LG profits down 27%, Eicher Motors profits up 24%, & more - Groww Digest

Wednesday, 12 November 2025

Groww Digest

Nov 13, 2025

Markets opened below yesterday’s closing point.

Nifty 50 fell in the second half of the day and close flat.

Metal stocks and realty stocks rose the most today. PSU bank stocks and media stocks fell the most.

Global markets: Most US markets and most Asian markets rose. Most European markets fell (as of 6 pm IST).

News

The central government approved the Export Promotion Mission, with a cost of Rs 25,060 crore along with Rs 20,000 crore for the Credit Guarantee Scheme for Exporters to provide collateral free credit to exporters.
Fujiyama Power IPO has been subscribed 0.09 times. Retail subscription: 0.15 times. IPO closes on 17 Nov.
Tenneco Clean Air IPO has been subscribed 2.93 times. Retail subscription: 1.44 times. IPO closes on 14 Nov.
PhysicsWallah IPO was subscribed 1.81 times. Retail subscription: 1.06 times. IPO is closed for subscription.
Emmvee Photovoltaic IPO was subscribed 0.97 times. Retail subscription: 1.10 times. IPO is closed for subscription.

Stocks Updates

Zydus Lifesciences: received US FDA approval for Diroximel Fumarate capsules for multiple sclerosis in adults. It had annual sales of $999.4 million in the US. A company subsidiary, Amplitude Surgical, also got CE mark in Europe for its robotic orthopedic system ‘Andy’.
Eicher Motors: net profit rose 24% year-on-year to Rs 1,369 crore in the July-Sept quarter.
Muthoot Finance: net profit rose 90% year-on-year to Rs 2,421 crore in the July-Sept quarter. Interest income rose 48% to Rs 7,091 crore.
Tata Motors (formerly TML Commercial Vehicles): net loss was Rs 867 crore in the July-Sept quarter (vs a Rs 498 crore profit last year). The company said that the market price of its investment in recently-listed Tata Capital dropped after its listing, which affected its profits.
LG Electronics: net profit fell 27% year-on-year to Rs 389 crore in the July-Sept quarter.
Samvardhana Motherson: net profit fell 6% year-on-year to Rs 827 crore in the July-Sept quarter.
Tech Mahindra: sold its UK-based subsidiary ‘Mahindra Racing UK Ltd’ to Mahindra Overseas Investment Company for about Rs 14 crore.

Word of the Day

Market Correction

It is a decline in stock prices, from a recent high

They act as a cooling-off period, where prices adjust to lower levels.

Corrections are a normal part of market cycles.

Example: after Nifty 50 reached an all time high in Sept 2024, markets corrected around 18% till Apr 2025.

6 Day Course

Theme: bonds
Day 4: Thursday

We know that bonds are traded on the bond markets — similar to how stocks are traded on the stock markets.

The price of each bond depends on multiple factors:

1. Current interest rates being offered by newly issued bonds

2. Credit ratings or the ability of the bond issuer to pay on maturity

3. Current inflation rate

4. Liquidity or how easily a bond can be bought/sold

5. Time left to maturity

Many of these variables are unknown – nobody knows for sure what the future inflation will be, or how the interest rates will change, etc.

This makes it similar to stocks. Investors have to research, and develop informed opinions.

Since there are thousands of investors, each have their own opinion. They buy and sell based on those.

Featured Question

“There are some companies listed in Nifty 50 whose for example: P/B is 10, P/E 1800, ROE 0.81%, EPS 0.24. Which compared to its sector valuations are highly overvalued. Explain how the valuation of these companies is calculated/justified, and if so why are these companies included in Nifty 50 when better alternatives are available?”

Overvaluation can occur due to many reasons.

One of the simplest reasons is investor sentiments.

Sometimes, investors become extremely bullish about a company’s future and keep investing money into its stock.

This pushes the stock price up continuously leading to the higher price and overvaluation.

At other times, stocks become overvalued when their earnings, revenues fall sharply in a certain quarter — but investors think that the dip is temporary.

Let’s say a company’s profits are down, or it makes a loss.

But if investors feel the dip is temporary, they might not sell. So the price will remain roughly where it already was.

This is another way a company can become extremely overvalued.

This does not necessarily mean the stock’s earnings will bounce back. It means the investors expect it to bounce back.

Some companies become extremely overvalued simply because investors are willing to pay a high price in present times — because they expect the future price to be even higher.

Nifty 50 is a rule based index. The rule is that it is made up of 50 of the biggest companies in India.

Biggest companies = highest market cap.

So it gets made using this rule. It does not look at overvaluation to decide which stocks to include in it.

The market cap depends directly on the share price. So if a company share price rises enough (and therefore, its market cap), it will become a part of Nifty 50.

It does not matter if it is a loss making company or an overvalued company.