Page 4 - The Compass

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)

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

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

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

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

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

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

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

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

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

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

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

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

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

Near-term weakness in Coal India stock seen as buying opportunity

More thermal capacity is expected to come onstream, and the country's largest coal miner will remain the biggest player by far

Gold, silver could shine brighter with investor demand, geopolitical risks

Gold and silver extended gains on Fed rate cut expectations, weak US data, ETF inflows and geopolitical risks, with investors seeing further upside despite short-term volatility

After difficult first half, remaining year may be better for life insurers

LIC's weak performance pulls down industry APE growth, while mid-sized private insurers like Axis Max and HDFC Life expand market share

Sun Pharma stock concerns may be overstated as domestic growth holds

Analysts say Sun Pharma's stock concerns are overdone, with strong domestic growth, broad-based chronic portfolio gains and resilient Q1FY26 earnings offsetting US market worries

Camso acquisition at $225 mn valuation a long-term positive for Ceat

CEAT has acquired the Camso brand from Michelin for $225 million, strengthening its OHT portfolio, boosting capacity and expanding global presence in key markets

L&T Finance's strategic moves paying off, strong returns & growth expected

L&T Finance is strengthening its market position with a focus on asset quality and leveraging AI-powered platforms like Project Cyclops