Road and highway companies in India have seen their shares tumble more than half in the last 12 months, and the slowdown shows no signs of ending soon.
Across the sector, listed road builders have lost an average of 53% of their market value over the past year. The biggest losers are:
Two main factors are hurting the sector:
Because of this, the share of listed developers in total road work has fallen sharply: from about 61% in FY16‑18 to just 24% in FY25.
Company results show a mixed picture, with most firms seeing falling revenue and volatile profits.
Experts advise caution. With limited new road orders and flat capex, companies may struggle to win projects at healthy margins. Diversifying into other infrastructure segments could become essential.
One analyst notes that the real catalyst for the sector will likely come after the upcoming budget announcement. Another market strategist points to the recently approved Rs 19,142 crore Nashik‑Solapur‑Akkalkot six‑lane corridor as a possible source of renewed interest, but still recommends a careful approach, highlighting Afcons as a relatively safer pick.
The road construction space remains under pressure due to stagnant government spending and a slowdown in project awards. While a few companies have managed to improve profitability through cost cuts, most are battling shrinking revenues. Retail investors should stay vigilant and consider limiting exposure until clearer policy signals emerge.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.
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Join TelegramHCL Technologies, India’s third‑largest IT firm, is set to release its third‑quarter numbers on January 12. Investors are watching closely as analysts predict solid growth despite a typically slow season for IT services. What to Expect from the Q3 Report Analysts expect HCL Tech to beat many peers on both revenue and profit. The main drivers are: Revenue growth of around 11% year‑on‑year, helped by its engineering and R&D (ER&D) business and seasonal software demand. Net profit rising 5‑8% year‑on‑year, supported by higher margins in cloud, security and digital workplace services. A fourth interim dividend for FY 2025‑26 to be considered by the board. Key Financial Forecasts Brokerages are estimating the following: Revenue growth: ~11% YoY in Indian rupees. Profit growth: 5‑8% YoY. EBIT margin: Expected to rise about 100 basis points to roughly 18.5% after accounting for restructuring costs. Guidance for FY 2026: Revenue growth narrowed to 3.5‑4.5% (from 3‑5%) and services revenue growth to 4.5‑5% (from 4‑5%). What Investors Should Watch Key points to keep an eye on in the earnings call include: Strength of the deal pipeline and any new large contracts. Performance across core verticals such as financial services, technology and emerging digital segments. Updates on operational discipline, talent management and cost pressures. How the company navigates seasonal slowdowns and client decision‑making trends. Disclaimer Remember, this is perspective, not prediction. Do your own research or consult a certified expert before making any investment decisions. Market conditions can change quickly.
On January 17, IDBI Bank’s board will review its third‑quarter results, which show a sharp jump in profit and a strong cash boost from selling its NSDL shares. Key Financial Highlights Net profit: ₹3,627 cr for July‑September, almost double the ₹1,836 cr earned a year earlier. Operating profit: Up 17% YoY to ₹3,523 cr. Net interest income: Fell to ₹3,285 cr from ₹3,875 cr a year ago. Total business: Reached ₹5,33,730 cr, a 12% annual rise. Deposits: Crossed the ₹3 lakh cr mark. NSDL Stake Sale Boost The bank sold more than 2.22 crore equity shares, an 11.11% stake in National Securities Depository Ltd (NSDL), at about ₹799.87 per share. The transaction added roughly ₹1,699 cr to profit. Asset Quality Gross NPA ratio: Improved to 2.65% from 3.68% a year ago. Net NPA ratio: Slightly up to 0.21% from 0.20%. Share Price Movement Today the stock opened at ₹103.15 on the BSE, hovered between ₹101 and ₹104.45, and ended flat. Technical Outlook Analysts note a strong breakout above ₹105 with volume eight times the 50‑week average, suggesting institutional buying. The price is resting on rising 10‑ and 20‑day EMAs, which could act as support. Potential upside target: around ₹140, with a further stretch to ₹170 if momentum holds. Risk‑reward remains favorable as long as the price stays above the breakout zone. Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.
Exports of basmati rice to Iran have hit a snag, sending several Indian rice‑related stocks sliding. Stocks React to the News Shares of companies that grow or export basmati rice – GRM Overseas, Sarweshwar Foods and Kohinoor Foods – fell about 3% on Monday. The biggest drop was in Kohinoor, which lost 3.37% and traded at ₹24.91. LT Foods and KRBL, other big exporters, also slipped up to 1.3%. Why Iran Is Holding Back Rice Imports The Iranian rial has weakened sharply after tighter U.S. sanctions. The exchange rate fell from around 90,000 per U.S. dollar to about 150,000. Earlier, Iran gave a subsidised rate of 28,500 rial per dollar for food imports, but that support has now been removed. With a higher cost, the Iranian government stopped subsidising food imports, causing Indian exporters to pause shipments. About ₹2,000 crore of rice cargoes are now stuck at ports, waiting for clearance. How Important Is the Iranian Market? Iran is India's second‑largest buyer of basmati rice after Saudi Arabia, importing roughly 12 lakh tonnes a year – worth an estimated ₹12,000 crore. The country especially prefers the parboiled (sela) variety. Analyst Views Research analysts note that Indian basmati exporters face a “dual headwind”: potential U.S. tariffs on Indian rice and weaker demand from Iran. Companies such as LT Foods (Daawat) and KRBL earn 25‑45% of their revenue from exports, so the current situation could squeeze their profit margins. One analyst highlighted GRM Overseas as showing the strongest price action. The stock is trading near a long‑term support level and has formed a tight price pattern that could break higher if buying pressure returns. What Should Retail Investors Consider? Investors may want to watch how the trade dispute and currency moves develop before adding more to basmati rice stocks. Those comfortable with short‑term volatility could look for a breakout above ₹175 in GRM Overseas as a possible entry point, while keeping a stop‑loss near the current range. Remember, this is just an overview, not a prediction. Do your own research or talk to a financial advisor before making any investment decisions.