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For three straight quarters in the fiscal year 2025, Indian companies have been struggling to make money. It looks like the fourth quarter won’t be any different, making this year forgettable due to slow growth and shrinking profits. Most experts predict that the earnings of Nifty companies will only grow by about 1-2% compared to last year, which is disappointing.

Banks are particularly feeling the pressure because their earnings from interest are going down. Other sectors like commodity chemicals, consumer goods, oil, and gas also expect weak results. But there’s a bright spot: sectors like diversified financial services, healthcare, metals, and telecom are expected to do well, with strong profit growth.

The main reason for reduced profit is that companies aren’t making enough money from sales. For example, one brokerage, Nuvama, expects that overall revenue will only grow by around 6% this quarter. This slow revenue growth is putting more stress on profits.

Some companies are doing exceptionally poorly. A report from Motilal Oswal says that 60 companies could see their profits drop by double digits in the fourth quarter, with a few facing an 84% fall in profits!

Focusing on specific sectors, the automotive industry is only expected to grow by 1% in profits during January-March 2025. Companies like Apollo Tyres may experience a profit drop of 44%, and others in the sector could see drops of up to 35%. The revenue from automotive makers might see a small growth of 5% due to slight rises in production.

In the cement industry, profits may fall by 14%. Companies like Shree Cement and Ambuja are predicted to do badly as well. Consumer goods companies like Godrej and Tata may see profits drop by as much as 17%. Even though prices are increasing, sales growth has been low, with no major improvements in consumer demand.

Currently, after a recent drop in stock prices, the Nifty P/E ratio is now 20 times, which is a bit lower than its long-term average, making it cheaper to buy stocks, especially large ones. However, smaller companies are still seen as expensive. While challenges like global markets and a weak fourth quarter might make things bumpy in the short term, experts at Motilal Oswal still believe that India’s long-term growth story is strong.

Looking ahead, even though the fourth quarter is likely to be weak, analysts think that the market will start to focus on expected growth in FY26. This may be because FY25 had weak results, making it easier for improvement next year. Indian policymakers are also trying to boost demand to help the economy recover.

(Disclaimer: The views and opinions expressed are those of the experts and do not represent the views of Thellv.news)

Tata Consultancy Services (TCS), a big name in IT, has had a tough time recently. On Friday, their shares will get a lot of attention after the company shared its earnings for the last quarter. Here’s what happened:

– TCS made a net profit of Rs 12,224 crore for Q4FY25. That’s a 1.7% drop from last year, and it didn’t meet what experts were expecting (Rs 12,650 crore).
– Their revenue, which is the money they earned from operations, went up by 5.3% to Rs 64,479 crore, but that was also lower than what many analysts thought (Rs 64,856 crore).

So, should you buy, sell, or hold their stock? Here’s what some experts are saying:

Centrum’s Take:
Centrum has given TCS a ‘Buy’ rating but lowered its target price to Rs 4,211 from Rs 4,589. They think the company will grow but expect rough times ahead due to global issues and slow decision-making by clients. However, they see some hope in strong deals related to GenAI. They still believe TCS can grow significantly over the next few years.

Choice Broking’s View:
Choice Broking also recommends a ‘Buy,’ but with a lower target price of Rs 3,950. They think TCS has crossed the Rs 30,000 crore mark in revenue and maintains strong profits, even if uncertainty in the market might affect customer spending. They expect TCS’s growth to be better next year compared to this year.

In summary, while TCS is facing some challenges, experts still see potential for growth in the future.

Gold prices went up on Thursday because the trade war between the U.S. and China is getting worse. This happened even after President Donald Trump said there would be a 90-day break on tariffs for other countries.

Spot gold is now priced at $3,110.69 per ounce, which is a 0.9% increase, following a big rise the day before. U.S. gold futures are up by 1.5%, reaching $3,126.70. According to Nitesh Shah, a commodities expert at WisdomTree, “We are living in a world full of uncertainty, and we don’t know where this trade war will go. I believe gold prices will continue to rise this year.”

On Wednesday, Trump said he would lower tariffs on many countries but increased tariffs on China from 104% to 125% after China announced an 84% tax on U.S. goods. The U.S. Federal Reserve recently noted that the economy might face challenges like rising prices and slower growth, which could affect their decisions on interest rates.

Investors are now watching closely for data on U.S. consumer prices, as this could influence how the Fed manages interest rates. The current market expects that the Fed might lower interest rates by around 0.84% by the end of the year. Gold is often seen as a safe investment during tough economic times and does well in low-interest environments.

Gold prices have risen more than 18% since last year and are expected to keep climbing. Shah predicts that in a year, gold could reach $3,600, and it might even hit $4,000! Meanwhile, silver prices fell by 0.4% to $30.88 an ounce, platinum dropped by 0.3% to $934.70, and palladium went down by 1.3% to $920.79.