Latest news with #InCredEquities
Mint
a day ago
- Business
- Mint
Market volatility hits mid and small-caps: Are large-cap stocks a safer bet now?
The recent volatility in the Indian stock market has taken a toll on mid- and small-cap stocks, as investors grow increasingly cautious amid global uncertainty and elevated valuations, prompting them to exit these segments in search of safer bets in large-cap stocks, which are often perceived as more stable during turbulent phases. Global markets have been on edge this week, with the latest escalation between Iran and Israel adding fresh strain to an already fragile global economy—one still grappling with the effects of trade tensions and the ongoing Russia–Ukraine war. However, the Indian stock market managed to end the week with healthy gains, supported largely by strength in blue-chip stocks. Despite rising crude oil prices, prolonged trade tensions, and limited progress in negotiations between the US and its key trading partners, Indian large-cap stocks have continued to draw investor interest. Optimism around corporate earnings—buoyed by a turnaround seen in the March quarter and expectations of stronger performance in the June quarter of FY26—along with relatively reasonable valuations compared to mid- and small-cap counterparts, has led investors to shift their focus toward these more established, higher-priced stocks. Against this backdrop, both the Nifty 50 and Sensex closed with gains of nearly 2%, while the Nifty Midcap 100 and Nifty Smallcap 100 indices remained under pressure for the second consecutive week, each declining by up to 1%. Recent data also indicates a shift in retail investor preference toward large-cap stocks, as ownership in mid- and small-cap counters fell to a nine-quarter low amid a broader market sell-off during the March 2025 quarter, according to the NSE's report titled India Ownership Tracker. During the March quarter, mid- and small-cap stocks underperformed their large-cap counterparts, further amplifying valuation concerns in these segments. According to the latest analysis by domestic brokerage firm Kotak Institutional Equities, small caps led the earnings cuts, with a 6% reduction in FY2026 EPS estimates compared to a 2% cut for large caps and 3% for mid-caps. On the valuation front, the Nifty SmallCap 100 is trading at a one-year forward price-to-earnings (P/E) multiple of 27.2x—significantly higher than its long-term average and close to the Nifty MidCap 100's P/E of 28.3x. This sharp rise in valuations places the Nifty SmallCap 100 near its historical peaks, levels last seen during previous phases of overheated sentiment, such as mid-2021 and pre-2018, according to domestic brokerage firm InCred Equities. In contrast, the Nifty 50 is trading at a more reasonable 20.7x forward P/E. The narrowing valuation gap between small- and mid-cap stocks is making investors uncomfortable. Analysts believe this has prompted a shift in investor focus toward large-cap stocks. Looking ahead, analysts expect small and mid-cap stocks are likely to underperform in the short term, given their elevated valuations and absence of short-term triggers. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, "The recent weakness in the broader market is likely to continue since they are excessively valued, and the ongoing risk-off can lead to further selling in this segment. Money may move from the overvalued SMIDs to the fairly valued, safe large caps in financials, industrials, autos, and real estate." Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Mint
11-06-2025
- Business
- Mint
Tata Elxsi share price in focus as will trade ex-dividend today for dividend payout of ₹75 per share
Dividend Stock: Tata Elxsi share price will remain in focus on Wednesday as the stock will trade ex-dividend today, June 11. Tata Elxsi had set June 11, 2025, as the record date for identifying the list of eligible shareholders to receive the dividend. Record date for June 11 implies that the investors who wish to benefit from the dividend payout announced by the company should have bought shares of Tata Elxsi at least one day before the record date, as per T+1 settlement procedure, for their names to appear in the list of eligible shareholders to receive the dividend payout. As per a release by Tata Elxsi, dividends on shares held in physical form will be paid to members whose names are included in the Register of Members as of Wednesday, June 11, 2025, at the end of work hours. Dividends on shares held in demat form will be paid to members whose names are included in the list of beneficial owners provided by the Depositories as of Wednesday, June 11, 2025, at the end of business hours. At its meeting on April 17, 2025, the company's board of directors proposed that members approve a dividend of ₹ 75 each equity share with a face value of ₹ 10 apiece at the 36th annual general meeting. The announcement amounted to a 750% dividend considering the face value of shares. The company had announced that on Wednesday, June 25, 2025, the company's 36th Annual General Meeting (AGM) will take place by video conference or other audio-visual means. If authorised, the dividend will be paid by June 30, 2025, at the latest, after the following tax deductions are made at the source. Tata Elxsi's share price on Tuesday had closed 1.10% higher on the BSE at ₹ 6703.50. "Tata Elxsi has witnessed a strong upside in recent times which is in line with the performance seen in many of the IT names, said Gaurav Bissa VP - InCred Equities. The RSI at the current levels has entered in an overbought zone which makes buying lucrative on dips towards ₹ 6350 levels where its 200dema is likely lend a strong support and price will also retest swing breakout making risk reward lucrative for a short term trade, added Bissa
Entrepreneur
06-06-2025
- Business
- Entrepreneur
IT Services Sector Witness Lack of Urgency to Spend by Clients: InCred Equities
Clients continue to seek 'doing more for less' to optimize legacy projects to fund small-ticket AI-led ones You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Indian IT services companies are witnessing a lack of urgency to spend by clients as they remain cautious in an uncertain business environment, and are still hesitant to take long-term decisions, according to a report from InCred Equities. "But the reconciliatory stance, especially on reciprocal tariffs, has helped de-escalate the situation. Deal conversations are underway but advisory-led proposals (RFPs) with long-term road-maps have complex constructs and are elongating the decision timeframe. Pipeline opportunity could be at its peak but the pertinent question for investors is the quantum of conversion book and rate," the report said. However, enterprises are using the current uncertainty to right-size their organization/spending, given the inflationary pressure. The global conflicts have impacted client visits to Centres of Excellence (CoEs) and has elongated deal closure. The India-Pakistan conflict impacted travel plans of clients. "We heard instances of less client meetings in the month of May 2025 as travel advisory led to cancellation or postponement of visits to CoEs in India. This, in turn, added a new vector to decision-making delay, especially for global capability centre or GCC-led deals," the report said. AI-led productivity is the big elephant in the room. According to InCred Equities, the deflationary impact of artificial intelligence (AI) on revenue, led by productivity pass-back, is unlikely a near-term phenomenon. "We have been highlighting that clients continue to seek 'doing more for less' to optimize legacy projects to fund small-ticket AI-led ones. This, in turn, is driving vendor consolidation, driving the competitive intensity higher, creating staffing challenges, and pressurizing the margin profile of deals. Hence, building margin expansion for FY26F could be aggressive." As economic downturns change technology adoption and consumption patterns, this cycle is likely to favour mid-sized IT companies. The report cites similar views from CEO of Zensar Technologies who believes tier-II have the opportunity to capture incremental mind and market share as the current technology (AI) change has made the field level-playing. Infosys Chairman Nandan Nilekani alluded to the uncertain business environment in its latest annual report. "As we contemplate the developments of the last few months, we know we are in an era of uncertainty that we have never seen before. Multiple trends are colliding and leading us to reexamine the fundamentals of our businesses," he said. N. Chandrasekaran, Chairman, Tata Consultancy Services (TCS) also agreed that financial year 2025 was a year of profound global disruption. "Widespread geopolitical conflicts, military escalations, and uncertain trade dynamics severely impacted global supply chains. Over 60 nations went to the polls, stalling policy continuity and reform agendas across several key markets. As a result, businesses worldwide faced significant shocks— ranging from falling production volumes and rising costs to suboptimal asset utilization, impacting profitability and cash flows," he said in the company's latest annual report. The InCred Equities report indicated of a potential budget flush in 2H FY26F, given the current procrastination in spending, delay in decision-making and/or ramp-ups, and tepid spending pattern in 1H CY25. "That said, it may not be a true reflection of structural recovery as AI-led deflationary pressure could outweigh the near-term tailwinds, if any," the report said. The demand trend across banking, healthcare, energy, mining, and insurance verticals appear to be better than manufacturing, hi-tech, and retail. "That said, there appears to be no real urgency to spend, even within the segments having a better demand trend."
Mint
06-06-2025
- Business
- Mint
Stock Market Strategy: InCred Equities lists 21 stocks to buy this June
Even as benchmark indices like the Sensex and Nifty have managed to notch up returns of approximately 4 percent in calendar year 2025, Indian equity markets have remained volatile amid rising global trade tensions and domestic geopolitical concerns. The broader market has presented a mixed picture, with the Nifty Midcap 100 index gaining around 1.4 percent, while the Nifty Smallcap index has declined 2.7 percent year-to-date. In this backdrop, domestic brokerage firm InCred Equities has released its latest list of stock ideas for June 2025. The firm has adopted a selective and risk-aware approach, recommending 21 stocks with an 'Add' rating and advising investors to trim exposure in three others. According to InCred Equities, two macroeconomic indicators could offer near-term support to equity markets: a favourable monsoon forecast and robust GVA growth. The India Meteorological Department (IMD) has projected above-normal rainfall this year—106 percent of the long-period average—which bodes well for agriculture, rural demand, and consumer sentiment. While the southwest monsoon hit Kerala earlier than usual, further progress is expected to pause until June 10. On the economic front, the National Statistical Office (NSO) reported a 6.8 percent year-on-year growth in real Gross Value Added (GVA) during Q4FY25—the fastest in the last four quarters. This was driven by strong agricultural performance, and InCred expects India's GDP growth to maintain momentum with support from stable crude oil prices and improved rural prospects. Corporate earnings also stayed on track. As per CMIE data, PAT for nearly 4,000 listed firms grew by 9 percent Y-o-Y in Q4FY25, mirroring the previous quarter's performance. Meanwhile, Nifty50 companies posted a 5 percent Y-o-Y EPS growth, slightly surpassing Bloomberg consensus estimates. For June 2025, InCred Equities has provided a comprehensive segment-wise list of stock recommendations: The brokerage has suggested adding nine largecap stocks, including HDFC Bank, Tata Consultancy Services (TCS), and Bajaj Finance. Others include Maruti Suzuki, Axis Bank, UltraTech Cement, Bajaj Auto, Shriram Finance, and Lupin. However, it has 'reduce' call on two largecaps due to valuation concerns and near-term headwinds - InterGlobe Aviation and Tata Steel. Four midcap stocks have been assigned an 'Add' rating, including Ajanta Pharma, Petronet LNG, Concor and UPL. Technical indicators also support UPL's momentum in the current environment. A more aggressive stance was taken in the smallcap space, with eight stocks receiving an 'Add' rating. Notable mentions include Birla Corporation, Ethos, and Skipper. However, Clean Science and Technology was downgraded to 'Reduce' based on fundamental pressures. Others include Deepak Fertilisers, Thyrocare Tech, TCPL packaging, Camlin Fine Sciences, and Globus Spirits. Camlin Fine Sciences was added to the list after signs of stabilization in its vanillin plant and the imposition of anti-dumping duties in the US, which are expected to improve its profitability outlook. Adani Ports and Special Economic Zone was removed from the list as its market price neared InCred's target, prompting a profit booking recommendation. Cipla was also dropped due to margin pressure stemming from product mix-related issues. Other technical trend-favoured stocks included UPL, Skipper, and Petronet LNG, where chart setups supported potential upside. In conclusion, InCred Equities' June 2025 strategy reflects a balanced stance amid macroeconomic positives and geopolitical uncertainties. The brokerage's cautious optimism is shaped by early monsoon signals, strong GVA numbers, and steady earnings growth. With 21 stocks receiving an 'Add' rating and a preference for select opportunities across market capitalizations, the list aims to help investors navigate the current volatility while maintaining exposure to long-term growth stories. As global cues continue to influence domestic sentiment, stock selection and disciplined allocation remain key to portfolio outperformance. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
06-06-2025
- Business
- Business Standard
Stocks to buy today: InCred Equities picks 21 stocks to 'Add' for June 2025
Stocks to Buy in June, 2025: So far in calendar year 2025, Indian benchmark indices—Sensex and Nifty—have delivered approximately 4 per cent returns despite a volatile market environment. US trade tariffs and rising geopolitical tensions between India and Pakistan, following the Pahalgam terror attack, created bouts of uncertainty for investors. Market Outlook: Factors affecting stock markets Given this backdrop, domestic brokerage firm InCred Equities has adopted a cautious approach and recommends selective stock additions for June 2025 for better yield potential. 1) Monsoon and Earnings Growth InCred Equities highlighted that favorable monsoon forecasts and steady corporate earnings growth could support market sentiment in the near-term. The India Meteorological Department (IMD) has predicted above-normal southwest monsoon rainfall in 2025 —106 per cent of the long-period average. While the monsoon arrived early in Kerala, further advancement is expected to pause until June 10, 2025. On the earnings front, Centre for Monitoring Indian Economy (CMIE) data shows that profit after tax (PAT) for nearly 4,000 listed companies grew by 9 per cent year-on-year (Y-o-Y) in the March 2025 quarter (Q4FY25), matching the previous quarter's growth despite a modest 6.4 per cent Y-o-Y sales increase. Nifty50 companies reported a 5 per cent Y-o-Y growth in earnings per share (EPS) in Q4FY25, slightly exceeding Bloomberg's consensus estimates. 2) Strong GVA growth India's real Gross Value Added (GVA) increased by 6.8 per cent in Q4FY25, the fastest growth in the past four quarters, according to the National Statistical Office. The agricultural sector showed a strong Y-o-Y growth, further boosting overall GVA performance. With the combination of above-average rainfall and range-bound global crude oil prices, InCred expects continued momentum in India's GDP growth going forward. Investment Strategy for June 2025 For June 2025, InCred Equities suggests adding 21 high-conviction stocks and reducing exposure to three stocks. Here is the segment-wise breakdown: Top Largecap stocks ideas for June 2025: The brokerage has recommended 'Add' on nine stocks including HDFC Bank, Tata Consultancy Services (TCS), and Bajaj Finance, and has suggested 'Reduce' on two stocks. Large-Cap Ideas Stock Rating Target Price (₹) HDFC Bank ADD 2,200 TCS ADD 3,589 Bajaj Finance ADD 10,800 Maruti Suzuki ADD 13,621 Axis Bank ADD 1,430 UltraTech Cement ADD 13,550 Bajaj Auto ADD 10,400 InterGlobe Aviation REDUCE 3,030 Tata Steel REDUCE 82 Shriram Finance ADD 830 Lupin ADD 2,400 Top Midcap stock ideas for June 2025: Under the midcap category, Incred has recommended to 'Add' four stocks including Ajanta Pharma and UPL. Midcap Ideas Stock Rating Target Price (₹) UPL ADD 1,289 Petronet LNG ADD 519 Container Corporation of India (Concor) ADD 970 Ajanta Pharma ADD 3,100 Top Smallcap stock ideas for June 2025: Eight smallcap stocks were given an 'Add' rating by the brokerage including names such as Birla Corporation, Ethos, and Skipper. Conversely, Clean Science and Technology was given a 'Reduce' rating. Smallcap Ideas Stock Rating Target Price (₹) Deepak Fertilisers & Petrochemicals ADD 2,051 Clean Science and Technology REDUCE 683 Birla Corporation ADD 1,530 Ethos ADD 3,400 Skipper ADD 612 Thyrocare Technologies ADD 1,010 TCPL Packaging ADD 4,530 Camlin Fine Sciences ADD 428 Globus Spirits ADD 1,584
