Q3 results review: PL adds IndiGo, Astral, ups exposure in RIL, Airtel; cuts weight of HDFC Bank, ITC in model portfolio
Avenue Supermarts and Hindalco in the model portfolio. Meanwhile, it increased the weights on RIL, Bharti Airtel, SBI, and M&M in the model portfolio.
It also added Interglobe Aviation and Astral to the Model portfolio and removed Bharat Electronics. PL universe Q3FY24 aggregate coverage sales, EBIDTA, and PBT grew by 4.1 percent, 15.4 percent, and 34.9 percent YoY respectively as margins expanded 186 bps YoY and 258 bps QoQ.
"Auto (strong volumes and benign inputs), Capital Goods (Strong sales, lower inputs and operating leverage), Pharma (Strong sales and benefit of stable generic pricing in the US and lower API prices), travel (Aviation and Hotels gain from strong travel surge) reported strong sales, EBITDA and PAT. Specialty Chemicals (Poor pricing and demand), and consumer durables reported lower EBIDTA as margins remained under pressure.
FMCG/Retail/QSR showed the impact of poor demand even as raw material prices provided some cushion to margins and profitability," it noted. The brokerage stated that domestic demand remains mixed as the growth is being led by Govt induced infra capex, revival of private capex, and structural shifts happening across green energy, digitization and EV, etc.
Rural recovery remains stunted and urban demand is tepid; however, PL believes underlying demand is also showing a shift in wallet share as consumers spend on emerging necessities by use of new channels, a trend which will only accelerate as we march towards a $5 trillion economy by 2028. Read here: Q3FY24 Review: Nifty 500 firms deliver 25% growth; BFSI, oil & gas lead the pack In the PL Universe, there were 10 rating upgrades and 20 rating downgrades, chemicals, Media and Oil and Gad had maximum downgrades while capital goods had
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