The Compass

Castrol India: Well oiled to grow, but valuations may limit sharp upside

The BP-Stonepeak transaction has brought Castrol India into focus, but while margins, cash flows and brand strength remain robust, expensive valuations may restrain near-term gains

Lack of triggers, weak demand may keep power stocks under pressure

Weak power demand and surplus capacity cloud near-term prospects, but energy transition, nuclear reforms and grid upgrades offer long-term opportunities across India's power sector

Muted Q3 likely, but volume gains and mix support Jindal Steel outlook

Indian steelmakers may see weaker Q3FY26 margins, but Jindal Steel's capacity expansion, rising volumes and higher share of value-added products could aid recovery

Growth potential and earnings factored into GE Vernova's valuations

A large HVDC order win, rising transmission capex and renewable energy push strengthen GE Vernova T&D's earnings outlook, but high valuations already price in much of the upside

Earnings upgrade ahead for Shriram Finance as MUFG deal boosts capital base

MUFG Bank's Rs 39,620 crore preferential investment could lift Shriram Finance's capital ratios, support faster AUM growth and a rating upgrade, though RoE may dilute near term

Higher prices, demerger to boost margins, unlock value for Vedanta

Vedanta's stock rally is driven by a strong metal cycle, silver-led upside at Hindustan Zinc, aggressive capacity expansion and progress on its multi-entity demerger

Eternal well placed as price war unlikely in quick commerce sector

Eternal remains the leader and Blinkit has the best financials and the best unit economics

Mundra resolution, renewables portfolio are key drivers for Tata Power

Tata Power's FY30 ambitions hinge on scaling renewables, transmission and distribution, while a long-term Mundra thermal resolution could revive profitability and lift sentiment

Loan growth, lower cost targets positive for M&M Financial Services

M&MFS has a deep rural presence across 500,000 villages and a 12 million customer base

Greenfield sectors, order book likely to drive L&T revenue growth

Analysts reckon L&T Realty can achieve sales of Rs 8,500 crore, translating into an operating profit of Rs 4,700 crore by FY30

Tata Steel's expansion pipeline supports favourable post-expansion outlook

Tata Steel is stacking up projects to take domestic capacity to 40 mtpa by 2030, with NINL expansion, downstream additions and pellet supplies, even as near-term steel prices stay weak

Affordable housing financiers now attractively valued after correction

Affordable housing financiers face slower growth, higher delinquencies and weak branch productivity despite strong demand, even as falling CoF supports spreads and valuations turn attractive

OMCs may see rerating as crude stays soft, GRMs strong and LPG losses ease

The next few quarters could favour downstream refiners and marketers over upstream, with Brent expected to stay in a $60-65 range or drift lower, while GRMs remain strong and LPG under-recoveries ease

Acquisitions, partnerships to drive operational gains for JSW Infra

Acquisition of the group's rail business aligns with plans for a logistics build-out and lifts pressure off JSW Steel's total logistics expenses

Robust growth, valuations to drive gains for general insurance companies

he insurance industry saw both positives and negatives from GST reform, with increased affordability driving growth in retail term and health, while ITC changes hit profitability

Near-term margin pressure for city gas distribution companies' stocks

Since administered pricing mechanism (APM) and new well gas (NWG) prices are tied to global prices, which are tied to crude, this may be a positive

Debt reduction, JV benefits with JFE seen as positives for JSW Steel

JSW Steel's BPSL restructuring and its 50:50 JFE JV signal major deleveraging and a cleaner structure, adding tech benefits even as consolidated operating profit is expected to moderate

Valuations factor in revenue growth, margin expectations for Hitachi Energy

Hitachi Energy India posted strong Q2FY26 margins and revenue on a solid order book and export demand, but HVDC's long gestation and rich valuations may cap gains despite an upbeat outlook

Loan growth, profitability seen improving for public sector banks

Public sector banks are poised for improved credit growth, lower stress costs and stronger profitability as margins stabilise and policy support boosts lending momentum

Near-term margins for cement companies to remain under pressure

Weak Q3 pricing persists despite Y-o-Y profit gains, as aggressive capacity expansion overshadows near-term demand