Q3 earnings review: Nifty 50 beats estimates, says Motilal Oswal, lists top earnings upgrades and downgrades
Motilal Oswal Financial Services (MOFSL). Domestic cyclical such as autos and financials, along with global cyclical (i.e., metals and Oil & Gas) drove the beat. Technology posted a marginal decline in earnings, its first in 26 quarters, the brokerage firm added.
Nifty 50 delivered a strong beat with a 17 per cent year-on-year (YoY) PAT growth (versus the estimates of +11 per cent). Five Nifty companies – Tata Motors, HDFC Bank, Tata Steel, ICICI Bank, and JSW Steel – contributed 56 per cent of the incremental YoY accretion in earnings, Motilal Oswal observed. "The Nifty universes delivered 26 per cent YoY earnings growth in the nine months of the financial year 2024 (9MFY24).
For Q4FY24, we expect Nifty earnings to report a growth of 5 per cent YoY," Motilal Oswal said. "Our Nifty EPS estimates for FY24 and FY25 have remained unchanged at ₹975 and ₹1,142, respectively. We now expect the Nifty EPS to grow about 21 per cent and 17 per cent YoY in FY24 and FY25 respectively," said the brokerage firm.
Also Read: Stocks to buy: ITC, Britannia, Dabur, Asian Paints among 8 FMCG stock picks after Q3 results According to the brokerage firm, the top earnings upgrades in FY25E are Tata Motors (+26 per cent), Coal India (+10 per cent), Hero MotoCorp (+10 per cent), Cipla (+8 per cent), and Bharti Airtel (+7 per cent) while the top earnings downgrades in FY25E are UPL (-23 per cent), LTIMindtree (-8 per cent), ITC (-6 per cent), Divis Labs (-5 per cent) and and HUL (-5 per cent). Technology: The IT services companies (within MOFSL Universe) exhibited a median revenue growth of 1 per cent QoQ in CC (constant currency). With continued weakness in key verticals and pressure on Q4 execution, the companies have either narrowed their
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