Expect 10% earnings growth in Q3, positive on BFSI space: MOFSL
“In Q3 we expect earnings to grow just 10 percent now,” said Gautam Duggad, Head of Research, Institutional Equities of MOFSL in an interview with CNBC-TV18. “Q2 has been one of the best earning seasons so far,” he added.
The markets off late have been on a upward spree with both Nifty and Sensex setting new all-time highs. The surge is fueled by hopes of finding a COVID-19 vaccine quickly now after positive reports from Moderna and Pfizer.
“In Q3 we expect earnings to grow just 10 percent now,” said Gautam Duggad, Head of Research, Institutional Equities of MOFSL in an interview with CNBC-TV18. “Q2 has been one of the best earning seasons so far,” he added.
In the Motilal Oswal coverage universe, the company has seen a 16 percent profit growth against an expectation of 7 percent decline, he said. “So all-in-all it is a 25 percent earnings beat on an aggregate level,” Duggal added.
This has been a blockbuster quarter for cement sector, he said. “Every single stock in cement sector has beaten our expectations, volumes are stable, more importantly there was a very strong price discipline that we saw in cement, you also saw cost control. With things opening up, construction coming back, affordable housing, infrastructure execution picking up, the possibility of buoyancy in cement volume can continue,” he added.
On the split between Nifty and non-Nifty investment, Duggad mentioned, “Out of Rs 100, I will put Rs 70 on Nifty and Rs 30 on non-Nifty. Within Rs 70 also my bias will be very high towards BFSI.”
For entire discussion, watch the video
(Edited by : Abhishek Jha)
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