Overall, the dawn of the season has shown resilience, with several large-cap companies beating market expectations, particularly in IT services, banking, and retail. While insurers have mixed results, the broader corporate earnings picture looks stronger despite global headwinds.
The Trendlyne picks five stocks from the Nifty 500 that they expect to have high revenue and net profit growth YoY and QoQ in Q3FY2026. These companies have already shown outstanding resilience with strong Q2 results. The stocks that Trendlyne expects to perform well in Q3 are Maruti Suzuki, Craftsman Automation, CEAT, Narayana Hrudayalaya and Larsen & Toubro, and all five stocks have outperformed the Nifty 500 over the past year.
Maruti Suzuki
Maruti Suzuki is cruising ahead on the strength of its robust mix of products, including hatchbacks and compact cars. Analysts see the momentum continuing in Q3 too, with its ensemble of petrol, CNG, and hybrid vehicles and its newer SUV models, which would help the company increase volumes. However, the competition is heating up, with Tata Motors, Mahindra, and Hyundai catching up with new releases. But Maruti doesn't look complacent in a market where buyers are clearly leaning towards SUVs, and that shift is changing how the auto industry looks today. Bigger vehicles are selling faster, especially mid-sized and premium SUVs, and companies are now competing aggressively in this space.
Craftsman Automation
Craftsman Automation is gaining from the investment cycle underway in the manufacturing sector. The company manufactures a wide range of automotive powertrain components and precision-engineered parts, supplying OEMs that serve passenger vehicles, tractors, and commercial vehicles.
As buyers move towards more premium vehicles, margins have improved. Craftsman's leadership in the business is due to its ability to handle both casting and machining within the organisation, which gives the company a clear edge over its competitors, especially as manufacturers are increasingly sourcing precision components from India. Their in-house handling gives the company better control over costs and quality while also allowing it to respond faster to customer demand.
Sharing his outlook, Srinivasan Ravi, Chairman and Managing Director of Craftsman Automation, said, "We are seeing large commitments from OEMs for new plants across the country. We are going to see the capacity with our existing customers growing around 50% in the next three years." For investors, the forecast points to steady growth visibility over the medium term.
CEAT
CEAT is shifting its focus to premium tires used in SUVs, cars, and higher-end two-wheelers, where demand is stronger and pricing is better than in the mass market. This change in strategy has improved the company's revenue mix and supported margins.
Replacement tyre demand has stayed stable, while orders from vehicle manufacturers have picked up as domestic auto sales improve. Another positive has been lower prices for rubber and crude-based inputs, which has helped profitability. However, both management and analysts caution that these lower costs may not last, as raw material prices usually move in cycles.
The competitive environment is also getting tighter, with other tire makers pushing premium products. CEAT faces risks from swings in raw material prices, pricing pressure from OEM customers and rising freight costs for exports. Around 20% of the company's revenue comes from overseas markets.
Larsen & Toubro
Larsen & Toubro resumes its successful journey driven by higher capex and a strong overseas order pipeline. In the second quarter, the company reported solid revenue growth, driven by better performance in the hydrocarbon, precision engineering and heavy engineering segments. International business now forms a significant part of total revenue.
L&T's key strength lies in its ability to execute large and complex projects across regions. The company has been more aggressive than many of its peers in bidding for offshore energy, industrial, and precision engineering contracts, allowing it to compete directly with global EPC players.
Management has indicated that order inflows remain healthy, with strong bidding activity in the Middle East and Southeast Asia. A robust order book and improving execution efficiency are expected to support growth in Q3 and beyond into FY26.
Narayana Hrudayalaya
Narayana Hrudayalaya is expected to announce strong Q3 results on the back of high-value cardiac and oncology care, rising per-bed revenue and its lean hospital model.
According to Trendlyne, domestic hospitals are the main growth engine, with higher surgical throughput and better utilisation boosting margins. The Cayman Islands business is a steady profit maker. But the big milestone is the company's entry into the UK through the acquisition of Practice Plus Group Hospitals.
Anesh Shetty, Managing Director at Health City Cayman Islands, said in an analyst call to Trendlyne, "Private patients pay more than the NHS, so a good mix between the two would be the ideal outcome for us. Our intention is to increase non-NHS sources, and we expect to make good progress on that." Management also guided to a medium-term ROCE of 20-22% by FY29-30.
Report by Praveen Vikkat for good returns.in
Disclaimer: The views and recommendations expressed are solely those of the individual analysts. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.
No comments:
Post a Comment