Motilal cuts Nifty EPS estimates by 4%, picks 20 stocks ahead of Q2 results
Nifty earnings expected to grow marginally by 2% YoY in 2QFY25 (lowest in 17 quarters), domestic brokerage firm Motilal Oswal (MOFSL) has cut its FY25E Nifty EPS by 4% to Rs 1,072 while picking HDFC Bank, ICICI Bank and Bharti Airtel among 20 stocks as its top ideas.
“We have reduced our FY25E and FY26E Nifty EPS estimates by 4%/3.6% to Rs 1,072 and Rs 1,269, respectively. Metals and O&G have driven 80% of the 4% cut in FY25E Nifty earnings. We estimate the Nifty EPS to grow 7%/18% in FY25/FY26,” said the domestic brokerage firm.
Analysts at Motilal Oswal believe that the overall earnings growth is anticipated to be primarily driven, once again, by BFSI (11% YoY), along with Healthcare (15% YoY), Utilities (24% YoY), and the improved contribution of Telecom YoY (loss notably reducing to Rs 400 crore in September 2024 from Rs 4,300 crore in September 2023).
With this, Motilal Oswal has picked ICICI Bank, HDFC Bank, L&T, HCL Tech, HUL, M&M, Power Grid, Titan, Bharti Airtel and Mankind Pharma as its top picks in the large-cap segment.
Among the small and midcap segments, Indian Hotels, Angel One, Godrej Properties, Persistent Systems, Metro Brands, PNB Housing, Global Health, Cello World, Dixon Tech, and Five Star Business Finance are the preferred names.
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