Excluding global commodities, i.e. oil & gas and metals, the Nifty universe is expected to report a 10% YoY jump, Motial Oswal said in a preview note. Meanwhile, Kotak pegs net income YoY growth at 9.3%, excluding the OMCs.
BFSI and auto companies are expected to continue their dominance while contributions from healthcare and metals could improve in 1QFY25, MOFSL said. Banks and NBFC lending would mainly lead BFSI’s earnings, with 14% and 17% YoY growth, respectively, it said.
Within banks, the earnings growth of private and PSU banks is estimated at 16% and 11% YoY, respectively, though it will be the lowest in over 10 quarters for private banks and over eight quarters for PSU banks, the report said.
Meanwhile, the auto sector’s earnings are likely to rise 18% YoY, which will also be the lowest in nine quarters. Notwithstanding this, the auto sector will be among the best performers within the MOFSL coverage sectors once again.
Sales and EBITDA for Nifty are likely to improve 6% and 4% YoY, respectively, while excluding OMC’s, EBITDA of the Nifty is likely to grow 8% YoY.
Conversely, the EBITDA margin for the Nifty-50, excluding financials, is likely to contract 80bp YoY to 20.1% during the quarter.
Kotak report estimates Q1FY2025 sales growth at 7.3% YoY. The sales and net profit are likely to decline 1.9% and 10.7%, respectively, quarter-on-quarter. EBITDA margin is expected to decline both on YoY basis and sequentially to 19.2% versus 20.4% in Q1FY24 and 19.6% in Q4FY24.
Sectorally automobiles (14%), banks (13%), diversified financials (26%), healthcare services (16%), insurance (20%), pharmaceuticals(10%) and transportation(12%) are expected to report double-digit sales growth.
Auto (20%), capital goods (17%), diversified financials (19%), electric utilities (18%), healthcare (64%), insurance (16%), metals & mining (14%), telecommunication (36%) and transport (20%) are expected to report double-digit PAT growth. Meanwhile, most sectors in the Nifty universe are expected to witness decline in PAT growth on a QoQ basis.
MOFSL’s top largecap ideas include ICICI Bank, SBI, L&T, M&M, HCL Tech, Coal India, Titan, Mankind Pharma, CIFC and Hindalco; midcap and smallcap ideas are Indian Hotels, Ashok Leyland, Godrej Properties, KEI Industries, PNB Housing, Cello World, Kalyan Jewelers, Persistent Systems, Angel One, Metro Brands.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
