Iran has rejected reports that it is preparing to sign an agreement with the United States in Geneva on Sunday, pushing back against claims that negotiations have already produced a finalised deal.
According to Al Jazeera, an unnamed source close to Iran's negotiating team dismissed media reports suggesting that a signing ceremony was imminent, describing such claims as entirely false.
The source, quoted by Iran's semi-official Fars News Agency and cited by Al Jazeera, said reports that an agreement had been completed and was ready for signing in Switzerland did not reflect the current state of negotiations."The claims by Trump and some foreign media outlets that the agreement has been finalised and is scheduled to be signed in Geneva on Sunday are completely untrue," the source told Fars, according to Al Jazeera.Earlier today, in a statement carried by Fars News Agency, which is affiliated with Iran's Islamic Revolutionary Guard Corps (IRGC), Tehran rejected reports of a possible signing ceremony or direct talks between senior American and Iranian officials.
"Any speculation about signing in Switzerland or a face-to-face meeting is nothing but a mistaken understanding of American proposals and wishes," Fars quoted sources as saying.The denial comes after US President Donald Trump repeatedly suggested that an agreement with Iran was close and indicated that a signing could take place soon.Trump recently said discussions had been elevated to the highest levels of the Iranian leadership and claimed that a draft framework had received approval.His comments fueled speculation that Washington and Tehran were preparing to formalise a memorandum of understanding aimed at ending months of conflict and opening the door to broader negotiations.According to Al Jazeera, the source said Iran's internal review process has not been completed and that no final decision has been taken regarding the proposed agreement."Iran's internal review and decision-making process has not yet been completed," the source added, according to Al Jazeera's report.Iranian state media outlets have published details of what they described as draft terms under discussion with the United States, including provisions related to sanctions relief, the release of frozen Iranian assets, negotiations over Tehran's nuclear programme and arrangements concerning the Strait of Hormuz.At the same time, Iranian officials and state-linked media have repeatedly cautioned that no final agreement has yet been reached.
Commodity markets traded on a mixed note on June 12 as investors weighed developments in the Middle East, movements in the US dollar, and the global demand outlook.
Crude oil prices extended losses after reports that US President Donald Trump cancelled plans for military strikes on Iran, easing concerns over a broader regional conflict. Brent crude futures fell 1.3 percent to $89.17 a barrel, while WTI crude declined 1.4 percent to $86.48. For the week, Brent and WTI were down 4.2 percent and 4.4 percent, respectively.
n the precious metals segment, gold prices edged lower and were headed for a weekly decline as investors remained cautious over inflation risks and the possibility of further US Federal Reserve rate hikes. Spot gold slipped 0.3 percent to $4,200.82 per ounce and was set for a weekly loss of 2.8 percent. Gold futures for August delivery were trading at $4,222.10 per ounce.Gold had touched its lowest level in more than six months in the previous session before recovering, supported by hopes of easing geopolitical tensions after Trump signalled a potential peace agreement with Iran.Among other precious metals, silver gained 0.5 percent to $67.63 per ounce, while platinum and palladium also traded higher.
In currency markets, the US dollar steadied in early trade after falling to a one-week low, as traders assessed reports suggesting a ceasefire agreement in the Middle East could be near.
In currency markets, the US dollar steadied in early trade after falling to a one-week low, as traders assessed reports suggesting a ceasefire agreement in the Middle East could be near.
Indian equity markets staged a sharp rebound on June 12, with the combined market capitalisation of all companies listed on the NSE surging by nearly Rs 10 lakh crore, marking the biggest single-session gain in a month. The rally mirrored gains across global markets and was supported by a sharp decline in oil prices after fresh indications that the US and Iran are nearing a provisional agreement to end their conflict.
At the close of trade, the total market capitalisation of NSE-listed companies stood at Rs 462 lakh crore, up Rs 9.66 lakh crore from Rs 452.34 lakh crore in the previous session. Benchmark indices posted strong gains, with the Sensex and Nifty rising 2.3 percent, or 1,695.4 points, to close at 75,527.95 and 23,622.90, respectively. The Nifty MidCap 100 and SmallCap 100 indices advanced 2.5 percent each.
The rally was broad-based, with all sectoral indices on the NSE ending higher. Nifty Realty emerged as the top performer, jumping 3.6 percent, while Nifty Energy and Nifty Bank gained more than 3 percent each. Banking, financials, realty and auto stocks led the gains, while oil-sensitive sectors such as aviation, paints, tyres and cement attracted strong buying interest following the decline in crude oil prices. Broader markets also outperformed after recent corrections, with midcap and smallcap indices rising around 2.5 percent, reflecting improved market breadth and investor risk appetite.Global sentiment remained supportive as S&P 500 futures rose 0.5 percent after the benchmark index climbed 1.8 percent in the previous session. Brent crude oil fell 3.5 percent and headed for its first close below $88 a barrel since the early days of the conflict. Investor sentiment improved after reports suggested progress towards a potential agreement between the US and Iran. A Group of Seven official indicated that a deal could be signed as early as Sunday, while Iran's foreign ministry said a framework text was close to being finalised. Reports also indicated that the draft included provisions such as the reopening of the Strait of Hormuz and a 60-day negotiation period on nuclear issues.The easing of geopolitical concerns and expectations of stable global energy supplies pushed Brent crude prices towards the $86 per barrel mark, offering relief from inflationary pressures and concerns around India's external balances. The rally was further supported by strength in banking and financial stocks following the RBI's liquidity measures, while the rupee strengthened against the $.
Market experts said equities snapped their recent losing streak amid supportive global cues and easing geopolitical tensions. After opening sharply higher, the Nifty traded in a narrow range during the first half before gaining momentum in the latter part of the session and settling near the day's high. They noted that the index rebounded decisively after holding the crucial 23,000 support zone and reclaiming the key 23,500 resistance area, which coincides with the 20-day exponential moving average. Sustaining above this level could support further gains, while the 23,100-23,300 zone is expected to provide immediate support in the event of profit-taking.
Indian benchmark indices Sensex and Nifty are poised for a strong opening on Friday. The GIFT Nifty surged more than 250 points in early trade, tracking a sharp rally in global equities markets and a steep decline in crude oil prices amid renewed optimism over a potential peace deal in the Middle East.
GIFT Nifty was trading at 23,455 at around 8:05 am, up 255 points or 1.1 percent, indicating that the Nifty 50 could open well above Thursday's close of 23,161.60. The positive signal comes after Indian markets ended lower in a volatile session on Thursday, with the Sensex declining 151 points and the Nifty slipping below the 23,200 mark amid broad-based selling pressure.
Global risk sentiment improved significantly after U.S. President Donald Trump indicated that a peace agreement with Iran could be signed as soon as this weekend. Trump also said planned military strikes had been cancelled and that negotiations had advanced to the highest levels of Iran's leadership. This raised hopes of a diplomatic breakthrough that could end the three-month conflict and eventually reopen the Strait of Hormuz.
Asian markets rallied sharply on the development. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 3.2 percent, led by a 7.4 percent surge in South Korea's KOSPI. Japan's Nikkei advanced 2.7 percent, while China's CSI300 and Hong Kong's Hang Seng gained around 1 percent and 1.3 percent, respectively.Wall Street also witnessed its strongest rally in over two months overnight. The Dow Jones Industrial Average rose 930 points, or 1.86 percent, while the S&P 500 gained 1.75 percent and the Nasdaq Composite surged 2.54 percent. Semiconductor stocks led the advance, with the Philadelphia Semiconductor Index soaring nearly 8 percent. Investor sentiment was further supported by enthusiasm surrounding the record-breaking IPO of SpaceX, which raised $75 billion and valued the Elon Musk-led company at $1.77 trillion.A sharp fall in crude oil prices added to the positive mood. Brent crude dropped to around $89.40 per barrel after falling nearly 3 percent overnight. WTI crude slipped to about $86.70 per barrel. Oil prices have now fallen to their lowest levels in two months as investors reduced geopolitical risk premiums following signs of progress in negotiations.Lower crude prices are particularly positive for India, which imports the bulk of its energy requirements. Softer oil prices ease concerns around inflation, the current account deficit, corporate margins and the rupee, all of which are closely monitored by equity investors.According to Ponmudi R, CEO of Enrich Money, Indian markets are set for a strong start as improving global sentiment and easing geopolitical risks boost investor confidence. He said the suspension of planned military action and progress toward a broader Middle East agreement have triggered a sharp improvement in global risk appetite. The resulting decline in crude oil prices is especially beneficial for India as it helps reduce inflationary pressures, lowers import costs and improves the outlook for corporate earnings.Ponmudi added that investors will now watch whether the improving geopolitical backdrop can trigger a reversal in foreign portfolio flows, which have remained a major constraint on Indian equities in recent months.Foreign institutional investors remained net sellers for a twelfth consecutive session on June 11, though the pace of outflows moderated to Rs 1,987 crore. Domestic institutional investors continued to provide support, purchasing equities worth Rs 4,224 crore and extending their buying streak to 18 straight sessions.On the technical front, Ponmudi said the Nifty faces immediate resistance near 23,400. A sustained move above that level could pave the way for a rally toward 23,550. On the downside, the 23,100-23,000 zone remains an important support area.For Bank Nifty, the key hurdle remains the 55,800-56,000 zone. A breakout above this range could strengthen bullish momentum and open the path toward 56,500-56,800 levels, while support is placed in the 55,000-54,800 region.
In its latest report, Citi Research said India’s allocation inGlobal Emerging Market (GEM) funds is currently at a five-year low. The brokerage noted that India’s weight in the global emerging market index has declined from around 20% in mid-2024 to about 11%, while global portfolios remain close to a 20-year high underweight position on Indian equities.
According to Citi, foreign investor sentiment towards India remains subdued amid persistent geopolitical uncertainty and the associated macroeconomic challenges. The brokerage also highlighted concerns that India is not a significant participant in the global AI infrastructure buildout, making it important to monitor the medium- to long-term implications for employment, wages and consumption.
Valuation Revisions
It also added that while valuations have become more reasonable, with markets trading closer to their 10-year historical averages. However, it lowered its forward price-to-earnings multiple assumption for the Nifty from 19 times in December 2027 to 18 times in March 2028, resulting in a revised 12-month target of 26,000 for the index. The target is 1,000 points lower than its previous estimate of 27,000, reflecting concerns around geopolitics, AI-related developments and weather-related risks. Citi added that its Citi India Sentiment Indicator (CISI) points to potential one-year forward returns of about 10%.
Despite these concerns, Citi maintained a constructive medium-term outlook on India. It said any easing of tensions in West Asia or a pause in foreign institutional investor (FII) outflows could provide an upside trigger for markets. “Global flows may remain volatile in the near term as AI sentiments fluctuate, and some tempering in AI optimism may reduce FII outflow pressures for India,” the report said.
Commenting on fourth-quarter FY26 earnings, it noted that headline EBITDA growth for the BSE100 stood at around 6 % year-on-year, marginally below its estimates and historical trends. The brokerage identified crude oil prices and a potential El Niño event as key risks, while questioning the sustainability of strong consumer demand trends witnessed during the quarter. It added that rising input costs have prompted companies to implement price hikes.
The report highlighted several themes to monitor, including the impact of any slowdown in Global Capability Centres (GCCs) on employment and wage growth, the resilience of domestic investment flows, and the evolving AI narrative as value creation shifts from AI enablers to AI beneficiaries.
On sectors, Citi remains overweight on financials, telecommunications, healthcare, utilities and defence, while maintaining an underweight stance on IT services, consumer staples and metals.
Sector Preferences
Separately, financial services firm PL Capital cut its 12-month Nifty 50 target by 631 points to 26,449 from 27,080. The brokerage valued the index at a 10% discount to its 15-year average price-to-earnings multiple of 17.2 times in its base-case scenario. It projected a bull-case target of 29,387 and a bear-case target of 20,771.
PL Capital favours themes such as private banks, non-banking financial companies (NBFCs), metals, capital goods, defence, data centres, renewable energy, railways, ports, shipbuilding, semiconductors and healthcare. The brokerage remains cautious on IT services, consumer-facing sectors, chemicals, agriculture and oil and gas.
“While markets are unlikely to witness a significant correction below recent lows, prolonged geopolitical uncertainty could continue to drive sharp volatility,” PL Capital said.
Asset-Light Strategies Driving Extraordinary Capital Efficiency
Most investors hunt for fast growth. Yet some of the steadiest money is made by dull businesses that need little capital, throw off a lot of cash, and hand most of it back to shareholders. Two Pharma companies fit that description almost perfectly today. Both earn a return on capital employed (ROCE) of more than 80%, which is very rare.
For context, the wider industry earns a ROCE of about 15% and pays a one-year dividend yield of roughly 0.09%. Against that, our two names look unusual. The first posts a ROCE of about 84% and a yield near 2%. The other posts a ROCE of about 90% and a yield close to 1.6%. Both beat the sector on the two numbers that matter most to a cash-focused investor.
There is a simple reason for this. Neither runs a heavy, factory-led business. They sell well-known consumer health brands, keep very little money tied up in fixed assets, and pay most of their profit out as dividends. A healthy operating profit divided by a small capital base produces a very high ROCE. That is the story in one line. The rest of this piece checks whether it holds up once you read the fine print.
#1 P&G Health: A Brand Cabinet Most Indians Already Own
P&G Health Ltd is part of the Procter & Gamble group, which holds about 52% of the company. It is one of India’s largest producers of vitamins, minerals and supplements.
With a market cap of around Rs 10,329 cr, the company makes products like Evion, Neurobion, Seven Seas, Nasivion, Polybion Livogen etc. These are old, trusted names, and that is the quiet pricing power that makes a brand business durable.
The Dividend Payout Framework: Capital Extraction Outperforming Annual Net Profit
This is where P&G Health stands apart. The company has a dividend yield of about 2%, against the industry median of just 0.09%. But the headline understates the generosity. Over the trailing twelve months the company paid Rs 205 per share, made up of a Rs 110 interim and a Rs 50 special in February 2026, plus a Rs 45 final earlier.
At the current price that is a trailing yield above 3%. Screener.in also shows a dividend payout that has run above 100% of profit in several recent years, meaning the company returns more than it earns by drawing on its cash pile. It has paid dividends for more than two decades. For an income-minded investor, that record is the main attraction.
P&G Health has changed its financial year twice. It moved from a December close to a June close, with an 18-month stretch ending June 2020, and then to a March close, with a 9-month stub ending March 2025. That makes a clean five-year growth rate misleading, since you end up comparing periods of different lengths. So, I am showing the actual yearly figures rather than a single number that would flatter or fool.
Financial Year
FY21 (Jun)
FY22 (Jun)
FY23 (Jun)
FY24 (Jun)
FY25* (9m)
FY26 (Mar)
Sales (Rs cr)
1,009
1,114
1,230
1,151
934
1,408
EBITDA (Rs cr)
246
268
325
307
319
457
Net Profit (Rs cr)
177
193
229
201
234
327
Source: Screener.in
Read across the full years and the trend is clear. Operating profit has roughly doubled, from Rs 246 cr in FY21 to Rs 457 cr in the year to March 2026, and net profit has grown from Rs 177 cr to Rs 327 cr. That is healthy, margin-led growth. Sales, though, have crawled. Screener even shows five-year sales growth of under 1%, but that figure is distorted by the 18-month year in the base.
A fair takeaway would be that profit has compounded in the low teens while the top line has been sluggish. This company grows earnings through better margins and cost control, not rapid sales gains.
The share price of Procter & Gamble Health Ltd was around Rs 5,800 in June 2021 and as of closing on 10th June 2026 it was Rs 6,224.
P&G Health Long-Term Price Chart
On valuation, the stock trades at a price-to-earnings (PE) ratio of about 32x, which is same as the current industry. A caution on the longer view: a clean ten-year median PE is hard to trust here. The same year-end changes, plus a one-off gain of about Rs 768 cr in 2018, distort the historical earnings series. I would rather flag that than hand in a tidy but unreliable number.
Asset-Light Operational Mechanics: Breaking Down P&G’s 84% ROCE
P&G Health’s ROCE for the year to March 2026 is about 84%, and its return on equity is about 62%. In plain words, for every Rs 100 of capital the company uses, it earns roughly Rs 84 of operating profit. This is while its peers from the industry average about 15%.
The company keeps little money locked up, runs on a slim asset base, and pays most of its profit out as dividends, which keeps its equity small. A small base under a solid profit produces a very large ratio. The business is a good one, but the eye-popping figure is partly an effect of how little capital it retains.
#2 Sanofi Consumer Healthcare: Two-Year-Old Company with Decades-Old Brands
Sanofi Consumer Healthcare India was incorporated only in 2023. It was carved out of Sanofi India through a demerger to create a standalone consumer health business, and listed soon after. The company is new, but the brands are not. It owns Allegra for allergy relief, Combiflam for pain, Avil, and DePURA for vitamin D. These are household names, which is the whole point of an over-the-counter consumer health business.
With a market cap of Rs 10,791 cr, the company operates across a range of channels, including distributors, wholesalers, government institutions, hospitals, pharmacies, pharmacy chains, and e-commerce platforms. It also has various independent third-party manufacturers.
One number stands out on the shareholding page. Promoter holding rose from 60% in March 2025 to over 71% in March 2026, as the Sanofi parent raised its stake. When the owner of a business buys more of it, investors usually take notice. Over the same period, foreign and domestic institutions trimmed their holdings, so the float that the public can trade has shrunk.
Asset-Light Operational Mechanics: Demystifying P&G’s 84% Return on Capital Employed
Now, the 5-year figures for the company would not be of much use, as it was formed recently and it has not existed long enough as a separate entity. However, here is the most recent full year against the one before, built from the quarterly results (Source: Screener.in).
Period
FY25 (Apr 24 to Mar 25)
FY26 (Apr 25 to Mar 26)
% Growth
Sales (Rs cr)
676
935
38%
EBITDA (Rs cr)
253
334
32%
Net Profit (Rs cr)
168
258
54%
Source: Screener.in
These are full years built from quarterly filings. Operating margin has held in a strong 35% to 39% band. This is fast growth, and the December 2025 quarter was strong, with sales up about 47% and net profit up about 50% over the year before. But the base is short and shaped by the demerger, so we would treat one or two years as a starting point, not proof of a long trend.
The share price of Sonafi Consumer was about Rs 4,900 when listed in September 2024 and as of closing on 10th June 2026 it was Rs 4,675 which is a considerable drop. The stock is currently trading at a discount of about 22% from its all-time high of Rs 5,954.
Sanofi Consumer Healthcare Long-Term Price Chart
On valuation, the stock trades at a PE of 43x against the current Industry median of 32x, hence trading at a small premium to the sector’s median.
The risks are the short trading history, the thin float after the promoter buying, the steep multiple on book value, and the auditor change. The pull is a portfolio of strong brands, almost no debt, the highest ROCE in the pair, and a rising dividend.
Valuation Premiums vs. Capital Yields: Sanofi’s 90% ROCE Against Its Trading History
Sanofi Consumer is the more extreme of the two on returns. Its ROCE is about 90% and its return on equity about 72%. So, for every Rs 100 of capital employed, it produces about Rs 90 of operating profit, while industry peers average about 15%. As with P&G Health, that is partly a sign of how little capital the business needs, not just how well it runs, and the short history gives the ratio less to stand on.
Regarding dividends, Sanofi Consumer yields about 1.6%, which still beats the sector. It paid a Rs 55 final dividend in April 2025, and the board has recommended a much larger Rs 75 per share final dividend, with a record date in June 2026. That is a clear step up.
One item deserves a plain mention. The company’s auditor, Kalyaniwalla & Mistry LLP, resigned at the end of April 2026 over what was described as a fee dispute, and PwC was appointed in its place in May. An auditor change is not, by itself, a red flag, and the stated reason was fees. But any auditor change at a newly listed company is worth watching, and I would rather point it out than skip past it.
Balancing Consistent Dividend Inflows Against Growth Frontiers
Both companies are real cash machines and they own brands people buy without thinking, carry almost no debt, earn far more on their capital than the sector does, and pay out more in dividends than most peers. For an investor who wants steady income and quality, that is a rare and appealing mix.
But the same features that make the ROCE look stunning also set the limits. These businesses are high return precisely because they keep so little capital and pay so much out, which leaves less to reinvest for growth. P&G Health has grown profit nicely, yet its stock has been flat for five years, a reminder that the price you pay matters as much as quality. Sanofi Consumer is growing faster, but it is young, lightly traded, and has just changed its auditor. Neither is a bargain on book value.
However, these are not get-rich-quick stories. They are slow, cash-rich, dividend-led businesses where the main risk is overpaying for the comfort they offer. For a watchlist For a watch list built on quality and income, both earn a place. Whether today’s price is the right entry is the question each reader will have to answer.
Article written by Suhel Khan
Source: FinancialExpress
Disclaimer:
Note: We have relied on data from http://www.Screener.in and http://www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, he was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein.
US President Donald Trump on Thursday announced that he had cancelled planned military strikes against Iran, claiming that discussions with Tehran had reached the highest levels of the Iranian leadership and that the broad framework of a deal had been approved by all parties involved.
In a post on Truth Social, Trump said he had called off airstrikes that were scheduled for later in the day after receiving indications that negotiations were moving toward a final agreement.
"Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening," Trump wrote.
The announcement marked a dramatic shift in tone from just hours earlier, when the US president had warned that American forces would strike Iran "VERY HARD TONIGHT" amid renewed military exchanges between the two countries.Trump claims broad agreement reachedAccording to Trump, discussions and final points of a proposed settlement had been approved "in both concept and great detail" by a wide group of regional and international stakeholders.He named the United States, Israel, Saudi Arabia, the United Arab Emirates, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan and Egypt among those backing the arrangement."Discussions and final points have been, in both concept and great detail, approved by all parties involved," Trump wrote.However, neither Iran nor the other countries named by Trump immediately confirmed his claims.The US president added that a naval blockade imposed during the conflict would remain in place until the agreement was formally completed."The Naval Blockade will remain in full force and effect until this Transaction is finalized," he said.Trump added that details regarding the signing ceremony would be announced shortly.Sharp turn after escalationThe latest development comes after days of escalating rhetoric and military exchanges that had threatened to derail already fragile negotiations.Earlier on Thursday, Iran warned Washington that further military action could drag the United States into what it described as an "endless quagmire" while triggering major disruptions in global energy markets.Iran's parliamentary speaker and chief negotiator, Mohammad Bagher Ghalibaf, accused Washington of pursuing dangerous policies that risked expanding the conflict."Wrong strategies and impulsive decisions will reset the entire board for the worse, explode energy infrastructure and markets and create an endless quagmire that you will be stuck in for years," Ghalibaf said.His warning came after Trump threatened additional military action and suggested the United States could seize Iran's key oil export facilities.In another Truth Social post, Trump said Washington could eventually take control of Kharg Island, Iran's most important oil export terminal."At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets," he wrote.
Foreign investors (FIIs/FPIs) net sold shares worth Rs 1987 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 4225 crore on June 11, as per provisional data on the exchange.
During the session, DIIs purchased shares worth Rs 16,823 crore and sold shares worth Rs 12,598 crore. Meanwhile, FIIs bought shares worth Rs 14,001 crore but sold shares totalling Rs 15,988 crore.
For the year so far, FIIs have been net sellers of nearly Rs 3.34 lakh crore worth of shares, while DIIs net bought Rs 4.21 crore shares.Market viewAt close, the Sensex was down 150.63 points or 0.20 percent at 73,832.55, and the Nifty was down 53.35 points or 0.23 percent at 23,161.60.
Among sectors, private bank, media, pharma up 0.5-2 percent, while IT index shed 1.4%, PSU Bank, Realty, Energy, Consumer Durables down 0.5% each.ICICI Bank, Kotak Mahindra Bank, Grasim, M&M, JSW Steel were among top gainers on the Nifty, while losers were Infosys, HCL Tech, Adani Ports, Trent, Eternal.Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services noted that Indian equities are expected to remain volatile in the near term, with sentiment likely to be weighed down by escalating geopolitical tensions in West Asia. “The United States has launched fresh strikes against multiple targets in Iran. Markets are closely watching for signs of resolution, which remains the key monitorable in the near term.”During the session, more than 80 stocks touched their 52-week low on the BSE, including HCL Tech, LTM, Zensar Tech, EID Parry, Rail Vikas Nigam, Dalmia Bharat, Kalyan Jeweller, Swiggy, HDFC Life, eClerx Services, Wipro, SBI Life Insurance, TCS, ICICI Prudential, P and G, Reliance Industries, Jyothy Labs, Bharti Hexacom, among others.
The equity benchmark indices Sensex and Nifty trimmed a part of their early losses on Thursday supported by value buying at lower levels and technical support near key levels.
However, markets turned green later in the day, with the Sensex trading at 74,284.97, up 301.79 points or 0.41 percent, at around 12:30 pm, while the Nifty was trading at 23,291.45, up 76.50 points or 0.33 percent.
Honasa Consumer gained 3 percent after multiple brokerages reiterated positive views following its investor day on Wednesday. ICICI bank was the top gainer in the benchmark Nifty50 index.
Key reasons behind market paring losses
1) Value buying: Buying interest emerged at lower levels after the initial decline, helping the benchmarks recover from the day's lows.
2) Technical Support: Vatsal Bhuva, Technical Analyst at LKP Securities, said the expected trading range for the Nifty is 23,000-23,550. He said 23,200 is the immediate support level, while the 23,000-23,100 zone is seen as positional support. The key resistance zone is placed at 23,450-23,550.
3) Firm global cues: Wall Street futures traded in the green, indicating a positive start to the US markets later in the day. US markets ended significantly lower on Wednesday.
4) India Vix eases: The fear gauge or the volatility index eased to 15.57 level. Today also happens to be Sensex expiry day.
Renewable energyis no longer a distant theme. It has become central to how countries think aboutpower, industry andenergysecurity. As electricity demand rises, clean energy is becoming important for both growth and sustainability.
India is also moving fast in this direction. The government has been pushing renewable capacity, solar manufacturing, green energy corridors and domestic clean-energy supply chains. This has created opportunities for companies across solar, wind, EPC, equipment and allied renewable businesses.
In this article, we look at renewable energy stocks that are growing fast, but are also showing signs of financial discipline. The idea is not to look only at sales growth. The focus is on companies that combine growth with returns, cash generation and promoter commitment.
For this, we first ran a Screener filter. The filter included companies with market capitalisation above Rs 1,000 crore, 3-year sales growth above 15%, RoCE above 12%, debt-to-equity below 2, positive net profit margin in the preceding year, positive operating cash flow over three years, and promoter holding above 50%.
#1 Oriana Power: Balancing Asset Monetization with 39.6% RoCE
Incorporated in 2013, Oriana Power is engaged in two main business verticals: providing of EPC and operations of solar power projects, and offering solar energy solutions on a BOOT (build, own, operate, transfer) basis.
Oriana Power Financial Performance
Metric
Oriana Power
FY26 revenue growth YoY
83.7%
FY26 PAT growth YoY
59.1%
FY26 operating cash flow
Rs 337 crore
RoCE
39.6%
RoE
39.6%
EV/EBITDA
8.7x
Source: Screener.in, Q4 Earnings call transcript
Oriana Power reported a strong FY26, helped by higher execution in renewable energy projects and a wider push across solar, storage and green fuels. Revenue from operations rose 83.7% year-on-year (YoY) to Rs 1,814 crore in FY26. Net profit rose to Rs 252 crore up 59.1%.
The company’s growth was backed by strong project activity. Oriana said it has delivered more than 835 MW of solar projects. It also has over 700 MW of solar capacity under execution and 2,500 MW in the pipeline. The company has acquired or is processing around 4,780 acres of land across India. It also carries a CRISIL rating of A-/Stable.
Diversifying Into BESS: Moving Beyond Pure-Play Solar EPC
The company is also expanding beyond plain solar EPC. It has more than 1,000 MWh of Battery Energy Storage Sytem (BESS) projects under execution and more than 3,000 MWh of BESS capacity in the pipeline. During FY26, it secured its first utility-scale solar plus BESS hybrid project of 100 MW/300 MWh connected at CTU. It also commissioned its first group captive open access project in Rajasthan, which the company says is its first integrated hybrid project combining solar and BESS.
Oriana also made progress in larger and more complex renewable projects. It secured one of the world’s large floating solar installations at Maithon Dam in Jharkhand. It entered Latin America through a solar project at an international airport in Guyana. It also commissioned its first ISTS-connected solar project at Prayagraj, Uttar Pradesh. The company further secured open access grid connectivity across Rajasthan, Haryana and Tamil Nadu.
Another area to watch is green fuels. Oriana signed a 10-year green ammonia purchase agreement with SECI for 60,000 tonnes per annum. The company said the contract value is estimated at around Rs 3,135 crore. It is also working on green fuel projects in states such as Madhya Pradesh, Andhra Pradesh, Maharashtra and Uttar Pradesh.
The company is also using partnerships to scale. It signed a joint development agreement with Actis GP LLP for developing 1 GW of renewable energy assets over two years. Oriana will act as the project development and turnkey partner. It also proposed monetisation of around 238 MW of operational solar assets to an Actis group entity at an enterprise value of around $108 million. This asset recycling is expected to support future growth capital.
The financial quality remains central to the stock’s inclusion in this screen. Oriana had positive operating cash flow of Rs 337 crore in FY26, compared with Rs 290 crore in FY25. Return on capital employed (RoCE) stood at 39.6%, while return on equity (RoE) was also at 39.6%. The stock trades at an EV/EBITDA of 8.7 times, compared with its one-year average of 13.7 times. Promoter holding stood at 57.98% as of March 2026.
The Working Capital Headwind: Managing High Debtor Days
The main risk is working capital. Debtor days improved from 146 days in FY25 to 135 days in FY26, but they remain high. The cash conversion cycle stood at 89 days. This means collections will remain important as execution scales up.
For now, Oriana Power fits the article’s quality-growth filter. It combines strong sales growth, high return ratios and positive operating cash flow. The next test will be execution. The company will need to convert its solar, BESS and green fuel pipeline into projects without stretching working capital too much.
In the past year, the share price of Oriana Power is down 19.5%.
Oriana Power 1 Year Share Price Chart
Source: Screener.in
#2 Waaree Energies: Decoupling a Rs 53,000Cr Order Book From Global Tariff Risks
Incorporated in December 1990, Waaree Energies is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 12 GW. It has five solar module manufacturing facilities in India, with international presence.
Waaree Energies Financial Performance
Metric
Waaree Energies
FY26 revenue growth YoY
83.7%
FY26 PAT growth YoY
101%
FY26 operating cash flow
Rs 1,627 crore
RoCE
38.8%
RoE
32.8%
EV/EBITDA
12.7x
Source: Screener.in, Q4 Earnings call transcript
Waaree Energies reported a strong FY26, helped by higher module sales, better margins and a larger order book. Revenue from operations rose 84% YoY to Rs 26,537 crore. Net profit doubled to Rs 3,884 crore, up 101% from the previous year.
The company’s scale remains a key part of the story. Waaree said its module manufacturing capacity now stands at around 26 GW. It also has 5.4 GW of operational cell manufacturing capacity. During FY26, module production reached 12.6 GW, while module sales stood at nearly 12 GW.
Order Book Visibility: De-Risking Sales via 65% International Orders
Growth visibility also remains strong. The company said its order book was around Rs 53,000 crore, compared with Rs 47,000 crore at the end of Q4 FY25. The order book does not include the retail business, which contributes around 20% of revenue. Overseas orders form nearly 65-70% of the total order book and are expected to be delivered over the next three to four years.
Waaree is also expanding beyond modules. It has planned capex of about Rs 30,000 crore across verticals. The company has started construction of a 10 GW ingot-wafer facility at Nagpur. It also commissioned an additional 3 GW module manufacturing capacity at Samakhiali, Kutch. Expansion in batteries, solar cells, ingot wafers, inverters and green hydrogen electrolysers is progressing as per schedule.
The company is also building a wider energy-transition platform. It plans 20 GWh of battery energy storage capacity, including 3.5 GWh in the current financial year and 16.5 GWh by the next year. It is also setting up 4 GW inverter capacity, 20,000 MVA transformer capacity, 2,500 TPD PV glass capacity and 1 GW green hydrogen electrolyser capacity. This marks its move from a solar module maker to a broader clean-energy manufacturing player.
Waaree is also working on global diversification. Its 1.6 GW US manufacturing facility has already ramped up. The company expects to expand US capacity to 4.2 GW over the next six months. Management said this should help it serve the US market through local capacity and reduce exposure to tariff-related risks.
The return profile also supports its inclusion in the quality-growth screen. RoCE stood at 38.8%, while RoE was 32.8%. The stock trades at an EV/EBITDA of 12.7 times, compared with its one-year average of 18.2 times. The company has also maintained debt-to-equity below one despite heavy capex cycles, according to management. Promoter holding stood at 64.19% as of March 2026.
The Inventory Drag: Evaluating Weaker Operating Cash Conversion
The main area to watch is cash conversion. Cash from operating activity was positive at Rs 1,627 crore in FY26. But it declined from Rs 3,158 crore in FY25. Cash flow from operations to operating profit also fell to 47%. Management attributed weaker cash conversion partly to inventory build-up due to logistics delays and export shipment issues.
For now, Waaree Energies fits the quality-growth filter. It has strong sales growth, high return ratios, positive operating cash flow and a large order book. The next test will be execution. The company will need to complete its large capex programme, protect margins and improve cash conversion as it moves deeper into cells, wafers, storage, glass and other energy-transition businesses.
In the past year, the share price of Waaree Energies is up 7.2%.
Waaree Energies 1 Year Share Price Chart
Source: Screener.in
#3 Fujiyama Power Systems: Aggressive Tier-2 Penetration vs Negative Cash Flows
Founded in 2017, Fujiyama Power Systems manufactures products and provides solutions in the rooftop solar industry, including on-grid, off-grid, and hybrid solar systems.
Fujiyama Power Systems Financial Performance
Metric
Fujiyama Power Systems
FY26 revenue growth YoY
72.3%
FY26 PAT growth YoY
94.6%
FY26 operating cash flow
Rs -3 crore
RoCE
35%
RoE
36.4%
EV/EBITDA
20.6x
Source: Screener.in, Q4 Earnings call transcript
Fujiyama Power Systems reported a strong FY26, helped by higher sales in rooftop solar products and wider distribution reach. Revenue from operations rose to Rs 2,655 crore, up 72.3% YoY. Net profit increased to Rs 304 crore up about 94.6%.
The company operates in rooftop solar, with a focus on off-grid and hybrid solar solutions. Management said its products are mainly used as backup systems in areas with inconsistent grid supply. This gives the company a stronger presence in Tier 2 and Tier 3 markets, where solar is often seen as a necessity rather than only an investment product.
Fujiyama also expanded its distribution network during the year. It added more than 80 distributors, over 450 dealers and 30 exclusive Shoppe outlets during the quarter. Its total channel partner network crossed 8,900 as of March 2026. Management said this has helped it deepen its presence in existing markets and enter new regions.
Ratlam Capacity Expansion: Setting Up for Peak Revenue Scaling
The company also made progress on capacity expansion. It commissioned a 2,000 MW solar panel manufacturing facility at Ratlam. Management said the Ratlam facility can generate peak revenue of around Rs 5,000 crore once all lines are fully operational and utilised. The facility is expected to ramp up through FY27 and reach higher utilisation by FY28.
Fujiyama is also strengthening backward integration. It is setting up a 1,200 MW TOPCon solar cell manufacturing facility at Ratlam. Management said this is important for meeting ALMM 2 requirements and for supporting the rooftop solar business. The company also said cell manufacturing will mainly help margins, as it is a backward integration step rather than a direct revenue addition.
The company’s product mix is broader than just panels. It sells solar panels, power electronics and batteries. In Q4, management broadly indicated a 40:40:20 revenue mix between solar panels, electronics and batteries. It also said power electronics and lithium battery capacity expanded during the year.
Fujiyama fits the quality-growth screen on return ratios and promoter ownership. RoCE stood at 35%, while RoE was 36.4%. Promoter holding stood at 86.76% as of March 2026The stock trades at an EV/EBITDA of 20.6 times, compared with its one-year average EV/EBITDA of 27.2 times.
Cash Flow Vulnerabilities: Navigating a 180-Day Inventory Cycle
The main weakness is cash flow. Operating cash flow was slightly negative at Rs 3 crore in FY26. Free cash flow was also negative due to heavy investing activity. Inventory days rose to 180 days. Management said inventory increased mainly due to raw material stocking, new locations and capacity expansion.
For now, Fujiyama Power Systems fits the renewable quality-growth theme better than a general engineering supplier. It has strong sales growth, high return ratios and high promoter holding. But the cash-flow picture is weaker than the headline profit growth. The next test will be whether the company can scale Ratlam, improve working capital and convert growth into stronger operating cash flow.
In the past year, the share price of Fujiyama Power Systems rallied 54.4%.
Fujiyama Power Systems 1 Year Share Price Chart
Source: Screener.in
Conclusion
The renewable energy story is not just about fast growth anymore. Many companies are growing because the sector itself is expanding. The real question is whether they can grow without stretching debt, cash flows or working capital too much.
These three companies stand out because they have shown strong FY26 growth and healthy return ratios. They also have high promoter holding, which was one of the key filters used for the screen.
Still, this is not a risk-free theme. Capex plans, inventory levels, project execution and cash conversion will matter from here. In a sector where demand is strong, the better companies will be the ones that turn growth into real cash and steady returns.
The table shows that while all three companies have delivered strong growth and high return ratios, cash conversion and valuation remain the key differentiators.
