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India Today
22-05-2025
- Business
- India Today
ITC set to report Q4 results today: Earnings, dividend payout in focus
ITC Ltd is set to announce its March quarter earnings and consider a final dividend for FY25 on Thursday, continuing its reputation as one of India's most reliable dividend-paying far this financial year, the diversified FMCG and cigarette giant has already handed out an interim dividend of Rs 6.50 per share. Given its track record, investors are now eyeing another generous AND DIVIDEND EXPECTATIONSITC paid a total dividend of Rs 13.75 per share in FY24, amounting to Rs 7,799.45 crore, with a yield of 3.21%, according to AceEquity data quoted in a Business Today report. In FY23, the company distributed Rs 15.50 per share (Rs 7,448.41 crore), and in FY22, the payout stood at Rs 11.50 per share (Rs 6,469.48 crore). FY21 saw a dividend of Rs 10.75 per share, totalling Rs 6,152.68 investors await the final dividend decision, market attention is also on ITC's quarterly performance. Analysts expect a lukewarm set of numbers, with cigarette volumes projected to grow between 3-6% the core cigarette business is expected to remain stable, challenges are likely in the non-cigarette FMCG and Paper and Packaging FMCG, which includes packaged foods, personal care and other consumer products, may see margin pressures amid high input costs and rising competition. Similarly, the Paperboards and Packaging business is forecast to remain underwhelming due to muted demand and pricing to Sharekhan, ITC is likely to report a net profit of Rs 4,944 crore for the March quarter, slightly down from Rs 5,022 crore in the same quarter last year. Revenue is expected to rise 3% year-on-year to Rs 17,078 crore, while operating profit margin is seen at 35%—down 213 basis points from a year the numbers, analysts will closely track management's commentary on margin outlook, volume growth and the status of the proposed hotel business demerger—seen as a key re-rating trigger for the stock. Shares of ITC were trading 1.7% lower at Rs 425.55 around 10:30 am on the Bombay Stock Exchange (BSE). advertisement
Time of India
07-05-2025
- Business
- Time of India
80% stocks in red! Bears still rule in Dalal Street's once-loved pocket even as Nifty surges
Despite the Nifty and Sensex showing positive trends in 2025, the SME sector is struggling, with nearly 80% of stocks trading in the red. This underperformance is attributed to high volatility, weak liquidity, and poor fundamentals, exacerbated by speculative trading. Experts advise caution and a research-driven approach, emphasizing fundamentally strong businesses for potential long-term opportunities. Tired of too many ads? Remove Ads Gap widens between frontline and SME indices Tired of too many ads? Remove Ads What is going wrong in SME universe? Tired of too many ads? Remove Ads What's ahead Even as India's benchmark indices recovered from the lows seen this year, there's one corner of Dalal Street that continues to bleed - the SME segment. Despite the Nifty and Sensex turning positive for calendar year 2025, the SME universe remains deep in the red, with the SME IPO Index still in the bear to data from Ace Equity, as many as 333 SME stocks or nearly 80% names in this space are trading in red, 66% have dropped more than 10% and over 50% of the stocks fell over 20% in CY25 so far. This stark underperformance comes even as the broader market sentiment has improved amid resilient macro indicators, FPI inflows, and expectations of rate divergence between frontline and SME counters is no accident. Analysts attribute the selloff in SME stocks to a combination of high volatility, weak liquidity, and poor fundamentals, often exacerbated by speculative trading and profit-booking in overvalued recent the headline Nifty gained just over 2% year-to-date, the Sensex has rebounded smartly since last year lows. However the BSE SME IPO Index has plunged over 20%. The index had earlier witnessed a meteoric rise in 2023 and early 2024, fuelled by a frenzy of retail participation and massive IPO oversubscriptions , many of which came from micro-cap, untested the top laggards this year are companies that were once investor favourites during the SME IPO boom of 2023–24. Stocks that surged 3x–4x post-listing have now corrected over 50% from their peaks, with several hitting lower circuits for top 10 losers in 2025 so far have fallen anywhere between 50% and 70%. Many of these companies have either failed to scale their business or were richly valued without robust fundamentals. AA Plus Tradelink , and Radhika Jeweltech are among the worst hit, each shedding more than 60% of their value this year.A combination of structural and market-specific factors has contributed to the sharp decline of SME stocks in 2025. Many IPOs launched during the 2023–24 boom were heavily oversubscribed -- often 100 times or more -- driven by retail frenzy rather than once listed, several of these companies failed to deliver on earnings or scale their operations, leading to steep the problem is the absence of institutional participation, unlike mainboard IPOs, SME issues typically lack QIB or anchor support, making them vulnerable to volatility and price manipulation. Meanwhile, valuation fatigue set in as macro uncertainties like interest rate risks and inflation prompted investors to rotate capital from speculative microcaps to more stable large-cap names."The underperformance of SME stocks in 2025 stems from high volatility, low liquidity, weak fundamentals, external shocks, and cautious investor sentiment , despite a positive broader market," says Atul Parakh, CEO of cautions that while SME platforms do offer high-growth opportunities, chasing them broadly is risky. 'For most retail investors, the current environment favors caution over aggressive pursuit of SME stocks,' Parakh the rout, experts aren't writing off the SME space. They say SMEs face undue pressure from market swings, as investors prioritize stability in large-cap stocks during uncertain times. But this also creates long-term opportunities for selective advises a research-driven approach, focusing only on fundamentally strong businesses with clean promoter history and long-term growth visibility . 'Investors should maintain diversified exposure and avoid chasing momentum in low-quality names. The next leg of returns in SME stocks will come not from hype, but from earnings delivery and governance."Data inputs: Ritesh Presswala: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
23-04-2025
- Business
- Time of India
Smart accumulation or euphoria? Retail investors hike stakes in 363 smallcap stocks in Q4
Retail investors raised their stakes in 363 stocks within the BSE Smallcap index during the January–March quarter, while reducing holdings in 361 stocks, according to Ace Equity data analyzed by ETMarkets. This near-even split suggests a cautious return of risk appetite, with investors engaging in selective buying after a sharp correction, though without signs of irrational exuberance. The BSE Smallcap index, which represents the bottom 15% of the total market capitalization of the BSE AllCap, includes 939 stocks. Of these, shareholding data for 730 companies as of the March quarter is available, while the rest are yet to disclose their latest shareholding pattern. The most notable increases in retail holdings were seen in Vakrangee (up 6.5%), One Mobikwik Systems (up 6.3%), and Spandana Sphoorty Financial (up 6%). In 66 other stocks, the retail holding has gone up by 1% or more and up to 4.94%. Some of these stocks include Dreamfolks Services, DAM Capital Advisors, EKI Energy Services, Jindal Drilling & Industries, Samhi Hotels Aarti Pharmalabs, Hindustan Construction Company, Barbeque-Nation Hospitality, KRN Heat Exchanger and Refrigeration and Computer Age Management Services (CAMS). The other widely tracked smallcap stocks that have seen retail ownership go up QoQ in the quarter gone by are PVR Inox, Jupiter Wagons, Balu Forge Industries, Can Fin Homes, Texmaco Rail & Engineering, Angel One, and Sobha between 2.2% and 0.92%. By retail ownership, we mean individual investors holding shares worth Rs 2 lakh in a company. "The rise in retail holdings across smallcaps signals a return of risk appetite post the sharp correction earlier this year. Trump's tariff pause was the catalyst—but what's striking is the selectivity as investors are clearly differentiating, not rushing blindly. This isn't euphoria—it's opportunistic repositioning after valuations reset," Anirudh Garg, Partner and Fund Manager at Invasset PMS, said, commenting on the prevailing trends. To give some perspective, the BSE Smallcap index fell 29% from a peak of 57,827.69 on October 1, 2024, to hit the lows of 41,013.68 on April 7, 2025. While they are still down 18% (index level) from the peak, smallcaps have clawed back from the bear territory. A 20% or higher fall is seen to be a bear zone for stocks/indices. Kush Gupta, Director at SKG Investment & Advisory expects the trend of increased retail shareholding to last longer than one expects. In his view, investors remain confident about the space notwithstanding a one-sided correction for the past 4 months, which led to 40-50% downfall in prices of several stocks. "We are seeing a larger allocation to smallcap space in portfolios than ever before, it is no longer a space that is only considered investable by HNIs or large family offices who can afford to risk their capital a little more than the retail investors. This democratisation of small cap is a huge shift in the industry and we will witness capital allocation to this space at a faster speed than we have before. It is safe to say that investors are seeing value investment opportunities in small caps returning back after witnessing a selling cycle," he added. The BSE Smallcap index has already recovered 20% from the lows and on Tuesday closed at 49,143.12. Smallcaps with QoQ cut in retail holding The sharpest cut of 16% in retail shareholding was seen in Embassy Developments and it was followed by MM Forgings and Kamdhenu with 14% and 8% QoQ drop. In 40 other stocks, the cut was between 7% and 1%. Among them are MAS Financial Services, Sundrop Brands, Kitex Garments, Camlin Fine Sciences, Shaily Engineering Plastics, The South Indian Bank, RBL Bank, Restaurant Brands Asia, Suyog Telematics, Aditya Vision, GRM Overseas, Vimta Labs, Coffee Day Enterprises, Aavas Financiers, Ujjivan Small Finance Bank, Thangamayil Jewellery and Prataap Snacks. The other widely tracked smallcap stocks that have seen retail ownership go down sequentially in the January-March quarter include CarTrade Tech, Nazara Technologies, Poonawalla Fincorp, Gujarat State Fertilizers & Chemicals, Anand Rathi Wealth, Bharat Dynamics, Nuvama Wealth Management, Garden Reach Shipbuilders & Engineers, Birlasoft, Cochin Shipyard, and Honasa Consumer. The stake has dipped between 1.4% and 0.15% Also Read: Market volatility hits high beta stocks as 92% scrips fall up to 66% from peaks. These 2 risks loom Status quo stocks Meanwhile, there has been no change in retail holdings in these six stocks viz. Blue Dart Express, Elantas Beck India, Kirloskar Industries, Praj Industries, Rama Steel Tubes, and Uniphos Enterprises. Time to make positional bets? Trump's tariff scare still lingers as the 90-day pause will end in July. The domestic markets have stablised as Foreign Institutional Investors (FIIs) have made a comeback to the domestic market. They have purchased Indian equities for the past five trading sessions, pumping in Rs 17,251 crore. The IMF has revised India's FY26 GDP growth forecast downwards to 6.2% due to trade tensions and US tariffs, with a further reduction to 6.3% projected for FY27. Prior to this, the Reserve Bank of India (RBI) and ratings agency Fitch had cut their estimates on India. In the case of market turmoil or economic slide, the preference could shift to largecap counters. Garg is of the view that the current set-up justifies selective positional bets on smallcaps amid caution. "Valuations have reset meaningfully post-correction, and retail interest has returned. However, this window is temporary and expires in July, leaving room for both opportunity and risk. Smallcaps tend to outperform in early-stage recoveries, and India's macros—cooling inflation, stable policy, rising capex—support a near-term rally," he warned, adding that global trade overhang remains. Gupta of SKG Investment recommends taking positional bets in companies that have a steady order book, strong management and a good track record i.e. those companies that have experienced downtrends in the past. 3 tips to make a move in smallcaps: 1. Garg calls the current situation as a tactical opportunity and not a structural bet. He recommends focusing on domestically driven, low-debt smallcaps with earnings visibility. 2. Garg prefers staying away from sectors like metals and IT in the smallcap space. Metals are too exposed to global pricing cycles and the recent pause on Chinese tariffs could trigger supply distortions, hurting pricing power. On the other hand, smallcap IT is facing demand headwinds due to the US slowdown. The dollar is weakening and there is a real risk to export-linked revenue stability, Invasset PMS analyst said. Auto, real estate, and metals are also 'Avoid' for Gupta. 3. Gupta is cautious about sectors that rely on discretionary spending as consumers become defensive when the economy is slowing. Smallcap stocks related to travel, household goods, hospitality, and consumer durables remain vulnerable, according to him. His top picks include BLS International, Integrated Industries, MOS Utility, Master Trust, OBSC Perfection, Healthcare Global Enterprise, Rama Steel, and Fedder Holdings.
