While the company has delivered impressive long-term growth in sales (5–16% CAGR) and profits (7–65% CAGR), the TTM shows sharp reversals with negative growth, reflecting possible cyclicality or short-term business challenges.
Despite strong historical ROE and ROCE (28.1% and 20%), the stock’s current low P/E of 12.2 suggests undervaluation, but weak quarterly results with a 53% QoQ and 62% YoY net profit decline raise near-term caution. Retail investors should wait for signs of stabilization before adding to positions.
News TidBits
Tata Motors' demerger took effect, separating its passenger and commercial vehicle businesses to unlock shareholder value and streamline operations. The stock rallied nearly 5% on the announcement.
The demerger is expected to improve business focus, with analysts predicting higher valuations for both divisions due to independent management strategies and clarity.
Investors are closely monitoring Tata Motors' execution risks related to integrating this structural change while leveraging operational efficiencies across its global footprint.
The move aligns with Tata Motors' strategic intent to enhance competitiveness in domestic and international markets, emphasizing electric vehicles in its passenger segment.
Sector-wide positive momentum for automobiles is anticipated following this news, particularly for ancillary suppliers and auto-focused fund portfolios.
Stacks on Stacks: Tip Time 🤑
Successful investing often hinges on understanding the difference between price and value: price is what you pay, but value is what you receive. Always focus on intrinsic worth over speculative trends.
Inside The Fund
Bandhan Small Cap Fund
Fund Size: ₹ 14561.74 Cr
NAV: ₹ 50.978 (as on 03rd October, 2025)
1 Year
-1.23%
Category: -3.90%
2 Year
29.95%
Category: 17.95%
3 Year
31.42%
Category: 21.62%
5 Year
31.94%
Category: 29.21%
Stocks Added
Stock
Sector
1M Change
Tata Communications Ltd.
Telecom - cellular & fixed line services
0.55%
Syrma SGS Technology Ltd.
Industrial products
0.33%
Sai Life Sciences Ltd.
Petrochemicals
0.30%
One 97 Communications Ltd.
Financial technology (fintech)
0.20%
General Insurance Corporation of India
General insurance
0.15%
Vikram Solar Ltd.
Other electrical equipment
0.14%
Clean Science and Technology Ltd.
Commodity chemicals
0.11%
PG Electroplast Ltd.
Consumer electronics
0.10%
All Time Plastics Ltd.
Houseware
0.10%
JSW Cement Ltd.
Cement & cement products
0.10%
Stocks Removed
Stock
Sector
1M Change
Inox Wind Ltd. - Rights
Heavy electrical equipment
-0.02%
Doms Industries Ltd.
Stationary
-0.01%
Top 10 Holdings
Stock
Holding %
1M Change
Sobha Ltd.
3.23%
-0.14%
South Indian Bank Ltd.
2.16%
-0.11%
Rural Electrification Corporation Limited
2.06%
-0.10%
LT Foods Ltd.
2.06%
-0.30%
Cholamandalam Financial Holdings Ltd.
1.64%
-0.12%
Info Edge (India) Ltd.
1.63%
0.29%
PCBL Ltd.
1.40%
-0.14%
Yatharth Hospital And Trauma Care Services Ltd.
1.38%
-0.08%
Apar Industries Ltd.
1.35%
-0.24%
Shaily Engineering Plastics Ltd.
1.27%
0.28%
The Common Ground
Shows the commonly added & removed stocks by mutual funds last month
Top Added (2)
TVS Motor Company Ltd. - Preference Shares
5 funds
ICICI Prudential ELSS Tax Saver Fund - Direct Plan - Growth
0.04%
Axis ELSS Tax Saver Fund - Direct Plan - Growth
0.01%
Canara Robeco ELSS Tax Saver Fund - Direct Plan - Growth
0.02%
HSBC ELSS Tax saver Fund - Direct Plan - Growth
0.02%
LIC MF ELSS Tax Saver - Direct Plan - Growth
0.01%
Tata Communications Ltd.
2 funds
SBI ELSS Tax Saver Fund - Direct Plan - Growth
1.06%
Mirae Asset ELSS Tax Saver Fund - Direct Plan - Growth
0.33%
Top Removed (1)
Inox Wind Ltd. - Rights
2 funds
ICICI Prudential ELSS Tax Saver Fund - Direct Plan - Growth
-0.01%
Motilal Oswal ELSS Tax Saver Fund - Direct Plan - Growth
-0.04%
Top News Developments
RBI Holds Repo Rate at 5.5% as IPO Financing Limits Rise
The RBI retained repo rates unchanged to navigate inflationary pressure amid rising global crude oil prices.
IPO financing limits raised to Rs 25 lakh aim to boost retail participation, supporting primary market growth.
The RBI's balanced approach indicates ongoing liquidity support without compromising inflation targets.
Crude Oil Prices Hit 7-Year High Post OPEC+ Decision
OPEC+ upheld supply discipline, driving Brent crude to a 7-year high and pressuring global inflation.
Higher oil prices impact India's fiscal deficit and create challenges for inflation-sensitive sectors.
Oil & gas companies may benefit, while transportation and consumer discretionary sectors face cost challenges.
Tata Motors Demerger Sparks Share Price Rally
Tata Motors' restructuring aims to unlock value by segregating commercial and passenger vehicle divisions.
The stock surged as investors anticipate higher valuations and improved operational focus.
This move aligns strategically with Tata Motors' pivot towards electric vehicles and global expansion.
IPO Watchlist
Ongoing IPOs
WeWork India's public issue, sized at ₹3,000 crore, shows underwhelming subscription at 0.04x and a GMP of 0.77%, reflecting subdued investor demand in its early stages.
The IPO for WeWork India closes on October 7, with listing expected on October 10. Investors are analyzing market positioning and financial resilience given the company's operational challenges.
WeWork India
3000.00
Date: 3 Oct - 7 Oct
List: 10 Oct
Subscription: 0.04x
GMP: 0.77%
Upcoming IPOs
Rubicon Research's IPO with a GMP of 17.53% and a size of ₹1,377.5 crore is generating interest for its innovative pharmaceutical R&D business model. The IPO opens on October 9 and closes on October 13.
Anantam Highways InvIT aims to raise ₹400 crore with no visible GMP. Investors are evaluating its infrastructure-backed revenue streams as the IPO opens on October 7 and closes on October 9.
LG Electronics India's IPO, sized at ₹11,607 crore with a strong GMP of 22.37%, opens October 7 and closes October 9. This consumer electronics giant is drawing significant attention for its market leadership and earnings potential.
Rubicon Research
1377.50
Date:9 Oct - 13 Oct
List:16 Oct
Subscription: -
GMP: 17.53%
Anantam Highways InvIT
400.00
Date:7 Oct - 9 Oct
List:17 Oct
Subscription: -
GMP: 0.00%
LG Electronics
11607.01
Date:7 Oct - 9 Oct
List:14 Oct
Subscription: -
GMP: 22.37%
Tata Capital
15511.87
Date:6 Oct - 8 Oct
List:13 Oct
Subscription: -
GMP: 2.30%
Cha-Ching Cheatsheet 💵
Emotional discipline in markets is non-negotiable; fear and greed can derail long-term plans. Developing a systematic approach to decision-making will safeguard against reactive losses.
Global Markets
Country
Category
Current PE
Forward PE
Forward PEG
🇬🇧 United Kingdom
Highly Undervalued
13.8
1.0
5.5
🇯🇵 Japan
Undervalued
17.5
0.9
1.5
🇫🇷 France
Undervalued
16.9
0.9
1.4
🇰🇷 South Korea
Undervalued
12.2
0.7
0.2
🇮🇩 Indonesia
Undervalued
16.3
0.7
0.3
🇩🇪 Germany
Fairly Valued
19.7
0.8
0.8
🇹🇭 Thailand
Fairly Valued
15.1
-
-
🇮🇳 India
Fairly Valued
21.6
1.0
7.8
🇨🇳 China
Fairly Valued
16.7
0.9
1.3
🇦🇺 Australia
Fairly Valued
21.4
1.0
-8.1
🇸🇬 Singapore
Overvalued
15.4
-
-
🇺🇸 United States
Overvalued
24.8
0.9
1.9
🇭🇰 Hong Kong
Highly Overvalued
11.9
1.2
-0.8
* Valuation category is calculated as a weighted average of PE ratio, CAPE, forward PE, historical PEG, and forward PEG. We are currently showing PE, Forward PE, and Forward PEG for reference.
Global stock markets showed cautious optimism on October 5, 2025, with Wall Street having a positive session overnight, supporting risk appetite among Indian investors.
US government shutdown concerns and delayed key jobs data from the US created a degree of uncertainty, impacting global trade sentiment and influencing Indian market sensitivity to international developments.
Global economic data releases and US interest rate decisions were key focal points, anticipated to shape short-term market direction and influence cross-border investment flows into India.
Geopolitical tensions and tariff shocks created intermittent volatility worldwide but did not significantly derail optimistic trends in emerging markets, including India, which benefits from strong domestic demand fundamentals.
European and Asian markets showed mixed performances, with cautious trading amid macroeconomic concerns, but global liquidity conditions remained supportive for capital inflows into Indian equity markets.
Emerging Opportunities
The Indian IPO market remains a major opportunity hotspot, with October 2025 projected to be a record month propelled by high-profile deals from Tata Capital Ltd. and LG Electronics’ Indian arm, attracting strong retail and institutional demand.
Banking and financial services sectors continue to offer promising long-term growth potential, supported by RBI policy measures aimed at increasing bank lending and deepening market participation.
Metal and consumer goods sectors have shown resilience and steady growth, indicating promising investment avenues given India’s robust domestic demand and infrastructure spending.
Midcap and smallcap stocks are gaining traction, presenting selective contrarian opportunities driven by strong fundamentals and improving market breadth in these segments.
Technology sectors, particularly IT companies like Tata Consultancy Services, are expected to be attractive based on anticipated strong Q2 earnings and global digital transformation trends influencing long-term growth.
Policy & Regulations
The Reserve Bank of India retained the repo rate at 5.5%, signaling cautious optimism amid inflationary concerns. This decision supports market stability but also limits immediate relief for borrowers in rate-sensitive sectors such as consumer goods and automobiles.
RBI raised the IPO financing limit to Rs 25 lakh per person to boost retail participation in the primary market. This move could enhance liquidity in IPOs and attract more investors during key equity issuances.
A proposed framework from the RBI aims to improve IPO financing and streamline processes, encouraging better capital formation for businesses seeking funds through the public markets.
Crypto Buzz
Name
Price
Market Cap
24h Change
ATH Change
Bitcoin (BTC)
$123300
$2.45T
0.99%
-1.97%
Ethereum (ETH)
$4548.55
$548.29B
1.29%
-8.17%
XRP (XRP)
$3.01
$180.14B
0.81%
-17.46%
Tether (USDT)
$1
$177.04B
-0.03%
-24.42%
BNB (BNB)
$1160.68
$161.30B
1.20%
-2.53%
Bitcoin surged past $125,000, achieving new highs amid risk-on sentiment driven by US government shutdown concerns and ETF inflows. This reflects increasing adoption of cryptocurrencies as hedge assets against traditional market volatility.
Ethereum's price gained 1.29% over the past 24 hours, reinforcing optimism across decentralized finance applications and its utility-driven market position in the crypto ecosystem.
XRP's modest 0.81% gain highlights stable investor interest in utility tokens, with its market cap at $180.14 billion signaling strong sector performance amidst broader cryptocurrency adoption trends.
Indian Macroeconomy
Currency
Exchange rate against USD
88.74
0.02
Previous: 88.72
As of Oct 25
Nominal GDP
Annual growth including inflation
7.8%
0.4%
Previous: 7.4%
As of Jun 25
CPI Inflation
Consumer price increase
2.07%
0.46%
Previous: 1.61%
As of Aug 25
Repo Rate
RBI lending rate
5.5%
→
0%
Previous: 5.5%
As of Oct 25
Trade Balance
Exports minus imports
$-26.49B
$0.86B
Previous: $-27.35B
As of Aug 25
Current Account
Global trade, income & transfers
$-2351M
$-15828M
Previous: $13477M
As of Jun 25
Mfg PMI
Manufacturing activity level
57.7 points
-1.6 points
Previous: 59.3 points
As of Sep 25
Services PMI
Services activity level
61.6 points
-1.3 points
Previous: 62.9 points
As of Sep 25
India's GDP annual growth rate improved to 7.8% from 7.4%, signaling robust economic momentum driven by strong domestic demand and resilient manufacturing activities. This growth could have positive implications for sectors such as real estate, infrastructure, and banking as they benefit from higher consumption and investment cycles.
The inflation rate rose to 2.07% from 1.61%, driven by increased input costs, including higher crude oil prices. This could lead to tighter monetary conditions, impacting interest-sensitive sectors like real estate and automobiles.
India's Balance of Trade showed improvement, with the deficit reducing to $26.49 billion from $27.35 billion. This reflects better export performance or moderated import growth, which could positively affect currency stability and external accounts.
Inside The Fund
Stocks Added 
Stocks Removed 
