Russian crude. The reciprocal tariff rate had previously shifted from 26% to 25%, before this extra duty was added. Although not a fully formalized treaty, the agreement includes Trump’s claim that India will buy Venezuelan oil, aligning with an Indian refiner’s recent move to diversify crude. Positive for Indian markets
• The main theme overnight was risk-on. US equities rose across the board as investors reacted positively to a surprisingly strong ISM manufacturing report for January. The DJIA, the S&P500, and the Nasdaq Composite Index rose 1.1%, 0.5%, and 0.6% respectively. The Eurostoxx 50 rose 1%. The Dollar Index rose 0.6% to 97.61. EUR-USD fell 60 pips to 1.1790.
• The US 2Y yield rose 5bp to 3.57% and the 10Y yield rose 4bp to 4.28%. Brent crude oil prices fell 6.2% to USD66.30. Gold fell 4.8% to USD4,661. Silver fell 7% to USD79.28.
• US is removing a 25% tariff on Indian imports linked to Russian oil purchases and reducing the general tariff to 18%, per a White House official. President Trump announced these changes post-discussion with Indian PM Modi. He initially imposed a 25% tariff in August due to India's buying of Russian oil, later increasing tariffs to 50%. Positive for Inr and broader market
• US ISM Manufacturing PMI increased to 52.6 from 47.9 in January, signalling the first manufacturing expansion in 12 months. Gains were seen in new orders, production, and supplier deliveries. Price pressures remained stable. The rise may be driven by holiday reorders and tariff concerns. Positive USD and broader market
• The US S&P Manufacturing PMI rose to 52.4 from 51.8, with output growth strong despite a seventh month decline in export orders due to tariffs. Job growth slowed, costs rose, and selling prices surged, while business confidence remained steady amid risks. Positive for USD and broader market
• The final print for private sector manufacturing PMI surveys for developed economies were either in line or slightly above the prelim estimate such as the Eurozone (49.5 up from prelim est of 49.4) and the UK (51.8 from prelim est of 51.6). US private sector manufacturing PMI was revised higher to 52.4 (from prelim est 51.9), the highest since Oct. Positive for Euro and metals.
• German Dec retail sales beat expectations, expanding 0.1% m/m, 3.2% y/y (versus Bloomberg est 0.1% m/m, 2.0% y/y) while the preceding month’s decline was revised to a more moderate -0.5% m/m, -1.6% y/y. Positive for Euro and metals
• Data watch: we get the job openings and labour turnover survey (JOLTS).

INVESTMENT CALL

First cut: Thermax Q3FY26 results : A strong beat on margins and order inflows.

·         Revenues for Q3FY26 grew by 5% to Rs 2,635 crore vs our expectations of Rs 2,708 crore. The revenue growth was led by modest growth across segments Industrial Infra (9.3%), Industrial Products (6.3%), and Chemical (4.6%).

·         Operating profit was higher by 35% to Rs.255 crore. OPM improved by 214 bps to 9.7% vs our expectations of Rs 8.2%. PAT grew by 50% to Rs 170 crore.

·         Order booking was surprising an higher by 34%  primarily driven by improved performance in the Industrial Products and Industrial Infra segments. Company has secured a large order for utility boilers and associated systems from Dangote Industries, a major West African conglomerate, for their refinery and petrochemical complex in Nigeria.

·         View: Thermax Q3FY26 performance was upbeat on margins and order inflow. We shall review our earnings estimates and come out with a detailed note post the conference call. Currently we have a Hold rating on the stock.

Results (consolidated)                                                                                             Rs crore

Actual vs. estimates                                                Rs. Crore

First cut: City Union Bank – Q3FY26: Strong performance on all counts

• NIMs expanded by 26 bps QoQ, higher than our estimates on the back of benefit of CRR cut and deposit repricing.
• NII posted a strong growth of 28% YoY driven by healthy loan growth of 21% YoY and margin expansion.
• Cost to income was down sequentially to 48.6% versus 49.2% QoQ but was up from 46.6% YoY. Provisions were slightly higher partly owing to balance sheet strengthening.
• Net profit was up 16% YoY at Rs332 crore. We have a Hold rating on the stock and will come out with detailed note shortly.

Actual versus estimates

First cut: Chalet Hotels Q3FY26 (Consolidated) results – Mixed Q3: Strong revenue growth; margins miss the mark

·       Chalet Hotel’s consolidated revenue grew by 27.1% y-o-y to Rs. 582 crore, besting our expectation of Rs. 540 crore, driven by 23% y-o-y growth in the hotel business and 29% y-o-y growth in the annuity business. Excluding residential income, revenue grew by 23% y-o-y. ARR at Rs. 14,970 per night, is up by 16% y-o-y, occupancy came in at 68% versus 70% in Q3FY25 impacted by key inventory additions at Bengaluru and Khandala and RevPAR improved by 12% y-o-y to Rs. 10,162 per night. Revenue growth was driven by festive and wedding season coupled with demand from MICE and leisure travel.

·       EBITDA margin rose by 86 bps y-o-y to 45.6%; missing our expectation of 47.6%.

·       EBITDA grew by 29.5% y-o-y to Rs. 265 crore. In line with EBITDA growth, adjusted PAT grew by 29.3% y-o-y to Rs. 125 crore, largely in line with our expectation of Rs. 120 crore.

·       View: We will review our earnings estimates and come out with a detailed report soon. Currently we have Positive view on the stock.

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore

Stock update: Nestle India Q3FY26 (Standalone) result update – Volumes shine; margins miss the mark

Reco: Buy                  Reco. Price: Rs. 1,308                 Price Target: Rs. 1,500

• Nestle’s Q3FY26 numbers were good, with strong volume-led revenue and PAT growth, while margins fell y-o-y and missed our expectations.
• Revenue grew by 18.6% y-o-y, OPM fell by 149 bps y-o-y to 21.2% and adjusted PAT grew by 29.4% y-o-y.
• Better volumes, lower raw material costs, and GST reduction combined with increased investments in brands and manufacturing would drive improved performance going ahead.
• Stock trades at 77x/64x/55x its FY26E/FY27E/FY28E EPS, respectively. We maintain a Buy rating with a revised PT of Rs. 1,500.

Valuation (Standalone)                                                   Rs. crore

Results (Standalone)                                                                               Rs. crore                                                   

Stock Update: Intellect Design Arena - Weak revenue and margin dents performance

·         Revenues fell 3.1% q-o-q (up 20.8% y-o-y) to Rs. 733.5 crore; lower licence fees dragged down revenues q-o-q. Margins fell ~700 bps q-o-q, largely led by investment in capacity building that drove up costs.

·         Management targets 20% LTM revenue growth, aiming to achieve and sustain a quarterly run-rate above Rs. 800 crore for 3–4 quarters, before progressively scaling to Rs. 900 crore and Rs. 1,000 crore run-rates in a similar sustained manner.

·         Near-term revenue growth to slow, as management prioritizes sustainable revenues. EBITDA margins contracted sharply, driven by front-loaded investments in sales capacity, international hiring, and platform-led initiatives, with similar expenditures likely persisting into Q4 and subsequent quarters, suggesting a gradual rise in margins.

·         Accordingly, we have trimmed our FY27-28-E estimates and roll forward our estimates to Mar-28, with a P/E of 28x and arrive at a price target of 965.

Valuation (Consolidated)                                                                                     (in Cr)

Stock Update: Bluestar Q3FY26 Results – Positive outlook

Rating: Hold     Reco Price: Rs 1,793    Price Target: Rs 2,100

·         Revenues grew moderately by 4% aided by strong growth in electromechanical projects business (up 9% yo) which was compensated by a flat UCP business and decline in professional segment. Operating profit growth stabilized at 5% growth aided by lower employee cost and lower other manufacturing expenses. Margins improved 10 bps to 7.5%. Consolidated net profit declined 33% y-o-y to Rs. 81 crore as an impact of one off expenses due to new labor code..

·         Management highlighted that with the current rise in commodity prices and depreciating rupee price hike up to 10% is non-negotiable and will be taken in the next quarter.

·         Management is highly confident about the RAC market to pick up but cautious that Feb-26 offtake will be critical for driving inventory liquidation and incremental production for summers.

·         Stock trades at 48x/40x its FY2027/FY2028 EPS, respectively. We retain a Buy rating and for a revised PT of Rs. 2,100.

·         .

Valuation                                                                                                          Rs Crore

Result Summary                                                                                Rs Crore

Cholamandalam Investment and Finance: In-line Q3, expect better Q4

Reco/View: BUY     CMP: Rs. 1,596      Price Target: Rs. 1,900

• PAT, in line with estimates, rose by 18.5% y-o-y and 11.5% q-o-q to Rs. 1,288 crore. Disbursements grew by 20.7% y-o-y and 5.8% q-o-q to Rs. 29,962 crore.
• NIM grew 18 bps y-o-y and 1 bps q-o-q 6.8% (of AUM) driven by a faster drop in cost of funds than yield. NII rose by 24% y-o-y and 6.0% q-o-q.
• Gross NPA came in at 3.36% up by 45 bps y-o-y though stable q-o-q. Credit cost came in at 1.73% (of AUM).
• AUM/PAT CAGR is expected at 20%/24% over FY25E–FY28E, with a healthy RoA/RoE of 2.6%/19.9% in FY28. Hence, we maintain a Buy rating with PT of Rs. 1,900, valuing the stock at 3.1x FY28E Book Value.

Valuation