Samvat 2082: After the Pause, the Promise

A Pause That Refreshes? A Year of Stalled Momentum [EasyDNNnews:PaidContentStart]
After a spectacular post-Covid rally, India’s equity markets spent the past year consolidating. Samvat 2081, spanning Diwali 2024 to Diwali 2025, marked a pause as benchmark indices moved sideways amid global headwinds and domestic resilience. The Nifty 50 has generated an annualised return of about 16 per cent since Covid but remained largely unchanged in the past one year. 

Following a strong 26 per cent rally in the previous Samvat, Dalal Street’s momentum cooled. From Diwali 2024 through early October 2025, the Nifty 50 gained only 1.1 per cent, with the Sensex showing a similar trend. The real story, however, lay in the striking divergence across sectors. 

The banking index led with a 9.86 per cent return, aided by a favourable regulatory environment and easing liquidity pressures. The Nifty 500 declined 1.10 per cent as uneven earnings hurt mid- and small-caps. IT fell 15.40 per cent amid weak global tech spending, pharma dropped 4.66 per cent, while the auto index managed a modest 0.73 per cent gain, supported by GST rationalisation. The result was a tale of mixed fortunes— banking offered stability amid broader caution. 

The major drag came from heavy foreign outflows. FIIs withdrew nearly ₹1,14,446 crore in October 2024 alone, sending the Nifty down 6.2 per cent that month. In contrast, domestic investors provided a strong counterbalance: DIIs purchased ₹7,74,203 crore worth of equities—almost four times FII sales—helping markets stay resilient despite volatility. 

The Macro Backdrop: India’s Economic Engine Remains Robust
Despite the market churn, India’s economy retained its strength, remaining the world’s fastest-growing major economy with growth projections above 6 per cent. 

Portfolio for Samvat 2082 

The Indian equity market's recent underperformance relative to global peers, coupled with a prolonged period of time correction, has set a compelling stage for a strong rebound in Samvat 2082. This phase of consolidation has effectively wrung out speculative froth, leaving valuations at more reasonable levels and creating a fertile ground for a resurgence. We believe the market is at an inflection point where macroeconomic tailwinds—robust GDP growth, a resilient banking system, and a reviving private capex cycle—are aligning to unlock significant value. This portfolio is strategically constructed to capitalise on this anticipated upswing, moving beyond the past year's narrow market leadership to embrace a broader-based recovery. Our model portfolio is a deliberate bet on this realignment. We have overweighted sectors poised to lead the next leg of growth: high-potential disruptors in EV (Ola Electric) and Fintech (Paytm) to capture explosive growth, and Green Energy (Acme Solar) to leverage the structural shift towards sustainability. Simultaneously, we have a significant allocation to financial services (Nuvama, Northern ARC, Bandhan Bank), which act as a direct proxy for economic health and are primed to benefit from increased credit demand and capital market activity. This is balanced with strategic picks in auto ancillaries (Sharda Motor), infrastructure (Interarch), and pharma (Windlas) to provide defensive stability and diversify risk. This blend of aggressive growth catalysts and cyclical recovery bets, all anchored by reasonably valued stalwarts like Bank of Baroda, positions the portfolio to not just participate in, but potentially outperform, the coming upswing in Samvat 2082. 

IMF World Economic Outlook (April 2025): Real GDP Growth Projections 

Structural reforms—from a streamlined GST to the ‘Make in India’ initiative—continue to enhance productivity. Government-led infrastructure spending is crowding in private investment, while favourable demographics, financialisation of savings, and rising productivity remain the backbone of India’s long-term growth story. 

Challenges on the Horizon
Some of the headwinds that capped returns in Samvat 2081 could linger into Samvat 2082: 

1. U.S. Trade and Tariff Tensions
In 2025, the U.S. imposed steep tariffs—beginning with 26 per cent in April and escalating to 50 per cent by August—on Indian exports worth $50 billion annually. These, along with tighter H-1B visa norms, hurt sentiment, particularly in IT. However, recent diplomatic signals suggest potential resolution in the coming months.
2. Weak Corporate Earnings and Expensive Valuations
Earnings growth has been muted, rising just 7.5 per cent in Q1 FY26, with full-year projections cut to 8 per cent. Yet valuations remain rich: the Nifty trades at 19.3x forward earnings, versus 10.4x in South Korea. With a PEG ratio exceeding 4–5—over twice the S&P 500’s 2–2.5—India looks expensive relative to its growth pace. Until earnings rebound, the market may lack strong triggers. Nonetheless, government and RBI policy measures could drive a turnaround by H2 FY26. 

DSIJ’s Diwali 2024 Portfolio Outshines Broader Market Benchmarks 

As the festive season comes full circle, DSIJ’s Diwali 2024 Portfolio has once again proved its research mettle, delivering an XIRR of 4.69 per cent, comfortably outperforming both the BSE 500 Index (1.99 per cent) and the BSE Sensex (2.98 per cent) during the same period. The portfolio’s broad-based composition, spanning large, mid, and select small-cap names, ensured that gains from outperformers cushioned the impact of weaker pockets, reaffirming the strength of a diversified approach in a volatile market year. 

While defensive large caps such as Sun Pharma and Bharti Airtel faced mild corrections, smaller and mid-cap names like Multi Commodity Exchange (MCX) and 3B BlackBio delivered stellar returns. Similarly, Hindustan Petroleum Corporation (HPCL) and Jubilant FoodWorks generated robust gains, supported by strong earnings momentum and improving sector sentiment. Despite a few laggards such as EMS Limited and CAMS, the portfolio’s overall performance underscores DSIJ’s consistent ability to identify fundamentally resilient businesses positioned for medium-term wealth creation. The outperformance over benchmark indices highlights how our blend of bottom-up stock selection and tactical allocation to mid-cap momentum once again rewarded patient investors. 

3. Persistent FII Outflows
Foreign funds remained net sellers through most of Samvat 2081, leaving the Nifty up only ~4 per cent versus China’s 15 per cent. Encouragingly, FIIs turned buyers for four consecutive days in October—hinting the worst may be over. 

Together, these pressures—tariffs, earnings slowdown, and foreign outflows—made Samvat 2081 a year of consolidation. But the tide appears to be turning. Brokerages expect earnings revival in H2 FY26, led by reforms, GST rate cuts, and festive demand. Some forecast double-digit profit growth by Q3 FY26 as consumer, auto, and financial sectors recover. Early indicators, including GDP and corporate guidance, remain supportive. 

For now, investors may focus on companies with strong balance sheets and visible cash flows. Historically, markets reward those who accumulate quality stocks when sentiment is cautious— long before a full-fledged upturn begins. 

Samvat 2082: What Lies Ahead
Looking ahead, the tone for Samvat 2082 (Diwali 2025–2026) is cautiously optimistic. The RBI and IMF project 6–7 per cent GDP growth with controlled inflation and scope for monetary easing. Credit growth is expected to accelerate as reforms— from infrastructure spending to PLI schemes—continue to gain traction. Once global liquidity stabilises, foreign interest may revive. 

Domestically, retail and mutual fund participation remains strong. DIIs now own nearly 18 per cent of market capitalisation, slightly above foreign holdings—a clear sign of deepening domestic confidence. While short-term volatility may persist, India’s demand-driven growth story remains firmly intact. 

The following pages present our ₹10,00,000 Samvat 2082 portfolio analysis; we recommend investing in the same proportions. 

ACME Solar Holdings Ltd.
CMP (₹): 283.65
BSE CODE ............................................. 544283
Face Value (₹)..................................... 2 52 Wk.
High/Low (₹) ........................ 324.25 / 167.55
Mcap. Full ( ₹ Cr.) ............................... 17,241.98
Here is why
▪️Record 107 per cent YoY rise in power generation.
▪️Refinancing reduces cost of debt; credit rating upgraded to AA– (Stable). 

ACME Solar Holdings Limited is one of India’s leading renewable energy independent power producers (IPPs), driving the country’s transition towards clean energy. Incorporated in 2015 and headquartered in Gurugram, Haryana, the company develops, owns, and operates utility-scale solar, wind, hybrid, and Firm Dispatchable Renewable Energy (FDRE) projects. With a total contracted capacity of 6,970 MW, including 2,890 MW operational, ACME Solar operates across 11 Indian states, catering primarily to central and state utilities through long-term Power Purchase Agreements (PPAs) that provide predictable cash flows. The company has also expanded into hybrid renewable energy and battery energy storage systems (BESS), strengthening its role in India’s decarbonisation roadmap. Following its successful IPO in November 2024, ACME Solar is well positioned to accelerate capacity additions and deliver sustained value through innovation, operational excellence, and financial discipline. Its ongoing investments in emerging technologies, grid integration solutions, and green hydrogen projects further reinforce its leadership in India’s clean energy transformation. 

Financials
For Q1 FY26, ACME Solar reported robust performance on the back of capacity expansion and improved efficiency. Total revenue stood at ₹584 crore, up 72 per cent year on year, driven by commissioning of 350 MW of new projects, including the 

company’s first 50 MW wind project. EBITDA rose 76 per cent year on year to ₹531 crore, maintaining a healthy 91 per cent margin. PAT surged 196 per cent year on year to ₹131 crore, supported by lower finance costs and better cost control. 

For FY25, ACME Solar reported revenue of ₹2,215 crore, up 44 per cent year on year, operating profit of ₹2,015 crore, up 52 per cent year on year, and PAT of ₹401 crore, up 178 per cent year on year, supported by capacity expansion and efficiency gains. The company also benefited from improved tariff realisations and a higher share of generation from low-irradiation regions. 

The balance sheet remains strong, with net operational debt-toEBITDA at 4.2x and net debt-to-net worth at 1.7x. The company improved its Days Sales Outstanding (DSO) to 36 days, down sharply from 54 days in the previous year, while 86 per cent of offtake now comes from central counterparties, ensuring steady cash inflows. Power generation grew 107 per cent year on year to 163 crore units, with a capacity utilisation factor (CUF) of 28.5 per cent, up from 27 per cent last year. The company continues to prioritise cost efficiency, operational reliability, and portfolio diversification to drive long-term growth. 

Valuation & Outlook
At a current valuation of around (TTM) 43× earnings, above the industry average of 29×, and 3.86× book value, ACME Solar trades at a justified premium, reflecting market confidence in its execution capability and growth visibility. The company’s ROE of 7.57 per cent, ROCE of 8.42 per cent, and ROA of 1.71 per cent highlight operational efficiency and prudent capital deployment. With a PEG ratio of 0.89, the valuation remains reasonable relative to its expected earnings trajectory. 

Management remains focused on scaling hybrid renewable projects and battery storage solutions to align with India’s 2030 target of 500 GW renewable capacity. Continued refinancing and credit upgrades are expected to further lower finance costs, strengthening profitability. Supported by long-term PPAs, robust capital adequacy, and disciplined project execution, ACME Solar is poised to deliver sustained earnings growth and stable cash flows. 

The company’s ability to combine engineering excellence with financial prudence positions it among India’s most credible green energy platforms. With an expanding pipeline, strong balance sheet, and improving return ratios, ACME Solar stands well placed to capitalise on the next wave of renewable energy investments. As India accelerates its clean energy ambitions, ACME Solar’s diversified project portfolio and technological adaptability are expected to drive consistent shareholder value creation over the medium to long term. 

Bandhan Bank
CMP (₹): 168.48
BSE CODE ............................................. 541153
Face Value (₹)..................................... 10 52 Wk.
High/Low (₹) ........................ 214.60 / 128.15
Mcap. Full ( ₹ Cr.) ............................... 27,273.75
Here is why
▪️Diversifying from microfinance to secured lending.
▪️Strong capital base and improving asset quality 

Bandhan Bank Limited, headquartered in Kolkata, is one of India’s leading private sector banks, founded on the principle of financial inclusion. Originating from Bandhan Financial Services, a microfinance institution established in 2001, it transitioned into a universal bank in August 2015 after receiving the Reserve Bank of India’s banking licence. The bank focuses on providing banking services to underbanked and unbanked segments while expanding its reach across retail, SME, and housing finance. 

As of March 31, 2025, Bandhan Bank operated through 6,350 banking outlets across 35 states and union territories, serving over 3.25 crore customers. Its loan book remains well-diversified, with exposure across the Emerging Entrepreneurs Business (EEB), retail, SME, and housing segments. The bank continues to strengthen its liability franchise through a growing retail deposit base and a strategic emphasis on low-cost CASA deposits, supported by a strong technological and digital infrastructure. 

Financials
Bandhan Bank reported total revenue of ₹5,476 crore in Q1 FY26, almost flat sequentially (–1 per cent QoQ) and showing a –1 per cent YoY decline from ₹5,536 crore in Q1 FY25. Net interest income (NII) stood at ₹2,757 crore, down 8 per cent YoY, mainly due to higher secured-loan mix, lower creditdeposit ratio, and repo-rate cuts. Non-interest income grew 33 

per cent YoY to ₹726 crore, aided by treasury gains and thirdparty product income. 

Operating profit came in at ₹1,668 crore, up 6 per cent sequentially, while profit before tax stood at ₹521 crore, reflecting subdued credit growth in the Emerging Entrepreneurs Business (EEB) segment. Net profit for the quarter was ₹372 crore, down 65 per cent YoY and up 17 per cent QoQ versus ₹318 crore in Q4 FY25. 

The bank’s net interest margin (NIM) moderated to 6.4 per cent (6.7 per cent in Q4 FY25), while gross and net NPA ratios stood at 4.96 per cent and 1.36 per cent, respectively. Provision coverage ratio including write-offs improved to 87.3 per cent. Capital adequacy remained strong at 19.4 per cent with Tier I at 18.6 per cent. 

For FY25, Bandhan Bank reported revenue of ₹23,583 crore, up 6 per cent YoY, Net Interest Income (NII) at ₹11,491 crore, up 11 per cent YoY, operating profit of ₹9,670 crore, up 12 per cent YoY, and net profit of ₹2,210 crore, up 4 per cent YoY, supported by stable margins and healthy loan growth. 

Valuation and outlook
At a current valuation of around 13x earnings P/E and 1.09x price-to-book (P/B), compared to the industry average of 12.8x P/E and 1.37x P/B, Bandhan Bank is attractively placed for long-term investors seeking stability and growth. Its ROE of 11.9 per cent, ROCE of 7.8 per cent, and ROA of 1.49 per cent reflect a resilient profitability base as the bank strengthens its lending mix and moves toward a more balanced portfolio. 

Bandhan Bank’s ongoing diversification from microfinance to secured retail and SME lending marks a structural shift that can drive sustainable earnings over time. Expansion of the Emerging Entrepreneurs Business (EEB) vertical, growing presence in housing finance, and steady improvement in deposit granularity reinforce its strong franchise value. Strategic investment in digital platforms and technology continues to enhance operational efficiency and customer reach. 

Bandhan AMC is also well positioned for growth, with a steadily expanding product portfolio, rising AUM, and a strong outlook supported by increasing retail participation in mutual funds. With robust capital adequacy, improving asset quality, and a rising share of secured loans, the bank is well positioned for a healthy earnings recovery. As provisioning pressure eases and credit demand revives, Bandhan Bank is expected to deliver consistent growth, higher margins, and improved return ratios—making it one of the promising turnaround stories in India’s private banking space. 

Bank of Baroda
CMP (₹): 268.10
BSE CODE ............................................. 532134
Face Value (₹)..................................... 2 52 Wk.
High/Low (₹) ........................ 271.85 / 190.70
Mcap. Full ( ₹ Cr.) ............................... 1,38,023.66
Here is why
▪️Policy-Driven Liquidity
▪️Risk-Based Reform 

Bank of Baroda (BoB), founded in 1908 and headquartered in Vadodara, is India’s secondlargest public sector bank with operations across 17 countries. Post the merger with Dena Bank and Vijaya Bank, it runs 8,200+ branches and 10,000+ ATMs serving retail, MSME and corporate clients. The bank is scaling digital distribution through bob World and 70+ end-to-end lending journeys, alongside AI initiatives like chatbot ADI and virtual RM Aditi. Its diversified franchise, prudent governance and technology focus underpin sustainable growth. 

Financials
In FY25, on a consolidated basis, Bank of Baroda reported a total income of ₹1,47,217 crore and a net profit of ₹20,716 crore, up 12.5 per cent year on year. The Bank’s Net Interest Income (NII) stood at ₹46,937 crore, while other income increased to ₹17,625 crore, driven by higher fee income and trading gains. Asset quality strengthened further, with Gross NPA at 2.26 per cent and Net NPA at 0.55 per cent, marking the lowest levels in over a decade. Provisions (excluding tax) declined to ₹6,108 crore, reflecting better recoveries and disciplined underwriting. Global deposits rose 10.3 per cent year on year to ₹14.72 lakh crore, while global advances grew 12.8 per cent to ₹12.30 lakh crore, taking the total business to ₹27.02 lakh crore. 

In Q1FY26, the Bank reported a consolidated net profit of ₹4,637 crore (up 2.4 per cent year on year), NII of ₹11,600 crore, and an operating profit of ₹8,375 crore (up 14.7 per cent year on year), while maintaining strong asset quality with GNPA/NNPA at 2.28 per cent and 0.60 per cent, respectively. 

Outlook
We view Bank of Baroda (BoB) as a compounding story supported by balance-sheet strength, disciplined underwriting, and technology-led leverage. Growth is anchored in retail and MSME, where organic retail advances rose 17.5 per cent year on year in Q1FY26 (Standalone) and 19.4 per cent in FY25 (Standalone). Within retail, gold loans (up 55.6 per cent), personal loans (up 21.3 per cent), auto loans (up 20.3 per cent), and mortgages (up 18.9 per cent) delivered robust double-digit growth (Standalone). The MSME and agriculture portfolios expanded 14.2 per cent each (Standalone), aided by secured lending and government guarantees. Management guides for stable asset quality, with slippages at 1–1.25 per cent and credit cost below 0.75 per cent (Standalone), reflecting sound collections and buffers. 

Macros remain constructive. The October 2025 MPC decision to maintain the repo rate at 5.5 per cent with a neutral stance, alongside lower CPI at 2.6 per cent and higher GDP at 6.8 per cent, supports a benign growth and funding environment. For BoB, steady rates help stabilise deposit repricing and protect net interest margins (Consolidated). The risk-based deposit insurance framework should lower premiums for stronger banks, trimming operating costs (Consolidated) and bolstering depositor confidence. 

Digital execution is a key differentiator. BoB’s 70+ digital lending journeys, expanding bob World base, and AI-enabled platforms are driving faster originations, better risk filters, and improving the cost-to-income ratio (Consolidated). This supports fee-income growth (Consolidated) and efficiency, even amid rising technology spends. While noise persists in unsecured retail, it remains cyclical. BoB’s mix of secured loans and government-backed MSME exposures (Standalone) limits loss-given-default and supports contained credit costs. 

Capital Adequacy Ratio at 17.6 per cent (Consolidated) enables growth without diluting returns. As deposit repricing flows through, margins should improve, aided by steady profits and contained provisions. Valuation is attractive; the stock trades at 0.88 times book (Consolidated) versus the industry at 1.15 times, with ROE of 15.5 per cent and ROA of 1.18 per cent (Consolidated). With improving profitability, resilient asset quality, and supportive policy tailwinds, we recommend BUY. 

Interarch Building Solutions Ltd.
CMP (₹): 1,887.80
BSE CODE ............................................. 544232
Face Value (₹)..................................... 10 52 Wk.
High/Low (₹) ........................ 2,410.60 / 1266.00
Mcap. Full ( ₹ Cr.) ............................... 3,264.05
Here is why
▪️The company’s strong engineering base, and expanding capacity position it for sustained growth in India’s evolving infrastructure landscape. 

Interarch Building Solutions Limited is a leading player in the Indian pre-engineered building (PEB) industry, with over 40 years of presence. Founded in 1983, the company has consistently driven innovation in the high-end metal interior and PEB space, having introduced solutions such as metal ceilings, blinds, and advanced metal roofing systems. Interarch is recognised as the second-largest integrated PEB manufacturer in India, with an installed capacity of 1,61,000 metric tonnes per annum, a figure expected to rise to 2,00,000 MTPA as new lines in Andhra Pradesh and Uttarakhand become operational. Its business model is built around offering comprehensive turnkey solutions, covering the entire value chain from customised design and engineering to manufacturing, supply, and onsite execution. This approach has helped Interarch secure a prominent market position, with a 6.5 per cent market share and successful completion of over 750 PEB contracts in the past decade. 

The company is not a mere fabricator or contractor; it is distinguished by its in-depth engineering, commitment to quality, and strong customer relationships, with clients like Reliance, Birla, Tata, Hindustan Unilever, Amazon, and Flipkart. Interarch’s selective focus on long-term value-oriented partnerships, rather than transactional or price-sensitive customers, supported by continual capacity enhancement, underscores its vision to be the trusted solution provider in India’s rapidly evolving construction sector. 

Financials
The company’s financials reflect strong growth and operational discipline. In FY25, Interarch reported consolidated revenue from operations of ₹1,454 crore, marking a growth from ₹1,293 crore in the previous year. EBITDA for FY25 came in at ₹144 crore, with an EBITDA margin of 9.4 per cent, maintaining healthy profitability despite scale expansion. Profit after tax increased to ₹107.8 crore, with a net profit margin of 7.4 per cent and basic EPS at ₹68.51. The company continues to maintain a robust balance sheet, remaining debt-free and holding sizable cash reserves, lending strong support to its capex plans. The order book stood at ₹1,695 crore as of July 31, 2025, and included India’s largest ever single PEB order, worth over ₹300 crore. During Q1FY26, revenue grew to ₹381 crore (up 25.5 per cent YoY), with EBITDA and PAT of ₹32 crore and ₹28 crore respectively, though margins were softer at 8.3 per cent due to volume ramp-ups. 

Nonetheless, management retains confidence in achieving historical EBITDA margins of around 10 per cent as scale efficiencies kick in over the year. Over 80 per cent of new orders come from repeat customers, demonstrating resilience in business relationships and reliability in delivery. The company’s capex pipeline of over ₹200 crore spans expansion in existing plants and the set-up of a new heavy steel fabrication unit, keeping it structurally ready to capitalise on robust demand tailwinds. 

Valuation & Outlook
Interarch is poised for robust growth, supported by a healthy order book and multi-pronged expansion strategy. The outlook for the PEB industry is highly promising, driven by rising adoption in data centres, renewables, semiconductors, advanced industrial, and multi-storey urban infrastructure. 

Key projects in greenfield manufacturing and infrastructure are expected to drive sectoral tailwinds, and the company’s capacity is being expanded to over 2,00,000 MTPA to address these prospects. Future growth is also expected from new verticals, such as heavy structures and multi-storey buildings, leveraging partnerships with players like Jindal Steel & Power and MoldTek Technologies. Despite rising costs during the ramp-up phase, profitability is guided to improve as operating leverage increases and larger, value-added projects begin execution. Interarch’s strong balance sheet, conservative working capital practices, and selective order intake provide a margin of safety for investors. 

Considering the potential of PEB industry and its rapid growth, and also keeping in consideration the excellent long-term prospects, we recommend BUY. 
 

Northern ARC Capital Ltd.
CMP (₹): 270.35
BSE CODE ............................................. 544260
Face Value (₹)..................................... 10 52 Wk.
High/Low (₹) ........................ 292.45 / 153.50
Mcap. Full ( ₹ Cr.) ............................... 153.50
Here is why
▪️A diversified, technology-driven model ensures scalable growth with stable fee and interest income.
▪️Strong capital and low credit risk position the company for risk-adjusted expansion in underserved markets 

Northern Arc Capital Limited (NACL), based in Chennai, is a diversified non-banking financial company (NBFC) providing credit solutions to India’s underserved households and businesses. With over 15 years of experience, NACL has built a strong presence across direct-to-customer lending, intermediary retail credit, and fund management. Its operations are powered by proprietary technology platforms like NuScore and nPOS, enabling robust risk assessment and efficient loan delivery. 

The company operates through 369 branches across India, serving over 2.1 million customers. It partners with 350+ lending institutions and 200+ investors. As of Q1 FY26, NACL manages ₹13,351 crore in assets under management (AUM) with a diversified portfolio spanning MSME, consumer, rural, and intermediary retail credit segments. 

Financials
NACL reported solid operational performance in Q1FY26, with assets under management rising 12 per cent year-on-year to ₹13,351 crore. Net Interest Income increased 10 per cent to ₹298 crore, while total net revenue grew 9 per cent to ₹325 crore. Pre-Provision Operating Profit expanded 18 per cent to 

₹207 crore, reflecting improved operational efficiency. Profit After Tax stood at ₹81 crore, compared with ₹93 crore in Q1FY25 and ₹38 crore in Q4FY25. Net Interest Margin was 8.9 per cent, Net NPA at 0.56 per cent, Return on Assets 2.4 per cent, and Return on Equity 9.3 per cent. The company maintained a strong capital adequacy of 25.5 per cent and reduced its debt-to-equity ratio to 2.7 times from 3.9 times in March 2024. 

Outlook
NACL is strategically positioned to benefit from India’s evolving and increasingly formalised credit ecosystem, particularly within underserved and rural segments. Its diversified lending model, strong risk management framework, and expanding technology-led platforms provide a solid base for sustainable growth. Regulatory developments, including the Reserve Bank of India’s reduction in risk weights for microfinance loans and easing of restrictions on bankpromoted NBFCs, are expected to enhance capital efficiency and profitability over the medium term. 

Operationally, NACL continues to demonstrate resilience and adaptability. FY2025 performance reflected steady growth in fee-based businesses, with core fee income rising 23 per cent year-on-year, underscoring a strategic shift towards a solutionsdriven model rather than pure balance sheet expansion. Its placement business and fund management arm continue to deliver consistent returns, supported by a strong investor network and robust asset quality. 

The company’s direct-to-customer portfolio, particularly MSME and consumer finance, remains a key growth driver, backed by disciplined underwriting and technology integration. The MSME segment’s secured lending model and the consumer finance partnership approach are expected to sustain high-yield, risk-adjusted growth. Rural finance, though moderated amid sector stress, shows early signs of stabilisation, suggesting potential recovery in FY2026. 

With a conservative leverage ratio of around 2.7 times and no near-term equity infusion needs, NACL retains ample headroom for expansion. Strategic initiatives like the nPOS and Altifi platforms diversify revenue streams and strengthen its ecosystem approach. Overall, Northern Arc’s diversified business model, prudent risk management, and favourable macro tailwinds position it well for steady profitability and scale-up, with growth momentum likely to accelerate in the second half of FY2026. By integrating technology with financial services, NACL is poised to capture a larger share of India’s formal credit market and reinforce its position as a leading, scalable NBFC. 

Nuvama Wealth Management Ltd.
CMP (₹): 7,199.50
BSE CODE ............................................. 543988
Face Value (₹)..................................... 10 52 Wk.
High/Low (₹) ........................ 8,510.00 / 4,567.80
Mcap. Full ( ₹ Cr.) ............................... 26,079.86
Here is why
▪️Growing wealth management market boosts Nuvama’s market share
▪️Managed products, technology, and new offerings fuel growth 

Nuvama Wealth Management Ltd., India’s second-largest independent wealth platform, provides integrated solutions across wealth, asset, and capital markets. Formed in 2021 after demerging from Edelweiss and backed by PAG, it manages over ₹4.3 trillion in assets (March 2025) through 3,400+ professionals, serving 1.2 million clients across 100+ offices. The company operates across four segments: Wealth Management (₹1,428 crore, 49 per cent) serving affluent and UHNI clients; Asset Management (₹59 crore, 2 per cent) focusing on alternative and real estate funds; Asset Services (`655 crore, 23 per cent) offering custody and fund accounting; and Capital Markets (₹759 crore, 26 per cent) leading in IPOs and debt issues. 

Furthermore, the company announced on October 1, 2025, that the Securities and Exchange Board of India (SEBI), has granted approval for it to act as the sponsor and establish the proposed Nuvama Mutual Fund. The final registration approval for the Mutual Fund will be issued by SEBI upon the Company’s fulfilment of the conditions outlined in the letter. 

Financials
Looking at the financial performance of Nuvama Wealth Management in Q1FY26, the company reported revenue of 

₹1,122.65 crore which grew by 18.2 per cent YoY from ₹949.43 crore and 0.3 per cent on a QoQ basis. Operating Profit stood at ₹611.58 crore which grew by 24.1 per cent YoY from ₹492.83 crore and 6.4 per cent QoQ, similarly, Net profit grew by 19.4 per cent YoY and stood at ₹263.96 crore from ₹221.02 crore in the previous year same quarter and grew by 3.3 per cent on a QoQ basis. Operating profit margins expanded by 257 bps on a YoY basis and 315 bps on a QoQ basis to 54 per cent. 

On an annual basis in FY25, Nuvama Wealth Management Ltd. reported revenue of ₹4,162.30 crore which grew by 31.9 per cent while operating profit surged by 41.9 per cent which stood at ₹2,220.34 crore. Similarly, net profit jumped by 57.7 per cent to ₹986.18 crore. Operating profit margins expanded by 380 bps and stood at 53.3 per cent. 

Valuation and Outlook 

Nuvama Wealth Management Ltd. is currently trading at a P/B ratio of 7.18x, slightly higher than its 3-year historical median of 6.8x. The stock also commands a premium over the industry median P/B of 2.3x, which appears justified given its robust 20.4 per cent ROCE, strong new-client additions, and growth from existing clients. 

Nuvama’s growth outlook is supported by a mix of structural industry tailwinds and business-specific initiatives across its wealth, asset, and investment segments. Structurally, the firm benefits from operating at the top end of the wealth curve, a resilient segment with strong long-term growth prospects. India’s wealth management market is expected to expand nearly ninefold over the next decade, with organized players like Nuvama gaining share from fragmented intermediaries. 

In Nuvama Wealth, focus areas include Managed Products and Investment Solutions (MPIS), which are driving annuity income growth above 50 per cent, aided by technology platforms like MARS and “One Platform.” Nuvama Private is enhancing asset-related revenues through strong relationship manager acquisition and growth in the lending and syndication pipeline. The Asset Management arm is scaling through CRE fund deployment, new fundraising initiatives worth ₹4,000– 5,000 crore, and the launch of private credit and SIF (Structured Investment Fund) products. Asset Services aim to expand via new offerings such as RTA and trusteeship services, while Institutional Equities and Investment Banking anticipate stronger activity in the second half of the year. 

Overall, Nuvama’s diversified growth strategy, supported by technology, productivity gains, and expanding market opportunities, positions it well for sustained performance across cycles. 

Ola Electric Mobility Ltd.
CMP (₹): 50.27
BSE CODE ............................................. 544225
Face Value (₹)..................................... 10 52 Wk.
High/Low (₹) ........................ 102.50 / 39.58
Mcap. Full ( ₹ Cr.) ............................... 21,904.18
Here is why
▪️Margin upside via PLI & localisation
▪️ Scale and software moat makes switching difficult
▪️Leveraged bets on India’s EV secular growth 

Ola Electric Mobility (listed in India in August 2024) is a pure-play electric two-wheeler (E2W) OEM. The company was founded with the ambition of accelerating India’s transition to electric mobility through vertically integrated manufacturing, software, and distribution. 

The company sells electric scooters (notably its Gen-3 S1 X / S1 Pro / Pro+ lines) directly or via its own retail & service network. It also monetises software (MoveOS / MoveOS+), accessories, warranty and after-sales services. Through its Ola Futurefactory in Tamil Nadu and plans for in-house cell / battery technology, it seeks backward integration, reducing dependence on external battery suppliers. 

The company’s product addresses the problem of high total cost of ownership (TCO) of internal combustion (ICE) twowheelers in highly used commuter settings: fuel cost, maintenance, and emissions. For urban commuters with daily mileage, the electric alternative can deliver significant cost savings over time. Further, Ola’s software upgrades offer better ride analytics, battery health, and usage insights, enhancing perceived value. 

Customers are primarily urban/peri-urban daily commuters, 

delivery/gig riders, and families upgrading from 100–125 cc scooters. They are drawn by lower running costs, feature-rich software promise, brand trust, and spreading service availability. For heavy daily users or commercial riders, the product increasingly becomes a ‘must-have’ rather than optional—especially as fuel volatility and subsidy regimes evolve. 

India’s E2W EV segment is one of the fastest-growing globally, supported by policy incentives (FAME, PLI), rising urbanisation, and shifting consumer preferences. Legacy two-wheeler OEMs are aggressively entering or scaling their EV portfolios, leveraging deep dealer networks and brand heritage. The players include TVS, Bajaj, Hero, Ather, and Ola Electric. In this ecosystem, Ola sits as a consumer-facing OEM that aims to control both hardware and software layers, and increasingly battery cell manufacturing. 

Financials & Outlook
In Q1 FY26 (April–June 2025), Ola Electric delivered 68,192 vehicles, up 32.7 per cent quarter-on-quarter from Q4 FY25. Its revenue from operations stood at ₹828 crore, increasing ~35.5 per cent QoQ from ₹611 crore in Q4 FY25. However, revenue is down ~49.6 per cent year-on-year (from ₹1,644 crore a year ago). The consolidated net loss for the quarter widened to ₹428 crore, versus ₹347 crore in Q1 FY25. On the brighter side, the auto segment—its core business—turned EBITDA-positive in the month of June 2025, and gross margin for the auto business improved from ~13.8 per cent in Q4 FY25 to ~25.6 per cent in Q1 FY26. The auto business’s EBITDA margin (for the quarter) was –11.6 per cent (versus –90.6 per cent in the prior quarter). 

Management has guided that the Auto business is expected to consume only ₹400–500 crore of incremental cash from here to reach free cash flow positive status by year-end. Capex for FY26 in the Auto business will be limited, mostly R&D-related and no major manufacturing Capex in this year for the automotive business. At the consolidated level, cash flows and profitability are improving significantly. 

Trends that are likely to help the company are battery localisation, software monetisation, battery swapping / fast charging infrastructure, and regulatory subsidy design (PLI, import duties) that reward local manufacturing. Ola Electric embodies a high-risk, high-upside profile. Its recent Q1 FY26 results show improving operational discipline and margin shifts that hint at a path to sustainable profitability. For longterm investors with conviction in India’s EV growth and patience for volatility, Ola offers asymmetric optionality—if it can execute. 

One 97 Communications Ltd. (Paytm)
CMP (₹): 1,249.40
BSE CODE ............................................. 543396
Face Value (₹)..................................... 1 52
Wk. High/Low (₹) ........................ 1,296.70 / 652.30
Mcap. Full ( ₹ Cr.) ............................... 78,989.90
Here is why
▪️Turnaround to Profitability
▪️Strong Merchant Ecosystem & Recurring Revenue
▪️Scalable Financial Distribution Model 

One 97 Communications, best known as Paytm, has evolved into one of India’s leading fintech and payments incumbents. At its core, Paytm operates as a front-end third-party app (TPAP) for Unified Payments Interface (UPI), enabling users to pay digitally, and as a merchant acceptance network via QR codes, POS terminals, and the proprietary Soundbox device that gives real-time audio confirmation of settlements. Because merchant transactions generate rich behavioural and cash flow data, Paytm’s acceptance platform becomes a pipeline for distribution of credit (merchant loans, working capital) via partnerships with banks and NBFCs. The product solves three layers of friction: for merchants, it replaces cash handling and reconciliation; for customers, it enables seamless payments; and for lenders, it offers underwriting signals tied to real transaction flows. 

The paying customers are primarily merchants and financial institutions. Merchants pay subscription or service fees for devices (Soundbox, POS), and generate revenue through the margin on payment processing (net of incentives) and valueadded services. Financial institutions pay Paytm for access to flow distribution—Paytm earns commission or trail fees on merchant loans (via default loss guarantees or ‘DLG’ models) or commissions on insurance/broking sales. The strength of Paytm’s position is partly in switching friction: once merchants 

deploy its devices and integrate settlement, ledgering, cash flow reporting, and embedded credit, migrating becomes costly both operationally and financially. 

The revenue model is multi-layered. The payments business earns thin net payment margins (processing yield minus incentives and passthrough costs), but scales with volume and acceptance devices. Device subscriptions or ‘hardware as a service’ add relatively stable recurring revenue. The financial services arm— distributing credit, insurance, etc.—offers higher margins per unit of volume, although it carries risk collection obligations. Paytm’s internal metrics define ‘contribution profit’ (revenue less direct costs), which helps absorb fixed costs. With scale, operating leverage can drive positive EBITDA and net profit. 

Paytm’s competitive edge arises from its scale of installed devices, dense merchant network, and embedded financial services. Its Soundbox and POS footprint give it daily, highfrequency interaction with merchants, plus proprietary data on transaction flows. Strategically, Paytm hedged regulatory risk when its payments bank faced restrictions: it transitioned to a TPAP model via sponsoring banks (Axis, HDFC, SBI, Yes) rather than owning the payments rail, thus offloading balance sheet risk. This agility and integrated stack present reasonably strong barriers to entry, especially at national scale. 

Financials & Outlook
The latest quarterly results (Q1 FY26, ended June 2025) mark a turning point. Operating revenue rose 28 per cent year-on-year to ₹1,918 crore (versus ~ ₹1,502 crore a year ago). Contribution profit reached ₹1,151 crore, implying a contribution margin of ~60 per cent, up ~10 percentage points YoY. Importantly, EBITDA turned positive at ₹72 crore (4 per cent margin), and net profit was ~₹122 crore, reversing deep losses of ~₹839 crore in Q1 FY25 and ~₹540 crore in Q4 FY25. The turnaround was driven by 38 per cent YoY growth in net payment revenue (₹529 crore) and a doubling of financial services distribution revenue to ₹561 crore, reflecting better credit flows, improved collection, and lending trail income. On the cost side, direct expenses were kept in check (other direct cost down 20 per cent). Paytm also carries ₹11,557 crore in cash, enabling flexibility for investment, merchant outreach, or hedging downside. 

Going forward, growth drivers include continued expansion of merchant device adoption, rising GMV (₹5.39 lakh crore in Q1), further scaling of credit distribution, and deeper cross-sell of higher-value financial services. After years of losses, Paytm has delivered its first profitable quarter, validating its pivot to a device plus distribution model. Paytm may finally crystallise the monetisation potential of India’s digital payments infrastructure. 

Sharda Motor Industries Ltd.
CMP (₹): 1,047.50
BSE CODE ............................................. 535602
Face Value (₹)..................................... 2 52
Wk.. High/Low (₹) ....................... 1,258.00 / 625.00
Mcap. Full ( ₹ Cr.) ............................... 6,057.66
Here is why
▪️Strong market position and robust growth
▪️ Healthy cash reserves 

Sharda Motor Industries Ltd. (SMIL), established in 1986 and headquartered in New Delhi, is a leading Indian manufacturer and assembler of automotive components. The company serves as a key vendor to major Original Equipment Manufacturers (OEMs) across the automotive sector. Its diverse product portfolio includes exhaust systems, catalytic converters, suspension systems, seat frames, seat covers, soft-top canopies, and other sheet metal components catering to both twowheelers and four-wheelers. 

SMIL has eight manufacturing facilities spread across India, supported by an R&D centre in Chennai and a Design & Development Centre in Namyang, South Korea. The company commands approximately 30 per cent market share (value terms) in Passenger Vehicle (PV) and Light Commercial Vehicle (LCV) exhaust systems, and about 12.5 per cent in PV and LCV control arms. SMIL caters to diverse segments, including passenger vehicles, commercial vehicles, tractors, construction equipment vehicles (CEVs), and gensets. SMIL’s client base comprises several marquee names such as Hyundai Motor, Tata Motors, Mahindra & Mahindra, Ashok Leyland, Force Motors, JCB, and Nissan. The company’s operations are predominantly domestic, with nearly 99 per cent of its FY25 revenue derived from the Indian market. 

Financials
SMIL reported a steady set of numbers in Q1 FY26, with 

revenue from operations rising 10 per cent YoY to ₹756.2 crore from ₹685.4 crore in Q1 FY25. On a sequential basis, revenue inched up 1 per cent QoQ from ₹749.9 crore in Q4 FY25. EBITDA came in at ₹98.4 crore, reflecting a 3 per cent YoY increase, though it declined 2 per cent QoQ. Profit After Tax (PAT) surged 30 per cent YoY to ₹99.9 crore compared with ₹76.8 crore in Q1 FY25. Sequentially, PAT grew 19 per cent over ₹83.9 crore reported in Q4 FY25. The company’s EPS improved to ₹34.8 in Q1 FY26 versus ₹25.9 in the same period last year and ₹29.2 in the preceding quarter, indicating strong earnings rebound. 

For FY25, SMIL delivered a stable topline with revenue from operations rising marginally by 1 per cent YoY to ₹2,836.6 crore, compared with ₹2,809.3 crore in FY24. Despite a largely flat revenue base, operating performance improved; EBITDA increased 10 per cent YoY to ₹396.4 crore, while margins expanded to 14.0 per cent from 12.9 per cent in FY24, driven by better product mix and cost efficiency measures. Profit After Tax crossed the ₹300 crore mark for the first time and grew 5 per cent YoY to ₹314.9 crore. 

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Valuation & Outlook
SMIL is well-positioned to benefit from structural shifts in the automotive landscape, particularly the lightweighting trend and tightening emission regulations. The push towards multipowertrain vehicles, Corporate Average Fuel Economy (CAFÉ) norms, and upcoming BS 7 and TREM V emission standards are expected to drive higher content per vehicle and market consolidation. Additionally, the global ‘China + 1’ strategy and rising localisation efforts by OEMs are opening export opportunities, especially as customers seek Indian partners with strong technological capabilities. 

The company’s strategic roadmap focuses on scaling its lightweighting vertical, expanding into global markets, and pursuing targeted M&A and technical collaborations. SMIL aims to enhance market share in control arms and axle assemblies, deepen exports to Europe and the USA, and tap emerging opportunities in the Middle East. Surplus cash will primarily fund M&A in powertrain-agnostic products and technology-focused areas such as robotics and AI-driven components. SMIL is sitting at a healthy cash reserve of around `800 crore. Over the past three years, sales and profit have grown at a CAGR of 7.94 per cent and 21.7 per cent respectively. On the valuation front, SMIL is trading at a P/E of 18.9x, significantly below the industry average of 29.4x. The company maintains healthy return ratios with ROCE at 34.6 per cent and ROE at 26.5 per cent, supported by a reasonable debt-to-equity ratio of 0.05, with a PEG ratio of 0.87. Considering all these factors, we recommend a BUY. 

Windlas Biotech Ltd.
CMP (₹): 911.10
BSE CODE ............................................. 543329
Face Value (₹)..................................... 5 52 Wk.
High/Low (₹) ........................ 1,197.00 / 667.30
Mcap. Full ( ₹ Cr.) ............................... 1,935.72
Here is why
▪️The company’s strong CDMO partnerships, focus on high-margin therapies, and expanding capacity position it for steady growth and margin improvement. 

Windlas Biotech (Windlas) is a wellestablished player in India’s pharmaceutical space, primarily focusing on contract development and manufacturing (CDMO) of generic formulations. The company partners closely with many top Indian and international pharmaceutical brands to deliver high-quality, cost-effective medicines, and specialises in the formulation, development, and commercial manufacturing of a wide array of complex generics. The company also has strong verticals in trade generics and institutional supplies, catering especially to underserved and rural markets across India, in addition to a growing presence in emerging export markets. 

The business has a particular focus on chronic and sub-chronic therapies such as cardiovascular, neuropsychiatric, and antidiabetic medications, as well as acute therapies like vitamins and pain management. Windlas operates advanced manufacturing facilities for oral solids, liquids, and injectable medicines, with a strong record of compliance and a commitment to regulatory standards. 

Financials
Over the last year, Windlas has demonstrated consistent financial strength with a clear trend of growth and enhanced 

profitability. For the financial year ended March 31, 2025 (FY25), the company posted revenues of ₹760 crore, growing at an 18 per cent CAGR over five years. EBITDA for FY25 stood at ₹94 crore, with a margin of 12.4 per cent, while profit after tax (PAT) was ₹61 crore, reflecting a PAT margin of 8 per cent. Return ratios remain strong with RoCE at 17 per cent and RoE at 13 per cent, indicating efficient capital use. 

The company’s balance sheet is robust, carrying no net debt and a cash position (₹16 crore as of March 31, 2025), supported by positive operating cash flows of ₹68 crore. Working capital days are efficient at just 14. Revenue growth in Q1 FY26 persisted, with sales at ₹210 crore, up nearly 20 per cent yearon-year; quarterly EBITDA was ₹27 crore, and PAT reached ₹18 crore, driven by healthy operating leverage and improved margins. 

The business mix is well-diversified; 73 per cent of FY25 revenues come from the CDMO segment, 23 per cent from trade generics and institutional sales, and 4 per cent from exports, with each segment showing positive momentum. The company remains focused on capacity expansion, particularly through the development and scale-up of Plant 6 dedicated to injectables. 

Valuation & Outlook Windlas Biotech is well placed to capture future growth, both in India and in select export geographies, riding industry themes like increasing regulatory focus, consolidation in the highly fragmented generics market, and a shift towards organised, quality-focused players. The company is leveraging strategies like capacity expansion, new product development, investments in technology, and broadening its presence across high-margin complex generics and chronic therapies. 

Management’s approach remains disciplined, balancing expansion with cash conservation and a clear focus on longterm shareholder value. The business enjoys strong relationships with marquee pharma companies and government institutions, and its risks are mainly around competition, timelines for export approvals, and full utilisation of expanded manufacturing capacity. 

The outlook for both revenue and margin improvement is positive, and the company’s robust balance sheet and steady cash flow provide comfort for future expansion plans and potential inorganic opportunities, if attractive targets emerge. Considering the potential of the industry and its rapid growth, and also keeping in consideration the excellent long-term prospects for India’s pharmaceutical space, we recommend BUY. 

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