SBI, Maruti Suzuki: 2 Nifty cos may log 100% jump in Q1 profit; share price targets & more

State Bank of India (SBI) and Maruti Suzuki Ltd are two Nifty constituents that may see doubling of profits in the June quarter, analyst projections suggest. Bharat Airtel, on the other hand, may come close, with up to 95 per cent jump in year-on-year profit, analysts suggest.

Ahead of Q1 results, the average share price target for Maruti Suzuki suggests a 5 per cent upside potential; for Bharti Airtel, the target price suggests 3 per cent upside. For SBI, the share price target suggests 21 per cent potential upside, data available with Trendlyne suggests.

SBI Q1 results preview

Motilal Oswal expects SBI to report a profit of Rs 13,757 crore for the June quarter, up 126.70 per cent YoY. It sees net interest income (NII) for the state-run bank at Rs 41,251 crore, up 32.2 per cent. The earnings growth is expected to to stay strong, supported by healthy treasury gains against losses seen in the year-ago quarter. Motilal Oswal expects credit costs to remain in control, asset quality to improve on low stressed asset pool and margins to remain stable for the quarter.

Prabhudas Lilladher expects SBI to report 144.3 per cent YoY rise in profit at Rs 14,821 crore.

This is even as it sees NII at Rs 39,528 crore, up 26.7 per cent YoY.

Maruti Suzuki Q1 results preview

In the case of Maruti Suzuki, Kotak Institutional Equities sees profit at Rs 2,296.30 crore, up 126.7 per cent YoY over year-ago's Rs 1,012.8 crore. It sees sales rising 19.9 per cent YoY to Rs 31,782 crore from Rs 26,499 crore YoY.

"We expect revenues to increase by 20 per cent YoY led by 6 per cent YoY increase in volumes and 12 per cent YoY increase in average selling price (ASPs) due to price increases and a richer product mix.

Motilal Oswal sees profit at Rs 2,261.40 crore, up 123.80 per cent. It sees sales rising 17.3 per cent YoY to Rs 31,074 crore. The largest car maker reported a volume growth of 6 per cent for the quarter. Traction for new model launches and higher discounts for lower end models aided volume growth. Ebitda margin may expand 280 bps YoY to 10 per cent, led by benefits of lower raw material costs and operating leverage.

Bharti Airtel Q1 preview

Bharti Airtel, meanwhile, is seen reporting 93.2 per cent YoY rise in profit at Rs 2,931.80 crore on a 13 per cent YoY rise in sales at Rs 37,076 crore, said Motilal Oswal, which sees 3 per cent sequential revenue growth, led by a 3 per cent QoQ increase in average revenue per user (ARPU) and subscriber addition of 0.5 per cent QoQ. A few other brokerages, however, sees lower growth. ICICI Securities sees profit at Rs 2,355.40 crore, up 46.6 per cent. Emkay Global sees profit growing at 53.5 per cent YoY to Rs 2,466.80 crore.

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