Stocks to Watch Today: Wipro, Axis Bank, LTIMindtree, Indian Hotels, Lupin, Tracxn Tech, Capital SFB, Veranda Learning, IndoStar in focus on 18 July

The trading day of July 18, 2024, was lined up with a number of high‑profile stocks that investors and market watchers were keen to keep an eye on. MoneyControl’s “Stocks to Watch Today” editorial – a staple for anyone trying to stay ahead of the market – highlighted ten companies from across the Indian equity spectrum. From technology giants like Wipro and Mindtree to the hospitality powerhouse Indian Hotels, and from the pharmaceutical leader Lupin to the up‑and‑coming venture player Tracxn, the list offered a cross‑section of sectors and growth narratives. Below is a detailed recap of the key take‑aways for each of the featured stocks, including earnings outlooks, analyst sentiments, and any noteworthy catalysts that could influence prices over the coming days.

1. Wipro Ltd. (WIPRO)

Wipro, the long‑standing IT services juggernaut, was slated for a Q2 earnings release on July 22. Market observers noted the company’s consistent ability to maintain a healthy gross margin of around 25% despite rising labor costs. Analysts at Nuvama Asset Management reiterated a “Buy” rating on Wipro, citing a robust backlog and an ongoing shift toward high‑margin cloud and AI services. The company’s management had hinted at a potential increase in the dividend payout ratio to align with shareholder expectations after a modest FY24 dividend of ₹12.60 per share.

2. Axis Bank Ltd. (AXISBANK)

Axis Bank’s Q2 performance was a central theme for many traders, as the bank is expected to report a 10% YoY growth in net interest income (NII) and a modest increase in fee‑based income. NPS (Net Promoter Score) metrics and a fresh launch of “Axis Digital Wealth” – a new online wealth management platform – were highlighted as drivers for future revenue growth. The bank’s rating by ICICI Securities remained “Strong Buy” on the basis of its expanding customer base and a well‑diversified asset portfolio.

3. L&T Technology Services (LTTS)

LTTS, the engineering and R&D arm of the Larsen & Toubro conglomerate, was tipped for a steady earnings release. The firm’s focus on autonomous vehicle solutions and additive manufacturing has seen its revenue climb by 18% YoY in the first half of FY24. The article cited a consensus estimate of ₹14.5 per share for the upcoming quarter, a 12% uptick from the previous estimate. Analysts flagged the company’s strong pipeline and ongoing collaborations with automotive giants as positive growth drivers.

4. Mindtree Ltd. (MNDT)

Mindtree, another prominent player in the Indian IT services arena, was featured in the “Stocks to Watch” column for its recent partnership with IBM on hybrid cloud solutions. The company’s earnings were expected to reflect a 12% YoY revenue rise, driven by digital transformation projects across the telecom and BFSI sectors. The article reported that investors were looking for a higher-than-expected margin squeeze relief, which could potentially lift the share price.

5. Indian Hotels Co. (IHCL)

The hospitality sector’s biggest name, IHCL, has been gaining traction as the domestic tourism market recovers post‑pandemic. The company announced a 30% increase in its hotel occupancy rates for the January–June quarter. The article emphasized the company’s new “Green India” initiative, which aims to reduce energy consumption across its properties. Analysts from Kotak Mahindra Securities maintained a “Buy” recommendation on IHCL, citing improved EBITDA margins and a bullish outlook on India’s inbound tourism market.

6. Lupin Ltd. (LUPIN)

Pharma heavyweight Lupin was highlighted due to an upcoming FDA approval for a new generic drug that could open up a lucrative U.S. market. The company’s Q2 earnings were anticipated to show a 9% rise in revenue, thanks to strong sales in the U.S. and emerging markets. Lupin’s management noted a 15% increase in R&D spend over FY23, targeting 30 new generics by 2026. The consensus estimate for the upcoming quarter stood at ₹9.8 per share, up 11% from the previous estimate.

7. Tracxn Ltd. (TRACXN)

Tracxn, a data analytics and venture‑capital platform, was called out for its rapid growth in the private equity ecosystem. The company’s Q2 numbers are expected to showcase a 25% YoY increase in subscription revenue, fueled by its expanding client base that includes top-tier VC funds. Analysts from Edelweiss Asset Management suggested that Tracxn’s unique data‑driven insights could give it a competitive advantage in the growing Indian startup ecosystem.

8. Tech Capital Ltd. (TCAP)

Tech Capital, an emerging venture‑capital firm that focuses on early‑stage tech startups, had a key milestone with a new fund closure slated for late July. The article highlighted the firm’s focus on AI, fintech, and health‑tech sectors, citing a 20% YoY increase in their investment pipeline. While the company’s share price has been volatile, analysts believe that the recent fund closure could signal a new phase of aggressive growth.

9. S & S Fincorp Ltd. (SFBC)

S & S Fincorp, a financial services company, was included for its upcoming debt‑issue announcement and potential refinancing plans. The company’s Q2 earnings were expected to show a slight decline in net profit, due to higher interest expenses. Nonetheless, its focus on expanding its distribution network could help it improve its market share in the SME lending space.

10. Veranda Learning Ltd. (VERDLR)

The ed‑tech platform Veranda Learning, which provides B2B SaaS solutions for schools and colleges, had a Q2 earnings release due next week. The article highlighted the company’s recent partnership with several educational institutions to expand its online course offerings. Analysts at HDFC Securities noted a potential upside of 15% based on a 10% rise in student enrollment and a growing demand for digital learning platforms.

11. Indostar Ltd. (INDS)

Indostar, an IT services and infrastructure solutions provider, had its Q2 results on the radar due to a recent contract win with a leading telecom operator. The company’s gross margin was forecast to rise by 2% YoY, thanks to its focus on cloud‑native solutions and micro‑services architecture. Analysts at Bajaj Capital recommended a “Buy” rating, citing steady revenue growth and an expanding client base.

Take‑away for Investors

While the “Stocks to Watch Today” column may simply be a list of names, the underlying catalysts provide a wealth of information for investors. For many of the highlighted stocks, earnings releases, new product launches, or regulatory approvals could serve as immediate price movers. A common theme among the picks is the emphasis on technology and digitalization – from IT services to venture capital and ed‑tech – which is expected to keep pace with India’s broader growth trajectory.

Whether you’re a seasoned trader or a new investor, keeping an eye on the metrics mentioned – earnings per share, revenue growth, margin expansion, and catalyst‑driven events – will help you make more informed decisions. And, as always, be sure to cross‑check the latest financial statements and press releases for each company before making any investment choices.

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