HDFC Bank, Tata Steel, RIL, ICICI, JSW Steel to drive Q3 Nifty results, says Motilal. Full table

Brokerage Motilal Oswal, which expects Nifty companies to log a combined 10.3 per cent growth in the December quarter profit, said HDFC Bank Ltd, Tata Steel Ltd, Reliance Industries Ltd, ICICI Bank Ltd and JSW Steel Ltd are likely to drive index earnings in the quarter gone by. Wipro Ltd, State Bank of India (SBI), Coal India Ltd, Tech Mahindra Ltd and UPL may drag the index profits, the broking firm said in its latest strategy note.

The brokerage expects sales for Nifty companies to rise 6 per cent, Ebitda by 7 per cent and profit before tax by 8 per cent, fuelled by automobile, BFSI (banking, financial services and insurance) and oil marketing companies (OMCs) namely BPCL, HPCL and IOC.

Excluding metals and oil & gas, sales, Ebitda, profit before tax and profit after tax for the quarter are likely to grow 11 per cent, 7 per cent, 8 per cent and 9 per cent YoY, respectively.

In total, the brokerage expects 17 Nifty companies to report a PAT growth of above 30 per cent YoY. It sees 10 Nifty companies to report a YoY drop in PAT.

"We have cut our FY24E Nifty EPS marginally by 2 per cent to Rs 976 and while FY25E Nifty EPS is stable at Rs 1,142. We now forecast the Nifty EPS to grow 21 per cent/17 per cent in FY24/FY25. Auto, financials, and O&G are expected to account for 84 per cent of the incremental FY24E earnings growth for Nifty. Ex-BFSI, we project Nifty’s FY24 earnings to grow at 22 per cent YoY; while ex-Metals and O&G, Nifty’s FY24 earnings are anticipated to grow 19 per cent YoY," the domestic brokerage said.

Motilal Oswal Securities forecast 17 out of 50 Nifty constituents to report 30 per cent-plus growth in December quarter profit. It expects JSW Steel Ltd and Hindalco Industries to log up to 330 per cent jump in bottomlines for the quarter gone by. A total of 10 Nifty constituents are seen logging a decline in profits for the quarter.

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