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Informist, Monday, Sept. 15, 2025                                      Tel +91 (22) 6985-4000

Equity Alert: Tata Tech up 3%; co inks pact to acquire ES-Tec group via arm

MUMBAI--1400 IST--Shares of Tata Technologies rose nearly 3% intraday to their highest level in over a month at INR 720.75 after the company announced that through its wholly-owned subsidiary Tata Technologies Pte. it will acquire complete stake in Germany-based ES-Tec group from MW Beteiligungs GmbH for 75 million euros or INR 7.76 billion.

The deal, announced over the weekend, is expected to be completed by Dec. 31, 2026. At 1358 IST, shares of the company pared some of its early gains and traded around 1% higher at INR 708.55 on the National Stock Exchange. 

The deal consideration will be paid over the next two years and includes performance-based earnouts, Tata Technologies said in an exchange filing Saturday. The acquisition is expected to enhance Tata Technologies' engineering, research and development capabilities and broaden its end-to-end value proposition for global automotive customers, the company said.

The deal is likely to strengthen Tata Technologies' presence in Europe's advanced automotive market, a strong local talent pool and deep expertise in systems engineering. The transaction is also expected to be earnings per share accretive from the first full year of operations, the company said. 

ES-Tec will contribute around 8% to Tata Technologies' top line going forward, ICICI Securities said in a report Monday. The deal aligns with the original equipment manufacturer's research and development priorities and enhances cross-sell opportunities across marquee global automotive clients, the brokerage said, citing the company's management. 

Of the five research reports on the company available with Informist, three have a "sell" or equivalent rating on the stock with target price in the range of INR 510–INR 671. Of the remaining two, Nirmal Bang Equities has a hold rating on the stock with a target price of INR 797 and JM Financial Institutional Securities has a 'buy' rating with a target price of INR 780. Till 1358 IST, 1.7 million shares of the company changed hands on the NSE, over three times the 543,436 shares traded till the same time Friday.  (Arya S. Biju)

Equity Alert: Margin rise capped for FMCG cos despite higher volumes - Emkay

MUMBAI--1327 IST--Fast-moving consumer goods companies sales volume may rise going forward as companies pass on the benefits of lower goods and services tax to consumers, Emkay Global Financial Services said in a report Sunday. However, the brokerage expects companies to pass on a large part of lower GST through increasing packet sizes, which may limit a rise in margins as larger packet sizes would mean higher raw material costs.

Brokerages sees two methods through which companies can pass on GST reduction benefits to consumers: increase product packet size or cut retail prices. The brokerage expect companies to use the first strategy for low unit packs, while they were unsure about companies' strategy for large pack size products.

Low unit packs contribute significantly to the top line of major FMCG companies. While regulation may dictate a full reflection of lower GST on product prices, the company may look to pass on the benefits partially and increase spending on promotions. Higher spending on promotions now may help manage their margins later when they may chose to increase prices.

For large pack size products, companies may not see major impact on earnings if they opt to reduce prices instead of raising grammage, the brokerage said. "When the GST benefit passthrough is via volume increase, sales growth accelerates, per our earlier finding," the brokerage said.

"Volume increases enable companies to maintain MRP (maximum retail price), thereby avoiding the requirement of disclosing the MRP change," the brokerage said. Emkay is largely convinced that increasing pack sizes was the logical approach to drive growth.

Emkay said FMCG sector valuations were at 55 times one-year forward price-to-earnings. The brokerage's top picks include Godrej Consumer Products, Marico, Bikaji Foods International, Gopal Snacks, and Emami.  (Eshitva Prakash)

Equity Alert: Vodafone Idea up 7% as SC fixes date to hear plea on AGR dues

MUMBAI--1238 IST--Shares of Vodafone Idea rose 7% to a near five-month high of INR 8.20 on news that the Supreme Court will Friday hear the company's plea for relief on adjusted gross revenue dues, as reported by CNBC-TV18. At 1232 IST, the stock traded 6.3% higher at INR 8.14 and was the top gainer in the Nifty 200 index. The stock is up for the fourth straight session and has ended higher in seven of the last eight sessions, gaining 18% in that period.

The company last week reportedly filed a petition against the telecom department's additional demand for adjusted gross revenue dues for the period till 2016-17 (Apr-Mar), stating that the dues claimed were above and beyond the adjusted gross revenue dues as finalised by the Supreme Court in 2020.

"The claims now being made by the DoT (Department of Telecommunications), which are in excess of Rs. 5,960 crores (INR 59.60 billion), are clearly indicative of the fact that even as per the DoT, certain demands were missed out or are being revised on account of departmental assessments," the company said in the petition.

At 1232 IST, 1.06 billion shares of the company were traded on the NSE, sharply higher than the 543 million shares traded till the same time Friday.  (Akash Mandal)

Equity Alert: Dr Reddy's falls to 2-week low on 5 observations from US FDA

MUMBAI--1215 IST--Dr. Reddy's Laboratories fell 1.8% to INR 1,292.50, a level last seen two weeks ago. The stock fell after the US Food and Drug Administration issued five observations to the company's biologics manufacturing unit at Hyderabad. At 1215 IST, the stock was down 1.3% at INR 1,300.

The US drug regulator had inspected the biologics facility between Sept. 4 and Friday, as part of pre-approval inspection, the company said Saturday. In its annual report for 2024-25 (Apr-Mar), the company had said that the US drug regulator had inspected the same biologics unit and had then made nine observations.

The stock had risen 3% in the last seven days and over 17% in the last six months. The current stock price is 9% lower from the record-high hit on August 2024.

Of the 23 research reports of brokerages on the company available with Informist, 12 brokerages have a "buy" or equivalent rating on the stock, seven have a "hold" rating, and four have a "sell" rating. The average target price of brokerages with 'buy' rating is INR 1,445, which indicates an upside of 12% from the current spot price. Around 616,000 shares of the company were traded on the NSE, higher than 531,490 shares traded till the same time Monday.  (Gopika Balasubramanium)

Equity Alert: L&T rises after co gets 'large' order for bullet train project

MUMBAI--1116 IST--Shares of Larsen & Toubro moved 0.4% higher after the company bagged a 'large' order for a bullet train project from National High Speed Rail Corp. Before the order, the stock traded 0.1% higher and after the company disclosed an exchange filing, it rose nearly 0.4% from its previous close. 

The company classifies large orders as those worth between INR 25 billion and INR 50 billion. It will build 156-route kilometres of high-speed ballastless track for the Mumbai-Ahmedabad high speed rail corridor and over 21 km of track-related works in underground sections and 135 km on elevated viaduct sections, it said in an exchange filing. The company will use Japanese Shinkansen J-Slab Track Technology, which will enable speed of up to 320 kmph.

The stock is up for the second day and has risen nearly 2% over this period. At 1114 IST, shares of the company traded at INR 3,599.30, up 0.5%. The stock was among the top gainers in the Nifty 50, with only 19 stocks trading in the green. So far Monday, 434,918 shares of the company have changed hands on the NSE, slightly lower than 515,175 shares traded during the same period on Friday.

Of the 16 brokerage reports on the stock available with Informist, 15 have a 'buy' or equivalent rating and only YES Securities (India) has a 'neutral' rating with a target price of INR 3,444. The 'buy' recommendations have an average target price of INR 4,194 on the stock.  (Simran Rede)

Equity Alert: KRBL falls; independent director quits on governance issues

MUMBAI--1049 IST--Shares of KRBL fell as much as 13% to an over one-month low of INR 387.10. The fall in the stock followed the resignation of the company's independent director. Anil Kumar Chaudhary resigned from his position effective immediately citing governance issues.

The stock is down for the second session and had fallen just 0.7% on Friday after rising 1.6% Thursday. At 1046 IST, shares of the company traded at INR 400.80, down 9.8%. So far Monday, 5.47 million shares of the company have changed hands on the NSE, sharply higher than 104,399 shares traded during the same period on Friday. 

In his resignation letter, Chaudhary said there are inconsistencies in the recording of minutes of the board and committee meetings, instances of information being withheld that impacts informed decision-making, and concern regarding corporate social responsibility funds. 

He also said there were unjust write-offs of certain export receivables without adequate deliberation, arbitrary distribution of variable pay and annual increments to persons holding office or place of profit, significant changes to the object clause undertaken without comprehensive discussion, and undue interference by the invitees in the proceedings of the board and committee meetings, he said.  (Simran Rede)

Equity Alert: Indices fall slightly after opening flat; Pharma, IT drag

MUMBAI--1020 IST--Benchmark equity indices fell slightly after opening flat Monday, dragged down by decline in pharmaceutical and information technology stocks. All eyes will be on the US Federal Reserve's two-day policy meeting starting Tuesday and its outcome. Investors were likely nervous ahead of the US' policy meeting. This nervousness was reflected in the India VIX, which rose 3.6% to 10.4825 as of 0936 IST.

The Nifty 50 was at 25087.60 points, down 26.40 points or 0.4%. Gains in index heavyweight ICICI Bank were offset by a decline in HDFC Bank. The Nifty 50 had rallied for eight sessions in a row and analysts said it will largely have a slow start to the week. The BSE Sensex was at 81849.12 points, down 55.58 points or 0.1%. However, broader market indices bucked the trend and were up in early trade, with smallcap indices faring better than its midcap peers. The Nifty Smallcap 100 rose 0.6%.

Among sectoral indices, Nifty IT, Nifty Pharma, and Nifty Healthcare were in the red. The Nifty IT fell 0.7%. Barring Mphasis, all the other constituents traded in the negative zone, with Infosys falling over 1%. Others, such as Wipro, Tech Mahindra, and Tata Consultancy Services fell 0.4-0.6%. 

Likewise, Nifty Pharma index was down 0.8%. Dr. Reddy's Laboratories, Sun Pharmaceutical Industries, and Cipla were down 0.8-1.6%. Glenmark Pharmaceutical fell over 1% and was the worst-hit Nifty 200 index. Healthcare stocks such as Apollo Hospitals Enterprise and Max Healthcare Institute declined 0.7% each. 

Among individual stocks, RailTel Corp. rose over 8% after it got orders worth INR 2.10 billion from the Bihar government. The company is expected to execute the order by Sept. 11, 2026. KRBL fell over 11% after its independent director quit citing governance issues.  (Gopika Balasubramanium)

Equity Alert: Railtel up 9% on INR-2.1-bln order from Bihar education body

MUMBAI--1018 IST--Shares of Railtel Corp. of India rose nearly 9% to an intraday high of INR 407.70 after the company won an order from Bihar Education Project Council. At 1014 IST, the stock traded 7.6% higher at INR 403.05 and was among the top gainers in the Nifty 500.

The company bagged an order worth INR 2.10 billion from the Bihar government body under the Pradhan Mantri Schools for Rising India scheme. It will execute the order by Sept. 11, 2026. As per the terms of the order, the company will implement enhanced education quality in Bihar. Notably, the order size is over a quarter of the company's June quarter top line of INR 7.44 billion.

At 1013 IST, 11.07 million shares of the company were traded on the NSE, sharply higher than the 2.81 million shares traded till the same time Friday.  (Akash Mandal)

Equity Alert: Jefferies bullish on alcoholic beverage cos, starts with "buy"

MUMBAI--0905 IST--Global brokerage Jefferies has initiated coverage on alcoholic beverage makers such as United Spirits, Radico Khaitan, and Allied Blenders and Distillers with a 'buy' rating and sees a double-digit compounded annual growth rate in top line across companies, NDTV Profit reported on microblogging plactform X. The brokerage also sees a meaningful room to expand margins, it said. Spirits companies offer a premiumisation-led strong growth potential.

The domestic spirits market is very large and has high entry barriers due to complex state-level regulations, which act as a strong competitive moat for existing players, CNBC-TV18 reported quoting Jefferies as saying. While the overall growth of the sector is seen as modest, typically somewhere between the mid-to-high single-digit range, the prestige and above segment, which is the target of most listed companies, is expanding in double digits, the report said. Scotch whisky and white spirits in particular are growing faster, with a compounded annual growth rate of 15–20%, Jefferies was quoted as saying by CNBC-TV18.

Jefferies pointed out that the regulatory environment has improved across several states, with instances of lower taxation on premium products and even privatisation of retail trade, the report said. The brokerages listed adverse regulatory changes in key states, a potential weakening of consumer demand, and inflation in major input costs such as extra neutral alcohol and glass, as key risks to this industry, as per the report. 

Jefferies started coverage on United Spirits with a price target of INR 1,570, which implies an upside potential of around 20% from Friday's close. The company has a favourable risk-reward balance after a correction of more than 20% in its stock price, CNBC-TV18 reported quoting Jefferies as saying. While the company faces near-term challenges due to the recent liquor tax hike in Maharashtra, the brokerage estimates earnings per share growth of around 13% at a compounded annual rate during 2024-25 (Apr-Mar) and FY28, the report said. For Radico Khaitan and Allied Blenders and Distillers, the brokerage has a price target of INR 3,590 and INR 620, respectively. These target prices suggest potential upsides of 25% for Radico and nearly 14% for Allied Blenders from their respective closing prices on Friday.  (Gopika Balasubramanium)

Equity Alert: Asian mkts mostly up; traders await Fed decision on rate cut

MUMBAI--0830 IST--Asian benchmark indices were mostly up Monday, on hopes of a rate cut by the US Federal Reserve. Fed funds futures traders see 100% probability of an interest rate cut Wednesday, as shown by the CME Fedwatch tool.

The CSI 300 index was up 0.6%. US and Chinese officials began talks in Madrid on Sunday about trade and security related affairs. According to media reports, the two countries will discuss US tariff measures, upcoming deadline to divest in Chinese application Tik Tok, and other issues.

China's industrial output grew 5.2% on year in August, lower than a forecast of 5.7% by Reuters. Industrial output had risen 5.7% in July. Retail sales growth was also lower than expected. The key consumption indicator grew 3.4% in August, lower than the growth of 3.7% a month ago, and lower than a Reuters forecast of 3.9%. According to the National Bureau of Statistics, China's new home prices fell 0.3% on August, in line with market expectations and implying weak demand. Annually, new home prices declined 2.5% in August, Reuters reported.

The export-focused country also witnessed a 4.4% on year growth in exports as it slowed to a six-month low in August. Reuters had expected a 5% growth in outbound shipments for August. Hong Kong's Hang Seng index was up 0.2%.

Elsewhere in Asian markets, the Kospi rose 0.3% while the Japanese markets were closed due to a state holiday. The Australian S&P ASX 200 index was down 0.3% and the Taiwanese Taiex index fell 0.6%.

Following were the levels of key Asian indices at 0802 IST:

(Eshitva Prakash)

Equity Alert: Indices may start week slow; rise more later

MUMBAI--0827 IST--Domestic benchmark indices are likely to open on a muted note but the positive momentum may continue this week. There may be some volatility ahead of the US Federal Reserve's policy decision Wednesday. Likely progress in the country's trade talks with the US and a potential trade deal with the European Union will aid sentiment, analysts said. 

"Strong buying interest (in the Nifty 50) is evident at support around 25000-25100 and improving volumes reinforce a bullish bias as long as the index holds above these key levels," Reliance Research said in a note. "The RSI (relative strength index) is trending around 61, indicating positive momentum without approaching overbought territory, supporting further upside," the broking firm said.

The September contract of the GIFT Nifty also suggests a flat to slightly positive start for the market. At 0814 IST, the contract was at 25172 points, 13.50 points higher than the Nifty 50's close Friday. The 50-stock index had closed at 25114 points, up 108.50 points or 0.4%. Both the benchmark indices extended gains for the eighth session in a row, which is the longest rally since August last year.

On Friday, US indices ended mixed as investors are cautious ahead of the US Federal Reserve's policy meeting later this week. The Nasdaq Composite index had closed at a record high powered by the likes of Tesla and Microsoft. Most Asian indices were higher Monday, with South Korea's Kospi extending gains for the tenth straight session. The Japanese market was also in the green for the third straight session. Taiwan's TAIEX was in the red after gaining for eight straight sessions.  (Akash Mandal)

Equity Alert: Emkay bullish on metal cos as prices recover from tariff-shock

MUMBAI--0816 IST--Emkay Global Financial Services retained its positive view on the metal sector companies, with aluminium prices climbing back to $2,700 a tonne in recent weeks, from the low of $2,275 per tonne it hit in April due to tariff-related shocks. Current aluminium prices are also in tandem with the brokerage's six-month target.

The recent rise in aluminium prices is on the back of global cyclical recovery with the expected rate cut by the US Federal Reserve this month, Emkay said. Globally, primary aluminium's supply and demand balance remains tight with capacity utilisation at 98%, the brokerage said. Meanwhile, zinc prices have steadied at higher levels of $2,800-$2,900 per tonne even as demand and supply are in surplus, and silver is also gaining momentum, it said.

The brokerage also said it sees Vedanta benefitting the most from the current scenario of rising aluminium, zinc, and silver prices, alongside falling alumina prices. The company derives about 80% of earnings before interest, tax, depreciation, and amortisation from aluminium, zinc, and silver. In addition, spread expansion from rising aluminium and falling alumina prices plays in favour due to Vedanta's net-short alumina exposure. The brokerage has a 'buy' rating on the stock with a target price of INR 525, which has an upside of 16%. 

Hindalco Industries, on which Emkay has a 'reduce' rating, also derives about half of its EBITDA from the aluminium business, benefitting from the ongoing trend. National Aluminium Co. sees 60% EBITDA from aluminium and 40% from alumina, Emkay said. The brokerage has a 'buy' rating on the stock with a target price of INR 210. Hindustan Zinc, which is not rated by Emkay, is also a key beneficiary of rising zinc and silver prices.  (Gopika Balasubramanium)

Equity Alert: US indices mixed Fri; traders await Fed meet outcome

MUMBAI--0742 IST--Indices in the US were mixed Friday. The S&P 500 and the Dow Jones Industrial Average ended lower while the technology-heavy Nasdaq Composite closed at a record high. All three indices had hit record closing highs in the previous week as market participants expect the US Federal Reserve to cut interest rates in its meeting on Wednesday.

The Nasdaq Composite rose for the fifth consecutive session, up 0.4%. The index had gained more than 2% in the previous week. Shares of Tesla and other technology companies pushed the index higher. Tesla was up 7% after its board Chair Robyn Denholm dismissed concerns that Chief Executive Officer Elon Musk's political activity had hurt sales, Reuters reported.

Shares of Warner Bros Discovery rose 17%, extending gains from Wednesday when media reports suggested Paramount Skydance was preparing to bid for the company. Shares of technology-giant Microsoft rose 2% after the company avoided paying a potentially large anti-trust fine in European Union.

The Dow Jones fell 0.6% after hitting a closing high Thursday. Shares of paint-maker Sherwin-Williams Co. were down 2% and Goldman Sachs fell nearly 1%.

The S&P 500 fell marginally, snapping a four-day winning streak. The index had hit a record intraday high Friday before retreating to close at lower levels.

Shares of vaccine makers were down after a media report said that US health officials were planning to link coronavirus vaccines to the deaths of 25 children, according to Reuters. Shares of Modern, Pfizer, Novax fell 3-7%.

Traders await the US Federal Reserve's policy on interest rate cuts as several analysts believe a September rate cut will mark the start of a new easing cycle, according to media reports. The CME Fedwatch tool shows a 96% probability of a 25-basis points rate cut, up from an 89% possibility a week ago.

Following were the closing level of US indices Friday:

(Eshitva Prakash)

US$1 = 88.17

End 

Edited by Subhojit Sarkar

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

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