Query Board

Investment Horizon : Query-Specific : Subscribers can ask their queries regarding stocks they hold and get our expert guidance. [EasyDNNnews:PaidContentStart]



Reliance Industries Ltd (RIL), India’s largest private-sector conglomerate, posted a 6 per cent year-on-year (YoY) rise in consolidated net profit to ₹22,434 crore for Q4FY25. Revenue from operations increased 10 per cent YoY to ₹2,64,573 crore, while EBITDA grew 3.6 per cent to ₹48,737 crore. However, the EBITDA margin contracted 90 basis points to 16.9 per cent. Retail and digital services accounted for 54 per cent of FY25 consolidated EBITDA, highlighting their growing relevance in the overall business mix. 

The stock has rallied 26.10 per cent on a year-to-date (YTD) basis in 2025, though it remains down 4 per cent over the past 12 months. It currently trades at a P/E of 30x, with ROCE and ROE at 9.43 per cent and 8.51 per cent, respectively. EV/EBITDA stands at 12.8x, and the debt-to-equity ratio is at 0.44x. 

Looking ahead, FY26 growth visibility appears strong, backed by continued retail expansion, likely telecom tariff hikes, and steady O2C performance. We maintain a ‘Hold’ rating and recommend partial profit booking after the recent sharp rally to secure gains. 

Asian Paints Ltd, a leader in the decorative paints segment, reported a weak Q4FY25 performance. Consolidated net profit declined 45 per cent YoY to ₹692.13 crore, while revenue fell 4.3 per cent YoY to ₹8,358.91 crore. Sequentially, profit was down 37.7 per cent, and PBDIT dropped 15 per cent YoY to ₹1,436 crore. Margins shrank to 17.2 per cent from 19.4 per cent. Management cited sluggish demand, weak consumer sentiment, and intensifying competition as key pressures. 

The decorative paints segment recorded modest volume growth of 1.8 per cent but saw revenue fall 5.2 per cent due to downtrading and pricing pressure. In contrast, the industrial coatings segment grew 6 per cent, led by demand in general industrial and automotive coatings. The company declared a final dividend of ₹20.55 per share for FY25. Despite long-term strengths, including strong brand equity and wide product range, the stock has declined 25 per cent over the past year. Trading at a trailing PE of 60x versus an industry average of 42.5x, valuations are steep. 

We recommend an ‘Avoid’ at current levels due to limited near-term upside. 
 

NTPC Ltd, India’s largest power generator and a Maharatna PSU under the Ministry of Power, operates a diversified energy portfolio spanning coal, gas, hydro, solar, and wind. With over 80 GW installed capacity, it plays a crucial role in ensuring India’s energy security and accelerating the clean energy transition. It also continues to lead infrastructure investments aligned with the nation’s decarbonization goals. 

In Q4FY25, NTPC posted a 4 per cent YoY rise in consolidated net profit to ₹5,778 crore, with revenue up 3.2 per cent YoY at ₹43,904 crore. However, EBITDA declined 1 per cent YoY to ₹11,255 crore, and margins contracted to 25.6 per cent from 26.7 per cent. A final dividend of ₹3.35 per share was declared, in addition to interim payouts during the fiscal year. 

FY25 capex stood at ₹44,636 crore (up from ₹35,385 crore in FY24), with NTPC Green Energy Ltd (NGEL) accounting for ₹12,914 crore. NGEL commissioned 1.9 GW against a 3 GW target. NTPC plans average standalone capex of ₹32,000 crore annually over the next three years and targets 26 GW of the 80 GW India aims to add this decade, with a strategic focus on renewables and energy storage solutions. 

While power demand growth is now estimated at 6 per cent CAGR (vs. 7 per cent earlier), NTPC’s execution strength, project pipeline, and thermal dominance remain strong positives. The stock trades at 14x P/E and 9.05x EV/EBITDA, with healthy ROCE of 10.8 per cent and ROE of 13.6 per cent. 

Despite risks from land acquisition delays, regulatory bottlenecks, and softer demand growth projections, NTPC offers long-term growth visibility backed by robust fundamentals. 

We suggest holding the stock and booking partial profits to lock in gains while remaining exposed to its future upside. 

Praj Industries Ltd, a Pune-based bioengineering firm founded in 1983, specialises in ethanol plants, water systems, brewery equipment, and industrial wastewater solutions. With over 1,000 projects in 100+ countries and four manufacturing units in India, it delivers sustainable clean energy and biotech solutions backed by strong R&D and proven execution capabilities. 

In Q4FY25, consolidated net profit fell sharply by 56.7 per cent YoY to ₹39.8 crore, marking the third straight quarter of declining profits. Revenue dropped 15.6 per cent YoY to ₹859.7 crore, and EBITDA declined 43.5 per cent to ₹73.8 crore. Margins contracted 420 bps to 8.6 per cent due to execution delays, elevated input costs, and scale-up expenses at the GenX Mangalore facility. Profit before tax fell to ₹58.3 crore from ₹123 crore in Q4FY24. 

Despite weak earnings, order inflow rose 12 per cent YoY, and order backlog expanded 11.4 per cent to ₹4,293 crore. The stock is down 30 per cent over the past year, underperforming broader indices and sectoral peers. 

Short-term earnings visibility remains muted. However, the long-term outlook remains positive, supported by ethanol blending mandates (25–30 per cent), commercialisation of co-products, and rising export demand from Latin America and Southeast Asia. The operational GenX facility is expected to drive Engineering revenue from H2FY26 onwards. 

At 45.5x P/E and 24.3x EV/EBITDA, well above industry peers, valuations appear stretched and imply limited near-term rerating potential. Given limited medium-term upside, we recommend a Sell at current levels. Long-term investors may hold, considering Praj’s diversified clean energy portfolio and innovation-led business model, which continues to evolve with global sustainability trends. 

(Closing price as of July 08, 2025) 

[EasyDNNnews:PaidContentEnd] [EasyDNNnews:UnPaidContentStart]

[EasyDNNnews:UnPaidContentEnd]