Earning preview for December 2010: KRChoksey
KRChoksey has come out with report on earning estimates for quarter ended December 2010. According to the research firm, the top line ex-banking businesses are expected to grow by 18.3% Y-o-Y while the bottom line is expected to grow by 20.5%.
January 11, 2011 / 08:21 IST
KRChoksey has come out with report on earning estimates for quarter ended December 2010. According to the research firm, the top line ex-banking businesses are expected to grow by 18.3% Y-o-Y while the bottom line is expected to grow by 20.5%.
On the profitability front, we expect the operating margin (excl. banking) to remain flat at 18.9%. Including the banking sector the profits are expected to increase by 24.2% on year on year basis. Auto, Cement, Media & Entertainment sectors and Pharma are expected to report profit growth in excess of 40% in the current quarter.Top Picks:Tata Motors, Axis Bank, ICICI Bank,Glenmark Pharma, Praj Industries, Sterlite Technologies.KRChoksey report on earning estiamtes:Economy and Market Trend:GDP continues to demonstrate strong growth momentum to 8.9% in second quarter of the fiscal. Farm sector rebounded strongly to 4.4% against 0.9% in the corresponding quarter of the previous year. GDP growth is expected to be in the range of 8.5-8.7% for the current fiscal as compared to 7.4% in FY10.Festival season and pick up in investment demand helped in rebounding of industrial production from 10.8% in Oct. 2010 vis-a-vis 4.4% in Sept 2010. A broad based recovery across the segments triggered industrial output.Inflation has moderated due to favorable base effect. However, surge in global crude oil prices is a key upward risk to inflation moderation theme.
Direct tax and indirect tax collection s have been robust as it has achieved ~ 67% of their budget estimate trending upward for consumer disposable income and factory output going forward.Better Monsoon and increased MSP is expected to boost the agricultural sector and rural income levels.RBI has raised Repo rate by 25bps and Reverse Repo rate by 50 bps during the quarter. RBI
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