Stocks to Track Today (July 7): Tata Streel, Bank of Baroda, Coforge, RVNL, 13 other scrips in focus

Published in Stocks and Investing on Saturday, August 2nd 2025 at 22:05 GMT by Zee Business
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As market participants await a new trading week on Dalal Street, here are a number of stocks set to be in focus on Monday, July 7.

Stocks to Watch on July 7: Key Developments in Tata Steel, Bank of Baroda, RVNL, Raymond, Coforge, and Titagarh

In the ever-volatile world of Indian equities, investors are keeping a close eye on several prominent stocks as the market opens on July 7. Amidst global economic cues, domestic policy shifts, and company-specific announcements, stocks like Tata Steel, Bank of Baroda, Rail Vikas Nigam Limited (RVNL), Raymond, Coforge, and Titagarh Rail Systems are poised to be in the spotlight. These companies span sectors from metals and banking to infrastructure, textiles, IT services, and railways, reflecting broader market trends influenced by inflation data, interest rate expectations, and sectoral growth prospects. This summary delves into the latest updates, analyst insights, and potential catalysts for each, providing a comprehensive overview for traders and long-term investors alike.

Starting with Tata Steel, the steel giant is drawing significant attention due to recent operational and strategic developments. The company has been navigating a challenging landscape marked by fluctuating global steel prices, supply chain disruptions, and domestic demand recovery. On July 6, reports emerged about Tata Steel's plans to enhance its production capacity at its Jamshedpur plant, aiming to boost output by 5-7% in the coming quarters. This move aligns with India's infrastructure push under initiatives like the National Infrastructure Pipeline, which could drive steel consumption. Analysts from brokerage firms like Motilal Oswal have maintained a 'buy' rating on Tata Steel, citing improved EBITDA margins from cost efficiencies and a favorable export outlook amid recovering European markets. However, headwinds persist, including rising coking coal prices and potential tariffs from key trading partners. Investors should monitor the stock's performance against benchmarks like the Nifty Metal index, which has shown resilience despite broader market corrections. Tata Steel's shares closed marginally higher in the previous session, but volatility could spike if global commodity prices swing due to ongoing geopolitical tensions in regions like the Middle East. For those tracking quarterly results, expectations are high for the June quarter, with revenue growth projected at 8-10% year-on-year, driven by higher realizations in long steel products. Long-term, Tata Steel's green steel initiatives, including hydrogen-based production trials, position it well for sustainable growth, potentially attracting ESG-focused funds.

Shifting to the banking sector, Bank of Baroda (BoB) stands out as a public sector lender with robust fundamentals. The bank's recent announcement of a board meeting to consider fundraising through debt instruments has sparked interest. Specifically, BoB is eyeing the issuance of Basel III-compliant Tier-II bonds worth up to Rs 5,000 crore, which could strengthen its capital base and support lending expansion. This comes at a time when Indian banks are benefiting from improved asset quality, with non-performing assets (NPAs) declining across the board. BoB reported a gross NPA ratio of around 3.1% in its latest quarterly update, a significant improvement from previous years, attributed to effective recovery mechanisms and a buoyant economy. Market watchers point to the bank's digital transformation efforts, including enhancements to its mobile banking app and partnerships with fintech firms, as key growth drivers. Analysts at ICICI Securities have upgraded their target price for BoB shares, forecasting a 15% upside based on expected net interest margin (NIM) expansion to 3.5% in FY25. However, risks include potential rate cuts by the Reserve Bank of India (RBI), which could compress margins, and competition from private peers like HDFC Bank. On July 7, traders will watch for any updates on the fundraising, as successful execution could lead to a positive rerating. BoB's involvement in government schemes like PM Mudra Yojana further bolsters its retail lending portfolio, making it a stock to track for value investors seeking exposure to India's banking recovery story.

Rail Vikas Nigam Limited (RVNL), a key player in railway infrastructure, is another stock generating buzz. The company recently secured a major order worth Rs 1,324 crore for the electrification of railway lines in Uttar Pradesh, part of the Indian Railways' ambitious modernization drive. This contract underscores RVNL's strong order book, which now stands at over Rs 70,000 crore, providing revenue visibility for the next 3-5 years. RVNL's shares have been on an upward trajectory, gaining over 20% in the past month, fueled by government capex on infrastructure. The Union Budget's focus on railways, with allocations exceeding Rs 2.4 lakh crore, positions RVNL as a direct beneficiary. Brokerages like Sharekhan recommend 'accumulate' on the stock, highlighting its low debt levels and efficient project execution. Challenges include execution delays due to land acquisition issues and raw material inflation, but RVNL's diversification into metro and high-speed rail projects mitigates these risks. Investors should note the company's joint ventures, such as with Turkish firms for international bids, which could open new revenue streams. On July 7, any news on additional tenders or quarterly earnings previews could influence trading volumes, especially as the stock trades at a premium valuation compared to peers like IRCON.

In the textiles and lifestyle segment, Raymond is making waves with its strategic expansions. The company announced the acquisition of a majority stake in Maini Precision Products, a move aimed at diversifying into aerospace and defense manufacturing. This Rs 682 crore deal is expected to enhance Raymond's engineering capabilities and tap into high-growth sectors beyond traditional garments. Raymond's core business has seen a rebound post-pandemic, with branded apparel sales surging due to festive demand and e-commerce growth. Analysts from Axis Securities project a 12% CAGR in revenue over the next three years, driven by store expansions and real estate monetization. The company's lifestyle division, including brands like Park Avenue, reported strong same-store sales growth in Q1. However, margin pressures from cotton price volatility and competition from fast-fashion players like Reliance Retail remain concerns. Raymond's shares have underperformed the broader market recently, but the acquisition could act as a catalyst, potentially leading to a 10-15% upside if integration proceeds smoothly. Long-term, Raymond's focus on sustainable fabrics and exports to markets like the US positions it for global competitiveness.

Coforge, formerly NIIT Technologies, is a standout in the IT services space. The mid-cap firm recently acquired a US-based digital engineering company, bolstering its capabilities in AI and cloud services. This acquisition, valued at $50 million, aligns with Coforge's strategy to expand in North America, where it derives over 50% of revenues. The company reported a 25% year-on-year growth in Q4 FY24, with deal wins in banking and insurance sectors. Analysts at Kotak Institutional Equities maintain a 'buy' stance, citing Coforge's high client retention and margin expansion to 18-20%. Amid global IT spending slowdowns, Coforge's niche in digital transformation gives it an edge over larger peers like Infosys. Risks include currency fluctuations and talent attrition, but its employee stock option plans help mitigate the latter. On July 7, investors will watch for any updates on Q1 results, expected later this month, which could show continued momentum in deal pipelines.

Finally, Titagarh Rail Systems is riding the railway boom. The company bagged orders for manufacturing metro coaches worth Rs 857 crore, adding to its portfolio of freight wagons and passenger coaches. With India's metro network expansion in cities like Bengaluru and Delhi, Titagarh's expertise in rolling stock positions it for sustained growth. Shares have doubled in the past year, reflecting strong fundamentals and government support. Analysts predict 20% revenue growth in FY25, driven by exports to Europe and Africa. However, supply chain bottlenecks in components like wheels could pose challenges.

In conclusion, these stocks encapsulate diverse opportunities and risks in the Indian market. Investors are advised to consider macroeconomic indicators, such as upcoming CPI data and Fed rate decisions, which could influence sentiment. As always, thorough due diligence and consultation with financial advisors are recommended before making investment decisions. (Word count: 1,128)

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