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ICICI Direct's research in the Yearly Outlook 2025: Quant set the target for #Nifty at 27,500. As promised, here are the Top 5 stock picks set to outperform.

🔸Ambuja Cement
🔸Ashok Leyland
🔸Zydus Life
🔸United Breweries
🔸Vedanta

Learn more about the initiation ranges, targets, stop loss and potential upside along with the analysis for the same!

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📰 News update

Coforge and Cigniti Technologies are moving towards a planned Merger. According to the merger plan, Coforge will be able to absorb Cigniti Technologie. Likewise, Cigniti shareholders will be issued the Coforge shares once the advisors develop an acceptable swap ratio.

💡 Our View

We highlight that Coforge currently holds a 54% stake in Cigniti. This merger will help the companies create synergies as Coforge’s clients in North America are largely located on the East Coast whereas Cigniti has customers in the West and Midwest. We await details of the swap ratio.

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Yearly Market Outlook: Quant

Join us NOW as our expert panelists Jay Thakkar and Raj Deepak Singh share their insights in discussion with Vishu Kartik!

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The target for Nifty is 27500 as per the Quant Yearly Outlook 2025 by ICICI Direct’s research team!

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Stock markets open on Saturday, February 1, for Union Budget 2025

Previously, markets were open on February 1, 2020 & February 28, 2015 as well for Budget announcements on Saturdays.

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Major Economic Events this Week 🏆

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News Update 📰

🔸Adani Group plans to invest ₹ 28,000 crore in Bihar. It plans to invest ₹ 20,000 crores to set up a 1,600MW coal-fired ultra-supercritical thermal power plant in Bihar. Adani group plans to source fuel (Coal) for the plant from neighboring states such as Jharkhand and West Bengal.

🔸It will invest ₹ 100 crore in manufacturing and installing 2.8 million smart meters in five cities: Siwan, Gopalganj, Vaishali, Saran, and Samastipur. It also plans to invest ₹2,500 crore to set up a 10MMTPA cement manufacturing plant in Warsaliganj.

🔸The Adani Group also plans an Infrastructure investment of ₹1,000 crore for developing strategic infrastructure, including Gati Shakti Railway Terminals, Inland Container Depots, and Industrial Warehousing Parks.

Our Views

🔸The planned investments will create ordering opportunities for capital goods players like BHEL, L&T, and Thermax.

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News Update

🔸The Competition Commission of India (CCI) has approved UltraTech Cement. Ltd.’s proposed acquisition of India Cements (ICL).

🔸Earlier in July this year, UltraTech Cement had announced the acquisition of 32.72% stake in ICL from promoters and their associates for 3954 crore.

🔸Besides, it had also announced a Rs 3142 crore open offer to acquire 26% share of ICL from its shareholders.

Our View

🔸Ultratech Cement's cement capacity stands at ~181 mtpa (including 10.75 mtpa of Kesoram Industries and 14.5 mtpa of India Cements).

🔸ULTCEM remains focused on maintaining its leadership position and increasing its market shares across regions by expanding capacities through organic & inorganic routes.

🔸ULTCEM has a target of reaching capacity of 200 mtpa by FY27E.

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Market Outlook

🔸Sensex and Nifty 50 are likely to open gap up, as trend in GIFT Nifty suggest a positive start for the broader index.

🔸Asian markets were trading firm.

🔸US markets close higher on Friday.
- Dow Jones: +498.82 points (+1.18%), closes at 42,841.06
- S&P 500: +63.82 points (+1.09%), ends at 5,930.90
- Nasdaq: +199.83 points (+1.03%), finishes at 19,572.60

Market Yesterday

🔸 India's benchmark indices Sensex and Nifty recorded their steepest weekly declines in over two years, dropping more than 5 percent each.
- Sensex: -1.5%, closes near 78,000
- Nifty: -1.5%, falls below 23,600

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💡 Today's Words of the Day are ROE, ROCE, and ROIC!

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Siemens Ltd: Q4FY24 Highlights

🔸Government capex expected to pick up from January 2025. Private capex remains subdued, with growth primarily in semiconductors, batteries, solar PV, chemicals, and pharma (digital industries segment). Slower activity noted in food and beverages.

🔸Demand driven by data centers, commercial buildings, and utilities under the RDSS scheme.

🔸Electrification, Vande Bharat, and metro projects offer significant opportunities.

🔸₹1100 crore planned over the next two years to expand capacity in transformers and transmission products.

🔸Not participating in HVDC tenders with LCC technology but will bid for VSC technology tenders.

Demerger and Siemens Energy Details

🔸Siemens Ltd to demerge into Siemens Energy and Siemens Ltd, with Siemens Energy to be listed by CY25.

🔸Siemens Energy (post-demerger)
•Order Book: ₹10,050 crore (~21% of pre-merger entity).
•Revenue: ₹6,280 crore (~31% of pre-merger entity).
•EBITDA Margin: 15.7%;
•PAT Margin: 11.3% in FY24.

Order Inflows and Book

🔸FY24 Orders: ₹23,560 crore, up 13.8% YoY (excluding FY23's ₹26,300 crore 9000 HP order).
•Digital Industries: -10.6% YoY (15% of orders).
•Smart Infrastructure: +11.6% YoY (32% of orders).
•Mobility: +21% YoY (excluding 9000 HP order; 14% of orders).
•Energy: +30% YoY (39% of orders).

🔸FY24 Order Book: ₹48,260 crore.

🔸Siemens Ltd remains well-positioned for long-term growth, supported by government initiatives, robust order inflows, and strategic investments.

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55th Meeting of the GST Council

Here are some points from the meeting that could affect you.

Changes in GST Rates

🔸Fortified Rice Kernel (FRK) - Reduction in GST rate to 5% may impact the food processing industry and stocks related to fortified food products.
🔸Gene Therapy Exemption - Could influence healthcare sector companies focusing on advanced therapies.

Automotive Sector

🔸Increase in GST rate to 18% on sale of all old and used vehicles, including EVs, except specific types. This change might impact the used vehicle and EV markets.

Banking and NBFCs

🔸No GST on Penal Charges - Clarification that no GST is payable on penal charges for non-compliance with loan terms.

General Insurance and Motor Vehicle Accident Fund

🔸Contributions made by general insurance companies from third-party motor vehicle premiums are exempt from GST. This exemption might marginally reduce costs for insurance companies.

E-commerce and ITC Clarifications

🔸Input Tax Credit (ITC) clarifications related to goods delivery and tax reversals may simplify compliance for companies operating in e-commerce and logistics, possibly benefiting investors in these areas.

Track and Trace Mechanism

🔸Introduction of a unique identification marking system for evasion-prone commodities might influence the logistics and supply chain sector, relevant for companies dealing with goods subject to GST.

Compliance Simplifications

🔸Reduction in pre-deposit for appeals involving only penalty amounts could ease the legal and compliance burden on businesses, potentially benefiting small and medium enterprises.

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Domestic Battery Industry: Energizing Auto Space
Partnerships like Amara Raja-Hyundai, Exide-Hyundai, and the LG-JSW JV are revolutionizing EV and storage tech. From AGM batteries to Li-ion breakthroughs, read the below link on how these companies are powering the future! ⚡👇

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Government & RBI Expand Collateral-Free Loan Limits

🔸 Agriculture Loans - Limit raised from ₹1.6 lakh to ₹2 lakh from Jan 1, 2025, to support small and marginal farmers (86% of the farming community).

🔸 Housing Loans - Zero-collateral limit for low/middle-income groups may rise from ₹7 lakh to ₹20 lakh with minimal documentation.

🔸 Lender Benefits - Higher credit guarantees to aid financial inclusion, boost retail loan growth, and mitigate asset quality risks. Public sector banks and affordable housing financiers stand to gain the most.

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Accenture Q1FY25 Results: Signs of Incremental Demand Recovery.

🔸 Revenue Performance

~Revenues - $17.7 billion (+9% YoY), showcasing healthy, broad-based growth.
~Operating Margin - Stable at 16.7%.
~New Bookings - $18.7 billion (+1% YoY).

🔸 Order Book Highlights

~Consulting - $9.2 billion (+7% YoY), indicating a recovery as management notes the bottoming out of consulting weakness.
~Managed Services - $9.5 billion (-3.6% YoY), reflecting ongoing moderation.

🔸 GenAI Momentum

~Bookings -$1.2 billion (+$200 million QoQ), contributing 6.4% of total bookings.
~Significance - Reflects increasing demand as clients allocate innovation budgets to GenAI services.

🔸 Guidance & Outlook

~Q2FY25 Revenue Expectation - $16.2-$16.8 billion (+5-9% in local currency).
~FY25 Revenue Growth Guidance - Revised upwards to 4-7% (from 3-6%), driven by a favorable forex outlook (drag reduced to -0.5% from -1.5%).
~Demand Environment
1. Top-end guidance assumes steady demand.
2. Lower-end factors in potential softening, with discretionary spending remaining focused on modernization and cost optimization.

🔸 Key Takeaway
~While the demand environment shows no major improvement, Accenture's GenAI traction and upward guidance revision signal resilience amid cautious client spending.

Profitable stocks trading near their 52 week-high

With the markets falling, here are some stocks that are trading near their 52-week-high and have a profit of more than 1000 Cr in the last 12 months.

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