Eicher Motors, BSE, L&T, Zomato, Titan — Jefferies Forecasts Strong Q3 Results Amid Wider Slowdown
Consumer tech companies like Zomato Ltd. and Nykaa are projected to see revenue growth between 25% and 60%.
Eicher Motors Ltd., BSE Ltd., ABB India Ltd., Larsen & Toubro Ltd. and Titan Co. are among the companies that Jefferies expects will post strong third quarter earnings this season, amid a dim forecast for broader India Inc.
Jefferies projects earnings growth for companies in its coverage, excluding oil and gas and metals, to decline by two percentage points on a sequential basis to an 18-quarter low of 8% year-on-year on a sharp slowdown in lending financial earnings.
Domestic firms, except financials, are likely to post operating income or Ebitda growth improvement, reflecting the pickup in economic activity. Nifty EPS growth is likely to settle below 10% level for fiscal 2025, with some earnings cuts likely, the brokerage said.
Sectors that are likely to post good results are capital market players, asset management companies and wealth managers, capital goods, tourism, pharma and realty, the brokerage said in its December quarter earnings preview note.
ALSO READ
Piramal Pharma Is Jefferies' Top Pick Among Contract Manufacturers With Sector Outlook Positive
Selective Companies With Positive Outlook
Select two-wheeler makers like Eicher Motors and TVS Motor Co. could see 20% growth in net profit, aided by revenue growth of 10-25%. Among carmakers, Mahindra & Mahindra Ltd. and Maruti Suzuki India Ltd. are estimated to post more than 20% earnings growth, according to Jefferies.
BSE's earnings are projected to grow 3.2 times year-on-year, while Nippon Life India Asset Management Ltd. is likely to see 25%, and 360 One Wam Ltd. 34% increase.
ABB India Ltd., Siemens Ltd. and Thermax Ltd. should see 20-40% net profit growth on improved execution. L&T profit growth is also likely to be 25%, on 20% revenue growth driven by strong orderbook, Jefferies said.
Steady travel demand is expected to fuel robust Ebita growth, with Indian Hotels Co. and GMR Airports Ltd. projected to see 30% and 40% growth, respectively. However, IndiGo parent InterGlobe Aviation Ltd. is anticipated to report flattish Ebitda growth.
In the discretionary space, growth remains strong, with Trent Ltd. forecasted to achieve over 40% revenue growth and Titan's jewellery business expected to grow by 25%, Jefferies said.
Consumer tech companies like Zomato Ltd. and Nykaa (FSN E-Ventures Ltd.) are projected to see revenue growth between 25% and 60%. Jubilant FoodWorks Ltd. is also poised for a rebound, with revenue expected to rise 19%.
Electronics manufacturing services companies like Syrma SGS Technologies Ltd. and Kaynes Technologies Ltd. are expected to double their earnings, driven by strong topline performance.
In the pharma sector, earnings growth is estimated at 12% on a yearly basis, though it could moderate by three percentage points sequentially. Torrent Pharma Ltd., Divi’s Laboratories Ltd., Lupin Ltd., and Syngene International Ltd. are likely to achieve 20-45% earnings growth.
Meanwhile, Apollo Hospitals Ltd. and Fortis Healthcare Ltd. are expected to post Ebitda growth exceeding 25%.
DLF Ltd., Macrotech Developers Ltd., and Oberoi Realty Ltd. are expected to be key performers in the realty space, supported by favourable project launches and strong demand for high-end properties.
