Month: May 2025

Dynamic Cables shares saw strong investors’ demand in an otherwise weak market on Tuesday, May 13. The company’s shares soared 20 per cent to get locked in the upper circuit at ₹610.90 per share on the National Stock Exchange. A combined nearly 1.2 million equity shares of Dynamic Cables estimated to be valued at ₹85 crore exchanged hands on the BSE, NSE before the trading was halted. 

The northward movement in the company’s share price came after the company announced its financial results for the fourth quarter for 2024-25 (Q4FY25) as well as the dividend rewards for its shareholders.

Dynamic Cables Q4FY25 results

 During Q4FY25, Dynamic Cables’ consolidated net profit after tax (PAT) zoomed 71.10 per cent Year-on-Year (Y-o-Y) to ₹23.56 crore from ₹13.77 crore reported in the corresponding quarter of the previous year. The company’s revenue from operations climbed 37.5 per cent Y-o-Y to ₹331.2 crore in Q4FY25 from ₹240.9 crore reported in Q4FY24. The company’s total expenses also grew 35 per cent Y-o-Y to ₹301.90 crore from ₹223.6 crore. 

The company’s order book stands at ₹725.6 crore as on March 31, 2025. 

Dynamic Cables dividend 2025

The company’s board has also recommended final dividend of ₹0.50/- per equity share i.e. 5 per cent per equity share of ₹10 each for the financial year ended March 31, 2025, subject to approval of shareholders at the ensuing 18th Annual General Meeting (AGM) of the Company.

“The above dividend (subject to deduction/withholding of applicable taxes), if approved/declared by the shareholders at the ensuing 18th AGM will be credited/dispatched within 30 days from the date of the 18th AGM,” the company said in a release.

About Dynamic Cables

Dynamic Cables is a manufacturer of power infra cables that includes LV, HV, MV, Power control & instrumentation cables, and signaling cables. It supplies cables to Government Discoms, Private Distribution companies, Private EPC contractors, industrial and Export clients. The company has 3 manufacturing plants situated at Jaipur and Reengus. Business operations are managed through corporate office in Jaipur and 5 regional sales offices across India. 

As of May 13, Dynamic Cables enjoys a market capitalisation of ₹1,776.13 crore on the NSE. 

The company’s shares have a 52-week range of ₹1,095 – ₹446.10 per share on the NSE.

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Promoter ownership in domestic companies has declined to the lowest level since the September quarter of 2017, but market experts say the trend is largely market-driven and does not point to any governance-related concerns. 

In the NSE 500 universe, private promoters’ share of overall holdings has dropped to 39.6 per cent in the March quarter so far, the lowest level since the September quarter of 2017, according to data from Primeinfobase.com. In December 2024, private promoter holdings in the broader universe stood at 39.76 per cent, declining slightly to 39.6 per cent in the quarter under review.  

Among the non-PSU Nifty 50 companies, promoter holdings currently stand at 34.4 per cent, the lowest since June 2017, as per the latest data. There are no governance concerns here as the regulations are strong, said Chokkalingam G, founder of Equinomics Research. He explained that the recent decline in promoter holdings is largely driven by market dynamics, particularly elevated valuations following an unprecedented bull run in calendar year 2024. “Some stocks became extraordinarily overvalued. For instance, metal stocks that typically traded at 8 to 11 times earnings were suddenly valued at 25 to 35 times. This created an opportunity for promoters to offload shares,” he said.

According to Chokkalingam, promoter selling at such high valuations should not be viewed with suspicion but rather as a signal for investors to assess price levels more carefully. “Promoters understand their businesses better than most investors. If they are selling at a certain level, that price should serve as a reference point in the next market cycle,” he added. 

The reduction in the holdings comes in a quarter that was marked by a correction in the market triggered by global funds outflows amid valuation and trade war-related concerns. During the March quarter, the benchmark Nifty50 and the 30-stock Sensex saw a decline of 0.5 per cent and 0.9 per cent, respectively. Meanwhile, the Nifty midcap and small-cap indices fell by 13 per cent in the quarter.

A lower promoter holding does not necessarily indicate a negative outlook for a company, said Deven Choksey, Managing Director of DRChoksey FinServ Pvt. Ltd. The very purpose of a company getting listed on the exchanges is to dilute its stake in order to raise funds. As long as companies receive the right valuation for the stake they offload, it should not be a concern. 

He added, one needs to consider the market capitalisation of the company to assess whether promoter offloading is an issue. There would be no red flag if a large-cap company reduces its holding, but it could raise concerns for a small-cap firm.

Shift in tide: DIIs versus FIIs 

This shift comes when, for the first time that domestic institutional investors (DIIs) now own a larger share of India’s top 500 listed companies than foreign institutional investors (FIIs), marking a structural realignment in India’s capital markets. 

As of March 2025, DIIs held an 18.4 per cent stake in Nifty 500 companies, surpassing foreign institutional investors (FIIs), whose ownership declined to 18.16 per cent. The FII-DII ownership ratio, which once stood at approximately 1.5 times in September 2021, fell to 0.99 times in the March quarter, highlighting the rising influence of domestic capital in Indian equities.

According to a note by Motilal Oswal, DIIs increased their holdings across 18 of 24 sectors, with the highest inflows going to banks (private and PSU), consumer durables, technology, cement, insurance, oil and gas, and automobiles—sectors seen as long-term structural plays.

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Shares of defence companies have resumed their up move on the bourses in an otherwise weak market on the National Stock Exchange (NSE) on Tuesday. They rose on expectations of a strong growth outlook on the back of strong government backing. 

Bharat Dynamic (BDL), Zen Technologies, Bharat Electronics (BEL), Garden Reach Shipbuilders & Engineers (GRSE), BEML, Hindustan Aeronautics (HAL), Mazagon Dock Shipbuilders (MDL), Paras Defence, Mishra Dhatu Nigam (MIDHANI) and Cochin Shipyard have rallied between 3 per cent and 7 per cent.  

At 11:37 am, Nifty India Defence index, the top gainer among sectoral indices, was up 3.4 per cent, as compared to the 0.66 per cent decline in Nifty 50.

The Nifty India Defence index has outperformed the market from its previous month low, with the index surging 24 per cent from its level on April 7, 2025, amid escalating border tension between India and Pakistan. In comparison, the Nifty 50 index has recovered 12 per cent during the same period. 

Meanwhile, in the past two months, the Nifty India Defence index has surged 30.5 per cent, as against 10.6 per cent rise in the benchmark index.

In addition to the India-Pakistan conflict last month, India has approved a major government-to-government agreement with France to procure 26 Rafale Marine fighter jets valued at ₹63,000 crore. The agreement includes 22 single-seater Rafale-M jets and four twin-seater trainers, with deliveries expected to be completed by 2031, according to reports. 

Defence sector outlook

India was the fourth largest military spender in the world in 2023, after the USA, Russia and China. The Government of India (GoI), in the Union Budget for FY2026, continued the increasing trend in allocation to capital outlay with a year-on-year (YoY) rise of 12.8 per cent in FY2026 Budget Estimates (BE) to ₹1.92 trillion, resulting in a compounded annual growth rate (CAGR) of 7.6 per cent during FY2019-FY2026(BE). This, coupled with the Government’s aim to reduce import dependence, would open up various opportunities and benefit domestic companies, according to ratings agency ICRA. 

Buoyed by the increased budgetary allocation, coupled with the Government’s aim to reduce dependence on imports and its production target of ₹1.75 trillion by FY2025, ICRA estimates opportunities worth ₹3.00 trillion for the Indian domestic entities over FY2025 and FY2026, 22 per cent- 23 per cent of which are expected to be accounted for by private sector entities.

India’s defense exports have increased significantly in recent years, reaching a record ₹21,000 crore in FY24 (Source: Defense Ministry). This is a 33 per cent increase from the previous fiscal year. India has set a defense exports target of ₹30,000 crore by FY26. In this context, the new $850 billion plan by the European Union (EU) provides a major opportunity for domestic public and private defence companies, especially for exports of subsystems and components to EU original equipment manufacturers (OEM), said analysts at Elara Capital in the sector report. 

Meanwhile, according to the drone federation of India, the country’s drone market revenue will expand from nearly $500 million in FY24 to $11 billion by FY30. With Intelligence, Surveillance, and Reconnaissance (ISR) drones already deployed in conflict zones, leaders stress the need for rapid scaling and reduced reliance on costly foreign systems. 

BrahMos is a supersonic cruise missile developed jointly by India and Russia. This plant marks a major leap in India’s pursuit of self-reliance in defence manufacturing. It not only boosts indigenous production but also positions India to meet export demands, potentially making it a global supplier of advanced missile systems.

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Shares of Larsen & Toubro have extended the post Q4 results rally, and appreciated another 3.6 per cent in trades on Monday. The stock has now gained 7.4 per cent in the last two trading sessions. In the process, the stock is now seen trading above its 200-Day Moving Average (200-DMA) for the first time since January 8, 2025. In general, the 200-DMA is considered as a key technical indicator in determining the long-term trend of a particular stock or index. Stocks or indices quoting above this key moving average are considered bullish, and vice versa.

Meanwhile, Nomura in L&T’s post earnings research call retained its ‘Buy’ rating on the stock, but lowered the price target from ₹ 3,820 to ₹ 3,670 per share. The overseas brokerage firm believes that L&T’s core operational performance was broadly in-line, but the core margin outlook still remains lukewarm.

on-year (YoY) increase in revenue at ₹ 74,392.28 crore. Earnings before interest, tax, depreciation, and amortisation (Ebitda) was up 13 per cent YoY at ₹ 8,203 crore. The management has guided for sales growth/ core EBITDA margin of 15 per cent YoY / 8.5 per cent in FY26.

Here’s a technical outlook on Larsen & Toubro stock.

Larsen & Toubro (L&T)

 Current Price: ₹ 3,565 Upside Potential: 10.8% Support: ₹ 3,515; ₹ 3,507 Resistance: ₹ 3,630; ₹ 3,660 Apart from crossing the 200-DMA, L&T stock has also given a breakout on the daily scale and is expected to trade with a favourable bias as long as the stock holds above ₹ 3,507 levels. The 200-DMA stands at ₹ 3,515.

On the upside, the stock faces an overhead resistance around ₹ 3,630 – ₹ 3,660 levels. Technical chart suggests that break and sustained trade above this level holds the key for further gains. In the event of a successful breakout, the stock can potentially rally to ₹ 3,950 levels.

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Confluence of positive geopolitical and economic developments—the ceasefire between India and Pakistan, coupled with a breakthrough trade agreement between the US and China—sparked the strongest daily market rally in recent times. Tarriff issue had the pivotal role in the stock market’s consolidation over the year. Sudden easing of the US-China tariff war unlocked multiple investment avenues for investors. 

Sustained foreign institutional investor (FII) inflows, along with a resurgence in retail participation fuelled by expectations of a swift improvement in business sentiment, propelled today’s upside. However, while the momentum remains strong, the market may enter a phase of consolidation in the near term as investors await concrete signs of earnings growth. In the meantime, mid & small caps are expected to maintain the optimism in the broad market. 

Technically, the sharp rise in the Nifty marks a continuation of the uptrend following a three-week consolidation phase. Having crossed the previous swing high of around 24,857, the index is now poised to inch towards the 25,200 level, while the 24,400–24,600 zone is expected to offer strong support on any dip.

In light of the widespread buying momentum, a ‘buy on dips’ strategy remains prudent. Investors should focus on selecting stocks based on the relative strength of specific sectors and prevailing market themes.

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