The Index of Eight Core Industries -coal, crude oil, steel, cement, electricity, fertilisers, refinery products and natural gas - has a 40% weight in the Index of Industrial Production (IIP). The index was up 8.4% in June 2023. Sequentially, the output contracted 3.1% in June. “With the dip in the core sector growth, we expect the IIP to post a rise of 3.5-5.0% in June 2024,” said Aditi Nayar, Chief Economist, ICRA.

Core growth drops to 20-month low of 4 per cent

Experts from ICRA, Crisil, and other organisations have expressed concerns about the impact of this change on taxpayers and the real estate sector.

Budget 2024: Indexation Benefit Removed For Properties Bought After 2001, Government Clarifies

The rating agency’s net profit tumbled 11.88% to Rs 35.51 crore in Q1 FY25 as against with Rs 40.30 crore posted in Q1 FY24.

ICRA Q1 PAT declines 11% YoY to Rs 35 cr

ICRA consolidated net profit declines 11.88% in the June 2024 quarter

Upcoming results: Bajaj Finance, DCM Shriram, Heritage Foods, Hindustan Unilever, ICICI Prudential, ICRA, Indoco Remedies, ICICI Securities, Kajaria Ceramics, Mahindra and Mahindra Financial Services, Schaffler India, Sharda Cropchem, SRF, Steel Strips Wheels, Thyrocare Technologies, Torrent Pharmaceuticals, and United Spirits.

Stock Alert: Reliance Industries, Cyient DLM, Zensar Tech, Suzlon Energy, Federal Bank, Gensol Engineering

The Indian mutual fund industry is on track to surpass Rs 100 lakh crore AUM in the next few years. AUM grew by 38% to reach Rs 61.16 lakh crore. Equity funds and sectoral/thematic funds experienced significant inflows. Investors are advised to understand sectoral funds before investing.

Mutual fund AUM to surpass Rs 100 lakh crore mark in 2-3 years: ICRA

Potato and vegetable prices remain high due to heatwave damage, causing a supply-demand mismatch despite monsoon progress. Vegetable inflation hit 29.3% in June 2024. West Bengal and Uttar Pradesh faced key production issues. Farmers are hoarding stocks, anticipating further price hikes. Aditi Nayar of ICRA and Crisil’s Dipti Deshpande cite weather and last year’s base as inflation drivers. Tomatoes, onions, and potatoes (TOP) prices are affected, with tomato prices down from last year’s peaks but still contributing to 9.4% food inflation. Potato output is estimated at 58.99 million tonnes, decreasing from 60.14 million tonnes.

Heatwave effect: Potato prices likely to remain hot despite monsoon progress

RBI neutral rate: “With headline GDP growth rates trending higher after the pandemic, a step up in the natural rate estimates appears appropriate,” said Aditi Nayar, chief economist, ICRA

Neutral rate raised on shift in potential output, says RBI bulletin

The ratings consider the healthy profitability metrics and large cash accruals which enable the company to maintain a comfortable liquidity position.

ICRA Upgrades Rating On Adani Ports’ Long-Term Bonds

The company’s upgrade follows a Bloomberg report that revealed plans to significantly increase investment in its southern India trans-shipment container port to Rs 100 billion. This ambitious move aims to attract some of the world’s largest ships, according to sources familiar with the matter.

Adani Ports gets a rating upgrade from ICRA

ICRA projects India’s sugar production to decline in 2025, with stable profitability and government support for ethanol blending program.

ICRA sees India’s net sugar output declining to 30 mt in SY2025 on likely higher diversion to ethanol

Hasn't fared well - amongst the low performers

Performance

Seems to be overvalued vs the market average

Valuation

Lagging behind the market in financials growth

Growth

Showing good signs of profitability & efficiency

Profitability

The stock is overpriced but is not in the overbought zone

Current price is more than the intrinsic value

Fundamentals

Good time to consider, stock is not in the overbought zone

Technicals

Entry point

Promoter pledged holding

Unsolicited messages

Default probability

Red flags

ICRA Limited (ICRA) is an independent and professional investment Information and credit rating agency.

ICRA Ltd