Intro and Disclaimer:-
Discuss some important companies and some important updates related to them The name of the first company is TCS i.e. Tata Consultancy Services. Disclaimer that all the news and updates related to the companies that we will cover are only and only for educational purposes and are not any kind of investment advice. You can also do your own research and analysis.
TCS – Tata Consultancy Services: Q1 Results in Focus:-
About some important news and updates related to TCS about today, then you were seeing TCS in a lot of focus and if we look at the IT sector, then TCS is the biggest company, if we talk about all over India and if the biggest company of the IT sector publishes its results, then this company will be in focus but apart from this, the other companies will also be seen to be in focus and yesterday, after TCS published its results, if we note the performance of NFT IT, then today you must have witnessed that a significant decline has been seen in NFT IT. A decline has been observed in one index. The decline number is 1.7%. Now TCS alone did not bring down this index.
Brokerage Concerns and Sluggish Growth:-
Apart from this, there is contribution from many other companies, including companies like Infosys. Companies like SLT and as well as Wipro also have their contribution. Now look friends why have all these things happened? Because multiple brokerage houses have published multiple negative commentaries regarding TCS. Now Nomora has recently updated that they are cutting their EPS growth estimates by around 1 to 2% from 2026 to 2028. Which means they are now expecting 1 to 2% less. Now what is the biggest reason behind this? Company’s weekly quarterly results. Now look friends, if we look at the revenue of the company in the results published by the company yesterday, if we look only on q1 and q basis and on year on year basis, then on year on year basis we are seeing a growth of only 1.32%. If you look at the record of last 3 years, then the company has reported the slowest growth in Quarter 1 in the last 3 years. And the company cannot say this after a long time. The company had shown the same thing in Q3 last year also. We saw the company’s revenue falling on Q1 Q basis and this time too we are seeing a decline in the revenue on Q1 & Q basis.
Future Outlook & Deal Wins:-
But after all these things, if we look at the future outlook of the company, then there the company has said one thing that if we talk about the performance in the financial year 2026, then the main core market of the company which you can call the international market because the company generates more revenue outside than in India. You should know that that company will be seen better in comparison to 2025. This means that in the financial year 2026, the international market will be seen performing better as compared to 2025. About the clarity of demand, then the company has set the date till July end and mid August, from where the company will start getting better clarity. Is the demand scenario exact? Along with this, the company has also said that if we talk about quarter one of the company, whatever performance you have seen there, if we compare it with quarter two, then we will see better performance in it. That means the company is expecting that quarter two will be far better than quarter one. So you have to note all these things. If you are an investor in TCS or any tech company. Now look friends, the company has also told things related to deal win. If we about the company’s order book, we see it going up to $9.4 billion. In this quarter we are seeing a growth of 13% on year on year basis. About this quarter, we are seeing the total order book of the company of around $2.2 billion for the quarter till F25. So you can note all these things if you are an investor in TCS.
IREDA – Indian Renewable Energy Development Agency:-
The name of the next company is IREDA i.e. Indian Renewable Energy Development Agency. The reason was that the company was in a lot of focus yesterday. Because of two reasons. The first reason was that the company related to Fund Rest had received approval from the government through bonds. The second reason was the company’s quarter one results.The company will matter more than the results of quarter one. Now if we look at the results of quarter one shown by the company, they were quite disappointing. If in terms of profit. Now, the biggest reason behind this was that the market was already expecting that the asset quality of the company that we will see in quarter one will appear weak in comparison to the previous one and we have also seen the stress assets of the company increasing in quarter one.
Q1 Results: Profit Down, NPA Up:-
Now let us try to understand the proper reason behind this. So if you look at the gross NPA, it is seen going up to 4.13%. If we compare it with Q4, it was 2.45% there and if about net NPA, it has also come down to 2.06%. It was 1.35% in the previous quarter. Increase in NPA is not a good sign but a bad sign. NPA means non performing assets. The loans taken by any bank or NBFC are their assets. If the loan is defaulted then in that case the NPA increases and the NPA of this company has increased in Q4 sorry Q1 and because of all these things the provisions of the company have also increased and the net profit of the company has decreased. And the market did not like all these things. But how did all these things happen? Recently you all knew that you got to see the news of default in Gensol Engineering. Now Gensol Engineering was also financed by IREDA. Roughly the amount was around Rs 730 crores. It has now been put into NPA. Because of this, you are seeing a huge spike in the company’s NPA.
Short-Term Pain, Long-Term Stable:-
About the stress assets of the company, we are also seeing it increasing by 77%. And if about the net profit of the company, we see it decreasing by 35% in this quarter. If about year on year basis and the provision which about, if we look at it on Q on Q basis, it has seen an increase of almost 180% on Q on Q basis, which is very rare and such a huge growth has been reported because the company has had to face a big default from Gensol Engineering and because of all these things, you can consider this as a proper reason for the impact shown in the performance of IREDA today. About the total loan book of the company, if you compare it with the amount of this default, then the company is not going to have much problem in the long term but whenever a big default happens, it definitely causes a jump in their financials, NPS, provisions in the short term and because of all these things, somewhere the market has had a lot of problem in seeing the results of the company because the business updates of quarter one shown by the company were very impressive but we did not get to see the results that were impressive. So because of all these things, you must have seen the performance of e to be weak today.
Wari Energies – Focus on Indosolar OFS:-
The next company whose name is Wari Energies was in focus yesterday and is in focus today also. What is the biggest reason to stay focused? So the biggest reason to stay in focus is OS. So the company had informed that the OFS is going to open on 10th July for non-retail investors and on 11th July for retail investors. Now which company does this OFS belong to? So they have a subsidiary company named Indosolar, it is a very small company. It is a bankrupt company. Production etc. does not belong to the company but it is a Wari Energy company. Because of this the hype is created. Now it is going to sell up to 10 lakh shares through OFS. If in percentage, it will take out a stake of around 2.4%. Now for non-retail investors, all this happened just yesterday. But things seem to be opening up for retail investors today. So if you are an investor in the company then you can take note of all these things because on behalf of all these things the company was looking a bit in focus today.
Aven Sumer (D’Mart): Q1 Results Expected Soon:-
The name of the next company is dmar i.e. aveen summar. So today you could also see this company in focus. The reason for this is, the company’s quarter one results, which have not yet come till the time . But when the results come, as soon as you see the result you should understand whether that result is good or bad as per the market.
Can They Meet Expectations This Time?:-
About the expectations of the company, what are the market’s expectations from the results of this company? So look friends, if we about the revenue of this company, then the market is expecting a growth of around 17.8% on year on year basis. Revenue of around Rs 16583 crore may be seen.
About EBITDA then we can see it at 11%. The company may report EBITDA of Rs 1,354 crore. And if we talk about margins, we may see it around 8.2% and we may see the net profit growing. The company can report a profit of 14% and Rs 83 crores. Last four quarters, then every quarter before the company’s results came out, the market expectations have been there, maximum time we have not seen the company’s numbers as per the expectations and this happens basically in those companies whose valuations are higher because if the valuation is high then the expectations will also be high and if there are high expectations then it becomes very difficult to justify it every time. So due to all these things, Aven Summer is often seen reporting weak performance after the results.
Conclusion & Wrap-Up:-
But the valuation of earlier times and the valuation of present times is quite different. Earlier the company was seen at a PE of 150. Currently the company is seen at a PE below 100. So if we look at the present time as compared to the past, it is a little easier to meet the expectations. If we look at the comparison before. Now the company reports its results, whether the results are as per the company’s expectations or miss the expectations once again. So take all these things only for educational purposes. There is no recommendation of any kind.