CDSL Share Price Drop 9% After Q3 FY25 Results

Central Depository Services (India) Ltd (CDSL) share price dropped sharply on Monday, continuing a 2-day decline. The stock fell by 9.45%, reaching a low of ₹1,358.35.

Share Price Performance

As of 12:52 AM, CDSL share price is currently priced at ₹1,364.50, reflecting a decline of ₹135.75 (9.05%) today. Over the past 5 days, the stock has fallen by ₹218.50 (13.80%), and in the past month, it has decreased by ₹413.05 (23.24%). However, in the past six months, it has risen by ₹141.50 (11.57%), and over the past year, it has gained ₹481.80 (54.58%). Over the last 5 years, the stock has surged by ₹1,236.40 (965.18%).

Q3 FY25 Financial Performance

The decline in CDSL’s share price follows a drop in its total income, which fell 26.27% year-on-year (YoY) to ₹298 crore for the December 2024 quarter (Q3 FY25) from ₹236 crore the previous year. However, the company’s net profit increased by 21.49% YoY, rising to ₹130 crore from ₹107 crore in the same quarter last year.

On a sequential basis, total income and profit declined by 16.99% and 19.75%, respectively.

Record Demat Accounts and New Openings

Despite the financial dip, CDSL achieved a significant milestone, becoming the first depository to register over 14.65 crore demat accounts as of December 31, 2024. During Q3 FY25, 92 lakh new demat accounts were opened.

About CDSL

CDSL is a depository registered with the market regulator SEBI. It was established to provide a secure, convenient, and cost-effective depository service for market participants. CDSL plays a key role in the Indian market infrastructure, enabling the electronic holding and transaction of securities and facilitating trade settlements. The company offers services to a wide range of capital market entities, including depository participants, issuers, investors, and exchanges.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

FPI Selling Continues; ₹64,000 Crore Withdrawn in January

Foreign Portfolio Investors (FPIs) have continued to pull out funds from Indian equity markets, withdrawing ₹64,156 crore ($7.44 billion) in January. This follows a modest investment of ₹15,446 crore in December. The main reasons for the outflows include a weaker rupee, rising US bond yields, and expectations of a weak earnings season for Indian companies.

Factors Driving FPI Selling

The continued selling is due to several global and domestic factors. The rupee’s depreciation is a key pressure point for foreign investors. Additionally, the high valuation of Indian equities, despite recent corrections, combined with macroeconomic challenges, has made investors cautious.

The unpredictability of US policies, especially under Donald Trump, has also contributed to a risk-averse sentiment among investors.

Sector Impact and Debt Market Selling

The financial sector has faced the brunt of FPI selling, as this sector holds a large portion of its investments. However, the IT sector saw some buying, driven by improved prospects and positive company comments. FPIs also reduced their exposure in India’s debt market, withdrawing ₹4,399 crore from the debt general limit and ₹5,124 crore from the debt voluntary retention route.

2024 Sees Significant Withdrawal Compared to 2023

In 2024, FPIs have been significantly cautious, with net inflows amounting to just ₹427 crore. This contrasts sharply with the previous year, when FPIs had invested a record ₹1.71 trillion in Indian equities, driven by optimism about India’s economic strength.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Equity Mutual Funds Soar to ₹4 Trillion in 2024; SIPs Drive Growth

Equity mutual funds saw a remarkable rise in inflows, nearly reaching ₹4 trillion in 2024, more than double the amount from the previous year. This surge indicates strong investor confidence and a growing shift toward long-term investing, especially through Systematic Investment Plans (SIPs).

2024: A Strong Year for Equity Mutual Funds

In 2024, equity and equity-oriented schemes saw inflows of ₹3.94 trillion, compared to ₹1.61 trillion in 2023, according to the Association of Mutual Funds in India (AMFI). This growth helped increase the assets under management (AUM) of the mutual fund industry by 40%, bringing it to ₹30.57 trillion by December 2024, up from ₹21.8 trillion the previous year.

The increase can be attributed to steady market performance, better financial literacy, and the growing popularity of SIPs, which encourage disciplined investing.

Thematic and Midcap Funds Lead the Growth

Thematic funds saw the highest inflows, with ₹1.55 trillion in 2024. Midcap and small-cap funds also experienced significant growth, attracting ₹32,465 crore and ₹34,223 crore, respectively. Large-cap funds received ₹19,415 crore. This widespread growth across various fund categories reflects strong investor optimism, especially in smaller and mid-sized companies that performed well in 2023 and 2024.

SIPs Play a Key Role in Fund Inflows

SIPs have become a crucial factor driving growth in the mutual fund sector, with total SIP contributions reaching ₹2.5 trillion in 2024. December saw a record high, with monthly SIP contributions peaking at ₹26,459 crore. This demonstrates the increasing appeal of long-term, regular investing.

Investor Participation Continues to Rise

Investor participation also increased, with the number of folios in equity funds rising by 4.45 crore to 15.75 crore by December 2024. This reflects the growing interest in equity mutual funds.

Over the past decade, the share of equity and equity mutual funds in household assets grew from 5.3% in March 2014 to 16.4% in September 2024. This shift shows a significant change in how Indian households manage their finances.

At the same time, the reliance on traditional savings instruments, like small savings schemes and deposits, has decreased. The share of deposits fell from 38.8% in March 2014 to 32.6% in September 2024.

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Historical Timeline of India’s Pay Commissions

Prime Minister Narendra Modi recently approved the formation of the 8th Pay Commission to revise the salaries of nearly 50 lakh central government employees and allowances of 65 lakh pensioners. Here’s a brief overview of the previous seven Pay Commissions.

1st Pay Commission (May 1946 – May 1947)

Chairman: Srinivasa Varadacharia

  • Focused on adjusting the pay structure after India’s independence
  • Introduced the concept of a “living wage.”
  • Minimum Salary: ₹55/month; Maximum Salary: ₹2,000/month
  • Beneficiaries: Around 1.5 million employees

2nd Pay Commission (August 1957 – August 1959)

Chairman: Jaganath Das

  • Aimed to balance the economy and living costs
  • Suggested a minimum wage of ₹80/month
  • Introduced a “socialistic pattern of society”
  • Beneficiaries: Around 2.5 million employees

3rd Pay Commission (April 1970 – March 1973)

Chairman: Raghubir Dayal

  • Proposed a minimum pay of ₹185/month
  • Focused on salary parity between public and private sectors
  • Addressed salary disparities
  • Beneficiaries: About 3 million employees

4th Pay Commission (September 1983 – December 1986)

Chairman: P.N. Singhal

  • Suggested a minimum salary of ₹750/month
  • Focused on reducing pay disparities across ranks
  • Introduced performance-linked pay structure
  • Beneficiaries: Over 3.5 million employees

5th Pay Commission (April 1994 – January 1997)

Chairman: Justice S. Ratnavel Pandian

  • Proposed a minimum pay of ₹2,550/month
  • Suggested reducing the number of pay scales
  • Focused on modernising government offices
  • Beneficiaries: Around 4 million employees

6th Pay Commission (October 2006 – March 2008)

Chairman: Justice B.N. Srikrishna

  • Introduced Pay Bands and Grade Pay
  • Minimum Salary: ₹7,000/month; Maximum Salary: ₹80,000/month
  • Focused on performance-related incentives
  • Beneficiaries: Nearly 6 million employees

7th Pay Commission (February 2014 – November 2016)

Chairman: Justice A K Mathur

  • Increased the minimum pay to ₹18,000/month and maximum pay to ₹2,50,000/month
  • Proposed a new pay matrix replacing the grade pay system
  • Focused on allowances and work-life balance
  • Beneficiaries: Over 10 million (including pensioners)

8th Pay Commission (Announced on January 16, 2025)

  • The latest Pay Commission will address salary and allowance revisions for employees and pensioners.

Also Read: How Much Salary Central Government Employees Can Expect from 8th Pay Commission?

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Laurus Labs Share Price Drop 15% Due to Foreign Aid Pause News

Laurus Labs share price dropped 15% on Monday, January 27, reversing all gains made during Friday’s trading session, following the company’s December quarter results.

Impact of US Foreign Aid Pause

The decline in the stock comes after reports that the US government ordered a pause in foreign aid, which could stop funding for the President’s Emergency Plan for AIDS Relief (PEPFAR) starting Monday. This could disrupt the supply of anti-viral medications (ARVs) to millions of people globally.

PEPFAR’s Role in Global Health

The PEPFAR program, initiated under President George W. Bush, has saved millions of lives worldwide by funding organisations to fight HIV and providing ARVs to over 20 million people across 55 countries.

US Foreign Aid Review and Its Effects

Following President Donald Trump’s executive order last week, a 90-day review of US foreign aid programs was triggered. A memo from the US Agency for International Development (USAID) on Saturday stated that the foreign aid pause would mean a complete halt with limited exceptions.

Laurus Labs Q3 FY25 Results

Laurus Labs reported a solid performance in Q3, with its EBITDA margin improving by 500 basis points to 20.2%, the highest since Q4 of FY23. This improvement is attributed to better asset utilisation and productivity gains.

The company’s net profit surged to ₹92 crore, up from ₹23 crore in the same quarter last year. Other income also increased slightly, reaching ₹9.4 crore from ₹2.4 crore last year.

Revenue for the quarter grew by 18.5% year-on-year, totalling ₹1,415 crore, compared to ₹1,194 crore in Q3 of FY24. On a sequential basis, revenue rose by 16%.

EBITDA for the quarter saw a significant increase of 58%, reaching ₹285.8 crore. Laurus Labs expects further improvement in EBITDA margins as it ramps up growth projects and new assets come online, despite pricing pressures in the generic portfolio.

About Laurus Labs

Laurus Labs, established in 2005, is a research-focused pharmaceutical and biotechnology company. It holds a leading position globally in the production of select Active Pharmaceutical Ingredients (APIs), such as anti-retroviral, oncology drugs (including High Potent APIs), and cardiovascular and gastrointestinal treatments. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Tanla Platforms to Trade Ex-Dividend Today, January 27

Tanla Platforms has declared an interim dividend of ₹6 per share (600%) with a face value of Re 1 for FY25. The record date for this dividend is set for Monday, January 27, and the payment will be made by February 20, 2025.

Over the last 12 months, the company has announced a total dividend of ₹12 per share. Since March 2007, Tanla Platforms has declared 17 dividends in total.

The ex-dividend date is when a stock’s price is adjusted to account for its upcoming dividend. From this day onward, the stock no longer includes the value of the next dividend payment. Dividends are paid to shareholders whose names are recorded by the end of the record date.

Tanla Platforms Q3 FY25 Financial Results

Tanla Platforms Ltd reported a flat revenue of ₹1,000 crore compared to the previous quarter. Gross profit stood at ₹261 crore, with a gross margin of 26.1%. EBITDA was ₹163 crore, with an EBITDA margin of 16.3%. Profit after tax (PAT) was ₹119 crore, with a PAT margin of 11.8%, and earnings per share (EPS) were ₹8.82. The company generated a free cash flow of ₹217 crore, and its cash balance reached ₹921 crore.

During the quarter, Tanla reached significant milestones, including sending one billion RCS messages, earning the ‘RCS Growth Partner of the Year 2024’ recognition from Google, and implementing PE/TM binding on its Trubloq platform. The company also improved its S&P Global ESG score to 74 from 68 in 2023 and appointed Naiyya Saggi as an Independent Director. 

About Tanla Platforms Ltd

Tanla Platforms Ltd is a cloud communications provider based in Hyderabad, India. The company helps businesses connect with their customers and target recipients. It is a global leader in A2P (Application to Person) messaging and has become a leader in the CPaaS (Communications Platform as a Service) sector, a specialised type of SaaS. Tanla leads in areas like data security, privacy, and protection against spam and scams. 

Tanla Platforms share price is currently trading at ₹587.25, down by ₹22.05 (3.62%) as of 9:51 am IST on January 27. The stock has a market cap of ₹7.89K crore, a P/E ratio of 15.21, and a dividend yield of 1.53%. Its 52-week high is ₹1,086.45, and the 52-week low is ₹586.20.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

KEI Industries Shares to Trade Ex-Dividend on January 27

Kei Industries Ltd shares will trade ex-dividend on Monday, January 27. The company has announced an interim dividend of ₹4 per equity share (200%) with a face value of ₹2 for FY 2024-25. 

Over the last 12 months, KEI Industries has announced a total dividend of ₹3.50 per share. According to Trendlyne data, the company has declared 24 dividends since August 2021.

The ex-dividend date is when a stock’s price is adjusted to account for the upcoming dividend payment. On this day, the stock trades without the value of its next dividend. Shareholders listed in the company’s records by the end of the record date are eligible to receive the dividend.

KEI Industries Q3 Results: Net Profit Rises 9%

KEI Industries Ltd reported a 9.4% year-on-year increase in net profit, reaching ₹164.8 crore in the third quarter that ended December 31, 2024. This is up from ₹150.6 crore in the same quarter last year.

Revenue from operations grew 19.8% to ₹2,467.2 crore, compared to ₹2,059.3 crore in the corresponding quarter of the previous fiscal.

At the operational level, the company’s EBITDA rose 12.3% to ₹240.7 crore from ₹214.4 crore in Q3 FY24. However, the EBITDA margin slightly declined to 9.8% this quarter, down from 10.4% in the year-ago period.

Recent Developments

Anil Gupta, CMD of KEI Industries, predicts strong demand for wires and cables driven by growth in power generation, transmission, distribution, and sectors like industry, infrastructure, and real estate. He highlighted that infrastructure spending plays a key role in their business since most of their products are used in infrastructure projects, the energy sector, and renewable energy.

Gupta also pointed out the growing importance of power evacuation through transmission lines, which are now being developed through tariff-based competitive bidding. He expects the national electricity transmission plan to attract significant investments in the transmission sector next year.

About KEI Industries Ltd

Founded in 1968, KEI Industries Ltd produces a wide range of wires and cables, including Extra-High-Voltage (EHV), High-Tension (HT), and Low-Tension (LT) cables, which it supplies both in India and internationally. KEI Industries also manufactures and sells EHV, Medium-Voltage (MV), and Low-Voltage (LV) power cables. The company serves both retail and institutional customers and also offers Engineering, Procurement, and Construction (EPC) services.

As of 9:42 AM on January 27, 2025, KEI Industries share price is trading at ₹4,129.90, down by ₹123.60 (2.91%). The stock opened at ₹4,182.65, reached a high of ₹4,184.65, and a low of ₹4,106.20. The market capitalisation stands at ₹39.46K crore, with a P/E ratio of 58.80 and a dividend yield of 0.097%. The 52-week high and low for the stock are ₹5,039.70 and ₹2,900.10, respectively.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Best Defence Stocks in February 2025: Hindustan Aeronautics Ltd, NIBE and More- Based on 5-Year CAGR

According to the Global Power Index, India ranks fourth in military strength with a firepower score of 0.0979, where 0.0 is the perfect score. The Indian government aims for a defence production target of US$ 25 billion by 2025, including US$ 5 billion from exports. India is one of the largest defence spenders globally, with a budget of US$ 74.8 billion (Rs. 6.21 lakh crore), which makes up 13.04% of the total budget. This is a 4.72% increase from the 2023-24 budget and an 18.35% rise from 2022-23.

In 2022, India’s military spending of US$ 81.4 billion was the fourth highest worldwide, reflecting a 6% growth from the previous year.

For FY 2023-24, India’s defence production value was Rs. 1,27,265 crore (US$ 15.37 billion), with public sector undertakings (PSUs) contributing Rs. 74,434 crore (US$ 8.99 billion).

Here’s a look at the top defence stocks in India for February 2025, focusing on companies with the best 5-year CAGR performance.

Best Defence Stocks in February 2025- Based on 5-Year CAGR

Name Market Cap (₹ Crore) Close Price (₹) PE Ratio 1Y Return (%) ↓5Y CAGR (%)
NIBE Ltd 2,136.77 1,494.60 115.38 77.63 169.98
Taneja Aerospace and Aviation Ltd 1,013.14 397.3 91.03 -2.55 68.56
Sika Interplant Systems Ltd 995.42 2,347.60 51.42 48.02 63.72
High Energy Batteries (India) Ltd 510.63 569.65 29.76 5.5 60.28
Hindustan Aeronautics Ltd 2,61,052.98 3,903.45 34.25 35.04 55.55

Note: The best defence stocks list here is as of January 23, 2025. The stocks are sorted based on the 5Y CAGR. 

Overview of the Defence Stocks

1. Nibe Ltd

Established in 2005, Nibe Ltd specialises in manufacturing essential components for the defence sector, electric vehicles (EVs), and software development. The company focuses on fabricating and machining components for the defence industry. It also assembles parts for EVs and offers innovative products backed by research in its EV division and the BVM R&D Foundation.

For the quarter ended September 2024, Nibe Ltd reported a revenue of ₹127.22 crore and a net profit of ₹9.40 crore. This marks an increase from the June 2024 quarter, where revenue stood at ₹109.28 crore, and net profit was ₹7.86 crore. 

Key metrics:

  • Earning per Share (EPS): ₹24.2
  • Return On Equity (ROE): 16.02%

2. Taneja Aerospace & Aviation Ltd

Taneja Aerospace & Aviation Ltd, established in 1994, is part of the Pune-based Indian Seamless Group. The company is involved in manufacturing and selling parts and components for the aviation industry. It also provides services related to airfields, maintenance, repair, and operations (MRO), along with other related services.

For the quarter ended September 2024, the company reported a revenue of ₹10.12 crore and a net profit of ₹4.09 crore. This reflects an improvement from the June 2024 quarter, where revenue was ₹9.14 crore and net profit stood at ₹3.47 crore. 

Key metrics:

  • EPS: ₹4.93
  • ROE: 9.12%

3. Sika Interplant Systems Ltd

Sika Interplant Systems Ltd is an engineering-focused company that serves the Aerospace, Defence, Space, and Automotive sectors in India. Its key business areas include engineered projects and systems, interconnect solutions, electrical module integration, maintenance, repair, and overhaul (MRO) services, and value-added distribution. The company is also a licensed defence producer and a qualified Indian Offset Partner approved by the Government of India.

For September 2024, Sika Interplant Systems Ltd reported a revenue of ₹33.24 crore and a net profit of ₹6.03 crore. In comparison, the June 2024 quarter recorded a revenue of ₹30.42 crore and a net profit of ₹5.30 crore. 

Key metrics:

  • EPS: ₹52.32
  • ROE: 20.17%

4. High Energy Batteries (India) Ltd

High Energy Batteries (India) Ltd, founded in 1979, is a part of the Esvin group. The company manufactures and exports advanced batteries for the Army, Navy, Airforce, and Launch Vehicles. It also produces commercial batteries for automotive and standby VRLA applications. 

In the December 2024 quarter, the company reported a revenue of ₹12.66 crore and a net profit of ₹0.67 crore. This compares to a revenue of ₹14.95 crore and a net profit of ₹1.80 crore in the September 2024 quarter.

Key metrics:

  • EPS: ₹11.21
  • ROE: 11.19%

5. Hindustan Aeronautics

Hindustan Aeronautics is involved in manufacturing aircraft and helicopters, as well as providing repair and maintenance services. As of FY24, its order book was ₹94,000 Cr, up from ₹82,000 Cr in FY22, with more major orders expected in FY25.

In the quarter ended September 2024, the company reported a revenue of ₹5,976.55 crore and a net profit of ₹1,490.36 crore. In comparison, for the quarter ending June 2024, the revenue was ₹4,347.57 crore and the net profit was ₹1,435.59 crore. 

Key metrics:

  • EPS: ₹126.67
  • ROE: 29.17%

Best Defence Stocks in February 2025- Based on Market Cap

Name ↓Market Cap (₹ Crore) Close Price (₹) PE Ratio 1Y Return (%)
Hindustan Aeronautics Ltd 2,61,052.98 3,903.45 34.25 35.04
Bharat Dynamics Ltd 44,614.32 1,217.10 72.81 45.79
Data Patterns (India) Ltd 12,316.19 2,199.95 67.79 23.43
Unimech Aerospace and Manufacturing Ltd 6,405.42 1,259.50 110.17 -8.48
Paras Defence and Space Technologies Ltd 4,160.32 1,032.50 129.77 41.05

Note: The best defence stocks list here is as of January 23, 2025. The stocks are sorted based on the market cap. 

 

Best Defence Stocks in February 2025- Based on Net Profit Margin

Name Market Cap (₹ Crore) Close Price (₹) PE Ratio 1Y Return (%) ↓Net Profit Margin (%)
Taneja Aerospace and Aviation Ltd 1,013.14 397.3 91.03 -2.55 36.07
Data Patterns (India) Ltd 12,316.19 2,199.95 67.79 23.43 32.11
Unimech Aerospace and Manufacturing Ltd 6,405.42 1,259.50 110.17 -8.48 27.19
Hindustan Aeronautics Ltd 2,61,052.98 3,903.45 34.25 35.04 23.59
Bharat Dynamics Ltd 44,614.32 1,217.10 72.81 45.79 22.43

Note: The best defence stocks list here is as of January 23, 2025. The stocks are sorted based on the net profit margin. 

 

Important Points to Know Before Investing in Defence Stocks

  • Advancements in Technology

India’s defence sector is evolving quickly with new technologies. Investors should focus on companies that invest in research and development (R&D) to keep up with the latest trends.

  • Geopolitical Risks

Defence stocks can be affected by global events like border issues, conflicts, and changing government policies. These factors may impact the sector’s stability and profitability.

  • Role of Government Policies

The government plays a significant role in shaping the defence sector. Investors should consider policies related to procurement, licensing, and foreign direct investment (FDI) when evaluating defence stocks.

  • Defence Budget

India’s growing defence budget is a positive sign for the sector. Increased spending on equipment, technology, and exports can boost growth. Investors should focus on companies aligned with these priorities.

Tips for Investing in Defence Stocks

  • Understand the Industry: Study government policies, defence budgets, and technological advancements.
  • Check Financials: Invest in financially stable companies with strong growth and consistent performance over five years.
  • Be Aware of Geopolitical Issues: Evaluate how global tensions and defence trends may affect the sector.
  • Seek Professional Advice: Consult a financial expert to align investments with your goals and manage risks.

Risks to Keep in Mind When Investing in Defence Stocks

  • Geopolitical Uncertainty: Stock prices can be volatile due to border tensions or international conflicts.
  • Policy Changes: Shifts in government priorities or budgets may impact growth opportunities.
  • Regulations: Stricter rules or new compliance requirements can affect operations and profits.
  • Reliance on Large Contracts: Defence companies often depend on a few big contracts, which can pose risks if there are delays or cancellations.

Future of India’s Defence Sector

  • Government Support: Strong backing from the government, with plans to spend ₹6 lakh crore, will drive growth.
  • Technological Growth: Investments in advanced tech like AI, drones, and smart weaponry will benefit the sector.
  • FDI and Global Partnerships: Increased foreign investment and collaborations with global companies are improving competitiveness.
  • Export Opportunities: India is expanding its role in the global defence market, offering long-term growth for domestic manufacturers.

Conclusion

When investing in defence stocks, look for companies with solid financials, growth potential, and a balanced risk profile. Understand the sector’s complexities and consult a financial advisor to make informed decisions in this dynamic industry.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Paytm Shares Drop Over 8% Amid ED Investigation

Paytm share price took a significant hit on Friday, falling by more than 8% after a report revealed that the company is under investigation by the Enforcement Directorate (ED) for alleged involvement in a cryptocurrency scam. Paytm’s shares dropped as much as 8.84%, reaching ₹773.90 on the BSE.

Details of the Investigation

One 97 Communications, Paytm’s parent company, is one of eight payment gateways being scrutinised by the ED. The investigation focuses on their suspected involvement in a crypto scam led by 10 Chinese nationals using the HPZ Token app. The accused are alleged to have gathered over ₹2,200 crore from individuals in 20 states by promoting cryptocurrency mining investments.

The ED has frozen around ₹500 crore in virtual accounts, and the company is looking into whether these payment gateways failed to report suspicious transactions as required by financial regulations. Among the frozen amounts, Paytm’s share was ₹2.8 crore, while PayU, Easebuzz, Razorpay, and CashFree held larger amounts.

Paytm’s Stock Performance

Despite the recent drop, Paytm shares have shown strong growth over the past 6 months, gaining 81%. In the last year, the stock price increased by 10%, and it has gained over 52% in 2 years. However, the stock has declined by 16% in the last month.

Other Developments in the Case

In a related case, a court in Nagaland declared Bhupesh Arora, a Delhi resident, a fugitive economic offender after he failed to appear for court hearings. Arora, who fled to Dubai in 2022, is linked to the cryptocurrency scam, and the ED has filed charges against 298 individuals involved.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Best Pharma Stocks in India in February 2025: Laurus Labs, Glenmark Pharmaceuticals and More- Based on 5-Year CAGR

India is the largest supplier of generic medicines globally and is widely recognised for its affordable vaccines and generic drugs. The Indian pharmaceutical industry ranks third in the world by production volume and has seen constant growth, with an average annual growth rate of 9.43% over the past nine years. This article explores some of the top pharmaceutical stocks in India for February 2025, focusing on their 5-year CAGR.

Overview of India’s Pharmaceutical Industry

India plays an important role in the global pharmaceutical market. It provides over 50% of the world’s vaccines, 40% of generic medicines used in the US, and 25% of those in the UK. The domestic industry is vast, with around 3,000 pharmaceutical companies and about 10,500 manufacturing units.

The country is also a major supplier of antiretroviral drugs, which are used worldwide to treat AIDS. In fact, Indian companies supply more than 80% of these medicines globally, earning India the nickname “pharmacy of the world” for its high-quality, affordable products.

The Indian pharmaceutical industry is a significant contributor to the economy, accounting for about 1.72% of the GDP. Globally, it ranks third in production volume and 14th in value.

According to a report by EY and FICCI, the Indian pharmaceutical market is expected to grow to $130 billion by 2030. Meanwhile, the global pharmaceutical market was projected to exceed $1 trillion in 2023.

Best Pharma Sector Stock List In India In February 2025 – 5-Year CAGR Basis

Name Market Cap (₹ in crore) Close Price (₹) PE Ratio 1Y Return (%) ↓5Y CAGR (%)
Laurus Labs Ltd 31,554.36 585.15 196.54 46.67 47.79
Glenmark Pharmaceuticals Ltd 42,637.22 1,510.95 -28.39 76.07 33.91
Ajanta Pharma Ltd 36,173.92 2,895.95 44.32 31.82 29.72
IPCA Laboratories Ltd 40,175.33 1,583.55 73.4 46.35 20.89
Aurobindo Pharma Ltd 72,298.19 1,244.80 22.79 9.81 20.5

Note: The list of top pharma stocks in India listed in the stock market here are sorted as per the 5-yr CAGR as of January 24, 2025. 

Overview of Best Pharma Company Stocks in India in February 2025

1. Laurus Labs

Laurus Labs, established in 2005, is a pharmaceutical and biotechnology company known for its research-driven approach. It holds a leading global position in producing specific Active Pharmaceutical Ingredients (APIs) for anti-retroviral, oncology, cardiovascular, and gastroenterology treatments, including high-potency APIs.

Laurus Labs reported a revenue of ₹1,184.85 crore for September 2024, an increase from ₹1,116.93 crore in June 2024, contributing to a total revenue of ₹4,812.39 crore for FY 2023-24. The net profit for September 2024 stood at ₹42.44 crore, up from ₹28.78 crore in June 2024, with a cumulative net profit of ₹223.70 crore for the fiscal year.

Key metrics: 

  • Earning per share (EPS): ₹4.36
  • Return on equity (ROE): 5.51%

2. Glenmark Pharmaceuticals Ltd

Glenmark Pharmaceuticals Ltd is a research-focused global pharmaceutical company that operates in generics, speciality medicines, and over-the-counter (OTC) products. It has a presence in more than 80 countries.

Glenmark Pharmaceuticals reported revenue of ₹2,636.10 crore in September 2024, up from ₹2,329.54 crore in June 2024, with a total of ₹7,891.12 crore for FY23-24. The net profit for September 2024 stood at ₹595.06 crore, compared to ₹453.73 crore in June 2024 and ₹5,167.29 crore for the fiscal year 2023-24.

Key metrics: 

  • EPS: ₹199.94
  • ROE: 23.56%

3. Ajanta Pharma

Ajanta Pharma is engaged in the development, manufacturing, and marketing of high-quality speciality pharmaceutical finished dosages. In India, the company generates 31% of its FY23 revenue from its branded generic business. It focuses on niche and first-to-market drugs across 4 key therapeutic areas: cardiology, ophthalmology, dermatology, and pain management. 

In September 2024, Ajanta Pharma reported a revenue of ₹1,128.91 crore and a net profit of ₹234.98 crore. In June 2024, the revenue was ₹1,077.27 crore, and the net profit stood at ₹236.03 crore. For the fiscal year 2023-24, the company achieved a revenue of ₹3,971.12 crore and a net profit of ₹807.24 crore.

Key metrics: 

  • EPS: ₹68.36
  • ROE: 24.19%

4. Ipca Laboratories

Ipca Laboratories is a fully integrated pharmaceutical company that manufactures more than 350 formulations and 80 active pharmaceutical ingredients (APIs) across various therapeutic segments. With its diverse product portfolio, the company ranks among the top 20 pharmaceutical companies in India.

In September 2024, Ipca Laboratories reported a revenue of ₹1,810.94 crore and a net profit of ₹244.12 crore. This was an increase from June 2024, when the company reported a revenue of ₹1,565.86 crore and a net profit of ₹204.13 crore. For the fiscal year 2023-24, the company achieved a total revenue of ₹6,166.46 crore and a net profit of ₹530.41 crore.

Key metrics: 

  • EPS: ₹25.62
  • ROE: 9.65%

5. Aurobindo Pharma

Aurobindo Pharma is one of the leading pharmaceutical companies in India and holds the position of the second-largest in the country. It is also the largest generics company in the United States by prescription volume. Additionally, Aurobindo Pharma ranks among the top 10 generic companies in 7 out of 11 countries in Europe. By FY22 revenues, it is counted among the top 5 listed pharmaceutical companies in India.

For the period ending September 2024, Aurobindo Pharma reported a revenue of ₹2,824.59 crore, a net profit of ₹537.53 crore, and for the full fiscal year 2023-24, the company achieved a total revenue of ₹10,645.64 crore and a net profit of ₹1,954.14 crore.

Key metrics: 

  • EPS: ₹35.62
  • ROE: 10.53%

Best Pharma Sector Stock List In India In February 2025 – Market Cap Basis

Name ↓Market Cap (₹ in crore) Close Price (₹) PE Ratio 1Y Return (%) 5Y CAGR (%)
Sun Pharmaceutical Industries Ltd 4,39,942.06 1,833.60 45.94 33.03 32.45
Cipla Ltd 1,17,196.91 1,451.15 28.44 2.99 25.55
Torrent Pharmaceuticals Ltd 1,10,460.13 3,263.75 66.69 30.9 26.43
Mankind Pharma Ltd 1,08,713.44 2,635.05 56.83 22.97
Dr Reddy’s Laboratories Ltd 1,07,422.62 1,289.40 19.26 13.62 16.24

Note: The list of top pharma stocks in India listed in the stock market here are sorted as per the market cap as of January 24, 2025. 

 

Best Pharma Sector Stock List In India In February 2025 – Net Profit Margin Basis

Name Market Cap (₹ in crore) Close Price (₹) PE Ratio 5Y CAGR (%) ↓Net Profit Margin (%)
Abbott India Ltd 59,178.88 27,849.80 49.27 16.99 19.62
Ajanta Pharma Ltd 36,173.92 2,895.95 44.32 29.72 19.01
GlaxoSmithKline Pharmaceuticals Ltd 35,365.20 2,087.60 59.95 5.07 16.41
Alkem Laboratories Ltd 61,976.52 5,183.50 34.51 17.35 13.84
Aurobindo Pharma Ltd 72,298.19 1,244.80 22.79 20.5 10.73

Note: The list of top pharma stocks in India listed in the stock market here are sorted as per the net profit margin as of January 24, 2025. 

Things to Consider Before Investing in Indian Pharma Stocks

  • Infrastructure

The growth of healthcare facilities in India significantly influences the pharmaceutical industry. As healthcare services expand and the demand for medical products rises, pharmaceutical companies have more opportunities to grow.

  • Demand

The demand for pharmaceutical products depends on factors like an ageing population, higher healthcare spending, and the spread of diseases. Evaluating both current and future demand is essential to understanding the growth potential of pharma stocks.

  • Competition and Mergers

The pharmaceutical sector is highly competitive, with companies often pursuing mergers and acquisitions to maintain their edge. It’s important to assess a company’s market position, growth potential, and recent stock performance to make informed decisions.

  • Research and Development (R&D)

Pharma companies invest a lot in R&D to develop new drugs and treatments. Checking a company’s R&D spending and pipeline of upcoming products can help determine whether they are working on promising innovations.

Conclusion

The pharmaceutical sector is a key part of India’s foreign trade and offers substantial investment opportunities. However, potential risks include regulatory changes, particularly those affecting pricing and exports, which can impact revenues. Many Indian pharma companies rely on the US market, where regulatory scrutiny and FDA inspections can influence stock prices. Additionally, since the industry depends heavily on exports, currency fluctuations can pose risks. Carefully evaluating these factors is crucial before investing in pharma stocks.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.