Indian markets have witnessed a sharp correction over the last five months owing to multiple macro reasons and a cut in overall earnings expectations.
Indian markets have witnessed a sharp correction over the last five months owing to multiple macro reasons and a cut in overall earnings expectations.
Out of the 5,684 stocks listed on the BSE, 3,446 stocks have declined in the last five months, while from the NSE Nifty 500, 458 stocks have declined in the same period.
However, it appears that there are multiple stocks that have been weighed down much more owing to macro reasons as these have actually seen earnings upgrade over the last five months.
These stocks have seen a sharp de-rating in their valuation multiples despite an upward revision to their financial year 2025 and fiscal 2026 earnings.
Will these stocks be a safe haven, as and when the market recovers?
Also Read: Bearish Stock Market: All You Did Was Hope!
Reasons For Earnings Upgrade
National Aluminium Co: Strong earnings performance aided by lower fuel cost, better sales volume and favourable prices. In the October-December period, Nalco’s performance significantly benefited from favorable alumina prices, which continued their upward trajectory during the quarter, surging by 107% year-on-year and 38% sequentially to $703 per tonne.
Avalon Technologies: Revised clients, sustained traction with clients and expectations of large orders from high-margin segments. The management revised its FY25 revenue guidance to 22-24% from 16-18% earlier and 14-18% at the start of the year. On similar lines, gross margin guidance was also revised upwards to 34-36% from 33-35% earlier.
VRL Logistics: Price hikes, volume-growth expectations and expansion. The company said it plans to reduce debt using its Rs 100 crore quarterly operating cash flow generation, expand its fleet by 200 vehicles, and add 80-100 new branches in FY26 to strengthen its logistics network.
Arvind SmartSpaces: Strong launch pipeline. The company expects to cross a gross development value of Rs 5,000 crore in FY25, while for FY26, the launch pipeline looks promising as it has upcoming projects with GDV of Rs 8,000 crore.
GE Vernova T&D India: Strong execution, optimistic demand outlook, large high-voltage-direct-current orders in the pipeline. Over the third quarter earnings call, the management remained confident that the strong order intake momentum will sustain through March, further strengthening its revenue visibility. The company’s order book stood at record high of Rs 10,780 crore.
The reasons have been compiled from multiple brokerages.
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