Gujarat State Fertilizers & Chemicals Ltd (GSFC), EIH, NBCC India Ltd, Schneider Electric Infrastructure Ltd, InterGlobe Aviation Ltd (IndiGo), NLC India Lt, Varroc Engineering Ltd, Trent Ltd and Natco Pharma Ltd are some of the BSE500 constituents that saw steepest upward revisions in FY25 earnings estimates in the results reason gone by.
V-Mart Retail, Dilip Buildcon Ltd, Rajesh Exports, Gujarat Mineral Development Corp, UPL and Laurus Labs were among some of the companies that saw steep cuts in earnings estimates for FY25. Net-net, earnings expectations have not moved much on an aggregate basis, Kotak Institution Equities said in a strategy note.
"For the quarter, the BSE-500 index companies showed persisting revenue weakness (3 per cent YoY increase ex-BFSI), even as earnings growth remained robust (28 per cent YoY). Ebitda margins were elevated (up 200 basis points YoY), but a 170 bps QOQ rise in RM cost/sales led to a 110 bps qoq moderation in EBITDA margins," said Kotak Institutional Equities.
For the ongoing year, i.e. FY24, the steepest earnings upgrades were seen in Varroc Engineering Ltd, Graphite India Ltd, Allcargo Logistics Ltd, GSFC and EIH, among others. Earnings downgrades for FY24 were seen in UPL, Piramal Enterprises, Rajesh Exports, LUX Industries and Prism Johnson, among others. Kotak Institutional Equities said consensus earnings estimates for the BSE-500 universe were largely stable, despite the strong YoY earnings growth in Q3FY24.
Kotak said the consensus EPS for BSE500 companies declined modestly for FY24 but was stable for FY2025 through the 3QFY24 results season, despite the sharp YoY increase in 3QFY24 earnings of the BSE-500 universe.
"We assume the reported results and management commentary did not add much to the extant high expectations. However, several companies witnessed large changes to their earnings estimates," it said.
Also read: Hot stocks on February 27: IREDA, Adani Green, CMS Info Systems, YES Bank and more
Also read: Stock recommendations by analyst for February 27: IRCON, JSW Energy and HUDCO
Also read: RailTel Corp shares rally 14% to hit all-time high; time to book profit or more upside ahead?