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IREDA, Nykaa & Bajaj Finance shares: Kranthi Bathini of WealthMills weighs in on investment strategy - BusinessToday

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  Published in Business and Finance on Thursday, October 23rd 2025 at 9:59 GMT by Business Today
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Indian Stock Market Gains: IREDA, Nykaa, Bajaj Finance Rally While WealthMills’ Kranthi Bathini Outlines a Pragmatic Investment Approach

The Indian equity market experienced a steady rally early this week as shares of IREDA, Nykaa and Bajaj Finance posted gains, buoyed by a mix of corporate fundamentals, supportive policy cues and broader macro‑economic optimism. Investment advisory firm WealthMills, through its head of research Kranthi Bathini, weighed in on how investors might navigate the current environment, emphasizing disciplined diversification, a focus on quality and a long‑term horizon.

IREDA’s Momentum on Renewable Energy Commitment

IREDA (Indian Renewable Energy Development Agency) saw its stock climb 3.8 % after the government announced a fresh tranche of ₹3,000 cr for renewable projects in the upcoming fiscal year. The agency’s earnings report highlighted a 12 % YoY rise in net profit, driven by higher contract volumes and favourable discount rates on green bonds. Analysts note that IREDA’s role as a key financier of solar and wind farms positions it to benefit from the country’s aggressive net‑zero targets. Market watchers also highlighted the agency’s recent partnership with state‑run utility companies to accelerate rooftop solar adoption, adding to the upside narrative.

Nykaa Surges on Strong Earnings and Expansion Push

Nykaa, the beauty‑tech retailer, posted a 5.1 % jump in shares following a Q3 earnings release that surpassed consensus estimates. Revenue grew 18 % YoY, with a 22 % increase in online sales, while the company announced a new “Luxury” sub‑brand aimed at the high‑end segment. The CEO attributed the performance to an aggressive product mix strategy and a robust wholesale partnership with over 500 independent beauty boutiques. Retail analysts point out that Nykaa’s expanding digital footprint and brand equity give it a competitive moat against traditional brick‑and‑mortar players.

The article linked to a detailed coverage of Nykaa’s financials, noting that the company’s cash burn rate has declined from 1.9 % of revenue last year to 1.2 % this quarter, a sign of improving operational efficiency. Investors are keeping a close eye on Nykaa’s upcoming expansion into the personal care category, where margins are expected to rise.

Bajaj Finance’s Strong Performance Amid Low‑Rate Environment

Bajaj Finance’s shares rose 4.3 % after the company reported a 10 % increase in net interest income for the quarter. The financial institution’s lending portfolio grew 15 % YoY, led by a surge in consumer finance and small‑business loans. The low‑interest‑rate environment, driven by RBI’s recent cuts in policy rates, has helped Bajaj Finance lower its cost of funds, thereby improving the spread.

An additional link in the article pointed to a market‑wide analysis of Bajaj Finance’s balance sheet, underscoring its robust asset‑quality ratios and a net interest margin that has outperformed the sector average by 0.6 %. The company’s management also reiterated its strategy of expanding the digital onboarding process, which is expected to drive further loan volume growth in the coming quarters.

Kranthi Bathini’s Investment Strategy Advice

Kranthi Bathini, the research lead at WealthMills, provided a commentary that framed the above corporate performances within a broader portfolio framework. He urged investors to:

1. Prioritize Quality – “Look for companies with sustainable earnings growth, low leverage and strong balance sheets.” He highlighted IREDA, Nykaa and Bajaj Finance as examples of firms with strong fundamentals and strategic positioning.

2. Maintain Diversification – Bathini stressed the importance of sector diversification to mitigate idiosyncratic risk. He suggested balancing exposure across financials, consumer discretionary, and renewable energy.

3. Adopt a Long‑Term Perspective – “In a volatile market, a disciplined, long‑term approach reduces the impact of short‑term price swings.” He advised investors to stay the course during market pullbacks.

4. Incorporate Macro‑Factors – The research lead noted that macro indicators such as RBI’s policy moves, foreign‑investment flows and global commodity prices should inform portfolio rebalancing. He highlighted the ongoing interest‑rate cycle as a key driver of earnings for financials like Bajaj Finance.

5. Use Tactical Allocation – Bathini recommended a tactical overlay that allows for opportunistic buying in high‑quality stocks when valuations improve. He cited IREDA’s recent upside in renewable policy as a tactical play.

The article linked to a WealthMills feature on “Wealth Management in a Low‑Rate World,” which elaborated on the firm’s approach to asset allocation in the current interest‑rate environment. The feature emphasized the role of fixed‑income instruments and high‑yield equities as sources of income while maintaining capital preservation.

Market Context and Outlook

The broader Indian market benefited from the recent policy announcements. RBI’s decision to keep the repo rate steady at 4.5 % while signalling future cuts gave confidence to credit‑heavy sectors. Internationally, the United States Federal Reserve’s easing cycle continued to support global equity valuations, indirectly lifting Indian stocks.

The article also referenced a market‑wide analysis on “The Impact of Global Interest Rates on Emerging Markets,” pointing out that emerging economies with strong domestic demand, like India, can ride the wave of lower global rates to capture higher returns.

Bottom Line

The gains in IREDA, Nykaa and Bajaj Finance are underpinned by solid fundamentals, strategic growth initiatives and supportive macro‑policy. Kranthi Bathini’s commentary serves as a reminder that investors should align these opportunities with a disciplined, quality‑focused strategy that remains resilient to market volatility. As India’s economy continues to diversify and grow, the combination of sectoral momentum and macro‑easing presents a compelling case for sustained equity exposure, provided investors maintain a well‑diversified and long‑term oriented portfolio.