The market was in a downtrend for the last 6 months largely because of continuous selling by Foreign Institutional Investors (FIIs). Key reasons for FII selling were the strengthening of the US dollar, concerns over a slowdown in corporate earnings growth, global economic uncertainties, high valuations of emerging markets, and trump tariff risks.
Factors that helped the Market rebound
The government is constantly working to regain India’s growth momentum. With tax cut announcements, that can help boost the GDP and help with overall economic growth. RBI also cut the Cash Reserve Ratio (CRR) & Repo rate, with further rate cut expectations to boost consumer spending. Additionally, Brent Crude prices are trading in a broad range with reduced volatility, which is highly beneficial for India as the import cost is kept in check, which in turn reduces the trade deficit.
In terms of valuations Nifty 50 PE had dropped below 20, only for the 2nd time in 5 years. It had dropped to 18.92 during the Russia-Ukraine war and had dropped to 17.15 on March 23, 2020. It showed that Nifty was highly Undervalued which led to valuation correction.
Nifty 50 Falling Trendline Breakout
A falling trendline or downtrend line is a straight line drawn across declining highs on the price chart. The line represents as a resistance level, which indicates that sellers are in control of the downtrend. When a trendline is broken, it signals a potential trend reversal or just a temporary breakout.
On a weekly time frame, the Nifty 50 has given a closing basis break out of a falling trendline. Since September the falling trendline was never broken on a closing basis.
THE MAJORITY OF NIFTY 50 STOCKS ARE STILL IN THE DEATH CROSS
The Death Cross is a bearish technical pattern that occurs when the 50-day moving average (DMA) crosses below the 200-day moving average (DMA). This crossover indicates a potential shift from an uptrend to a downtrend, signaling weakness in the stock or broader market. It is the opposite of the Golden Cross.
Out of the 50 Constituents of Nifty 50, 33 stocks, or 66 percent of the total constituents are still trading in the Death Cross, this shows that the medium-term trend is still bearish.
The country’s largest real estate firm came into focus on Monday after the company announced plans to invest around Rs 40,000 crores in the housing sector.
Stock Performance
With a market capitalization of Rs 1.7 lakh crore, the shares of DLF Ltd opened nearly 3 percent higher at Rs 715 per share compared to the previous closing price of Rs 696.75. The stock retraced and was trading at Rs 706.20, marking a 1 percent increase from the previous close.
What Happened
According to news agency PTI, DLF Group met with analysts in Gurugram last week to provide an update on its current business status and medium-term plans.
DLF, India’s largest real estate company has noted a Rs 40,000 crore investment over the next 4-5 years to develop housing and commercial projects.
About Rs 20,000 crore will be used to complete ongoing housing projects, mostly in Gurugram. Another Rs 20,000 crore will go towards developing commercial office and retail spaces in Delhi-NCR, Goa, and South India in the medium term.
Housing Business
DLF has launched various luxury projects, including The Dahlias, which has a revenue potential of Rs 35,000 crore. The company has already achieved Rs 19,187 crore in bookings in the first nine months of FY25, exceeding its annual sales target of Rs 17,000 .
Rental Business
Under the rental segment, most assets are managed by DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and GIC. The company plans to expand its rent-generating commercial properties from 44 msf to 73 msf. Further, DLF’s rental properties have a 93 percent occupancy rate.
Company Overview
DLF Ltd is a leading real estate development firm in the nation. It owns several subsidiaries, associates, and joint ventures. Its operations range from land acquisition to planning, executing, constructing, and marketing projects. Moreover, the company deals with leasing, power generation, maintenance services, hospitality, and recreational services, all of which support its real estate business.
Financials
When looking at the latest financial performance, the company reported a muted increase in revenue from Rs 1,521 crore in Q3 FY24 to Rs 1,529 crore in Q3 FY25. This was accompanied by a massive 61 percent increase in net profits from Rs 656 crore to Rs 1,059 crore during the same period
This small-cap stock engaged in manufacturing advanced CNC machines, with a strong focus on innovation, including 5-axis machines and AI-driven solutions for global markets, in focus after plans to expand its capacity by 3,000-4,000 machines by FY26
Stock Price Movement:
With a market capitalization of Rs. 22,967.46 crore, the shares of Jyoti CNC Automation Limited were currently trading at Rs. 1009.90 per equity share, rising nearly around 0.87 percent from its previous day’s close price of Rs. 1001.20.
Company Overview:
Jyoti CNC Automation was established in 1989 and operates with manufacturing facilities in Rajkot, India, and Strasbourg, France. The company offers a wide range of over 200 product variants and has installed more than 130,000 machines globally. It is a leader in the CNC automation industry, providing advanced solutions worldwide.
Management Guidance:
For FY25, Jyoti CNC Automation expects a strong topline growth of 40-50 percent. They aim to maintain profit margins between 25-27 percent. The company anticipates that EMS will contribute 20-25 percent of sales in FY26. The company expects an order inflow of Rs. 1,600-1,700 crore in FY25.
Jyoti CNC plans to expand its capacity by 3,000-4,000 machines by Q3 FY26, focusing on the aerospace, defense, and EMS sectors. The company’s order book as of December 2024 stands at Rs. 4,360 crore, with an expected execution time of 2.5 years.
The company invested 6.36 percent of its revenue in research and development (R&D), driving innovations such as 5-axis machines and AI-powered solutions. The company is focusing on expanding its exports to markets in the USA, China, and Southeast Asia/Africa, with the goal of capturing a 5 percent market share in these regions.
Segment Revenue Breakdown (Q3 FY25):
In Q3 of FY25, the company’s revenue was mainly driven by the Aerospace segment, which contributed 49 percent. The Auto and Auto Components segment followed with 16 percent, while General Engineering brought in 21 percent. EMS accounted for 10 percent, and other segments contributed 4 percent to the overall revenue.
New Product Launches:
In January 2025, the company launched 7 new models, showcasing its commitment to innovation. These include the GU8, a 5-axis Gantry type machining center, the AWT for alloy wheel turning, and the BTM with twin spindles and gantry automation.
Additionally, the ATM 200 caters to the EV segment, while the HP 4000 and 6000 are high-performance horizontal machining centers. The TachyonBeta, the fastest 5-axis machining center, also made its debut.
Capacity Expansion:
As of December 2024, the company currently has an installed capacity of 6,000 machines per year in India and 120 machines per year in France. Looking ahead, the company plans to expand its capacity by an additional 10,000 machines over the next two years.
Order Book:
In Q3 FY25, the company received an order inflow of Rs. 492.8 crores. This includes Aerospace (34 percent), Auto and Auto Components (25 percent), General Engineering (36 percent), Die and Mould (1 percent), and Others (4 percent). As of December 31, 2024, the total consolidated order book stood at Rs. 4,359.7 crores.
Recent quarter results:
Jyoti CNC Automation Limited’s revenue has increased from Rs. 378V crore in Q3 FY24 to Rs. 450 crore in Q3 FY25, which has grown by 19.05 percent. The net profit has also grown by 66.67 percent from Rs. 48 crore in Q3 FY24 to Rs. 80 crore in Q3 FY25.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on AG Investment are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. AG Investment or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Monopoly stocks refer to shares of companies that dominate their industry or market, with little to no competition. These companies often have a strong market presence, pricing power, and the ability to generate consistent profits.
Higher return ratios are financial metrics that measure a company’s ability to generate profits relative to its equity, assets, or investments. Key ratios include Return on Equity (ROE), Return on Assets (ROA), and Profit Margins. Higher values of these ratios indicate better profitability, efficient use of resources, and strong financial performance, making such companies attractive to investors.
It indicates that the investment is providing higher profits compared to the amount of risk or capital invested. A higher return ratio is often seen as a positive sign for investors, as it suggests more efficient and profitable investments.
Coal India Ltd
Coal India is the largest coal producer in the world, accounting for over 80 percent of India’s coal production. It holds a monopoly in the coal mining industry in India, providing fuel to power plants and industries across the country.
The stock has a strong ROE of 38 percent and a robust ROCE of 41.6 percent. Additionally, the company’s ROA stands at 13.7 percent, reflecting efficient asset utilization.
Indian Railway Catering & Tourism Corporation Ltd
IRCTC is the exclusive provider of online railway ticketing and catering services for Indian Railways. It has a monopoly in online train ticketing and catering services for the Indian Railway network.
The stock has a strong ROE of 40.4 percent and a robust ROCE of 53.8 percent. Additionally, the company’s ROA stands at 20.6 percent, reflecting efficient asset utilization.
CDSL (Central Depository Services Limited)
CDSL is one of the two depositories in India, offering dematerialization services for securities. It has a significant market share in the Indian securities market, and though it faces competition from NSDL, it holds a dominant position in the sector.
The stock has a strong ROE of 31.3 percent and a robust ROCE of 40.3 percent. Additionally, the company’s ROA stands at 25.9 percent, reflecting efficient asset utilization.
HAL (Hindustan Aeronautics Limited)
HAL is a state-owned aerospace and defense company in India, primarily involved in the design and manufacture of aircraft, helicopters, and defense systems. It has a monopoly in the Indian defense aviation sector, being the main supplier for the Indian Armed Forces.
The stock has a strong ROE of 28.9 percent and a robust ROCE of 38.9 percent. Additionally, the company’s ROA stands at 10.1 percent, reflecting efficient asset utilization.
CAMS (Computer Age Management Services) Ltd
CAMS is a leading provider of registrar and transfer agent (RTA) services to mutual funds in India. It holds a dominant position in the mutual fund industry, with a significant market share in RTA services.
The stock has a strong ROE of 40.5 percent and a robust ROCE of 49.8 percent. Additionally, the company’s ROA stands at 28.2 percent, reflecting efficient asset utilization.
IEX (Indian Energy Exchange) Ltd
IEX is the leading power exchange in India, where electricity is traded in the spot market. It has a monopoly in the electricity trading market, offering platform-based electricity trading services to utilities, businesses, and traders.
The stock has a strong ROE of 37.7 percent and a robust ROCE of 50 percent. Additionally, the company’s ROA stands at 20.5 percent, reflecting efficient asset utilization.
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on AG Investemnt are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. AG Investemt or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The Price-to-Earnings Growth (PEG) ratio is a financial metric that combines a company’s price-to-earnings (P/E) ratio with its earnings growth rate. It is calculated by dividing the P/E ratio by the company’s expected earnings growth rate.
A PEG ratio of 1 is generally considered to indicate that a stock is fairly valued, as the price aligns with the company’s growth rate. A ratio below 1 suggests that the stock may be undervalued relative to its growth potential, while a ratio above 1 could indicate overvaluation.
GPT Infraprojects Ltd
GPT Infraprojects is a leading infrastructure development company in India, primarily engaged in the construction of railways, bridges, and highways. The company has a strong presence in the infrastructure sector, with a focus on quality and timely execution of projects.
The PEG ratio of the stock stands at 0.59, the current market price is Rs. 93.09, which is significantly lower than its 52-week high of Rs. 207. This reflects a decline of 55 percent from its peak.
Party Cruisers Ltd
Party Cruisers Ltd is an event management and hospitality company that specializes in wedding curation and execution, focused on end to end management by working with eminent service providers. It also provides venues for corporate and social events, aiming to offer unique and luxurious experiences to its customers.
The PEG ratio of the stock stands at 0.52, the current market price is Rs. 95.2, which is significantly lower than its 52-week high of Rs. 140. This reflects a decline of 32 percent from its peak.
Jammu and Kashmir Bank Ltd
Jammu and Kashmir Bank Ltd is a major commercial bank in India, headquartered in Srinagar, with a wide network of branches. It offers a range of banking services, including retail, corporate, and investment banking, serving customers across the country.
The PEG ratio of the stock stands at 0.15, the current market price is Rs. 92.2, which is significantly lower than its 52-week high of Rs. 147. This reflects a decline of 38 percent from its peak.
Jai Corp Ltd
Jai Corp Ltd is a diversified company with interests in sectors such as plastics, real estate, and infrastructure development. The company focuses on manufacturing products like plastic films and textiles, alongside real estate development ventures.
The PEG ratio of the stock stands at 0.48, the current market price is Rs. 91.5, which is significantly lower than its 52-week high of Rs. 438. This reflects a decline of 79 percent from its peak.
Sunil Industries Ltd
Sunil Industries Ltd is a manufacturing company known for its production of various industrial products, particularly in the field of textile and fabrics. It serves both domestic and international markets, offering high-quality products to meet industrial needs.
The PEG ratio of the stock stands at 0.81, the current market price is Rs. 90.4, which is significantly lower than its 52-week high of Rs. 119.25. This reflects a decline of 24 percent from its peak.
