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26 Aug, 2025 12:21

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India Inc’s March quarter earnings so far have belied the Doubting Thomases. The broader indices might not have celebrated the results but they have held their levels.

Of the numbers out so far, there are 84 companies whose net profit rose 9.86 percent on a year-on-year basis while on a sequential basis, it fell by 6 percent, according to a report.

Aggregate net sales of these 84 companies rose 8.9 percent on a YoY basis and 5.69 percent on a quarter-on-quarter basis.

The consensus is estimating more than 15 percent growth in PAT or net profit on a YoY basis for Nifty50 companies. The expectation was similar in the last quarter but poor performance from finance, pharmaceutical and telecom stocks pulled the actual numbers lower, experts said.

“For this quarter, market hopes on favourable base effect, global tailwinds, revival in the domestic economy and increased government spending to push earnings growth. But a few sectors like IT, pharma, telecom and finance could come in as a laggard impacting the overall performance,” Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol.

Commenting on earnings growth for the fiscal year, Vivek Misra, Head-Fundamental Research at Karvy Stock Broking said that he estimates FY19 earnings to grow in double digits.

“We believe that better earnings growth numbers should start coming through a couple of quarters later. Growth in investment spending is important,” he said.

Nestle India: Outperform| Raise target price to Rs 9,750 from Rs 8,950| Return 11%

CLSA downgraded Nestle from buy to outperform but raised its target price to Rs9750 from Rs8950 earlier. The return ratios improved, but remain below the past peak, said the note.

Aggression on launches has increased, but near-flat advertising spends disappoint. One possible reason for the downgrade is the 13 percent rally seen in Nestle in the past one month.

M&M: BUY| Raise target price to Rs960 from Rs910| Return 12%

CLSA maintains a buy call on M&M post Q4 results but raised its target price to Rs960 from Rs910 earlier. The rural demand outlook improved with normal monsoon forecast.

Big hike in government support prices for agri commodities on the anvil should support the stock. The launch of new MPV is likely to boost utility vehicle segment volumes, said the CLSA note.

The global investment bank sees good volume growth outlook, and valuations is attractive despite better earnings outlook.

SAIL: Hold| Raise target price to Rs88 from Rs84 earlier| Return 14%

HSBC upgrades SAIL to Hold after a long time post Q4 results and raised its target price to Rs88 from Rs84 earlier, supported by strong demand recovery and benign pricing environment.

The global investment bank expects another strong quarter for the sector & SAIL in specific. Profit boost is expected on the back of modernization of plant, added the HSBC note.

Ashok Leyland: BUY| Raise target price to Rs 185 from Rs 145| Return 13%

CLSA maintains a buy call on Ashok Leyland post Q4 results but raised its target price to Rs185 from Rs145 earlier. The company commands a commendable market-share in the defence sector while things are also improving in other areas as well.

The commercial vehicle cycle growth surprised positively and the global investment bank raised current fiscal’s industry growth estimates to 13 per cent. It expects strong 23 per cent compounded growth rate in earnings per share (EPS) over the next two years. The expensive valuations seems justified.

ICICI Prudential Life Insurance Company: BUY| Raise target to Rs525 from Rs 450 earlier| Return 20%

Citigroup upgraded ICICI Pru to buy post Q4 results and raised its target price to Rs525 from Rs450 earlier.

The VNB margin traction remains strong. VNB margins improved to 16.5 percent in FY18 as compared to 10.1 percent YoY. The operating parameters remain strong, even adjusted for one-offs.

Citi sees the scope of VNB margins expanding further from current 16.5 per cent. It expects operating RoEV of 19 per cent over FY19E-20E.

Indiabulls Housing Finance: BUY| Raise target price to Rs1650 from Rs1620| Return 24%

CLSA maintains a buy rating on Indiabulls Housing Finance post Q4 results but raised ita target price to Rs1650 from Rs1620 earlier.

However, the global investment bank was a bit disappointed by compression in spreads.

But, going forward, stability in spreads will be the key.

Housing segment drives maximum loan growth, but the asset quality is fairly stable. The global investment bank expects 22 per cent compounded growth rate in profits over fiscal 2018-2021.

TCS: BUY| Raise target price to Rs3700 from Rs3250| Return 5%

CLSA maintains a buy rating on TCS post Q4 results but raised its target price to Rs3700 from Rs3250 earlier. The growth outlook seems improving from large deal wins, and digital share gains.

Potential recovery in US BFS drives 1 per cent upgrades to CLSA’s FY19-20 revenue. It expects TCS to maintain payout ratios in the past and expect a buyback going forward.

The results were positive but margins were slightly below expectations despite a 40bps FX tailwind. TCS delivered a good growth in the otherwise seasonably good quarter.

IndusInd Bank: BUY| Raise target price to Rs 2,180 from Rs 2,060 earlier| Return 17%

Citigroup maintains a buy rating on IndusInd Bank post Q4 results but raised its 12-month target price to Rs2180 from Rs2060 earlier.

Higher CASA ratio and the recent MCLR increase should help net interest margins (NIMs). The loan growth remains fairly strong, but fees income seem muted this quarter due to a high base of retail third-party fees. The slippages rise due to divergence.

Cyient: BUY| Raise target price to Rs 750 from Rs 675| Not Applicable

Motilal Oswal maintains a buy rating on Cyient post Q4 results but raised its target price to Rs750 from Rs675 earlier.

March quarter’s revenue was inline with estimates but margins beat. The company reported a strong double-digit growth despite challenges. Upward momentum bodes well for the next year.

The domestic brokerage firm expects industry-leading growth coupled with long-term opportunities.

Infosys: Reduce| Raise target price to Rs1020 from Rs990 earlier| Not Applicable

Nomura maintains a Reduce rating on Infosys post Q4 results but raised its target price to Rs1020 from Rs990 earlier.

Large segments remained sluggish, and the margin outlook has also weekend. The management guided for a 6-8 percent growth in its full-year constant currency revenue and 7-9 percent growth in dollar revenue, which was in line with analyst estimates.

Going forward, the global investment bank is of the view that Street expectations will moderate. It has incorporated a buyback of $1.6bn in Q4 FY19 at Rs 1300 per share.