MOFSL On Earning Season: Q3 results season begins tomorrow with TCS results. There was buying mood in TCS ahead of the results. According to Motilal Oswal, the profit of Nifty companies in Q3 may increase by 6% on an annual basis. Excluding commodities, profit may increase by 8%. A slight improvement in margins is also possible. Margins of Nifty companies may improve by 30 bps.
The estimated growth of Nifty companies in the first 9 months of FY25 financial year is going to be 4 percent. FIIs sold shares for $12 billion in cash in Q3. Nifty is now at a valuation of 20x PE. Which remains a support somewhere.
According to Motilal Oswal, initial signs of improvement in growth for Q3 and Q4 have started appearing. Capex declined 13% in H2 YoY but further improvement is possible. RBI may reduce rates in the next meeting. Motilal Oswal believes that RBI can reduce rates to support growth. Motilal Oswal said that Nifty’s earnings growth of 16% is possible in FY26.
Who will do good, who will disappoint?
Motilal Oswal Financial Services said in its report that the results of healthcare and telecom sectors are expected to be good while the Q3 results of metal, commodities and cement sectors may disappoint.
Whose profits will increase in Q3?
According to Motilal Oswal in Q3 capital goods The profit of the sector can increase by 26 percent on annual basis while healthcare sector The profit of banking sector may increase by 19 percent and the profit of banking sector may increase by 8 percent. There itself real estate sector Profit of 58 percent on annual basis, consumer durables Profit of 31 percent and retail sector Profit may increase by 30 percent.
How much profit may decrease in Q3?
Motilal Oswal has said in its report that in Q3 cement sector The profit of may decline by 45 percent on annual basis whereas metal sector An 8 percent decline in profit is possible. There itself oil-gas sector There may be a 4 percent decline in profits on an annual basis.
Which companies’ results will show strength?
According to the report of Motilal Oswal, in the third quarter Bharti Airtel, SBI, Hindalco, BPCL, ICICI Bank, TCS The results may be good. There itself Coal India, JSW Steel, IndusInd Bank, Tata Steel, Tata Motors Weakness of Q3 results is possible.
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