Page 7 - The Compass
Sustained high crude oil prices to hurt downstream players
The fears centre around the possibility of supply routes being interdicted and hence, supply being disrupted, rather than Iranian oil being taken off the market
 "Sustained high crude oil prices to hurt downstream players")
Final RBI norms on project financing positive trigger for the PFC
Additional provisions forDate of Commencement of Commercial Operations deferred standard assets are reduced to 0.375 per cent-0.5625 per cent per quarter vs. 2.5 per cent for cumulative deferments
 "Final RBI norms on project financing positive trigger for the PFC")
Siemens Energy: The power play that doesn't overload on valuations
Siemens Energy India offers a wide range of services and solutions to power generation utilities and IPPs
 "Siemens Energy: The power play that doesn't overload on valuations")
Expansion positives factored into the valuations of Hindustan Zinc
The company expects revenues to rise from Rs 34,100 crore in FY25 to Rs 40,000-42,000 crore with phase-I expansion, and further rise to Rs 62,000 to Rs 65,000 crore upon completion of plan
 "Expansion positives factored into the valuations of Hindustan Zinc")
Higher crude oil prices, production gains positive for upstream players
Even if Iranian production is curtailed, the OPEC+ decision to ramp up production implies other supply would compensate
 "Higher crude oil prices, production gains positive for upstream players")
CIL earnings may stay under pressure amid weak volumes, market share loss
CIL earnings may stay under pressure in FY26 due to weak volumes, lower e-auction prices, rising costs, and growing market share of captive and commercial miners
 "CIL earnings may stay under pressure amid weak volumes, market share loss")
Increased fresh order inflows key to the growth of construction companies
Some of the key award recipients in May included DR Agrawal Infracon (₹4,100 crore), Larsen&Toubro (₹ 3,800 crore), NCC (₹2,500 crore) among others
 "Increased fresh order inflows key to the growth of construction companies")
Pickup in digital margins could help Tata Communications stock rerate
Analysts calculate that data revenue of ₹27,300 crore in FY28 is possible, given growth in digital portfolio due to megatrends like cloud, AI, IoT etc
 "Pickup in digital margins could help Tata Communications stock rerate")
Power utilities: Valuations down on likely dim show in first half of FY26
NTPC Green's acquisition of Ayana (2.1 GW) and JSW Energy's KSK Mahanadi buy (1.8 GW) helped meet capacity addition targets
 "Power utilities: Valuations down on likely dim show in first half of FY26")
Cement industry eyes demand revival amid looming capacity surplus
The lagged impact of fuel price increases of Rs 50-100 per ton during January-April'25 will be seen in H1FY26 given inventory, with higher exposure to petcoke usage impacted more
 "Cement industry eyes demand revival amid looming capacity surplus")
Margins likely to improve for city gas distribution majors on price cuts
LNG prices may remain muted over the next 3-4 years due to new LNG capacity and bearish crude oil trends
 "Margins likely to improve for city gas distribution majors on price cuts")
Strong order visibility likely to help shipyard stocks sail faster
The DAC plans to order three Kalvari-class submarines with Mazagon Docks (MDL) on a nominated basis in FY26 at an order value of Rs 36,000 crore
 "Strong order visibility likely to help shipyard stocks sail faster")
New initiatives, margin gain hopes positives for logistics major Delhivery
The expectations for service operating profit margin in PTL is set to reach 16-17 per cent, excluding yield improvements, driven by volume growth
 "New initiatives, margin gain hopes positives for logistics major Delhivery")
Demand, margin concerns likely to weigh on Tata Motors in near term
The prospects are good enough for analysts to marginally hike EPS estimates by 3 per cent or so for FY25. The stock trades at an estimated 19-20x of FY25 estimated EPS.
 "Demand, margin concerns likely to weigh on Tata Motors in near term")
Strong volume growth and rich valuations for Varun Beverages' stock
Revenue grew 29 per cent Y-o-Y to Rs 7,330 crore which was below expectations. Volume grew to 402 million cases, up 28 per cent
 "Strong volume growth and rich valuations for Varun Beverages' stock")
Investors pin hope of govt support amid under-recoveries of BPCL, HPCL
HPCL has commissioned 126 new retail outlets, bringing the total outlets to 22,148
 "Investors pin hope of govt support amid under-recoveries of BPCL, HPCL")
Maintaining premium growth, sustained margins key for ICICI Prudential Life
The agency growth was driven by the addition of more than 12,000 agents, plus the launch of new products
 "Maintaining premium growth, sustained margins key for ICICI Prudential Life")
Rerating potential in Axis Bank stock, may be among top outperformers
Axis Bank may be capable of growing faster than peers and it may see a decline in operating expenses ratio from current levels
 "Rerating potential in Axis Bank stock, may be among top outperformers")
Valuations may offset Q4 show, growth outlook for Divi's Laboratories
The company delivered a strong revenue and operating performance in the March quarter
 "Valuations may offset Q4 show, growth outlook for Divi's Laboratories")
Volume recovery crucial for Marico's growth in FY25, stock gains
The premium and urban segments continued to outperform rural and mass segments
 "Volume recovery crucial for Marico's growth in FY25, stock gains")
