Turnaround Hopes Amid Market Rally Boost Loss-Making Firms

Be cautious, pick companies with earnings visibility and reasonable valuations: Analysts

- SAI ARAVINDH

A market rally in the past few weeks lifted not just quality stocks, but also loss-making companies that surged as much as 64 percent. But analysts are cautious and suggest investors pick companies with earnings visibility and reasonable valuations.

In the NSE 500 universe, 29 companies—including Ola Electric and Swiggy—reported losses for the quarter ended March 2025 (Q4FY25). However, 26 of those companies have given positive returns since April 1. Furthermore, 17 of these stocks outperformed the benchmark Nifty 50, according to data.

Valor Estate's stock led the pack with a gain of nearly 64 percent since April 1, despite the real estate company reporting a loss of ₹2.4 crore in Q4FY25.