Dhan Manage

Tag: #Stock Market News

  • Persistent Systems Shines in Q3 FY25 with Robust Growth and Strategic Innovations

    Persistent Systems Announces Stellar Q3 2025 Financial Results with Strong Revenue and Profit Growth

    Persistent Systems, a global leader in digital engineering and AI-driven innovation, has released its Q3 2025 financial results, showcasing remarkable growth in revenue, net profit, and operating margins. The company also highlighted its strategic achievements, client engagements, and industry recognitions, further cementing its position as a pioneer in the IT and digital transformation space.

    Key Financial Highlights for Q3 2025

    • Revenue Growth: Persistent Systems reported a 4.3% quarter-over-quarter (QoQ) increase in revenue, reaching $360.2 million. This represents a significant 19.9% year-over-year (YoY) growth, reflecting the company’s strong market traction and consistent performance.
      (Learn more about Persistent Systems’ revenue growth strategy here.)
    • Net Profit: The company’s net profit surged to ₹3,729.9 million, marking a 14.8% QoQ and 30.4% YoY increase. This growth underscores Persistent Systems’ operational efficiency and ability to deliver value to stakeholders.
      (Explore how Persistent Systems achieves profitability here.)
    • Operating Margin: The operating margin improved by 90 basis points to 14.9%, breaking a two-quarter stagnation trend. This improvement highlights the company’s focus on cost optimization and operational excellence.

    Strategic Achievements and Innovations

    Persistent Systems continues to lead the industry with its AI-driven innovations and strategic initiatives:

    • SASVA™ Platform: The company filed over 20 patents related to its AI-powered software development platform, SASVA™, reinforcing its commitment to innovation and cutting-edge technology.
      (Discover more about SASVA™ and its capabilities here.)
    • ContractAssIst Launch: Persistent introduced ContractAssIst, a groundbreaking tool leveraging Microsoft 365 Copilot to streamline contract management processes. This solution enhances efficiency and delivers significant value to clients.

    Client Engagements Across Key Industries

    Persistent Systems secured significant client wins across diverse sectors, further solidifying its reputation as a trusted partner for digital transformation:

    • Software and Hi-Tech: Modernized product development for a leading UK-based business software provider using the SASVA™ platform, enabling faster time-to-market and improved scalability.
    • Banking and Financial Services: Revamped enterprise gateway services for a global payment technology company, enhancing scalability and operational efficiency.
    • Healthcare and Life Sciences: Transformed patient care platforms for a major healthcare provider, improving patient experiences and reducing technology debt.

    (Read more about Persistent Systems’ client success stories here.)

    Industry Recognitions and Awards

    Persistent Systems’ dedication to excellence and sustainability has been recognized through prestigious awards:

    • ISG Star of Excellence™ Overall Award: Awarded for delivering superior customer experience, reflecting the company’s commitment to client satisfaction.
    • Dow Jones Sustainability World Index: Inclusion in this index highlights Persistent Systems’ focus on sustainable business practices and ESG initiatives.

    Dividend Declaration for FY 2024-2025

    Demonstrating confidence in its financial health and growth prospects, the Board of Directors declared an interim dividend of ₹20 per share for the financial year 2024-2025. This move underscores the company’s commitment to delivering value to its shareholders.

    Conclusion

    Persistent Systems’ Q3 2025 financial results highlight its robust performance, driven by AI-led innovations, platform-driven services, and a strong focus on client satisfaction. With significant growth in revenue, net profit, and operating margins, the company is well-positioned to maintain its leadership in the global IT and digital engineering landscape.

    (Visit Persistent Systems’ official website here for more details on their latest financial results and strategic initiatives.)

  • Global Headwinds and FII Outflows: Why Indian Markets Are Falling?

    January 17, 2025 I Dhan Manage

    India’s stock market, often hailed as a beacon of emerging market growth, has recently faced a sharp downturn, leaving investors worried and financial analysts dissecting the causes. With benchmarks such as the Sensex and Nifty 50 showing declines, questions loom over the market’s trajectory. While global headwinds play a significant role, domestic factors have also contributed to the turbulence.

    This article explores the key reasons behind the Indian market’s recent slump and provides insights into how these factors might shape its recovery.

    Key Reasons Behind the Indian Market Downfall

    1. Global Economic Headwinds

    The Indian market’s downturn is not isolated—it reflects global economic challenges. Several international factors, including:

    • Rising Interest Rates Globally: The U.S. Federal Reserve and other central banks continue to raise interest rates to curb inflation. This has reduced global liquidity and triggered foreign fund outflows from emerging markets like India.
    • Geopolitical Tensions: Ongoing geopolitical conflicts, such as the Russia-Ukraine war and tensions in the Middle East, have disrupted global trade, increased oil prices, and created market volatility.
    • Global Slowdown Fears: Weakening demand in key markets, including Europe and the U.S., has hurt India’s export-driven sectors like IT and manufacturing.

    2. Weak Corporate Earnings

    Indian corporations have faced muted earnings growth in recent quarters. Several factors contributing to this include:

    • Higher Input Costs: Rising raw material prices have squeezed profit margins, particularly in sectors like FMCG, automotive, and construction.
    • Slow Consumer Demand: Persistently high inflation has curbed consumer spending, impacting companies reliant on domestic consumption.
    • Sector-Specific Challenges: IT services and startups, for instance, have faced a slowdown in global demand and funding challenges, respectively.

    3. Foreign Institutional Investor (FII) Outflows

    Foreign institutional investors (FIIs), who significantly influence India’s stock markets, have been pulling out funds due to rising yields in developed markets. FIIs sold heavily in December 2024 and January 2025, leading to downward pressure on Indian equities.

    4. Macroeconomic Concerns

    India’s macroeconomic indicators have added to market woes.

    • Persistently High Inflation: Despite cooling off from 2024 peaks, inflation remains a concern, eroding purchasing power and affecting market sentiment.
    • Rupee Depreciation: The Indian Rupee has been under pressure against the U.S. Dollar, increasing import costs and further impacting sectors like oil and gas.
    • Fiscal Deficit Worries: The government’s higher spending on subsidies and welfare programs has raised concerns about fiscal discipline, adding to investor anxiety.

    5. Regulatory and Policy Uncertainty

    Frequent changes in government policies have also spooked investors. Recent taxation changes, including higher capital gains tax expectations and stricter compliance measures, have created uncertainty among domestic and foreign investors.

    How the Market Could Recover

    Despite the ongoing challenges, the Indian market has a strong foundation for long-term growth. Here’s what could drive recovery:

    • Resilient Domestic Economy: India’s GDP growth, while moderated, is expected to remain among the highest globally, driven by domestic consumption and infrastructure spending.
    • Policy Support: Government initiatives, including incentives for manufacturing and infrastructure projects, could boost investor sentiment.
    • Cooling Inflation: Easing inflation could help revive consumer demand and corporate earnings.
    • FII Re-Entry: Stabilization in global markets may encourage FIIs to return to Indian equities, particularly in sectors like banking, technology, and renewable energy.

    Conclusion

    The recent downturn in the Indian stock market underscores the complex interplay between global and domestic factors. While challenges such as global monetary tightening, FII outflows, and inflation persist, India’s long-term growth potential remains robust.

    For investors, this could be an opportunity to focus on quality stocks with strong fundamentals and a long-term outlook. As market cycles evolve, resilience and strategic policymaking will be critical in restoring confidence and setting the stage for a rebound in India’s equity markets.

  • Understanding Mutual Funds: A Gateway to Wealth Creation in India

    Investing is the cornerstone of financial independence, and mutual funds have emerged as one of the most popular choices among Indian investors. With their simplicity, accessibility, and potential for substantial returns, mutual funds provide an excellent platform for growing wealth. But what exactly is a mutual fund, how do they work, and why should you consider investing in them? Let’s delve deeper into these questions, explore when to start investing in India, and understand the mutual fund landscape in the country.

    What is a Mutual Fund?

    A mutual fund is a professionally managed investment vehicle that pools money from numerous investors to create a diversified portfolio of financial instruments such as equities, bonds, money market instruments, or other assets. Each investor owns units of the fund, representing a proportionate share of its holdings.

    In India, mutual funds are regulated by the Securities and Exchange Board of India (SEBI), ensuring transparency, investor protection, and robust governance. These funds cater to a wide range of investment goals, from short-term liquidity to long-term wealth creation.

    How Do Mutual Funds Work?

    When you invest in a mutual fund, you effectively entrust your money to experienced fund managers. These professionals analyze market conditions, identify investment opportunities, and build a portfolio aligned with the fund’s objectives. The fund’s value is determined by the performance of its underlying assets.

    The pooled funds are divided into units, and the price per unit is known as the Net Asset Value (NAV). NAV is calculated daily as:

    NAV = (Total Assets – Liabilities) / Total Number of Units

    For instance, if a mutual fund’s total assets amount to ₹100 crore and it has 10 crore units, the NAV would be ₹10 per unit. Investors can buy or sell units at the prevailing NAV.

    What is NAV and Why is it Important?

    NAV is a critical metric for mutual fund investors. It reflects the per-unit value of the fund’s assets and serves as a benchmark to track your investment’s growth. However, it’s important to note that a lower NAV doesn’t necessarily indicate a cheaper or better fund. Performance, consistency, and alignment with your goals are more significant factors.

    Why Should You Invest in Mutual Funds?

    Mutual funds offer several benefits, making them an ideal choice for Indian investors:

    1. Diversification: Spreading investments across various asset classes reduces risk.
    2. Professional Management: Experienced fund managers use market expertise to optimize returns.
    3. Affordability: Start investing with as little as ₵500 through Systematic Investment Plans (SIPs).
    4. Liquidity: Most mutual funds are easy to redeem, ensuring flexibility.
    5. Tax Efficiency: Equity-linked savings schemes (ELSS) offer tax benefits under Section 80C.
    6. Transparency: Regular updates, fact sheets, and disclosures provide clarity on performance and portfolio.

    Types of Mutual Funds in India

    Mutual funds cater to diverse investment needs. Here’s a breakdown of the major categories:

    1. Equity Funds: Invest in stocks and aim for long-term capital appreciation.
    2. Debt Funds: Focus on fixed-income instruments like bonds, ideal for stability.
    3. Hybrid Funds: Combine equity and debt for balanced risk and reward.
    4. Index Funds: Track market indices like Nifty 50 or Sensex.
    5. ELSS: Offer tax savings and potential growth.
    6. Money Market Funds: Provide liquidity by investing in short-term instruments.

    When Should You Start Investing in Mutual Funds in India?

    The best time to start investing in mutual funds is as early as possible. The power of compounding works wonders over time, turning small investments into significant wealth. For instance, investing just ₹5,000 per month in a mutual fund with an annual return of 12% can grow to nearly ₹50 lakh in 20 years.

    Key considerations for starting:

    • Age: Younger investors can take on higher risk and focus on equity funds.
    • Goals: Define short-term and long-term financial objectives.
    • Income Stability: Ensure a consistent income source to sustain investments.

    How to Start Investing in Mutual Funds in India

    Follow these steps to begin your mutual fund journey:

    1. Set Your Financial Goals: Identify your investment objectives, such as retirement planning, home purchase, or child’s education.
    2. Understand Your Risk Appetite: Assess your comfort level with market fluctuations.
    3. Choose the Right Fund: Use tools like fund rankings and consult advisors to select funds aligned with your goals.
    4. Select a Mode of Investment: Opt for SIPs to invest regularly or make a lump-sum investment.
    5. Complete KYC Formalities: Submit PAN card, Aadhaar, and address proof for compliance.
    6. Use Online Platforms: Platforms like Groww, Zerodha, and AMC websites simplify investing.
    7. Monitor and Review: Regularly track fund performance and rebalance your portfolio as needed.

    How Many Mutual Fund Companies Operate in India?

    India has a vibrant mutual fund industry, with over 40 asset management companies (AMCs). Some of the prominent players include:

    • SBI Mutual Fund
    • HDFC Mutual Fund
    • ICICI Prudential Mutual Fund
    • Axis Mutual Fund
    • Nippon India Mutual Fund
    • UTI Mutual Fund

    These AMCs collectively manage assets worth over ₹ 40 lakh crore (as of recent data), reflecting the growing popularity of mutual funds among Indian investors.

    Advantages of Starting Early in India

    Starting early offers multiple benefits in the Indian context:

    1. Benefit from Economic Growth: India’s expanding economy and growing equity market provide substantial opportunities.
    2. Tax Efficiency: ELSS funds offer dual benefits of wealth creation and tax savings.
    3. Rupee Cost Averaging: SIPs help mitigate market volatility by spreading investments over time.

    Final Thoughts

    Mutual funds are a powerful tool for wealth creation, particularly in India’s dynamic financial market. Whether you’re a first-time investor or a seasoned one, mutual funds offer something for everyone. Start your journey today, leverage the expertise of fund managers, and let the power of compounding work for you. With over 40 AMCs and a wide array of funds, the Indian mutual fund industry is ready to help you achieve your financial dreams.

  • Infosys Q3 FY25 Results: Robust Growth and Optimistic Outlook

    Key Financial Highlights

    • Net Profit: ₹6,806 crore (11% YoY increase)
    • Revenue: ₹41,764 crore (8% YoY increase)
    • Operating Margin: 21.3% (80 basis points increase)

    This performance showcases Infosys’ ability to navigate market challenges, deliver strong earnings, and expand its operational efficiency.

    Revenue Growth and Guidance

    • Infosys revised its full-year revenue growth guidance upwards to 4.5%-5% in constant currency terms.
    • This reflects sustained demand across key sectors, especially in digital services and AI.

    Client Acquisition and Deal Wins

    • 101 new clients were added during the quarter, reflecting strong demand for Infosys’ services across global markets.
    • Secured $2.5 billion in large deal bookings, underscoring healthy deal momentum.

    Client Growth: A breakdown of these new clients across regions and industries could be shown visually here.

    Sectoral Performance

    • Banking, Financial Services, and Insurance (BFSI): 6.1% growth YoY
      This key sector continues to be a strong performer for Infosys, driving consistent revenue growth.

    Emphasis on Artificial Intelligence

    • Infosys is expanding its AI and automation offerings to cater to growing demand for generative AI solutions in areas like cloud services and data analytics.
    • AI Adoption: A visual depiction of AI-powered solutions in various industries (Finance, Retail, Healthcare, etc.) could drive the point home.

    Market Reaction

    • Despite a strong quarter, Infosys’ stock dropped 6% in early trading, indicating market volatility.
      A news headline snippet with the stock price dip and market analysis can provide context.

    Conclusion

    • Strong Profit Growth: 11% YoY increase in net profit
    • Sustained Revenue Expansion: 8% YoY increase
    • AI and Digital Transformation: Strategic investments in future-ready technologies.

    This visual summary captures Infosys’ Q3 performance in a reader-friendly, concise manner.

  • ITI Share Price Skyrockets Over 12%, Hits Record High: What’s Driving the Surge?

    ITI Ltd’s stock stole the spotlight on January 3, 2025, with a stunning 12% jump, propelling its share price to an all-time high of ₹432.45. By 12:53 PM, the stock was trading at ₹427.55 on the Bombay Stock Exchange (BSE), marking a dramatic rise of 12.20% in a single session.

    Key Highlights

    • Record-Breaking Performance: ITI shares soar over 12%, hitting ₹432.45, their highest ever.
    • Bullish Breakout: The stock broke past a critical resistance zone, signaling potential for further gains.
    • Exceptional Returns: ITI has delivered a 37% return over the past year and surged 49% in just one month.

    Why ITI Stock Is Making Headlines

    Earlier, analysts had urged caution, advising investors to book profits as ITI shares approached a key resistance zone. But the stock has defied expectations, smashing through the resistance and continuing its upward trajectory.

    This surge caps off a remarkable month for ITI, with a 30% gain in just five trading sessions and a whopping 49% jump over the past month, outpacing broader market indices.

    Strong Technical Setup

    From a technical standpoint, ITI is showing incredible strength. The stock is trading above its 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day simple moving averages (SMAs)—a clear bullish signal.

    Additionally, its 14-day Relative Strength Index (RSI) stands at 66.27, inching closer to the overbought territory. This suggests strong momentum but warrants caution for investors looking to enter at current levels.

    Fundamentals: A Mixed Picture

    While ITI’s technical indicators are bullish, the company’s fundamentals tell a more nuanced story.

    • Valuation Concerns: The stock has a negative Price-to-Earnings (P/E) ratio of 74 and a high Price-to-Book (P/B) value exceeding 24, signaling rich valuations.
    • Profitability Challenges: Earnings Per Share (EPS) stand at a negative (-)5.22, with a Return on Equity (RoE) of (-)31.60%, reflecting ongoing struggles in profitability.

    About ITI Ltd

    ITI Ltd is a central public sector undertaking operating under the Ministry of Communication, with the Indian government owning a 90% stake in the company. Despite its profitability challenges, the stock’s recent surge highlights investor confidence in its growth potential.

    Disclaimer: The opinions, views, in this article are those of experts of Dhan Manage. Readers are advised to consult a qualified financial advisor before making any investment decisions.

  • Avenue Supermarts (D Mart) Shares Soar 15% After Q3 Revenue Jumps 17.5% YoY

    Highlighting a Stellar Quarter
    Avenue Supermarts, the owner and operator of the popular DMart supermarket chain, delivered a stellar performance in Q3 FY25, sending its stock price soaring by 15% to ₹4,152.75 on the NSE this Friday, January 3. The catalyst? A robust 17.49% year-on-year (YoY) jump in standalone revenue, reaching an impressive ₹15,565.23 crore for the quarter ending December 31, 2024.

    Expansion Drives Growth
    The company continues its aggressive expansion, adding 10 new stores during the quarter, bringing its total store count to 387 as of December 31. DMart’s growth story extends across key regions, with stores spread throughout Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu, and other major states.

    Comparing the Numbers
    For perspective, the company’s standalone revenue in the same quarter last year was ₹11,304.58 crore—showcasing its ability to consistently grow its top line.

    Q2 Snapshot and Year-to-Date Trends
    Avenue Supermarts had already shown promising momentum earlier in FY25. In Q2, the company reported a 5.78% increase in consolidated net profit, reaching ₹659.44 crore. Revenue for the quarter grew 14.41% YoY to ₹14,444.50 crore, while expenses rose 14.94% to ₹13,574.83 crore. Six new stores were added in Q2, bringing the total to 377 by September 30, 2024.

    Neville Noronha, CEO & Managing Director of Avenue Supermarts, noted that the like-for-like revenue growth for stores older than two years stood at 7.4% for the first half of FY25, with Q2 growth at 5.5%.

    Investor Sentiment Revived
    The strong Q3 performance comes as a breath of fresh air for investors, as Avenue Supermarts’ shares had slipped 8% over the past 12 months. With the latest results, the stock has regained momentum, reinforcing confidence in its long-term growth trajectory.

    A Trusted Retailer on the Rise
    Promoted by billionaire Radhakishan Damani and his family, DMart continues to be a trusted name for essential home and personal products, catering to millions across India. With consistent revenue growth, ongoing store expansions, and a proven business model, Avenue Supermarts is poised for even greater success in the coming quarters.

  • Markets Surge as Bulls Roar: Key Highlights and Stock Picks

    The markets witnessed a strong rally in the last session, with the Sensex soaring 1,400 points and the Nifty climbing nearly 500 points, breaking above its 200-day moving average. Gains were driven by auto, IT, and financial stocks, while broader indices lagged.

    As the earnings season begins, investors will closely monitor Q3 updates. Experts have identified Nifty’s resistance at 24,200 and support around 24,900.

    Global cues remain mixed, with U.S. markets closing lower on the first trading day of 2025, while Asia-Pacific markets traded higher this morning. Key stocks to watch today include Avenue Supermarts, Bank of Maharashtra, and NHPC.

  • VA Tech Wabag Wins ₹145 Cr Order from Chennai Petroleum; Rekha Jhunjhunwala-Backed Multibagger Shines

    VA Tech Wabag Limited (WABAG), a leading Indian multinational specializing in water technology, has won a ₹145 crore order from Chennai Petroleum Corporation Limited (CPCL). The project involves the design, engineering, supply, fabrication, installation, and commissioning of desalination water pipelines between CPCL’s Manali Refinery and its desalination plant at Kattupalli. The work is set to be completed within 12 months.

    WABAG’s technically advanced and competitive bid played a significant role in securing this project, reaffirming its leadership in the industrial water segment.

    Management’s Remarks

    Expressing satisfaction over the order win, Mr. S. Natrajan, Head of Sales & Marketing for WABAG’s India Cluster, stated:

    “CPCL has been a key customer of WABAG, and we are delighted to deliver this project. We thank CPCL for their continued trust and confidence in WABAG.”

    About VA Tech Wabag

    VA Tech Wabag Limited is a global leader in water technology with over a century of expertise. The company provides innovative and sustainable water solutions for both municipal and industrial clients across the globe. As a pure-play Indian multinational, WABAG offers end-to-end services, including design, engineering, and long-term operations. With a focus on research and development, WABAG is committed to creating solutions that address global water challenges while promoting sustainability.

    Stock Performance and Market Insights

    • Shares of VA Tech Wabag rose 1.90% today, closing at ₹1,674.35 per share, with an intraday high of ₹1,690 and a low of ₹1,642.20.
    • The stock’s 52-week high is ₹1,943.95, and its 52-week low is ₹595.90.
    • Renowned investor Rekha Jhunjhunwala holds an 8.04% stake in the company.

    Financial Highlights

    • Market Cap: Over ₹10,000 crore.
    • Order Book: ₹14,600 crore.
    • Price-to-Earnings Ratio (PE): 14x, significantly lower than the industry average of 37x.
    • The stock has delivered 165% returns in the past year, outperforming the BSE Small-Cap Index’s 30% gain during the same period.

    Investment Perspective

    With a strong order book, leadership in industrial water projects, and a history of delivering multibagger returns, VA Tech Wabag is a stock worth monitoring.

    Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always consult a financial advisor before making investment decisions.