Market participants head into another trading session, investors are closely monitoring major company earnings of companies such as Tata Motors, Bajaj Finance, Voltas, and SRF. The latest quarterly reports reveal a mixed bag of financial performances, with some companies exceeding expectations while others faced challenges. This blog discusses a few stocks to watch on January 30. Let’s find out:
Top Potential Stocks to Watch on January 30
Here are some stocks to watch on January 30 to invest in:
Tata Motors: Profit Declines Despite Revenue Growth
Despite a 23% decline in net profit to ₹5,451 crore, Tata Motors offered a 3% increase in sales revenue to ₹1,130,000 crore in the quarter. This was slightly below the estimated ₹1.16 lakh crore.
Key figures:
- EBITDA of ₹13,081 crore accounts (down 15%, below the estimated ₹15,980 crore).
- EBITDA margin at 11.5% (lower than last year’s 13.9%)
- JLR continues to be on course with respect to profitability and cash flow targets for FY25.
As a major driver of Tata Motors’ performance as a whole, Jaguar Land Rover (JLR) reiterated its target EBIT margin of 8.5% or better and its expectation of maintaining a positive net cash position.
Bajaj Finance: Strong Growth, Higher Provisions
Bajaj Finance delivered a solid 18.4% increase in net profit, reaching ₹4,308.2 crore, exceeding analysts’ expectations of ₹4,098 crore.
Other highlights:
- Net Interest Income (NII) grew by 22.6%, slightly ahead of estimates.
- The Gross NPA rose by 0.06% to 1.12% (1.06% in September).
- Provisions rose 7% sequentially to ₹2,043.3 crore
Juxtaposed to the appreciation trend of Bajaj Finance, the increase of NPAs and provision implies prudent lending in the next quarter periods.
SRF: Moderate Growth Across Segments
SRF reported a 7% rise in net profit to ₹271 crore, supported by a 14.4% increase in revenue to ₹3,491.3 crore.
Sector-wise performance:
- Chemicals business grew 7% to ₹1,496 crore
- Packaging Films surged 27% to ₹1,385 crore
- Technical Textiles expanded 11% to ₹510 crore
Even with overall increases in revenue, EBITDA margins decreased to 17.8% from 18.5% last year due to cost lift in some segments.
Voltas: Revenue Up, But Margins Under Pressure
Voltas posted a net profit of ₹130.8 crore, which fell short of expectations ₹155 crore). On the other hand, revenue increased 18.3% YoY to ₹3,105 crore (vs. estimates) and outperformed estimates.
Financial breakdown
- EBITDA at ₹197.4 crore (below expectations of ₹213 crore)
- EBITDA margin contracted to 6.4%, lower than the estimated 7.1%.
Despite a strong revenue boost, Voltas’ profitability took a hit due to margin pressures.
Blue Star: Outperforms Expectations
Blue Star, the air conditioning and refrigeration giant, posted a good set of quarterly numbers with a net profit of ₹132.5 crore, way ahead of analysts’ estimate of ₹122 crore.
Key numbers:
- Revenue jumped 25.3% to ₹2,807.4 crore
- EBITDA surged 34.8% to ₹209.3 crore
- EBITDA margin at 7.5%, higher than last year’s 6.9%
Healthy demand and enhanced cost optimization are suggestive of strong revenue and margin performance in Blue Star.
Market Outlook
Given mixed earnings reports, investors’ sentiment and global factors will determine the market’s reaction. Stocks such as Tata Motors and Voltas may experience some pressure on account of margin concerns whereas Bajaj Finance and Blue Star are likely to benefit on account of strong top-line growth.
The next trading session will be very important, as market participants will be scrutinizing these earnings and their implications for the broader Nifty 50 and F&O markets.
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