The company demonstrates a strong long-term history of growth and a healthy 17% Return on Equity, but is currently facing a significant slowdown, with recent profit growth dropping sharply and quarterly expenses outpacing revenue.
While the stock appears attractively valued at a low P/E of 11.2, investors should be cautious of the recent performance slump and a low ROCE that may indicate high leverage, making margin recovery a key factor to monitor.
News TidBits
State Bank of India reported a strong Q2 performance, with a 10% year-on-year increase in net profit to ₹20,160 crore, comfortably beating market expectations.
The bank's positive results were driven by robust loan growth and have contributed to its perception as a resilient player amidst recent market corrections.
Senior management commentary has signaled early signs of a revival in the private sector investment cycle, a trend from which SBI is well-positioned to benefit.
Despite the broader market weakness and FII outflows, banks like SBI have shown resilience, supported by improving asset quality and strong domestic demand.
Investors will be closely watching the bank's net interest margins and asset quality trends in the upcoming quarters to sustain this positive momentum.
Stacks on Stacks: Tip Time 🤑
Observing seasoned investors like Ashish Kacholia exit certain stocks reminds us that portfolio management is not just about accumulating assets, but also about having the discipline to sell and reallocate capital when a company's story changes.
Inside The Fund
Bandhan Small Cap Fund
Fund Size: ₹ 15737.73 Cr
NAV: ₹ 52.67 (as on 04th November, 2025)
1 Year
4.87%
Category: 1.14%
2 Year
32.37%
Category: 19.18%
3 Year
32.80%
Category: 21.65%
5 Year
32.93%
Category: 29.84%
Stocks Added
Stock
Sector
1M Change
Saatvik Green Energy Ltd.
Other electrical equipment
0.45%
Indus Towers Ltd.
Telecom - infrastructure
0.23%
Awfis Space Solutions Ltd.
Diversified commercial services
0.22%
Pace Digitek Ltd.
Telecom - infrastructure
0.19%
Jain Resource Recycling Ltd.
Diversified metals
0.17%
Redington Ltd.
Trading & distributors
0.17%
Trualt Bioenergy Ltd.
Other agricultural products
0.16%
Suven Pharmaceuticals Ltd.
Pharmaceuticals
0.14%
Thirumalai Chemicals Ltd.
Chemicals - organic
0.10%
Amber Enterprises India Ltd.
Household appliances
0.07%
Stocks Removed
Stock
Sector
1M Change
Affle India Ltd.
It enabled services
-0.07%
UPL Ltd. - Partly Paid
Pesticides & agrochemicals
-0.04%
CG Power and Industrial Solutions Ltd.
Heavy electrical equipment
-0.04%
Safari Industries (India) Ltd.
Plastic products - consumer
-0.04%
Minda Corporation Ltd.
Auto components & equipments
-0.02%
Top 10 Holdings
Stock
Holding %
1M Change
Sobha Ltd.
3.39%
0.16%
Rural Electrification Corporation Limited
2.36%
0.30%
LT Foods Ltd.
2.16%
0.10%
South Indian Bank Ltd.
1.98%
-0.18%
Cholamandalam Financial Holdings Ltd.
1.66%
0.02%
PNB Housing Finance Ltd.
1.52%
0.30%
Info Edge (India) Ltd.
1.46%
-0.17%
Apar Industries Ltd.
1.33%
-0.02%
Arvind Ltd.
1.33%
0.09%
PCBL Ltd.
1.31%
-0.09%
The Common Ground
Shows the commonly added & removed stocks by mutual funds last month
Top Added (5)
Urban Company Ltd.
3 funds
Nippon India Small Cap Fund - Direct Plan - Growth
0.12%
UTI Small Cap Fund - Direct Plan - Growth
0.35%
ITI Small Cap Fund - Direct Plan - Growth
1.05%
Saatvik Green Energy Ltd.
3 funds
Nippon India Small Cap Fund - Direct Plan - Growth
0.11%
Bandhan Small Cap Fund - Direct Plan - Growth
0.45%
Mirae Asset Small Cap Fund - Direct Plan - Growth
0.47%
Jain Resource Recycling Ltd.
3 funds
Bandhan Small Cap Fund - Direct Plan - Growth
0.17%
Axis Small Cap Fund - Direct Plan - Growth
0.22%
Motilal Oswal Small Cap Fund - Direct Plan - Growth
0.48%
CIE AUTOMOTIVE INDIA Ltd.
2 funds
Nippon India Small Cap Fund - Direct Plan - Growth
0.30%
Axis Small Cap Fund - Direct Plan - Growth
0.54%
Piramal Finance Ltd.
2 funds
Nippon India Small Cap Fund - Direct Plan - Growth
0.16%
Quant Small Cap Fund - Direct Plan - Growth
1.66%
Top Removed (5)
Laxmi Dental Ltd.
3 funds
Invesco India Smallcap Fund - Direct - Growth
-0.18%
Quant Small Cap Fund - Direct Plan - Growth
-0.02%
Aditya Birla Sun Life Small cap Fund - Direct Plan - Growth
-0.12%
Mahindra CIE Automotive Ltd.
2 funds
Nippon India Small Cap Fund - Direct Plan - Growth
-0.29%
Axis Small Cap Fund - Direct Plan - Growth
-0.53%
Piramal Enterprises Ltd.
2 funds
Nippon India Small Cap Fund - Direct Plan - Growth
-0.12%
Quant Small Cap Fund - Direct Plan - Growth
-1.69%
Suven Pharmaceuticals Ltd.
2 funds
Invesco India Smallcap Fund - Direct - Growth
-0.24%
Tata Small Cap Fund - Direct Plan - Growth
-1.03%
Tega Industries Ltd.
2 funds
Franklin India Small Cap Fund - Direct - Growth
-0.30%
Mirae Asset Small Cap Fund - Direct Plan - Growth
-0.51%
Top News Developments
Market Pauses on Holiday Amidst Global Sell-Off and FII Outflows
Indian markets were closed for a holiday, providing a forced pause for investors to reassess portfolios after a recent correction driven by sustained FII selling of ₹1,067 crore in the previous session.
This correction is happening in the context of a global risk-off environment, with high valuations in Indian markets (PE of 22.8) making them vulnerable to foreign capital flight.
Domestic Institutional Investors (DIIs) continue to be net buyers, providing a crucial cushion against FII selling, but this tug-of-war is creating sectoral churn, benefiting domestic-facing sectors like banks and autos over globally-linked IT and metals.
The reopening on November 6 coincides with the weekly F&O expiry, which could amplify volatility as traders react to overnight global cues and a cluster of corporate earnings.
Mixed Earnings Season Drives Stock-Specific Action
The ongoing Q2 earnings season is revealing a clear divergence in corporate performance, rewarding companies with strong results while punishing those with weak guidance.
Financials and industrials are showing strength, with State Bank of India and Adani Enterprises posting robust profit growth, and management at L&T and SBI citing a potential private capex revival.
Conversely, consumer-facing sectors like paints (Berger Paints) have struggled due to weak demand, while fintech giant Paytm saw its profits plummet, highlighting intense margin pressures.
This trend is forcing investors to be more selective, favoring companies with resilient margins and strong domestic demand drivers over those exposed to global headwinds or discretionary spending weakness.
Key results from Dr Reddy's, Titan, and Oil India are awaited and will be critical in setting the market's tone upon reopening.
Policy Shifts Set to Reshape Crypto and Insurance Sectors
The government's crackdown on 25 crypto exchanges signals a tougher regulatory stance that will likely increase compliance burdens and may push trading volumes towards more established, regulated platforms.
For the insurance industry, the abolition of GST on health and life insurance is a major tailwind, expected to make policies more affordable and drive higher penetration, benefiting listed insurers.
Simultaneously, SEBI's upcoming regulations for stock brokers aim to strengthen investor protection, which could consolidate the market towards larger players with stronger compliance infrastructure.
These regulatory developments highlight a broader theme of formalization and risk management across different segments of the financial market.
IPO Watchlist
Ongoing IPOs
The IPO for Groww, a prominent retail brokerage platform, is currently open for subscription, showing moderate demand with a 0.57x subscription rate so far.
The Grey Market Premium (GMP) for Groww stands at 14.25%, indicating positive sentiment and expectations for a decent listing.
This IPO comes at a time when Groww has surpassed its rival Zerodha in the number of active users, highlighting the intense competition and high growth potential within the financial technology and brokerage sector.
Groww
6632.30
Date: 4 Nov - 7 Nov
List: 12 Nov
Subscription: 0.57x
GMP: 14.25%
Upcoming IPOs
Several large IPOs are scheduled for the coming week, including fintech firm Pine Labs and edtech platform PhysicsWallah, which plans to raise ₹3,480 crore.
Pine Labs is generating early investor interest with a reported Grey Market Premium of 9.95% ahead of its issue opening on November 7.
The pipeline also includes Emmvee Photovoltaic with an issue size of ₹2,900 crore, indicating continued strong capital raising activity, particularly in technology and renewable energy sectors.
PhysicsWallah
3480.00
Date:11 Nov - 13 Nov
List:18 Nov
Subscription: -
GMP: %
Emmvee Photovoltaic
2900.00
Date:11 Nov - 13 Nov
List:18 Nov
Subscription: -
GMP: %
Pine Labs
3899.91
Date:7 Nov - 11 Nov
List:14 Nov
Subscription: -
GMP: 9.95%
Cha-Ching Cheatsheet 💵
Warren Buffett's decision to hold a record cash pile amidst overvalued markets teaches a powerful lesson: strategic patience and liquidity can be your greatest assets when investment opportunities are scarce and risk is high.
* 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 markets remained weak leading into 5 November 2025 amid concerns about inconsistent foreign institutional investor flows and subdued risk appetite impacting emerging markets including India.
Asian markets experienced volatility and pressure from a recent Nikkei crash, reinforcing cautious sentiment among international investors.
Uncertainty over geopolitical developments and global economic data releases contributed to risk-off behavior worldwide, influencing sentiment in Indian markets.
Commodity markets saw mixed trends with metals and power sectors under pressure globally, which translated into similar weakness in Indian market sectors pre-holiday.
Currency and bond markets reflected cautious positioning with investors favoring safe-haven assets amid ongoing global economic uncertainties impacting capital flows to India.
Emerging Opportunities
Consumer durables and telecommunications sectors showed relative strength and may offer promising investment opportunities due to resilient demand and steady earnings prospects.
Companies leading in digital and financial services are positioned well to benefit from ongoing financial inclusion reforms and digital penetration policies.
Renewable energy and power sector companies are set to gain from supportive government policies targeting green energy expansion and sustainability goals.
Midcap and smallcap segments may present contrarian opportunities, particularly in companies with strong fundamentals that corrected amid the recent risk-off sentiment.
Structural reforms in infrastructure and the implementation of new industrial policies are expected to create growth avenues in related sectors over the medium to long term.
Policy & Regulations
The Indian government has intensified its scrutiny of the digital asset space by initiating a crackdown on 25 non-compliant cryptocurrency exchanges, which is likely to increase volatility and reduce trading volumes in the short term.
In a major boost for the insurance sector, the government has abolished the GST on health and life insurance, a move expected to lower premiums by 18% and significantly improve insurance penetration across the country.
SEBI is planning to release updated regulations for stock brokers by December 2025, aimed at bolstering risk management and data protection frameworks, which will increase compliance costs but enhance investor security.
Bond market participants are actively engaging with the RBI, urging for Open Market Operations (OMOs) to inject liquidity and stabilize high yields, reflecting ongoing stress in the credit system.
Crypto Buzz
Name
Price
Market Cap
24h Change
ATH Change
Bitcoin (BTC)
$101601
$2.02T
-2.57%
-19.47%
Ethereum (ETH)
$3300.36
$398.02B
-5.96%
-33.35%
Tether (USDT)
$1
$183.44B
0.03%
-24.41%
XRP (XRP)
$2.23
$133.97B
-1.93%
-38.92%
BNB (BNB)
$942.61
$129.80B
-1.59%
-31.22%
The cryptocurrency market is experiencing a significant downturn, with major assets like Bitcoin and Ethereum seeing price declines of 2.57% and 5.96% respectively, aligning with a broader sell-off in global risk assets.
This sharp correction has led to over $2 billion in liquidations across crypto positions, reportedly triggered by large 'whale' holders selling off substantial holdings.
For Indian investors, the risk is compounded by a new government crackdown on 25 non-compliant cryptocurrency exchanges, which could disrupt trading and increase regulatory uncertainty in the domestic market.
Indian Macroeconomy
Currency
Exchange rate against USD
88.66
-0.07
Previous: 88.73
As of Nov 25
Nominal GDP
Annual growth including inflation
7.8%
0.4%
Previous: 7.4%
As of Jun 25
CPI Inflation
Consumer price increase
1.54%
-0.53%
Previous: 2.07%
As of Sep 25
Repo Rate
RBI lending rate
5.5%
→
0%
Previous: 5.5%
As of Oct 25
Trade Balance
Exports minus imports
$-32.15B
$-5.66B
Previous: $-26.49B
As of Sep 25
Current Account
Global trade, income & transfers
$-2351M
$-15828M
Previous: $13477M
As of Jun 25
Mfg PMI
Manufacturing activity level
59.2 points
1.5 points
Previous: 57.7 points
As of Oct 25
Services PMI
Services activity level
58.8 points
-2.1 points
Previous: 60.9 points
As of Oct 25
India's economy is demonstrating robust growth, with the annual GDP growth rate accelerating to 7.8% from a previous 7.4%, signaling strong underlying momentum.
A significant positive for consumers and the RBI is the cooling inflation rate, which has dropped to 1.54%, potentially providing more room for accommodative monetary policy.
Despite strong GDP growth, the trade balance has widened, and the current account has swung to a deficit, indicating rising import pressures that could affect the rupee's stability.
The manufacturing sector shows strengthening activity with the PMI rising to 59.2, and commentary from industry leaders like L&T and SBI suggests an early revival in the private investment cycle, which is a key long-term growth driver.
Inside The Fund
Stocks Added 
Stocks Removed 
