Numbers do talking 15 Jan, 2019Welcome to Q3 earnings show, which is slowly picking up pace.
We have seen a quite a few companies kicking off their numbers.
There are more to go.So far, there have been no fireworks.
But as we go along, there might be surprises along way.Sharekhan has brought out a report that has put 10 key sectors under microscope for any possible leads.
Consumer Goods Services15 Jan, 2019 In Q3FY2019, for Sharekhan universe of consumer goods companies revenues are expected to grow by 12.6% in Q3FY2019 with favorable demand environment (uptick seen in rural demand).
Though gross margins would be under pressure, operating efficiencies would help companies post stable margins.
PAT for coverage companies is set to grow 13.1% during quarter.
Improving rural demand, widening distribution reach and premiumisation remain key revenue drivers in near term.
The positive impact of correction in crude oil prices and other key inputs coupled with stable currency would start flowing in from Q4.Preferred Picks: HUL, ITC, Britannia Industries, Marico and Dabur India Q3FY19Automobiles15 Jan, 2019 In Q3FY2019, for Sharekhan universe (excluding Tata Motors), revenue growth is expected to moderate to 7% driven by volume moderation across categories.
Operating margin (OPM) is expected to drop by 110 bps y-o-y driven by increasing commodity costs and increased marketing expenses.
The universes PAT growth is likely to slow down further and we expect flat earnings.
Correction in fuel prices, improving liquidity situation and clearance of excessive inventories are likely to result in gradual improvement in demand from Q4FY2019.
Gradual volume improvement, recent prices hikes and cooling off in commodity prices and reduction in discounts would ease cost pressures going ahead.Preferred Picks: MM, Maruti Suzuki, TVS Motors and EscortsPharma15 Jan, 2019 In Q3FY2019, revenue for Sharekhan universe is expected to grow by 7.5% due to a favourable movement in Indian rupee.
Operating profit margin is likely to decline by 162 bps to 23.3% due to rise in raw material cost.
We expect adjusted profit to grow by 7.9%.
We expect US and India businesses to see single-digit growth aided by limited launches by competitors and a weak rupee, which will also help some recovery in RoW/EM businesses.
We maintain our neutral stance on sector and see opportunity in select, quality companies.Preferred Picks: Divis Biocon Banks and Financials15 Jan, 2019 We find retail-focused and large corporate private banks attractive at present times; they would be helped by falling bond yields, peaking NPA cycle and improved credit outlook.
The fall in bond yields, will also result in mark-to-market (MTM) reversals, lower provisions which will help profitability.
Public sector banks to gain from healthy treasury profits in Q3FY19, but asset quality stress will continue to affect performance Structural challenges to persist for NBFCs; we prefer customer oriented, parent backed or players with a strong balance sheet in NBFC spacePreferred Picks: HDFC Bank, Axis Bank, ICICI Bank, RBL Bank