SBI, Godrej Consumer top buys post Q4 results; could give 13-17% upside in 1 year
profit expectations.
However, growth has primarily been led by the BFSI and Automobile sectors. The earnings growth was fuelled by the domestic cyclicals, such as BFSI and Auto.
BFSI clocked a 22% YoY growth, while Auto reported a growth of 38% YoY. In contrast, the aggregate performance has been dragged down by the O&G sector, which posted a 20% earnings decline (IOCL’s profit plunged 52% YoY).
Excluding Metals and O&G, the MOFSL Universe and Nifty have recorded a 15% YoY earnings growth.
As of 4th May’24, 28 Nifty stocks reported a sales/EBITDA/PBT/PAT growth of 10%/15%/11%/13% YoY (vs. est. of +13%/9%/10%/8%).
For the 94 companies within MOFSL Universe, sales/EBITDA/PBT/PAT grew 6%/11%/5%/5% YoY (vs. est. of +8%/7%/5%/3%).
Excluding Metals and O&G, the MOFSL Universe companies recorded a sales/EBITDA/PBT/PAT growth of 10%/17%/11%/15% YoY (vs. est. of +10%/12%/14%/12%) in 4QFY24 so far.
Among the Nifty constituents, Reliance Industries, HDFC Bank, Coal India, Axis Bank, Kotak Mahindra Bank, Ultratech Cement, Bajaj Auto, Tech Mahindra, Nestle, and SBI Life Insurance exceeded our profit estimates.
Conversely, HCL Technologies, LTIMindtree, Titan Company, and HDFC Life Insurance missed profit estimates for 4QFY24.
Sector-wise earnings growth for private banks has remained healthy, with Axis Bank, Kotak Mahindra Bank, and RBL Bank reporting better-than-expected earnings.
However, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, ICICI Bank, IDFC First Bank, and IIB registered a mixed margin
