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Market News - June 5, 2025

Elitecon International Hits Upper Circuit, Soars to 52-Week High

Elitecon International Hits Upper Circuit, Soars to 52-Week High

BSE smallcap Elitecon International stuns the market with a 5% surge, hitting a fresh 52-week high. Here’s a deep dive into the factors behind the stock’s meteoric rise and what it means for investors.

Elitecon International: A Record-Breaking Rally
Elitecon International’s share price action has been nothing short of remarkable. On June 4, 2025, the stock surged to its upper circuit at ₹518.05, gaining 4.98% from the prior close and reaching a fresh 52-week peak.
The company’s market capitalization now stands at an impressive ₹8,280 crore, a staggering leap from its 52-week low of just ₹11.02 recorded in August 2024.
Returns That Defy Gravity
• 1-week return: 22.5%
• 1-month return: 44.1%
• 6-month return: 627.2%
• 1-year return: 4,833.3%
These numbers position Elitecon among the top-performing smallcaps on the BSE, with a performance that has outpaced both its peers and the broader market by a wide margin.

What’s Fueling the Surge?
1. Strong Financial Performance
For the quarter ending March 2025, Elitecon International recorded a consolidated net profit of ₹42.97 crore against total revenue of ₹313.89 crore.
This marks a dramatic improvement from its earlier years, when profits and revenues were negligible. The company’s ability to scale up operations and deliver consistent profitability has significantly boosted investor confidence.
2. Shift in Shareholding Structure
A significant change in ownership structure has also been a key factor. Promoter holding decreased from 75% in June 2024 to 60% by March 2025, while foreign institutional investor (FII) holding surged from 15.5% to 38.3% over the same period. This influx of institutional capital is often seen as a vote of confidence in the company’s growth prospects and governance standards.
3. Sectoral Momentum and Peer Outperformance
Elitecon International operates within the consumer staples and FMCG-tobacco sub-sector, which has seen renewed interest from investors seeking defensive plays amid market volatility. The company now ranks third by market cap in its sector, ahead of several established peers.
4. Low Debt and Efficient Cost Management
Elitecon’s financials reveal prudent cost management, with less than 1% of operating revenues spent on interest expenses and only 4.25% allocated to employee costs as of March 2024. This operational efficiency has helped the company maintain healthy margins and reinvest in growth initiatives.

Key Financial and Valuation Metrics
As of June 4, 2025, Elitecon International’s share price stood at ₹518.05, marking its 52-week high and reflecting a significant rise from its 52-week low of ₹11.02. The company’s market capitalization stands at ₹8,280 crore. It is currently valued with a price-to-earnings (PE) ratio of 118.81 and a price-to-book (PB) ratio of 2,596.84. The trailing twelve months (TTM) earnings per share (EPS) is ₹4.36, and the dividend yield is nil at 0.00%.
The stock currently trades at a steep valuation, with a price-to-earnings (PE) ratio of nearly 119 and a price-to-book (PB) ratio exceeding 2,500. While such multiples may raise eyebrows, they reflect the market’s high expectations for continued growth.

Risks and Considerations
Despite the spectacular rally, there are factors that warrant caution:
• Valuation Concerns: The elevated PE and PB ratios suggest the stock is priced for perfection. Any earnings disappointment or slowdown in growth could trigger sharp corrections.
• Promoter Dilution: The reduction in promoter holding, while offset by increased FII participation, may raise questions about long-term alignment.
• Market Volatility: Smallcap stocks, especially those with rapid price appreciation, are prone to heightened volatility and profit-booking.

What’s Next for Investors?
Elitecon International’s meteoric rise has created significant wealth for early investors, but the current valuation demands careful scrutiny. Market watchers recommend tracking the company’s quarterly results, management commentary, and any further changes in institutional ownership. For new entrants, staggered buying or waiting for a correction may be prudent, given the stock’s sharp run-up.

Conclusion
Elitecon International’s journey from a low-priced smallcap to a sector leader with a multi-thousand percent return is a testament to the potential of India’s dynamic equity markets. The company’s strong financials, growing institutional interest, and operational efficiency have underpinned its rally. However, with high valuations and increased volatility, investors should balance optimism with due diligence as they consider their next move.

 

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BSE Shares Slide Over 1.5% Despite Stellar Earnings and Bullish Sentiment

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Amul Expands into Organic Products with Ambitious Revenue Goals
business update - May 6, 2025

Amul Expands into Organic Products with Ambitious Revenue Goals

Amul Expands into Organic Products with Ambitious Revenue Goals

 

Amul, the iconic Indian dairy cooperative, is stepping up its game by diversifying its product offerings beyond dairy. In an effort to strengthen its position in the fast-moving consumer goods (FMCG) market, Amul has ventured into organic tea, sugar, jaggery, and spices. This move is part of the company’s broader strategy to expand its revenue streams and compete with other FMCG giants in India. Aiming for a turnover of ₹1 lakh crore by FY26, Amul is actively expanding its portfolio to include offerings beyond its traditional dairy products.

Strategic Expansion into Organic Products

Amul’s decision to enter the organic market comes at a time when consumers are becoming increasingly health-conscious and preferring natural, chemical-free products. Organic food products have gained substantial popularity over the past few years, with a significant rise in demand for alternatives like organic tea, sugar, jaggery, and spices. To tap into this growing trend, Amul is not just introducing products under the organic label but ensuring that they meet the highest standards of quality and sustainability.

The company has already begun rolling out certified organic products, including organic tea, sugar, jaggery, and spices. These products are sourced from farms that follow organic cultivation practices, ensuring that they are free from harmful chemicals and pesticides. By emphasizing sustainability and quality, Amul is appealing to a niche yet expanding market of health-conscious consumers looking for organic food options. This expansion aligns with the company’s broader strategy of becoming a comprehensive FMCG brand.

Setting Revenue Goals: ₹1 Lakh Crore by FY26

Along with its expansion into organic products, Amul has set a bold revenue goal of ₹1 lakh crore by FY26.This goal highlights the company’s determination to accelerate its growth trajectory and diversify into new segments. In the fiscal year 2024–2025, Amul recorded an impressive revenue of ₹66,000 crore, marking a significant growth that placed it ahead of several multinational competitors in India.

Amul’s revenue growth has been driven by the continued success of its dairy products, such as milk, butter, cheese, and ice cream, which are staples in Indian households. However, with its growing presence in the FMCG space, the company now aims to boost its turnover by tapping into more product categories, such as organic food products, health drinks, and snacks. As India’s middle class continues to grow, there is increasing demand for premium and diversified food options, which is exactly what Amul aims to address.

Diversification Beyond Dairy: Broadening Product Categories

While Amul’s dairy business remains its core, the company is strategically expanding into other categories. Ice cream, for instance, is one of the key non-dairy segments where Amul is seeing rapid growth. The company is forecasting a 35–40% growth in its ice cream business this year alone. To meet this rising demand, Amul is expanding its ice cream production capacity and increasing distribution reach.

Amul is set to scale up protein beverage production with a fivefold capacity boost through major investments. These efforts are indicative of Amul’s intention to capture a broader audience and cater to evolving consumer preferences, particularly as health-conscious choices gain popularity.

Global Expansion Plans: Aiming for International Reach

As Amul looks to build its brand further, it has set its sights on global expansion. The company is already present in international markets, including the United States, but its growth ambitions extend beyond these borders. The next phase of Amul’s global strategy involves expanding its footprint in the Middle East, South Asia, and Africa, where there is a rising demand for Indian food products.

The company’s international expansion will not only help to increase its market share globally but also position Amul as a leading FMCG player in various regions. Amul’s diverse product portfolio and strong brand recognition, especially within the Indian diaspora, give it a unique advantage in tapping into these growing markets.

Competitive Pricing Amidst Inflationary Pressures

One of the factors that have helped Amul maintain its leadership position in the Indian market is its ability to absorb the pressures of rising input costs. While other companies have raised prices in response to inflation, Amul has been able to keep its milk prices stable. The company’s approach is driven by its commitment to affordability and consumer trust. By not passing on increased costs to consumers, Amul has solidified its relationship with its large customer base.

This pricing strategy is essential in maintaining Amul’s competitive edge, especially in the face of growing competition from both local and international FMCG players. Thanks to its robust brand loyalty and dedication to providing high-quality products at affordable prices, Amul is well-equipped to maintain and grow its customer base, even amidst economic difficulties.

Conclusion: The Future of Amul

Amul’s venture into organic products and its ₹1 lakh crore FY26 goal highlight a transformative phase in its growth journey. As Amul continues to diversify its product portfolio, it is also preparing to capture an increasing share of the FMCG market. With strong growth prospects in both the domestic and international markets, Amul is well on its way to becoming a global FMCG powerhouse.

The company’s strategic focus on organic products, coupled with its strong financial position and market credibility, makes it a formidable player in the FMCG sector. As India’s consumer preferences continue to shift towards healthier and more sustainable food options, Amul’s timely entry into the organic market positions it as a leader in this segment. With its eyes set on global expansion and a broadening product range, Amul’s journey to achieving a ₹1 lakh crore turnover by FY26 seems increasingly achievable.

 

 

 

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Maruti Suzuki Boosts Production for ICE and Electric Vehicles

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HUL Delivers FY25 Results: Dividends and Strategic Growth Outlook
Result Updates - April 25, 2025

HUL Delivers FY25 Results: Dividends and Strategic Growth Outlook

HUL Delivers FY25 Results: Dividends and Strategic Growth Outlook

 

SUMMARY
For the fourth quarter of FY25, Hindustan Unilever Ltd (HUL) achieved a 3.7% rise in consolidated net profit, bringing the total to Rs 2,493 crore. The company recorded a 2.4% growth in operating revenue, amounting to ₹15,214 crore. Additionally, the board has proposed a final dividend of Rs 24 per share, highlighting their focus on rewarding shareholders.
Looking forward to FY26, HUL foresees a gradual recovery in demand, which it plans to support through strategic investments and ongoing efforts to transform its product portfolio. This approach aims to drive steady growth and strengthen its market position.
Enhancing Shareholder Value Through Strategic Dividends
The board has approved a final dividend of ₹24 per share, raising the total annual dividend paid to shareholders to ₹53 per share. However, the announcement of the record date for this dividend is still pending.
Over the past year, Hindustan Unilever Ltd (HUL) has declared multiple dividend payouts, including interim and special dividends, with amounts ranging from ₹10 to ₹24 per share.
HUL’s Q4 Net Profit Slips
Fast-moving consumer goods (FMCG) giant Hindustan Unilever (HUL) on Thursday announced a slight decline of 3.7% in its consolidated net profit, which stood at ₹2,464 crore for the fourth quarter (Q4) of the financial year 2024–25 (FY25). In comparison, the company had posted a net profit of ₹2,558 crore in the corresponding quarter of the previous year.
On a quarter-on-quarter basis, the net profit saw a sharper dip of 17.5% from ₹2,984 crore recorded in the preceding quarter.
The company reported a 3.5% year-on-year (YoY) increase in total income for Q4 FY25, reaching ₹15,979 crore compared to ₹15,441 crore. However, revenue showed little change when compared to the previous quarter.
Segment Performance Overview:
The Personal Care division recorded a 5% increase in profit, supported by modest sales growth under ongoing pricing pressure. Within this category, the Bodywash segment achieved double-digit growth, further solidifying its leadership position. Non-hygiene products delivered high single-digit growth, while skin cleansing products posted a modest, low single-digit increase.
The Home Care segment added ₹5,815 crore to the overall revenue, reflecting a 2% year-on-year rise. Growth was primarily driven by strong performance in premium fabric wash and fabric conditioners, along with contributions from the liquids portfolio, according to the company’s investor update.
In Beverages, tea experienced low single-digit growth due to pricing, whereas coffee maintained its strong momentum with continued double-digit expansion. The company held on to its leadership in both value and volume in the tea category.
Meanwhile, the Foods segment saw a decline in consolidated profit, which dropped 15% to ₹627 crore.
CEO Rohit Jawa Envisions FY26 Growth Path for HUL
In FY25, HUL achieved a turnover exceeding ₹60,000 crore, reflecting an Underlying Sales Growth of 2% and EPS growth of 5%. While absolute volume tonnage expanded by a mid-single-digit rate, this progress was somewhat diminished due to an unfavorable product mix,” stated Rohit Jawa, CEO and Managing Director, HUL.
He highlighted HUL’s competitive performance and its reinforced market leadership. “FY25 was a defining year in our portfolio evolution, marked by strategic developments in high-growth segments, enhanced investments in emerging channels, the acquisition of Minimalist, the sale of Pureit, and the planned separation of our Ice Cream business,” Jawa remarked. Looking ahead to FY26, HUL anticipates a progressive recovery in demand. “We remain focused on fulfilling a billion ambitions, leveraging our robust business fundamentals to sustain competitive advantage,” he stated. 

 

 

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Reliance Power Share Price Jumps 7% Amidst Flat Stock Market

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FMCG companies initiative to lower replenishment period in rural areas
Equities, Markets, Research, Result Updates - January 23, 2025

HUL Q3FY25: Muted Growth, Strategic Acquisitions

HUL Q3FY25: Muted Growth, Strategic Acquisitions

Overview
The FMCG (fast-moving consumer products) giant Hindustan Unilever experienced modest volume increase during the October–December 2024 quarter. Despite cost challenges and seasonality, earnings growth was unchanged, and urban demand remained unimpressive.

Q3FY25 Results see a muted growth
For the third quarter that ended on December 31, Hindustan Unilever reported a 19% increase in consolidated net profit. Due primarily to the extraordinary gain realized from the sale of its Pureit business, the company declared a consolidated net profit of Rs 2,989 crore, up from Rs 2,508 crore. Consolidated revenue increased from Rs 15,259 crore to Rs 15,559 crore during the quarter that ended on December 31 of last year. Due to a weak product mix and volume growth that fell short of forecasts, brokers cut their target price on HUL shares.

In Q3FY25, underlying volume growth (UVG) decreased. In some categories, premium segments increased faster than mass segments. Despite a mild winter, the high-margin skin care items underperformed, while the home care (HC) division—the largest segment with lower realization—grew faster than the firm as a whole.

An aggressive development throughout the liquid format and a robust portfolio propelled growth in the resilient category of HC. The product formulation adjustment (soap) is also paying off. Smaller packets sold well through general trade channels in both rural and urban areas, while organized trade expanded by double digits. Pricing and the better performance of major brands drove the rise of oral care.

HUL implemented proactive price increases that limited the erosion of its gross margins even while the prices of tea and palm oil continued to fluctuate. Despite inflationary and mix pressure, the EBITDA margin held up well during the quarter, despite the subdued sequential growth in ad spends.

Disinvestment to boost margins
The recently established B&W (beauty & well-being) category has seen fierce competition from cutting-edge direct-to-consumer firms. Against this backdrop, HUL has announced that it has acquired Minimalist, a high-end brand that operates in the rapidly expanding beauty industry.

For Rs 2,955 crore, HUL plans to purchase a 90.5% share in Uprising Science. The Minimalist brand is owned by the company. In two years, the remaining portion will be purchased. Regulatory clearances are required before the acquisition is anticipated to be finalized in Q1FY26.

Skin and hair care are the specialty of minimalist, and the digital-first company has successfully tapped into the growing wealthy beauty sector, which is one of HUL’s main areas of focus. With an annual revenue run rate of Rs 500 crore, it is among the brands with the quickest pace of growth.

HUL will use complementary skills, such as R&D and innovation, technology, offline expansion, global presence, and cost effectiveness, to expand the brand to greater heights, given the beauty market’s substantial headroom for development (low per-capita spend). The investment is anticipated to unlock growth and margin synergies in the upcoming year and will be a solid strategic match for HUL’s beauty portfolio.

Additionally, HUL announced that it has acquired Vishwatej Oil Industries’ palm business venture. In the long run, the backward integration will lessen the volatility of palm oil prices and enhance the supply of palm oil derivatives, a vital raw resource.

Future Outlook
According to management, the moderate urban trend in the near future is only temporary, while the growth in rural consumption will continue to be higher. The urban market’s growth rate will be influenced by employment levels, food inflation, and real wage growth. If commodity inflation persists, the low-single-digit price increase will continue in the foreseeable future.

HUL’s business foundation will be strengthened by strategic measures that will also influence the company’s future growth trajectory. While cost-cutting measures will support long-term, sustainable growth, divestitures will increase operational efficiency and streamline concentration on core competencies.

HUL will increase its footprint in high-growth beauty markets and take advantage of the secular trend of premium product growth by making a strategic investment in the B&W category. With more releases in the March quarter and increased innovation intensity, the business intends to increase its position in the premium segment by 900 basis points.

Market Sentiment
The stock is currently trading at 51 times its expected earnings for FY26, which is a decent valuation. We believe that a significant re-rating still depends on steady increases in domestic volume growth.

Brokers’ opinions on the massive FMCG company are divided. However, most broking houses have cut their target price for Hindustan Unilever shares after the earnings announcement since they think the company’s short-term prospects will be restrained because of urban weakness.
Reiterating its ‘buy’ recommendation with a price target of Rs 2,675 per share, Emkay Global stated that while the dismal near-term outlook is weighing down on valuations, comparatively stronger execution is projected to help HUL in its medium-to-long term performance.

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D-Mart's Q3 Results Miss Estimates, Faces Margin Pressure and Leadership Change
Business, Equities, Markets, Research, Result Updates - January 14, 2025

D-Mart's Q3 Results Miss Estimates, Faces Margin Pressure and Leadership Change

D-Mart’s Q3 Results Miss Estimates, Faces Margin Pressure and Leadership Change

Overview
D-Mart’s top-line growth has been robust, according to the pre-quarter business update released on January 2. The top line was strong, but because of higher discounting and ongoing operating deleverage, margins fell short of projections.

Even though D-Mart is following a sound network expansion plan, it is facing more and more difficulties as quick commerce rivals gain market share quickly. Additionally, D-Mart has announced plans to replace its leadership. In light of the growing consumer preference for speedy transactions in the grocery industry, we are awaiting the new management’s strategy and plans for execution. When it comes to the stock, investors should have reasonable expectations.

Details of Q3 Results
Q3FY25 revenues increased 18% year-over-year. Revenue/square feet growth returned to the mid-single digits (4% YoY), but store count and retail business area expanded 14% year-over-year. A pick-up in demand was indicated by the 8.3 percent YoY improvement in like-for-like revenue growth for mature stores (those that have been in business for more than 24 months).

The FMCG segment’s higher level of discounting caused a little year-over-year fall in gross margins. Additionally, operating de-leverage brought about by muted revenue/square foot growth had an impact on the EBITDA margins. D-Mart’s operating margins were below street estimates and fell 70 basis points year over year. Profitability was further impacted by reduced revenue and higher depreciation costs brought on by the establishment of more outlets. Compared to the growth in revenue, the consolidated net profit growth was in the mid-single digits.

Store Addition significantly increased
As store openings accelerated in Q3FY25, D-Mart maintained its sound store expansion strategy. In Q3FY25, D-Mart opened 10 new locations, increasing the total number of new stores established in 9MFY25 to 22 (D-Mart opened 17 in 9MFY24). D-Mart has been expanding its footprint in the 12 states where it currently operates within the last 12 months. It still uses the cluster-based expansion strategy, which entails opening new stores close to existing ones. In addition to NCR and Chhattisgarh, D-Mart has opened new locations in every state where it operates.

Online business acceleration
D-Mart Ready which is the online-business arm of D-Mart, is progressively expanding into major cities. D-Mart expanded into three new cities in the last year, bringing its total number of cities to 25 as of December 2024. D-Mart is adhering to its policy of moderate and measured expansion because the internet business is losing money. D-Mart Ready is continuing to align its business with the growing demand for home delivery as opposed to pick-up. Actually, ‘Home Delivery’ is the only delivery option offered by D-Mart Ready in a few of the towns.

Margin Pressure on the rise
In Q3FY25, D-Mart reported a slight drop in gross margins due to heightened discounting intensity in the FMCG sector. Additionally, D-Mart’s store operating metrics remain muted, with mid-single-digit growth in revenue per square foot. The building of large stores in FY22 and FY23 has maintained revenue/square feet under pressure, even if the SSSG (same-store sales growth) for older, more established stores returned to a high single digit in Q3. This, together with higher operating expenses, has caused D-Mart’s operating leverage to continue to impact margins.

Quick commerce companies Blinkit, Big Basket, and Zepto have quickly expanded their product lines, especially in the grocery sector, and are posing a greater threat to D-Mart. We anticipate that D-Mart’s margin pressures will continue in the near future.

Change in Leadership
Neville Noronha, the managing director and CEO of D-Mart, will leave the company in January 2026. Neville began working at D-Mart in 2004 and was instrumental in developing managing teams, carrying out procedures, and carrying out strategies.

On March 15, 2025, Anshul Asawa will become the Chief Executive Officer designee of D-Mart, succeeding Noronha. After 30 years at Unilever, Anshul, an industry veteran and graduate of IIT Roorkee and IIM Lucknow, will join D-Mart. Anshul has held executive positions in India, Asia, and Europe, where he oversaw the expansion of product categories and created significant responsibilities. In light of the shifting dynamics of the sector, especially the move towards the rapid commerce segment, the Street will closely monitor any adjustments made by the new CEO to the strategy or execution process.

Stock Performance and Valuation
Avenue Supermarts, which operates the retail brand DMart, had its shares fall 5.7% in early trade on Monday, January 13, to a low of Rs 3,474 on the BSE, as investors were unhappy with the company’s Q3 results.

As of right now, the stock’s P/E ratio at the CMP is 68 times FY26 earnings projections.
Proposed leadership changes and increased competition would limit the stock’s upward potential in the medium run. At this point, investors should have reasonable expectations for the stock.

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HCL close to hit all time high in deal pipeline

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