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Honasa Consumer Ltd. (HCL), established in 2016, is a prominent player in India’s digital-first beauty and personal care (BPC) market. The company has carved a significant niche by offering a diverse range of products through its online platform. Notably, HCL’s flagship brand, Mama Earth, has achieved remarkable success, securing the position of the third-largest skincare brand in India as of CY23, according to Euromonitor International. This achievement underscores HCL’s strong market position and its ability to cater to the evolving preferences of Indian consumers. 

In Q2FY25, the company recorded net sales of ₹462 crore but incurred an operating loss of ₹31 crore and net loss of ₹19 crore. For the first half of FY25, the net sales reached ₹1,016 crore, resulting in an operating profit of ₹15 crore, though an overall net loss of ₹21 crore persisted. The company has delivered good profit growth of 96.7 per cent CAGR over the last 5 years. HCL has experienced a 50 per cent decline in its stock price. Despite the attractive 50 per cent drop, the stock may still be overvalued compared to its earnings and future growth prospects. Facing intense competition in the beauty and personal care industry, brand loyalty is crucial for its long-term success. Hence, we recommend AVOID. 

Indian Hotels Company Ltd. (IHCL) operates a diverse portfolio of luxury, upscale and midscale hotels under brands like Taj, Vivanta, SeleQtions and Ginger. As of March 2024, the company had 218 operational hotels with 24,136 rooms and a pipeline of 92 additional hotels. In the second quarter of the fiscal year 2025 (Q2FY25), IHCL reported strong financial performance. Its consolidated revenue grew by 28 per cent to `1,890 crore and the EBITDA increased to ₹565 crore, resulting in a margin expansion of 270 basis points to 30 per cent. 

During the first half of FY25, IHCL signed 42 hotels and opened 14 hotels, reaching a portfolio milestone of 350 hotels. It aims to open 25 and 30 hotels in FY25 and FY26, respectively. The strong performance is driven by robust domestic demand, limited supply additions and favourable demographics. IHCL has experienced a robust recovery due to a growing Indian economy and increasing domestic tourism. It has signed a licensing agreement with Claridges Hotels for properties in India and Nepal. Additionally, it has acquired 55 per cent of Rajscape Hotels, operating the Tree of Life brand. Given the confidence of delivering double-digit revenue growth, we recommend HOLD. 

S G Mart Ltd., formerly known as Kintech Renewables Limited, has emerged as a significant player in the Indian steel industry. The company offers a diverse range of steel products, including TMT rebars, HR sheets, welding rods, and more. In Q2FY25, S G Mart reported impressive revenue growth, reaching ₹1,800 crore, surpassing the previous quarter’s figure of below ₹1,200 crore. The sales volume also surged, exceeding 3,50,000 tonnes, averaging 1,20,000 tonnes per month. The company operates in three key business segments: B2B metal trading, service centres and distribution. 

The B2B metal trading segment has shown strong performance, while the service centre business is expanding rapidly with new centres planned across India. Despite facing challenges such as a 15 per cent decline in steel prices from July to September and a slowdown in construction activity due to elections and extended monsoons, S G Mart remains optimistic. The company aims to increase the sales volume to 1,60,000 tonnes per month in FY26 and 2,50,000 tonnes per month in FY27. The distribution business, though impacted by the construction slowdown, is expected to benefit from the introduction of private-label products. 

As of September 2024, the public holds the majority stake in the company (52.27 per cent), followed by promoters (40.78 per cent), FIIs (5.34 per cent) and DIIs (1.61 per cent). With a strong focus on execution, strategic acquisitions and a diversified business model, S G Mart is well-positioned to capitalise on the growth opportunities in the Indian steel industry. 

However, despite its growth potential, the company faces challenges due to fluctuating steel prices and weak construction activity. These factors may significantly impact its financial performance. Commodity price volatility, market demand and margin pressure are the key considerations. The company’s ability to manage inventory efficiently is also a concern. Hence, we recommend AVOID. 

Jindal Worldwide Ltd. is a diversified conglomerate with a significant presence in the textile and electric vehicle sectors. The company’s textile division specialises in manufacturing high-quality denim fabric, premium shirting, yarn-dyed fabrics and bottom weights. In the electric vehicle sector, Jindal Mobilitics is focused on producing electric two-wheelers, leveraging its production capacity of 2.5 lakh units per annum. Its acquisition of Earth Energy in 2022 has enabled it to expand its manufacturing footprint and contribute to India’s electric mobility ecosystem. 

According to its Quarterly Results, the net sales increased by 47 per cent to ₹570.81 crore and net profit increased by 36 per cent to ₹17.32 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 33 per cent to ₹1,063.30 crore and net profit increased by 34 per cent to ₹35.39 crore in H1FY25 compared to H1FY24. In FY24, the net sales decreased by 12 per cent to ₹1,814.09 crore and net profit decreased by 35 per cent to ₹75.86 crore in FY24 compared to FY23. 

The stock is trading at 11.4 times its book value. Promoter holding has decreased over the last quarter by 0.50 per cent and has pledged 9 per cent of their shareholding in the company. The board is likely to announce bonus shares in January 2025. FIIs bought 351,710 shares and DIIs bought 13,331 shares and increased their stake to 0.21 per cent and 0.03 per cent, respectively, in September 2024 compared to June 2024. 

Jindal Worldwide, with a strong growth and profitability record, operates in various textile industry segments, reducing reliance on a single segment. However, market volatility, economic conditions and increased competition may impact the investment, erode profit margins and limit growth opportunities, making it crucial to consider these factors. 

Hence, we recommend SELL. 

Oberoi Realty, a prominent real estate development company based in Mumbai, is a key part of the Oberoi Realty Group. The company specializes in creating diverse real estate projects, encompassing residential properties, office spaces, retail outlets, hospitality venues, and social infrastructure. Its focus on delivering high-quality developments has solidified its position as a leading player in the Indian real estate market. 

Regarding financials, the company has announced impressive financial results for the second quarter of FY 2024-25. It has reported a remarkable 28 per cent year-on-year increase in net profit for the second quarter, reaching ₹589.4 crore. This is a significant improvement from the net profit of ₹456.8 crore recorded in the corresponding quarter of the previous fiscal year. 

Additionally, Oberoi Realty’s revenue from operations grew by 8.4 per cent to ₹1,320 crore, surpassing ₹1,217.4 crore achieved in the previous year. The board of directors has declared a second interim dividend of ₹2 per equity share to reward shareholders for the company's strong financial performance. This represents 20 per cent of the face value of equity shares and was paid on November 14, 2024. 

In addition to the impressive financial results, Oberoi Realty has secured two major development agreements in Mumbai. The first agreement involves the development of land measuring approximately 12,790 square meters at Adarsh Nagar, Worli. The second agreement is for the development and redevelopment of land measuring around 2,576 square meters in Bandra West. Furthermore, Oberoi Realty has acquired Nirmal Lifestyle Realty Private Limited (NLRPL) under the Insolvency and Bankruptcy Code. Oberoi Realty commands a reputed position in the Indian real estate market, and its projects are of good quality. Given the rapid developments in the Indian real estate industry, we recommend BUY. 

Tejas Networks is a global research and developmentdriven telecom equipment company headquartered in India. It designs, develops, and manufactures highperformance optical and data networking products that are used by telecom service providers, utilities, government, and defence networks. 

The financial performance of Tejas Networks has been exceptional in the first half of fiscal year 2025. The company’s net sales increased by 649 per cent to ₹4,374.03 crore in H1FY25 compared to H1FY24. The company reported a turnaround net profit of ₹352.66 crore in H1FY25 compared to a net loss of ₹38.93 crore in H1FY24. 

The company’s revenue mix has shifted towards the Indian private sector, with significant contributions from BSNL-related shipments. Internationally, Tejas Networks has secured new customer wins in the Americas and Africa. The company’s future outlook remains positive, with ongoing 4G deployments and the expected completion of network equipment trials with Vodafone-Idea. Tejas Networks’ strong financial performance is a testament to the successful execution of its growth strategy. The company’s focus on expanding its product portfolio and pursuing market opportunities has yielded positive results. 

The ongoing 4G deployments and the expected completion of network equipment trials with Vodafone-Idea are significant milestones that position Tejas Networks for continued success in the telecom market. The company’s order book as of September 30, 2024, stands at ₹4,845 crore. It is getting a lot of orders for its wireless and wireline products, both in India and other countries. It is also working on new projects like helping BSNL improve the network and providing technology for Indian Railways. Overall, Tejas Networks seems to be in a strong position and has a lot of growth opportunities. 

Hence, we recommend BUY. 

Reliance Infrastructure Ltd., a part of the Reliance Group, is a leading infrastructure company established in 1929. It specialises in engineering, construction and maintenance of power, roads, and metro rail projects. The company has successfully executed large-scale projects. It also operates in the defence and utility sectors, contributing to India’s infrastructure development. In recent years, the company has been focusing on renewable energy and smart city solutions, aligning with the global shift towards sustainable and technologically advanced infrastructure. 

According to its quarterly results, the net sales increased by 67 per cent to ₹359.7 crore and net profit increased by 101 per cent to ₹69.8 crore in Q2FY25 compared to Q2FY24. In its halfyearly results, the net sales increased by 75 per cent to ₹707.7 crore and net profit increased by 100 per cent to ₹136 crore in H1FY25 compared to H1FY24. 

Reliance Infrastructure is expanding its business by incorporating a new subsidiary, Reliance Clean EV Private Limited (RCEVPL), which will focus on manufacturing vehicles and components using various fuel types. Additionally, Reliance Infrastructure’s Dhirubhai Ambani Defence City (DADC) project in Maharashtra is progressing steadily. This project aims to become India’s largest private-sector defence project, contributing significantly to India’s defence capabilities and global market reach. 

The company is improving its fundamentals, focusing on cash flow, profitability and industry outlook. However, high debt can be a burden during economic downturns. Regulatory changes and increased competition can impact operations. Strong leadership and a clear strategic vision are crucial for long-term growth. Management quality, experienced leadership and a well-executed strategy are essential for success. Many of such factors are already in place and the track record of the company holds potential for future growth. Hence, we recommend HOLD. 

Shakti Pumps (India) Ltd. has been shaping the irrigation and domestic water supply sectors since 1982. With a focus on sustainable innovation, the company’s flagship ‘Shakti’ brand offers a diverse range of products, including solar pumps, which ensure superior quality and cost-effective solutions. Recognised globally, the company exports to over 100 countries and holds the distinction of being India’s first five-star rated pump manufacturer. In Q2FY25, the company witnessed significant growth with revenue from operations surging to ₹634.6 crore, a substantial increase of 315.3 per cent compared to ₹152.8 crore in Q2FY24. 

Similarly, profit after tax (PAT) for the quarter reached ₹101.4 crore, a remarkable 1,618.6 per cent increase from ₹5.9 crore in the same period last year. For the first half of FY25, the company’s performance remained strong. Its revenue climbed to ₹1,202.2 crore, a 352.3 per cent increase over H1FY24’s ₹265.8 crore. PAT for the period grew to ₹194.1 crore, a staggering 2,713 per cent increase from ₹6.9 crore in H1FY24. The shares of the company ex-traded bonus shares on November 25, 2024, in the ratio of 5:1, i.e. five new fully paid-up equity shares for every one existing fully paid-up equity share. 

The company is planning to release quarterly guidance updates, with a conservative estimate of ₹500 crore for the next quarter. It plans to expand its retail sector and explore growth in exports and the solar sector without subsidies. It is optimistic about the solar market’s potential and is developing electric vehicle (EV) motors to lead the Indian EV market. As of September 2024, its outstanding orders were of around ₹1,800 crore. The company plans to add new machines within three months to further enhance capacity. 

Hence, we recommend HOLD. 

(Closing price as of December 16, 2024) 

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