Page 3 - The Compass
Metal stocks shine as JSW, Tata Steel rally; analysts lift H2FY26 view
JSW Steel hit all-time highs and Tata Steel a 15-month peak as metals gained 20% in six months, driven by global price recovery, US rate-cut hopes and GST-driven demand
 "Metal stocks shine as JSW, Tata Steel rally; analysts lift H2FY26 view")
Multiple demand triggers to keep sales trajectory strong for Cummins India
Early product launches and reliable aftermarket support make the company a market leader
 "Multiple demand triggers to keep sales trajectory strong for Cummins India")
Nykaa's faster growth keeps Street bullish, but valuations rich too
Nykaa Fashion may have gained market share even if growth has been slower than in BPC
 "Nykaa's faster growth keeps Street bullish, but valuations rich too")
Trent's Q2 update disappointed Street, but outlook still bullish
Trent's Y-o-Y store growth accelerated vs Q1. With Westside adding 13 stores, Y-o-Y store growth was 15 per cent in Q2 vs 9 per cent in Q1
 "Trent's Q2 update disappointed Street, but outlook still bullish")
DMart stock poor show may continue, but there're triggers to reverse it too
DMart's 15.4% revenue growth in Q2FY26 masks margin pressure and rising costs, but analysts see long-term upside from its North India push and network expansion
 "DMart stock poor show may continue, but there're triggers to reverse it too")
Valuation comfort emerges for gas firms despite demand, margin risks
Gas demand dipped in August, but upcoming LNG supply, policy targets and steady CNG growth support long-term outlook as stock valuations turn more attractive
 "Valuation comfort emerges for gas firms despite demand, margin risks")
GST 2.0, rural recovery may boost prospects for vehicle financiers
Vehicle finance demand has been muted and asset quality stressed in the financial year 2026 (until August)
 "GST 2.0, rural recovery may boost prospects for vehicle financiers")
New segments like defence and data centres to drive growth for L&T
Reports state the Telangana state government is to takeover the asset at around Rs 2,000 crore equity valuation
 "New segments like defence and data centres to drive growth for L&T")
Power stocks may rebound on demand recovery, attractive valuations
Power stocks, down over 22 per cent in the past year, may see renewed interest in H2FY26 as demand recovers, coal capacity expands and renewable additions accelerate
 "Power stocks may rebound on demand recovery, attractive valuations")
Structural gains, valuation support positive for PSU bank stocks
PSU banks have gained 10% in a month as improved profitability, strong deposit franchises, stable asset quality and reasonable valuations drive investor interest
 "Structural gains, valuation support positive for PSU bank stocks")
Strong growth and margin expansion ahead for Hindustan Aeronautics
The aircraft will have indigenous content of over 64 per cent, and this is over and above a previous contract for 83 LCA Mk-1A aircraft signed in January 2021
 "Strong growth and margin expansion ahead for Hindustan Aeronautics")
Muthoot Finance shines in Q1FY26 with strong AUM, margin, gold loan growth
Muthoot Finance reported strong Q1FY26 results with 42% YoY AUM growth, improved asset quality, higher yields and strong recoveries as gold loans drove profitability
 "Muthoot Finance shines in Q1FY26 with strong AUM, margin, gold loan growth")
Swiggy's Rapido stake sale to help up cash kitty, but concerns remain
The stake sale boosts Swiggy's cash reserves as it shifts Instamart into a new subsidiary to prepare for an inventory-led model amid rising competition
 "Swiggy's Rapido stake sale to help up cash kitty, but concerns remain")
Valuations reflect upside for listed steel majors despite weak Q2
India's steel sector gains from Chinese production cuts, resilient domestic demand and export momentum, though near-term margins face seasonal weakness and input cost pressure
 "Valuations reflect upside for listed steel majors despite weak Q2")
IT firms in a flux over H-1B visa fees, but levers exist to mitigate impact
Analysts say Indian IT firms can offset the impact of the $100,000 H-1B visa fee through higher offshoring, reduced new applications, and client cost sharing over the medium term
 "IT firms in a flux over H-1B visa fees, but levers exist to mitigate impact")
Strong growth, improving profitability bode well for Eternal's stock
The Eternal Food Delivery business (EFD) is also seeing improving profitability in the duopoly FD market
 "Strong growth, improving profitability bode well for Eternal's stock")
Multiple tailwinds for aluminium majors as Fed rate cut lifts prices
Aluminium prices have gained on tight supply, Fed rate cuts and reforms, favouring Hindalco, Vedanta and NALCO, though risks from bauxite supply and trade barriers remain
 "Multiple tailwinds for aluminium majors as Fed rate cut lifts prices")
Infrastructure players poised to benefit from strong order momentum
Despite delays, FY26 budget supports ₹11.2 trillion capex with strong order pipeline in power, transport and real estate
 "Infrastructure players poised to benefit from strong order momentum")
Attractive valuations largely limit downside risks for upstream players
Despite weak crude prices and policy risks, ONGC and Oil India trade at steep discounts to global peers, with growth projects and NWG premiumisation offering upside potential
 "Attractive valuations largely limit downside risks for upstream players")
Bajaj Finance stock fully priced amid some challenges, opportunities
Bajaj Finance posted robust Q1 FY26 AUM growth and efficiency gains but higher credit costs, MSME stress and regulatory risks suggest the stock is fully priced
 "Bajaj Finance stock fully priced amid some challenges, opportunities")
