Stocks to Watch: Tech Mahindra, HDFC Bank, Kotak Bank, Jio Financial, and more

Here’s a quick look at stocks likely to be in focus in today’s trade.

Tech Mahindra reported a significant rise in consolidated net profit, which more than doubled to ₹1,250 crore in the July-September quarter of FY2024-25. This jump was primarily driven by special income from asset sales, growth in European and non-American markets, and a strong performance in the banking, financial services, and insurance (BFSI) segment. In the same quarter last year, the company’s net profit stood at ₹493.9 crore. Revenue saw a 3.49 percent increase to ₹13,313.2 crore, compared to ₹12,863.9 crore in Q2 FY2023-24.

HDFC Bank reported a 5.3 percent year-on-year rise in standalone net profit, reaching ₹16,821 crore for the July-September quarter of FY2024-25. Net interest income (NII) grew by 10 percent to ₹30,110 crore. This quarter marks the first time HDFC’s YoY numbers are comparable post-merger with Housing Development Finance Corp in July 2023, a merger that added substantial loans but fewer deposits to the bank’s portfolio, leading to the need for faster deposit growth or slower loan expansion in future quarters.

Kotak Mahindra Bank posted a 5 percent YoY increase in standalone profit after tax (PAT) for Q2 FY2024-25, reaching ₹3,344 crore. Net interest income (NII) rose 11 percent to ₹7,020 crore, though the bank’s net interest margin (NIM) narrowed to 4.91 percent, down from 5.22 percent in the same period last year.

Indostar Capital Finance reported a 27.9 percent YoY increase in profit for Q2 FY2024-25, with a topline growth of 8.05 percent. Despite a quarterly revenue decline of 13.11 percent, profit increased by 27.08 percent from the previous quarter, reflecting the company’s cost-control efforts. Selling, General & Administrative expenses were reduced by 5.28 percent quarter-on-quarter but grew by 24.68 percent YoY.

Mastek posted an impressive 13.3 percent revenue growth and a 104.79 percent surge in profit for Q2 FY2024-25 on a YoY basis. Quarter-on-quarter, revenue grew by 6.7 percent, while profit jumped by 79.93 percent, showcasing the company’s robust growth momentum despite potential economic challenges.

Zee Entertainment Enterprises reported mixed Q2 FY2024-25 results on October 18, 2024, with a significant profit surge despite a decline in revenue. The company’s revenue dropped by 17.93 percent year-over-year, but profit rose by an impressive 70.3 percent. Compared to the previous quarter, revenue declined by 6.09 percent, while profit surged by 77.31 percent, showcasing the company’s ability to manage profitability despite lower revenues.

ICICI Lombard General Insurance Company posted strong Q2 FY2024-25 results, with revenue increasing by 16.47 percent year-over-year and profit growing by 20.21 percent. On a quarter-on-quarter basis, revenue rose by 9.93 percent, and profit grew by 19.57 percent, reflecting the company’s consistent growth trajectory in both topline and profitability.

L&T Finance reported a robust Q2 FY2024-25 performance, with year-over-year revenue growth of 13.62 percent and a profit increase of 16.88 percent. Quarter-on-quarter, revenue increased by 5.48 percent, and profit saw a modest rise of 1.47 percent, indicating the company’s ability to maintain steady growth amid fluctuating market conditions.

Jio Financial Services delivered a strong Q2 FY2024-25 performance, reporting a year-over-year revenue increase of 9.47 percent and a profit rise of 3.13 percent. The company’s performance compared to the previous quarter was particularly notable, with revenue surging by 143.39 percent and profit growing by 120.41 percent, highlighting robust operational growth despite market challenges.

Tata Consumer reported solid Q2 FY2024-25 results, with a 12.87 percent year-over-year increase in revenue and a 7.74 percent rise in profit. However, quarter-on-quarter, revenue declined by 3.16 percent, while profits surged by 25.52 percent. Operating income faced challenges, falling by 10.45 percent quarter-over-quarter, but saw a 4.94 percent year-over-year rise, indicating mixed operational performance as the company adapts to shifting market dynamics.

Alembic Pharmaceuticals received final approval from the US FDA for its abbreviated new drug application (ANDA) for Diltiazem Hydrochloride extended-release capsules in 120 mg, 180 mg, and 240 mg strengths. This medication is used in the treatment of hypertension, marking a significant step for the company’s US market expansion.

KPIT Technologies‘ board will meet on October 23 to consider fundraising through equity shares or other financial instruments. Additionally, the company’s wholly owned step-down subsidiary, PathPartner Technology GmbH in Germany, was voluntarily liquidated effective October 2, 2024.

JM Financial received a positive update from the Reserve Bank of India (RBI), which lifted restrictions placed on its subsidiary, JM Financial Products. This allows the subsidiary to resume financing against shares and debentures, after restrictions had been in place since March 2023.

Garden Reach Shipbuilders & Engineers announced that it has secured a letter of intent from the Ministry of Defence for a ₹491 crore contract. The contract involves the design, development, construction, and integration of equipment for an Acoustic Research Ship (ARS), including testing and supply.