Mazagon Dock, GMM Pfaudler, Adani Green, Zomato among BSE500 shares leading EPS upgrades

Mazagon Dock Shipbuilders Ltd, GMM Pfaudler Ltd, Adani Green Energy Ltd and Zomato Ltd are among BSE500 constituents seeing highest upgrades in their FY25 and FY26 earnings per share (EPS) estimates, while companies such as BHEL Ltd, Rites Ltd and VIP Industries saw steep downgrades following their June quarter earnings.

GMM Pfaudler saw a steep 35 per cent jump in its FY25 EPS estimates and 26 per cent rise in FY26 estimates. Mazagon Dock Shipbuilders led the BSE500 list with 47 per cent surge in EPS estimates for FY26. The forecast on the defence PSU's FY25 EPS also jumped 33 per cent for the ongoing financial year.

BASF India, Linde India, Adani Green Energy and Jindal SAW witnessed 20-22 per cent jump in their FY25 EPS forecasts. Among them, BASF India and Jindal SAW also saw their FY26 estimates rising by 28 per cent and 18 per cent, respectively.

Infibeam Avenues, Natco Pharma, Grasim Industries, GE Shipping Co and Finolex Industries saw 15-20 per cent increase in FY25 EPS estimates. UTI AMC, Zomato, Voltas, Coal India, Indiamart Intermesh, Five Star Business Finance, Canara Bank and Deepak Fertilisers also saw increased EPS projections for FY25.

Lakshmi Machine Works led the downgrades in FY25 EPS estimates at 56 per cent. Birla Corp (38 per cent), Shoppers Stop (35 per cent), Prism Johnson (34 per cent), VIP Industries (33 per cent), Jubilant Pharmova (30 per cent) and Century Textiles (30 per cent) also saw downgrades of 30 per cent or more in FY25 EPS estimates.

"We note that consensus EPS estimates for BSE-500 stocks have seen sharper downgrades than upgrades for FY2025E, while the downgrades-to-upgrades ratio is more balanced for FY2026E and earnings are broadly stable. We note that most companies featuring in top-20 downgrades and upgrades belong to the mid- and small-cap. universes, reflecting the low
predictability in earnings of these set of companies," Kotak Institutional Equities said.

FY26 EPS downgrades are led by SJVN (down 37 per cent), Inox Wind (35 per cent), Century Textiles (26 per cent), Shoppers Stop (24 per cent) and Godrej Properties (22 per cent).

The combined sales growth of BSE500 companies grew at 8 per cent in the June quarter, continuing the trend of single-digit
YoY growth seen over the past five quarters. The consensus earnings estimates for the BSE-500 universe saw cuts, especially in commodities sectors, Kotak said.