Archives April 2025

Tata Consultancy Services
TCS in Q4 Results: Achieves $30 Billion Revenue Landmark and Strong Order Book

Business and Industry Overview: 

Tata Consultancy Services (TCS) is a global leader in IT services and consulting. It is based in Mumbai, India, and is part of the Tata Group. The company was founded in 1968. Today, TCS is one of the largest IT companies in the world. It operates in more than 55 countries. TCS employs over 607,000 people. TCS provides a wide range of services. These include IT services, digital transformation, consulting, and business solutions. The company works with many industries, such as banking, financial services, insurance, healthcare, and manufacturing. TCS uses a special method called Location Independent Agile to deliver its services. This helps them serve clients in different parts of the world. TCS is known for its focus on innovation. The company collaborates with universities and startups to create new solutions. This is done through their Co-Innovation Network. This network helps TCS develop new technologies and improve services. Apart from business, TCS is also involved in sponsorships and community activities. The company sponsors major events like the New York City Marathon and the London Marathon. In India, TCS sponsors the World 10K Bangalore and the Rajasthan Royals IPL team. They also provide technology support for player performance analysis and stadium security. TCS continues to be a major player in the IT industry. The company focuses on growth, innovation, and supporting communities. 

Latest Stock News: 

As of April 12, 2025, Tata Consultancy Services (TCS) is facing some problems in the stock market. On April 11, 2025, the share price of TCS was ₹3,232.30. It fell by 0.43% on that day. The price is 29.5% lower than its 52-week high. The highest price in the last year was ₹4,585.90 on September 2, 2024. The trading volume was 229,229 shares. This is much higher than the 50-day average of 87,670 shares. This means more people are buying and selling the stock. 

TCS also shared its financial results for the fourth quarter of the financial year 2025. The company earned ₹644.79 billion in revenue. This is 5.3% more than the same quarter last year. But this was still less than what experts expected. They thought the revenue would be ₹647.58 billion. The net profit was ₹122.24 billion. This is 1.69% lower than last year’s profit in the same quarter. The company said this happened because of problems in the North American market. Many companies there reduced their spending on IT. Also, tariff issues made it harder to do business. 

Even after weak results, some experts are still hopeful. Prabhudas Lilladher gave a ‘Buy’ rating to TCS. They think the price will go up to ₹4,160. Another firm, Sharekhan, also gave a ‘Buy’ rating. Their target price is ₹4,050. This shows they believe the stock will rise again. TCS also announced a final dividend for FY2025. This means shareholders will receive some money. Even though this quarter was not strong, experts think TCS will do better in the future because of good deals, a strong brand, and cost control. 

Business Segments: 

1. IT Services: TCS gives many technology services to other companies. They make software and apps for their needs. They also take care of old systems and keep them updated. TCS helps companies move their work and data to the cloud. This means using online storage like AWS, Google Cloud, or Microsoft Azure. TCS also looks after servers, networks, and storage. They protect company data from hackers by giving cybersecurity services. 

2. Consulting:  TCS advises companies. They help them use the right technology. TCS helps make a good IT plan. They also help when a company wants to change how it works. This is called business transformation. TCS helps companies follow rules and reduce risks. They also show better ways to do work and save money. 

3. Digital Transformation: TCS helps companies become more modern. They use new tools like AI (Artificial Intelligence) and machine learning. These tools help make smart choices. TCS also studies company data to find useful things. This is called data analytics. They use software bots to do simple jobs. This is called automation. TCS connects machines and devices using IoT (Internet of Things). They also use blockchain for safe and clear work in finance and supply chain. 

4. Engineering and Industrial Services: TCS helps companies design and make new products. They work with cars, machines, and electronics. TCS makes a digital copy of the real product. This is called a digital twin. It helps to test the product before making it. TCS checks if the product works well. This is called a testing service. They also help factories work faster and smarter using machines and software. This is called smart manufacturing. 

5. Business Process Services (BPS):  TCS helps with the daily office work of other companies. They manage financial work like bills, payments, and reports. They also help with HR work like salaries, staff records, and hiring. TCS answers customer calls and emails for some companies. They help with orders, storage, and delivery. This is supply chain work. In banking and insurance, TCS manages paperwork and regular tasks like checking forms and processing claims. 

Subsidiary information:  

1. TCS iON: TCS iON helps with digital learning and online exams. It gives services to schools, colleges, and government bodies. They make platforms for exams, results, and digital content. This helps schools and colleges go digital. It makes learning and testing easier and faster. 

2. CMC Limited: CMC Limited was a government-owned company. TCS bought it to grow its business. CMC provides IT services like software, system design, and IT advice. It helps many industries, such as banking and healthcare. It also helps government projects in India with technology. 

3. TCS Japan Ltd.:  TCS Japan is a joint company with Mitsubishi. TCS owns most of it. This company helps Japanese businesses with IT services and advice. It helps them improve technology, make better systems, and move to digital platforms. 

4. TCS China:  TCS China helps Chinese companies with IT and technology services. It works in areas like manufacturing, finance, and retail. It helps businesses in China grow and improve using digital solutions. TCS China helps TCS reach the big market in China. 

5. TCS Financial Solutions:  TCS Financial Solutions makes software for banks and finance companies. Their main product is TCS BaNCS. It helps banks with things like core banking, payments, and insurance. It helps financial companies run their systems smoothly and safely. 

6. Diligenta Limited (UK): Diligenta is a UK company that helps with insurance and pension services. It works with big insurance companies to help with tasks like managing policies, claims, and customer service. Diligenta helps these companies work faster and better using technology. 

7. TCS e-Serve (Now Merged): TCS e-Serve used to be called Citigroup Global Services. It handled back-office and customer support services. This included things like managing transactions, doing paperwork, and helping customers. TCS merged e-Serve into the main company to offer more complete services. 

8. TCS Sverige AB (Sweden):  TCS Sverige is in Sweden. It gives IT services to businesses in the Nordic countries like Sweden, Norway, and Denmark. It helps industries such as banking, retail, and manufacturing with digital services, cloud computing, and data solutions. 

Q4 Results Highlights:  

  • Revenue declined by 1% sequentially, compared to the expected 0.8% drop.  
  • Margins were below expectations, at 24.2% instead of the predicted 24.8%.  
  • TCS won $12.2 billion worth of deals during the quarter. 
  • The board approved a final dividend of ₹30 per share. 

Financial Summary:  

Amount in ₹ Crore Q4 FY24 Q4 FY25 FY23 FY24 
Revenue 64,479.00 61,237.00 240,893 255,324 
Expenses 44,073.00 47,499 176,597 187,917 
EBITDA 17,164 16,980 64,296.00 67,407.00 
OPM 28% 26% 27% 26% 
Other Income 1,157 1,028 3,464 3,962 
Net Profit 16,849.00 16,402.00 46,099 48,797 
NPM 26.13 26.78 19.14 19.11 
EPS 34.37 33.79 126.88 134.2 
Max Healthcare ltd
Max Healthcare Faces Stock Decline Despite Strong Expansion Plans and Growth Potential

Business and Industry Overview: 

Max Healthcare does not sell health insurance directly. But it works with many health insurance companies. This helps people get cashless treatment at Max hospitals. The main insurance company linked with Max is Niva Bupa Health Insurance. Earlier, it was called Max Bupa. Niva Bupa gives many types of health insurance plans. These are for individuals, families, and senior citizens. One popular plan is Health Premia. It covers hospital bills, maternity costs, and new treatments like robotic surgery. It also gives cover for critical illnesses. Another plan is Health Recharge. It is a super top-up plan. This means it gives extra cover after your basic plan is used. It also covers AYUSH treatment (Ayurveda, Yoga, Unani, Siddha, and Homeopathy). It also covers mental illness. If you have a Niva Bupa policy, you can get cashless treatment at Max hospitals. This helps during emergencies. You don’t need to pay money at the hospital. The insurance company pays directly. There is also Max Life Insurance, now called Axis Max Life Insurance. It mostly gives life insurance. But it also has health riders. One rider is for critical illness cover. It gives money if you get a serious illness. These plans also give tax benefits under Section 80D of the Income Tax Act. In short, Max Healthcare does not sell insurance. But it works with Niva Bupa and other companies. This helps people get good health insurance and easy hospital service. 

Latest Stock News: 

Max Healthcare’s stock is going up. In March 2025, the stock price went up by 20% in five days. It came close to its highest price of ₹1,227.50. This price was last seen in January 2025. On April 11, 2025, the stock was trading at about ₹1,148.10. The reason for this rise is good business results and future plans. In the last quarter (Q4 FY24), the company earned ₹1,901.61 crore. This is about 8.77% more than the earlier quarter. This shows that the company is growing well. Max Healthcare also signed a deal with Bharat Prakritik Chikitsa Mission. They will help run a 200-bed hospital in Delhi. This will help the company grow and treat more people. A global financial company called UBS said Max Healthcare is a good stock to buy. They gave it a ‘Buy’ rating. UBS said the price can go up to ₹1,200. This is a good sign for investors. Also, many big investors trust the company. Foreign Institutional Investors (FIIs) own about 56.93% of the company shares. Domestic Institutional Investors (DIIs) own about 15.55% shares. This means strong support from big investors. So, the company is doing well. It is growing. It is getting new hospital projects. Experts like the stock. Big investors believe in it. That is why the stock price is rising. 

Potentials: 

Max Healthcare has big plans for the next 3 to 5 years. Right now, it has about 4,000 beds. It wants to increase this to 9,000 beds. For this, it will spend over ₹6,000 crore. It will build new hospitals and expand old ones. In Mumbai, it will add 268 beds. In Mohali, 155 beds. In Delhi (Saket), 400 beds. In Gurugram, 500 beds. In Uttar Pradesh, it will spend ₹2,500 crore. It will build a 500-bed hospital in Lucknow. It also bought Sahara Hospital in Lucknow and renamed it Max Super Specialty Hospital. This hospital will also grow bigger. The company also wants to enter cities like Thane, Pune, and Nagpur. It may buy or partner with other hospitals there. Max will use its own money and may also take out loans. It has low debt. The company also wants to offer better care. It will add cancer care, robotic surgery, and organ transplants. Max also wants patients from nearby countries and the Middle East. These steps will help Max become a top hospital group in India. 

Analyst Insights: 

  • Market capitalisation: ₹ 1,05,993 Cr. 
  • Current Price: ₹ 1,090 
  • 52-Week High/Low: ₹ 1,228 / 743 
  • P/E Ratio: 100
  • Dividend Yield: 0.13% 
  • Return on Capital Employed (ROCE): 16% 
  • Return on Equity (ROE): 13.4% 

Max Healthcare Institute Ltd is a strong and growing company. It is the second-largest hospital chain in India based on revenue, profit (EBITDA), and market value. In the last three years, sales grew by 29% every year. Its profit margin is also good, around 27% in the last few quarters. In December 2024, the company earned ₹1,868 crore in revenue and ₹239 crore in net profit. The company is also planning to grow more. It wants to spend ₹6,000 crore to add 5,000 more hospital beds. Right now, it has around 4,000 beds. After this expansion, it will have over 9,000 beds. But the stock is very expensive. Its price-to-earnings (P/E) ratio is 100, which is very high. Its price-to-book value is 12.2. This means the stock price is much higher than its actual value. Its return on equity (ROE) is 13.4% in the last three years. Return on capital employed (ROCE) is 16%. These returns are good but not very high when we compare them to the stock price. Also, the promoter share has gone down. In March 2022, promoters held 50.64% of shares. But in December 2024, they hold only 23.74%. This is a big fall. Foreign investors (FIIs) now own more than 56% of the company. If FIIs sell their shares, the stock price may fall. In simple words, the company is doing well and has big growth plans. But the stock is already very costly. Also, the fall in promoter holding is a risk. So, this stock may be good for the long term, but right now, it may not be the best time to buy. Investors should be careful. 

Anand Rathi Wealth Ltd
Anand Rathi Wealth Q4 Results: PAT Rises 30% YoY to ₹74 Cr, AUM Grows 30%

Business and Industry Overview: 

Anand Rathi Wealth Limited (ARWL) is a financial services company that helps wealthy individuals grow and manage their money. It is listed in the NSE 500 and has been in the wealth management business since 2002. The company focuses on creating, protecting, and smoothly transferring wealth. It follows a structured, data-backed, and transparent investment approach. ARWL provides wealth creation, risk management, tax planning, and estate planning services. It stands out for its clear and objective financial strategies. The company uses data analytics to make informed decisions and ensures transparency and integrity in all dealings. India’s wealth management industry is growing fast. It is expected to grow 12-15% every year for the next five years. Earlier, people invested mostly in gold and real estate, but now they prefer financial investments. With a strong economy, better digital access, and growing awareness, India’s wealth management industry will expand even more in the future. 

Anand Rathi Wealth Limited holds the largest market share of 40% in its segment. Feroze has created 3,701 financial products, out of which 1,584 have matured with an average return of 14.9% (IRR). About 94% of these matured products have successfully delivered the expected returns.  

Latest Stock News: 

As of April 11, 2025, Anand Rathi Wealth Ltd’s stock closed at ₹1,768.75. This was a fall of 1.47% from the last close of ₹1,795.15. In the last week, the stock went down by 2.1%. In the past year, the stock fell by 11.8%. This shows a short-term weak trend, even though the company showed strong results. 

In the fourth quarter of FY25, the company’s profit after tax (PAT) increased by 30% year-on-year. It became ₹74 crore, up from ₹57 crore in the same quarter last year. The total income also rose by 22%. It became ₹241.39 crore from ₹197.19 crore. The company gave a final dividend of ₹7 per share for the financial year ending March 31, 2025. 

For the full year FY25, the company reported strong growth. Its total profit went up by 33% to ₹301 crore. Its total revenue increased by 30%, reaching ₹981 crore, up from ₹752 crore in FY24. The revenue from mutual fund distribution rose by 52% to ₹406 crore. Net inflows also increased by 76% and reached ₹12,617 crore. This shows the company got more money from investors. The company’s Assets Under Management (AUM) went up by 30%. It became ₹77,103 crore by March 2025. This was much better than the Nifty index, which grew only 5% in the same time. It has 1,821 new clients in FY25. It kept the client attrition rate low at 0.52%. This means very few clients left the company. The share of equity mutual funds in total AUM rose to 53% in March 2025. Last year, it was 51%. The return on equity (ROE) was strong at 44.6%, which shows the company used its money well. The company also announced that Feroze Azeez was promoted. He moved from Deputy CEO to Joint CEO. This shows that the company is focusing on strong leadership. Even though the stock price went down, the company’s performance and future outlook look strong. 

Business Segments: 

1. Private Wealth Management (PWM) 

This is their core business. It focuses on wealthy clients like high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs). The company helps these clients with investment advice, managing portfolios, tax planning, and estate planning. They get personal solutions that fit their needs. The company uses expert advice and research to make sure clients make the best investment decisions. 

2. Digital Wealth (DW) 

This segment is for people who want to invest between ₹10 lakh and ₹50 lakh. It offers digital tools to help clients manage their wealth. Clients can track their investments, make decisions, and invest in products like mutual funds, bonds, and insurance. This service makes it easier for people to invest using technology while still getting professional advice. 

3. Omni Financial Advisors (OFA) 

This segment works with independent financial advisors (IFAs). Anand Rathi Wealth gives these advisors tools to manage their clients better. This helps the company to expand its customer base. It also allows the company to offer financial advice to more people, even in areas where they don’t have a direct presence. 

Subsidiary information:  

1. AR Digital Wealth Private Limited: This subsidiary is mainly about selling financial products through digital platforms. Anand Rathi Wealth owns 75.51% of AR Digital Wealth. The company uses this subsidiary to offer services online, helping clients who prefer digital tools to manage their wealth. AR Digital Wealth allows clients to track their investments and get advice online. This helps Anand Rathi Wealth serve more people, especially those who want to manage their finances easily using technology. 

2. Freedom Wealth Solutions Private Limited: Anand Rathi Wealth owns 95% of Freedom Wealth Solutions. This subsidiary advises on financial planning, investment planning, retirement planning, property management, will writing, and property valuation. It helps clients, especially wealthy individuals, plan their finances and manage their wealth. This subsidiary focuses on giving personalized advice to help clients reach their financial goals. It helps Anand Rathi Wealth serve high-net-worth individuals and ultra-high-net-worth individuals by offering tailored financial solutions. 

3. Freedom Intermediary Infrastructure Private Limited: This is a fully owned subsidiary. It provides a technology platform for mutual fund distributors and independent financial advisors (IFAs). The platform helps advisors manage their clients’ investments and offer services like portfolio management. Freedom Intermediary Infrastructure makes it easier for financial advisors to serve their clients well. It helps Anand Rathi Wealth reach more clients by supporting independent advisors who can offer the company’s wealth management services. 

Q4 FY25 Highlights 

  • The company’s PAT surged by 30% year-on-year to ₹74 crore in Q4 FY25, up from ₹57 crore in Q4 FY24. 
  • Revenue for Q4 FY25 grew by 22%, reaching ₹241.39 crore, compared to ₹197.19 crore in Q4 FY24. 
  • PBT increased by 26%, reaching ₹99.5 crore in Q4 FY25. 
  • Assets Under Management (AUM) grew by 30%, reaching ₹77,103 crore, significantly outperforming the Nifty’s 5% gain. 
  • Mutual fund distribution revenue increased by 52% year-on-year to ₹406 crore. 
  • Anand Rathi Wealth achieved an excellent RoE of 44.6%, reflecting efficient capital use. 
     

Financial Summary:  

Amount in ₹ Crore Q4 FY24 Q4 FY25 FY23 FY24 
Revenue 184.00 222.00 752 939 
Expenses 111.00 131 421 539 
EBITDA 73 91 331.00 400.00 
OPM 40% 41% 44% 43% 
Other Income 13 19 0 42 
Net Profit 57.00 74.00 226 301 
NPM 30.98 33.33 30.05 32.06 
EPS 1.62 8.85 26.88 36.12 
ICICI Lombard Ltd
ICICI Lombard 2025: Business Insights, Stock Performance, and Future Growth Plans

Business and Industry Overview: 

ICICI Lombard is a big private insurance company in India. It does more than just sell insurance. The company wants to help people and bring good changes to society. ICICI Lombard follows the United Nations’ Sustainable Development Goals. These goals are made to help the world become a better place. The company supports many social projects. It helps people stay healthy before they get sick. This is called preventive healthcare. It teaches people how to be safe on the roads. It supports education for children and young people. It helps poor people learn skills and get jobs. It also gives help during disasters like floods and earthquakes. All this work is part of its CSR. CSR means Corporate Social Responsibility. This means the company gives back to society. ICICI Lombard wants to help the country grow in a fair and good way. The company wants to do more than just make money. It wants to help people, too. The company follows a strong promise. Its motto is “Nibhaye Vaade.” This means “We keep our promises.” The company wants to build a safe and helpful place. It wants people to grow and follow their dreams. ICICI Lombard works with its workers, customers, and the community. It wants to make life better for everyone. The company believes that we can build a better future if we all work together. 

Latest Stock News: 

On April 11, 2025, the stock price of ICICI Lombard General Insurance Company fell by 3.94%. This happened after the stock had gone up for two days in a row. The sudden fall shows that the trend might be changing. It could be moving from a rising trend to a falling one. On that day, the stock hit an intraday low of ₹1708.5, which was a 4.27% drop during the trading session. The stock also performed worse than other companies in the same sector. It underperformed its sector by 5.27%. This means while other companies in the sector were more stable or performed better, ICICI Lombard’s stock dropped more. Right now, the stock is trading below all its important moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Moving averages are used to understand the trend of a stock over time. If the stock is below all these averages, it means the trend is bearish, or going down. This shows that in the short and medium term, the stock may keep falling unless something changes. In the past week, ICICI Lombard’s stock has gone down by 6.67%. During the same time, the Sensex (which shows the overall market performance) has only gone down by 0.36%. This means ICICI Lombard is doing worse than the overall market. Even though ICICI Lombard is facing a drop, the broader market is showing some strength. On April 11, 2025, the Sensex rose by 254.71 points, reaching 75,090.20. It opened higher that day, which is called a gap-up opening. But still, the Sensex is trading below its 50-day moving average. This shows that the overall market is not very strong either and is still under pressure. 

If we look at a longer-term view, ICICI Lombard’s stock has gone up by 26.23% over the past three years. This is a good return. But in comparison, the Sensex went up by 27.35% in the same time. This means ICICI Lombard has slightly underperformed the market in the long run as well. 

Potentials: 

ICICI Lombard has plans to grow and improve in many ways. First, they want to use technology like AI. This will help them make services faster and more efficient. They also want to offer more types of insurance. This includes health insurance, home insurance, and car insurance. By doing this, they can meet the needs of more customers. The company also wants to make things easier for customers. They plan to make buying insurance, making claims, and getting help quicker and simpler. They will do this both online and in physical branches. ICICI Lombard is also focused on helping the environment and society. They plan to keep supporting projects that help people and the planet. This includes programs for healthcare, education, and disaster relief. The company wants to expand into smaller towns and rural areas. This will help them reach more people who may not have insurance yet. Finally, ICICI Lombard plans to improve its internal processes. This will help them work faster and provide better service to customers. In all, ICICI Lombard is looking to grow by offering more products, improving customer service, helping society, and reaching more customers. 

Analyst Insights: 

  • Market Capitalisation: ₹4,28,537 Crore 
  • Current Stock Price: ₹3,116 
  • 52-Week High / Low: ₹3,964 / ₹2,965 
  • Price-to-Earnings (P/E) Ratio: 31.0 
  • Dividend Yield: 0.89% 
  • Return on Capital Employed (ROCE): 13.4% 
  • Return on Equity (ROE): 14.7% 

ICICI Lombard is a big and strong insurance company. It has a good name in the market. The company has no debt. This means it does not have to repay loans. This is a good thing. The company gives a Return on Equity (ROE) of 18.08%. This shows the company is using money wisely. The Earnings Per Share (EPS) is ₹50.80. This means the company earns well for each share. The dividend yield is 0.64%. It gives small but regular money to shareholders. The company’s revenue is growing every year. It went from ₹11,533 crore to ₹20,602 crore. This means the business is growing. But the P/E ratio is 33.83. This is higher than the industry average of 18.49. So, the stock is costly. The P/B ratio is also high at 6.12. 

On April 11, 2025, the stock fell by 3.94%. It dropped more than the sector. The stock hit a low of ₹1708.5. In the past week, the stock fell by 6.67%, but the Sensex fell only 0.36%. This means the stock is not doing well. The stock is below all moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. This shows a weak trend. The stock price may go down more in the short term. The company has good plans. It wants to use technology and AI. It wants to grow in digital services and also in rural areas. This shows long-term growth. 

Larsen & Toubro Ltd
Larsen & Toubro’s Growth: Investing in Defense and Advanced Technology for a Strong Future

Business and Industry Overview: 

Larsen & Toubro Limited, abbreviated as L&T, is an Indian multinational conglomerate with interests in industrial technology, heavy industry, engineering, construction, manufacturing, power, information technology, defense, and financial services. It is headquartered in Mumbai, Maharashtra. L&T was founded in 1938 in Bombay by Danish engineers Henning Holck-Larsen and Søren Kristian Toubro. As of March 31, 2022, the L&T Group comprises 93 subsidiaries, 5 associate companies, 27 joint ventures, and 35 jointly held operations, operating across basic and heavy engineering, construction, real estate, manufacturing of capital goods, information technology, and financial services. It offers extensive IT services like application development, maintenance, and outsourcing; enterprise solutions; infrastructure management services; testing, digital solutions; and platform-based solutions to clients in diverse industries. It was a company that helped businesses with computers and technology. It started in 1996 and was part of a big Indian company called Larsen & Toubro (L&T). LTI helped banks, hospitals, factories, and insurance companies. It helped them store data safely. It used smart computers (AI) to solve problems. It kept information safe from hackers. It used machines to make work faster. It also helped businesses with cloud storage, websites, and mobile apps. LTI had offices in India, the US, Canada, Europe, and the Middle East. It worked with big companies in 30+ countries. Many Fortune 500 companies trusted LTI. It helped businesses move their work online. It kept their data safe. It helped them build better apps and websites. It made good money by helping businesses with technology. It grew fast because more businesses needed digital solutions. 

Latest Stock News: 

Larsen & Toubro (L&T) is making many new moves to grow its business. On April 4, 2025, L&T started a new company. This company is a fully owned step-down subsidiary. The company did not share full details, but this shows L&T wants to grow in new areas. On April 2, L&T also changed some top leaders in the company. This helps in bringing new ideas and better plans. On April 1, L&T got big new projects in its Power Transmission & Distribution business. This part of L&T builds electric lines and substations. These projects are from India and also from other countries. On March 26, L&T got its biggest project ever in its Offshore Hydrocarbon business. This part of the company works on oil and gas projects at sea. This shows L&T is trusted for big and complex work. L&T is also working on new technology. On March 25, its digital arm, Cloudfiniti, made deals with AI (artificial intelligence) startups. This means L&T wants to use smart technology in its work and offer better digital services. Even with all this good news, the L&T stock price went down a little on April 9, 2025. It closed at ₹3,126.05, which is 1.11% less than the day before. But the company is still strong. It has many projects and is working in both old and new areas. This can help the company grow more in the future. As of April 11, 2025, the Indian stock market went up because people felt more positive. This may also help L&T’s stock go up. The company is doing well with big orders and new plans in areas like power, oil, defense, and smart technology. L&T is also trusted for its strong work and experience. These things can help L&T grow more in the coming time. 

Potentials: 

Larsen & Toubro (L&T) has many big plans for the future. It will invest $12 billion in 5 years. Out of this, $4 billion will be for green hydrogen and green ammonia. It will build plants to make 2–3 million tonnes of these. It is buying 500–1,000 acres of land near the sea. It will also make electrolyzers. The first one will be used at Indian Oil’s Panipat plant. Later, L&T may work on fuel cells, big batteries, and hydrogen stations. In space, L&T is making India’s first private PSLV rocket with HAL. The rocket will launch in mid-2025. L&T also works with ISRO and helped in Chandrayaan-3. India’s space sector will grow to $44 billion, and L&T wants to grow in it. In defense, L&T wants to make more military items. It wants defense to be 10% of its business in 5 years. In real estate, it is building 28 million sq. ft. of new buildings. It will spend ₹7,000 crore to build an IT park in Vadodara, which will give 10,000 jobs in 5 years. L&T also started a chip company called LTSCT. It will build a $10 billion chip plant by 2027. It will make 15 types of chips. The Indian government will pay 90% of the plant cost. L&T wants to grow in clean energy, defense, space, chips, and buildings. 

Analyst Insights: 

  • Market capitalisation: ₹ 4,28,537 Cr. 
  • Current Price: ₹ 3,116 
  • 52-Week High/Low: ₹ 3,964 / 2,965 
  • Stock P/E: 31.0 
  • Dividend Yield: 0.89%
  • Return on Capital Employed (ROCE): 13.4% 
  • Return on Equity: 14.7% 

Larsen & Toubro Ltd (L&T) is a strong and trusted company. It is growing well. Its revenue increased from ₹1.56 lakh crore in FY22 to ₹1.83 lakh crore in FY23, and then to ₹2.48 lakh crore in the last twelve months (TTM). This shows that the company is doing better every year. Its net profit also went up. It was ₹10,419 crore in FY22, ₹12,020 crore in FY23, and ₹16,531 crore in FY24 (TTM). This means the company is making more money. L&T has a return on equity (ROE) of 14.7%. This means it is using investors’ money in a good way. It also has a strong operating cash flow of ₹18,266 crore. This shows that the company has good cash in hand. L&T’s working capital days dropped from 55.8 in FY22 to 30.6 in FY24. This means it is managing its money, payments, and stock very well. The stock has a high price-to-earnings (PE) ratio of 31 and a price-to-book (P/B) ratio of 4.82. This is high, but fair because L&T is a leader in construction, defense, green energy, and other sectors. It also has many big orders in hand and is growing in India and other countries. This makes L&T a good company for long-term investment. 

Bank of Baroda Ltd
Bank of Baroda Reduces Lending Rates by 25 Bps After RBI Move—Is It Time to Invest?

Business and Industry Overview: 

Bank of Baroda (BOB or BoB) is a public sector bank. It is owned by the Indian government. Its head office is in Vadodara, Gujarat. It is the second biggest public sector bank in India after State Bank of India. In 2023, it was ranked 586 on the Forbes Global 2000 list. The bank started on 20 July 1908. It was started by Maharaja Sayajirao Gaekwad III in Baroda, Gujarat. On 19 July 1969, the Government of India took control of the bank. It became a profit-making public sector bank. Today, the bank has over 9,600 branches. It has more than 10,000 ATMs. It is present in India and other countries too. The bank gives many services. These include savings accounts, loans, fixed deposits, and digital banking. The bank’s app is called bob World. The app gives over 220 services like money transfer, checking balance, and bill payment. The Government of India owns 63.93% of the bank. The CEO is Debadatta Chand. The bank started a new fixed deposit plan. It is called ‘bob Square Drive’. It gives up to 7.80% interest. After RBI cut interest rates, the bank also reduced loan rates. The bank has a goal. It wants to double its business in five years. 

Latest Stock News: 

Bank of Baroda is showing good growth. In the last year, the bank’s total business grew by 11.44%. This includes both loans and deposits. The total business reached ₹27.03 trillion. The bank gave more loans, which went up by 12.88%. The deposits also increased by 10.25%. This means more people are taking out loans and saving money with the bank. The stock has a P/E ratio of 5.68, which is low. This means the stock is not expensive. The dividend yield is 3.33%, which is good for investors because they get regular income. The P/B ratio is 0.96, which shows that the stock price is near the book value and not overpriced. UBS, a big financial company, has upgraded the stock to ‘Buy’. UBS said that Bank of Baroda is a good choice because it has good credit growth and low stock valuation. UBS also said that the RBI may cut interest rates, which will help the banking sector. These facts show that Bank of Baroda is strong and doing well. It may give good returns in the future. 

Potentials: 

Bank of Baroda wants to grow a lot in the next few years. Right now, the bank’s total business is about ₹27 lakh crore. The bank wants to make it ₹48 lakh crore in five years. To do this, the bank will give more loans to common people, farmers, and small shop owners. These types of loans will become most of the bank’s business. The bank also wants to open more branches. It plans to open 500 new branches in two years. In the year 2024–25, 300 new branches will open. These branches will be in smaller towns and villages. This will help more people to use the bank. The bank also wants to grow its loans and deposits. It wants loans to grow by 13% to 15% and deposits to grow by 13%. The bank will give more safe loans like home loans and car loans. To support this growth, the bank needs more money. So, it will raise ₹15,000 crore by selling bonds. This money will help the bank give more loans. Bank of Baroda is also working on better online banking. It wants to make mobile and internet banking easier and faster. The bank will use data and technology to find more customers. Another plan is to recover money from people who did not repay their loans. The bank wants to get back ₹10,000 crore in one year. This will help the bank stay strong and safe. 

Analyst Insights: 

  • Market Value: ₹ 1,19,950 Cr. 
  • Current Price:₹ 232 
  • High / Low: ₹ 300 / 191 
  • Price-to-Earnings (P/E) Ratio: 5.89 
  • Dividend Yield: 3.26%
  • Return on Capital (ROCE): 6.33% 
  • Return on Equity (ROE): 16.7% 

Bank of Baroda has been doing well in the last few years. Its profit grew from ₹2,488 crore in Q3 FY22 to ₹5,250 crore in Q3 FY24. In the last five years, its profit growth rate (CAGR) was 76.8%. This means the bank is earning more money every year. The bank’s return on equity is 17%. This shows the bank is using its money well to make profits. The stock is not expensive. It has a low P/E ratio of 5.89 and a P/B ratio of 0.85. These are lower than other banks in the same group. This means the stock may go up in the future. The bank also gives a good dividend. The dividend yield is 3.26%, which is good for people who want a regular income. The bank gives around 20% of its profit as dividends and keeps the rest for growth. Bank of Baroda is one of the big banks in India. It has around 6% of the total credit market. This shows it is a strong player. The bank is growing steadily. It is doing better than many banks like PNB, Canara Bank, and Union Bank in terms of profits. There are some risks like low interest coverage and high contingent liabilities. But the bank’s good profit, steady growth, and strong position make it a good stock to look at. 

SBI Stock Analysis
State Bank of India: Closes 0.67% Lower Despite Strong Fundamentals

Business and Industry Overview: 

State Bank of India (SBI) is the largest government-owned bank in India and one of the biggest banks in the world. It has a strong presence in the banking sector, holding 23% of the country’s total assets and 25% of all loans and deposits. With around 250,000 employees, it is also one of India’s top employers. SBI has achieved major milestones in the stock market, reaching a market value of over ₹8 trillion in 2024, making it one of the most valuable companies in India. The Reserve Bank of India (RBI) considers SBI a “too big to fail” bank, meaning it is crucial to the country’s financial system. The bank has a rich history, dating back to 1806, and was originally called the Imperial Bank of India before being renamed SBI in 1955. Over the years, it has grown by merging with more than 20 banks. In 2022, SBI opened a special branch in Bengaluru to support start-ups in India.  

State Bank of India (SBI) is the biggest bank in India, offering financial services to individuals, businesses, and government institutions. It plays a major role in banking, investments, and lending, making it a key player in the country’s financial system.  SBI is focusing a lot on digital banking. It has launched new apps like ‘YONO for Every Indian’ and ‘Yono Global’ to make banking easier, even for customers in Singapore and the US. It also introduced UPI transactions for India’s digital currency (CBDC) and an electronic Bank Guarantee (e-BG) to speed up banking processes. The bank is also raising funds to support India’s infrastructure and sustainability projects. It secured over US$ 1.2 billion through bonds and completed a US$ 1 billion loan focused on environmental and social impact—the biggest of its kind in Asia.  To support startups, SBI has opened special branches that provide all banking services under one roof. It is also helping expand banking services by partnering with RailTel to bring 4G connectivity to 15,000 offsite ATMs across India.  With its focus on digital banking, international expansion, and financial inclusion, SBI continues to be India’s most important and trusted bank. The bank has a market share of 22.84% in deposits and 19.69% share in advances in India. It has a strong customer base of ~45 crore customers. 

Latest Stock News: 

State Bank of India (SBI) is the biggest bank in India. Its share price keeps going up and down. On April 11, 2025, the share price opened at ₹759. This is 2.26% more than the price on April 9, which was ₹742.20. The share price went up after the Reserve Bank of India (RBI) cut the repo rate. A repo rate cut means banks get cheaper loans from the RBI. This helps banks earn more and gives hope to investors. On April 9, SBI shares had dropped by 3.23%. Now the price is slowly going up again. On April 8, the share price had also gone up. SBI’s share price is affected by news and other changes. For example, there are new rules for ATM transactions. Also, SBI may sell its stake in Yes Bank. These things may change the share price later. In the last month, the stock has fallen by 3.3%. The highest price in one year was ₹912, and the lowest was ₹680. The total market value of SBI is ₹6.73 lakh crore. SBI gives a 1.82% dividend to its shareholders. Many experts still say SBI is a good stock. Jefferies gave a “Buy” rating and a target of ₹1,030. UBS raised its target to ₹840 and gave a “Neutral” rating. Some say the price may go up to ₹1,049 in 2025. But others, like Bernstein, think the price will not grow much. Overall, many people still trust SBI for long-term investment. 

Potentials: 

State Bank of India (SBI) is growing fast and making banking easier for people. It is launching a new mobile app in the U.S. and Singapore and allowing UPI payments for the Digital Rupee. SBI is also letting people withdraw cash without a card. It is giving more loans to businesses and helping startups with special banking services. The bank is also working with Japan and raising money for eco-friendly projects. By opening more ATMs, helping people pay back loans, and supporting small businesses, SBI is making banking better for everyone. SBI has many ways to grow. It can use technology to make banking easy for people, open more branches in India and other countries, and help people who do not have bank accounts save money and learn about banking. SBI can also collaborate with other companies to generate new ideas. However, to keep people’s money safe, SBI needs strong security and rules. 

Analyst Insights: 

  • Market Value: ₹ 6,75,460 Cr. 
  • Current Price: ₹ 757 
  • Price-to-Earnings (P/E) Ratio: 8.55 
  • Dividend Yield: 1.82%
  • Return on Capital (ROCE): 6.16%  
  • Return on Equity (ROE): 17.3% 

State Bank of India (SBI) is the biggest public sector bank in India. In FY24, its net profit grew by 42.5% and reached ₹82,346 crore. In the last five years, SBI’s profit grew at a 99% average rate every year. This shows strong and steady growth. SBI’s bad loans have gone down. Gross NPA is now 2.13% and Net NPA is 0.52%. This means SBI is giving better loans and recovering well. SBI’s capital strength is good. Its capital adequacy ratio is 14.68%, which is above the required level. The return on equity (RoE) is 17.3%, showing the bank is using money well. Earnings per share (EPS) are ₹88.90, which means good earnings for each share. SBI is also strong in the market. It has a 22.55% share in deposits and 19.06% in loans, which is very high. 

SBI is also growing digitally. Now, 66% of savings accounts are opened online. This saves cost and helps reach more people. SBI’s stock is still not very expensive. The price-to-earnings ratio is 8.55 and price-to-book ratio is 1.41. These are low compared to private banks like HDFC Bank and ICICI Bank. This means SBI is undervalued, even with strong results. Because of good profit, strong loan quality, digital growth, and low stock price, SBI is a ‘Buy’ for long-term investors. 

Wipro Ltd
Wipro-Phoenix Group Partnership: $650 Million Deal to Drive ReAssure UK’s Digital Growth

Business and Industry Overview: 

Wipro Ltd. is a global information technology, consulting, and business process services (BPS) company. It is the 4th largest Indian player in the global IT services industry behind TCS, Infosys, and HCL Technologies. It is based in Bengaluru. It provides IT services, consulting, and business process solutions. The company operates in 167 countries and offers services in cloud computing, cybersecurity, digital transformation, artificial intelligence (AI), robotics, and data analytics. Wipro started in 1945 as Western India Vegetable Products Limited, a cooking oil company. In the 1980s, it expanded into technology and software services. By the 1990s, it had become one of India’s top IT service providers. During the dot-com boom, Wipro was India’s largest company by market value. In 2004, its annual revenue exceeded $1 billion. 

Over the years, Wipro expanded through many acquisitions. It bought Appirio in 2016, Capco in 2021, and Rizing in 2022. These helped Wipro grow in cloud services, consulting, and enterprise software. Wipro serves industries like finance, healthcare, manufacturing, retail, and telecom. It offers software development, business process management, consulting, engineering, and cloud services. The company focuses on innovation and digital transformation. Wipro is expanding globally while staying connected to its Indian roots.  

Latest Stock News: 

Wipro Limited’s stock went up and down in the last few days. On April 7, 2025, the share price fell by 1.38% and closed at ₹242.85. But it still did better than the BSE Sensex, which fell by 2.95% that day. On April 8, Wipro’s share price went up by 1.81% and closed at ₹247.25. It did better than the market again, as the Sensex went up by 1.49%. On April 9, Wipro’s share price fell a lot by 4.29% and closed at ₹236.65. This time, it did worse than the market, as the Sensex only fell by 0.51%. The whole IT sector is also facing problems. There are worries about a slowdown or recession in the US. The US is an important market for Indian IT companies. There is also worry about US tariffs and how they will affect the supply chain. Because of this, companies may not spend much on technology right now. They may wait before spending on extra or new tech projects. Many IT company shares are falling. Wipro, Mphasis, Coforge, and Tech Mahindra are down between 3% and 5%. Other big companies like TCS, Infosys, HCL Tech, LTIMindtree, and Persistent Systems are down 1% to 2%. On April 9 at 9:40 AM, the Nifty IT index and BSE IT index were down by 2.5%. These were the biggest losers among all sector indices. At the same time, the Nifty 50 and Sensex were down by only 0.65%. 

In the last 5 days, the BSE IT index fell nearly 10%. In the year 2025 so far, it has fallen 26%, while the Sensex fell only 5.6%. Wipro will announce its financial results for the quarter ending March 31, 2025, on April 16, 2025, after market hours. These results are important and may affect Wipro’s stock price. 

Potentials: 

Wipro is investing $200 million in its venture arm, Wipro Ventures. This money will help support early- to mid-stage startups. Since 2015, Wipro Ventures has raised money four times. With this new investment, its total funding reaches $500 million. The funds will go to startups that match Wipro’s business goals. Some money will also support startups Wipro has already invested in. Wipro Ventures invests in IT startups and helps them grow. It has made 37 investments in 10 years, with 12 successful exits. It has invested in companies in India, the US, and Israel, mainly in enterprise technology and cybersecurity. Each year, Wipro Ventures makes 3 to 5 investments, usually between $1 million and $10 million per startup. Some of these startups have helped Wipro improve its own operations. For example, Avaamo, a conversational AI company, improved Wipro’s employee experience. Wipro Ventures is also investing in AI (artificial intelligence), especially generative AI (GenAI). It focuses on middleware and small language models (SLMs). However, this AI investment is separate from Wipro’s larger $1 billion AI plan. Some startups Wipro has backed have done very well. One was acquired by Palo Alto Networks in 2019 and became part of its security platform. Another, Tricentis, has grown into a big company in test automation. Wipro has worked with Tricentis for many years and introduced its solutions to many clients. Wipro Ventures continues to support new startups and create partnerships in the IT industry. 

Analyst Insights: 

  • Market capitalisation: ₹ 2,47,823 Cr. 
  • Current Price: ₹ 237 
  • 52-Week High/Low: ₹ 325 / 208 
  • P/E Ratio: 20.0 
  • Dividend Yield: 2.54% 
  • Return on Capital Employed (ROCE): 16.9% 
  • Return on Equity (ROE): 14.3% 

Wipro Ltd’s net profit grew by 24% in Q3 FY24 compared to last year. This shows good cost control and better use of money. Its operating margin is stable at around 19-20%, which is a good sign. But its revenue growth is very slow. It grew by just 0.5% from last quarter and stayed almost the same compared to last year. This shows weak demand and fewer new deals. At the same time, Wipro’s peers like Infosys and HCL Tech did better. Infosys revenue grew by 4.9% and HCL Tech by 5.9% from last year. 

Wipro’s ROCE is 16.9% and ROE is 14.3%, which are lower than other companies. TCS has ROCE of 64.7% and ROE of 50.2%, Infosys has ROCE of 40.2% and ROE of 35.5%, and HCL Tech has ROCE of 33.2% and ROE of 26.3%. This means Wipro is not using its money as well as its peers. Also, its yearly revenue fell from ₹90,488 Cr in FY23 to ₹88,792 Cr in FY24. This is a sign of weak business performance. Wipro is giving returns to shareholders through dividends and buybacks, but the slow revenue, less growth, and weak numbers compared to other companies make it less strong for long-term investment. 

Phoenix Mills Ltd
Phoenix Mills Boosts Commercial Real Estate Portfolio with 1.90 Lakh Sq. Ft. Leased Space

Business and Industry Overview: 

The Phoenix Mills Ltd is a real estate company in India. It started in 1905. Mr. Ramnarayan Ruia started it. At first, it was a textile company in Mumbai. In 1959, Phoenix Mills was listed on the BSE. In 1986, two commercial buildings were opened. Their names were Phoenix House and Phoenix Center. These buildings had a total area of 3.5 lakh sq. ft. In 1987, the company started High Street Phoenix (HSP). It had shops, offices, houses, and fun places. It became the company’s main project. In 1996, Phoenix started the biggest bowling and gaming center in India. In 2001, it opened Big Bazaar at HSP. Big Bazaar was India’s first hypermarket. In 2002, Phoenix built its first residential towers on its land. In 2004, the company started Skyzone. It had many national and international brand stores. In 2005, Phoenix celebrated 100 years. In 2009, it launched East Court, a commercial building in Pune. In 2010, the company opened Palladium Mall in Mumbai. It was a luxury mall. In 2011, it opened three Phoenix Marketcities. These were in Pune, Bengaluru, and Kurla. In 2012, Phoenix opened many new places. It opened the Palladium Hotel in Mumbai, a 5-star hotel. It also opened Art Guild House and Phoenix Paragon Plaza. In Bengaluru, it built One Bangalore West, a 30-storey luxury tower. In 2013, the company opened Phoenix Marketcity in Chennai. In 2014, it started a new business in food and beverages. In 2015, Palladium Hotel became St. Regis Mumbai. The same year, Phoenix started Kessaku, luxury homes in Bengaluru. It also opened Courtyard by Marriott, a 5-star hotel in Agra. In 2024, the company started a new company called Sparkle Three Mall Developers. It will help to build more malls. As of April 2025, the stock price of Phoenix Mills is around ₹2,812. It is listed on NSE with the symbol PHOENIXLTD. Phoenix Mills has many malls in Mumbai, Bangalore, Pune, Chennai, Lucknow, Agra, and Bareilly. It builds malls, homes, hotels, and offices. One of its famous places is High Street Phoenix in Mumbai. 

Latest Stock News: 

As of April 10, 2025, the share price of The Phoenix Mills Ltd is ₹1,495.80. It fell by 4.87% from the last price of ₹1,572.35. On April 7, 2025, the stock went down by 3.23%. This was the third day in a row the stock went down. Still, it did better than many other companies in the same sector. On April 3, 2025, the Nifty Realty Index went up by 3%. Phoenix Mills was one of the companies that helped in this rise. This happened because people expect the RBI to cut interest rates. Also, property prices are going up. In Q2 of FY2025, Phoenix Mills reported a fall in profit. Its net profit was ₹218.1 crore. This is 13.7% less than last year. After this news, the share price dropped by over 7%. On March 27, 2025, the company said it was closing its trading window. On March 26, 2025, it shared details from meetings with investors and analysts. On April 9, 2025, the stock dropped by 2.31% and touched a low of ₹1,534.40. This happened after the company gave a business update. Phoenix Mills said that its mall consumption (sales by retailers) in the March quarter was ₹3,262 crore. This is 15% more than last year. The main sales came from Phoenix Palassio and new malls: Phoenix Mall of the Millennium, Phoenix Mall of Asia, and Phoenix Palladium Expansion. These malls opened in September 2023, October 2023, and November 2024. For the full year FY2025, mall consumption was ₹13,762 crore. This is 21% higher than last year. If we remove the new malls, the growth is 7% year-on-year. The company also leased out 1.90 lakh square feet of office space in Mumbai and Pune. The occupancy rate in these places was 66% in March 2025. The company also got Occupation Certificates (OC) for two new towers: Phoenix Asia Towers in Bangalore (0.80 million sq. ft.) and Tower 3 of Millennium Towers in Pune (0.52 million sq. ft.). The hotel business also did well. In the March quarter, The St. Regis, Mumbai had 92% occupancy. The average room rate (ARR) was ₹23,542, up 11% from last year. In Courtyard by Marriott, Agra, occupancy was 87%. ARR was ₹6,977, up 10% from last year. At 9:26 AM on April 9, the share price was ₹1,545, down 1.60%. It did worse than the BSE200 index, which was down 0.58%. 

Potentials: 

The Phoenix Mills Ltd has made strong plans for growth in the next few years. The company wants to increase its total mall area from 11 million square feet to 14 million square feet by the year 2027. This means they will build more malls in big cities. Two important new malls are Phoenix Mall of Asia in Bengaluru and Phoenix Grand Victoria in Kolkata. The company also wants to add more office space. They plan to build 5 million square feet of office space by 2027. This will help them grow in the commercial real estate market. In the residential segment, Phoenix Mills is growing too. They have bought new land in Alipore (Kolkata) and Bengaluru. These lands will be used to build houses. This will add about 1 million square feet of housing area. Phoenix Mills is also expanding its hotel business. A new five-star hotel called Grand Hyatt Bengaluru is being built. This hotel will have 488 rooms. It will be a part of the company’s luxury hospitality segment. In Thane, the company is working on a big project at Majiwada Junction. This project will cover 1.5 million square feet. It will have a large shopping mall, a hotel, office spaces, and maybe residential buildings too. The new mall is planned to open by 2028. To support all these big plans, Phoenix Mills will invest over ₹2,000 crore. This investment will be used in cities like Pune, Bengaluru, Surat, and Kolkata. The company will use its own money (called internal accruals) for this investment.  

Analyst Insights: 

  • Market capitalisation: ₹ 53,478 Cr. 
  • Current Price: ₹ 1,496 
  • 52-Week High/Low: ₹ 2,068 / 1,338 
  • P/E Ratio: 51.8 
  • Dividend Yield: 0.17% 
  • Return on Capital Employed (ROCE): 12.4% 
  • Return on Equity (ROE): 12.1% 

Phoenix Mills Ltd is showing strong growth. Its revenue increased from ₹1,460 crore in FY22 to ₹3,972 crore in FY24. Net profit also went up to ₹1,333 crore in FY24. The company is good at controlling costs. Its profit margins are high, above 50%. This means the company keeps a good part of its earnings. It has ₹9,422 crore in reserves and ₹6,166 crore in debt. This shows the company is financially strong. It can easily pay interest on loans. Its Return on Capital Employed (ROCE) is 12.4%, which is better than DLF (7.48%), Prestige (8.7%), and Brigade (5.4%). This means it uses its money better than others. Foreign investors trust this company. FIIs hold 35.66% of its shares. But the stock is expensive. Its P/E ratio is 51.8 times, and its price-to-book ratio is 5.35 times. This means the market price is high compared to earnings and book value. Also, the company takes 654 days to convert cash from operations. This is very long. It means a lot of money is stuck in the business. So, the company is strong. But the stock price is already high. Because of this, it is better to hold the stock now and wait. You can buy later if the price becomes better or the profit grows more. 

Muthoot Finance Ltd
Muthoot Finance Share Price Falls 9% After RBI’s Stricter Gold Loan Guidelines

Business and Industry Overview: 

Muthoot Finance Limited is India’s largest gold loan non-banking financial corporation. It offers services like financing gold loans, insurance, housing loans, SME loans, and money transfer services. It is a gold financing company that provides loans against gold jewelry as collateral. The company is headquartered in Kochi, Kerala, and has over 5000 branches throughout the country. Outside India, Muthoot Finance is established in the UK, the US, and the United Arab Emirates. The company falls under the brand umbrella of the Muthoot Group. Its stocks have been listed on the BSE and NSE since its initial public offering in 2011. The target market of Muthoot Finance includes small businesses, vendors, farmers, traders, SME business owners, and salaried individuals.  Non-Banking Financial Companies (NBFCs) have witnessed significant growth in India’s financial ecosystem, playing a crucial role in credit expansion and financial inclusion. Their market share in credit distribution increased from 12% in 2008 to 18% in 2019, before slightly declining to 16% in 2022 due to increased competition from banks. Muthoot Finance is a leader in the microfinance landscape in India.  

Latest Stock News: 

Muthoot Finance Ltd. has seen a lot of changes in its stock price recently. This happened because of new rules from the RBI and some company updates. On April 9, 2025, Muthoot’s share price fell by around 9%. It closed at ₹2,080. This fall came after the RBI said it would bring strict rules for gold loans. Gold loans are a big part of Muthoot’s business. 

RBI said that co-lending rules will now apply to all regulated companies. RBI will also bring full rules for gold loans and non-fund-based loans. RBI Governor said these rules will help bring similar rules for all lenders. But the rules will also respect how much risk each lender can take. The new rules will make the loan process stricter. Lenders must follow better steps to check gold, give loans, and see how the borrower uses the money. RBI said gold loans must follow a 75% loan-to-value rule. Lenders must also set a limit on how much loan they give to one person or one group. Lenders must not give a loan if the gold is already used for another loan or if the gold ownership is not clear. Also, they must follow the same steps in all branches to check the weight and purity of the gold. They must also keep documents to show how the borrower is using the money. Loans can only be renewed or topped up if the old loan is not stressed and is within the allowed value. After RBI’s speech, shares of banks like Federal Bank and CSB Bank went up. Federal Bank gives 15% of its loans through gold loans. CSB Bank gives more than 40% through gold loans. For IIFL Finance, gold loans are 21% of total loans. For Manappuram it is 50%, and for Muthoot Finance it is 98%. 

Even with the fall in share price, there was good news for Muthoot. On April 2, 2025, Moody’s changed Muthoot’s credit rating from ‘Ba2’ to ‘Ba1’. The outlook is stable. This shows the company is doing well financially. Also, Muthoot Finance will have a board meeting on April 21, 2025. In this meeting, they may announce an interim dividend for the year 2024-25. If they approve it, the record date will be April 25, 2025. This means shareholders on that date will get the dividend. The payment will be made within 30 days after the board approves it. 

Potentials: 

Muthoot Finance has many simple plans for the future. The company wants to grow its gold loan business. People are taking more gold loans now because gold prices are going up. In the second quarter of the year, Muthoot’s gold loan business grew by 28% compared to last year. So, the company changed its target. Earlier, it planned to grow by 15%, but now it wants to grow by 25%. Muthoot also wants to give other types of loans. It is adding microfinance, vehicle loans, and insurance. One of its companies, Muthoot Money Ltd., was giving vehicle loans. Now it will give gold loans only. This will help the group focus more on its main business. Muthoot is also using digital tools. Customers can apply for loans and pay money online. This will save time and make things easy. The company also wants to open more offices. It will open branches in places where banks are not easily available. Muthoot also wants to grow outside India. It wants to help Indian people who live in other countries. To do all this, Muthoot is raising money. In May 2024, it planned to sell bonds in US dollars. These bonds will end in around four years. The money will be used to give more loans and for other business needs. All these steps show that Muthoot wants to grow, give more services, and easily help more people. 

Analyst Insights: 

  • Market capitalisation: ₹ 85,911 Cr. 
  • Current Price: ₹ 2,140 
  • 52-Week High/Low: ₹ 2,445 / 1,510 
  • P/E Ratio: 18.1 
  • Dividend Yield: 1.12% 
  • Return on Capital Employed (ROCE): 13.2% 
  • Return on Equity (ROE): 17.9% 

Muthoot Finance did well in the October to December 2023 quarter, with 17.9%. Its income went up by 22% compared to last year. Profit also increased by 17%. More people took gold loans. The company kept its loan interest rates steady. So, it earned well. The company made a profit margin of 31%. This means it keeps a good part of its earnings after expenses. It also uses its money well. Its ROE is 18.6% and ROCE is 18.2%. These are good numbers for a finance company. In the last full year (FY23), Muthoot had negative cash flow from its main work. This is normal for NBFCs. It means the company gave more loans to people. This is not a big problem. Muthoot is a trusted gold loan company. It has more than 4,600 branches in India. People know and trust the brand. It also has high credit ratings (AA+ and A1+). So, it can borrow money at low cost. When we compare with Manappuram Finance, Muthoot is better. It earns more and is more stable. So, its stock price is higher too. There are some risks. If gold prices fall or new rules come, profit can be affected. But the company is strong. It grows steadily and makes a good profit. So, this stock looks good to buy and hold for long term. Or, you can buy when the price drops.