Q2 results review: Nifty earnings in line so far; 10 top stocks see upgrade/downgrade
Motilal Oswal Financial Services in its report on the interim review of the Q2FY24 earnings season. The brokerage firm pointed out that as of November 1, 36 Nifty 50 companies have announced their Q2FY24 results. These companies constitute (a) 75 per cent of the estimated PAT for the Nifty Universe, (b) 49 per cent of India's market capitalisation, and (c) 85 per cent of weightage in the Nifty, Motilal Oswal said.
The brokerage firm highlighted that the earnings of the 36 Nifty companies that have declared results so far jumped 35 per cent YoY versus the estimates of 31 per cent YoY, propelled by BPCL, HDFC Bank, JSW Steel, Reliance Industries, and ICICI Bank. "These five companies contributed 73 per cent to the incremental YoY accretion in earnings. Conversely, Tata Steel, UPL, and Tech Mahindra contributed adversely to Nifty earnings.
Only five companies within Nifty reported profits below our expectations, while 12 recorded a beat and 19 registered in-line results so far," Motilal Oswal said. "Among the Nifty constituents, HDFC Bank, ICICI Bank, Maruti Suzuki, JSW Steel, Bajaj Auto, Dr Reddy’s Labs, Ultratech Cement, Cipla, Hero Motocorp, Tech Mahindra, and Tata Steel exceeded our profit estimates. Conversely, UPL, Wipro, and SBI Life Insurance missed our profit estimates for the quarter," said Motilal Oswal.
Top FY24E upgrades according to Motilal Oswal are Maruti Suzuki (10 per cent), JSW Steel (82 per cent), Cipla (7 per cent), Dr Reddy’s Lab (5 per cent), and BPCL (5 per cent). Top FY24E downgrades according to Motilal Oswal are UPL (-11 per cent), Bharti Airtel (-8 per cent), Wipro (-8 per cent), HUL (-5 per cent), and Asian Paints (-3 per cent). "Nifty EPS (earnings per share) estimates for FY24 and FY25 have
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