Nifty companies have shown a robust start to the first quarter earnings season, with profits of 39 index constituents rising 11% year on year, as reported by Motilal Oswal. Among these, 11 stocks have seen earnings upgrades of more than 3% for FY27.
SBI Life Insurance tops the list with a 9.5% increase in its FY27 earnings estimate, now projected at Rs 30.7 from Rs 28. Reliance Industries and Bajaj Finserv both have their FY27 EPS estimates upgraded by 7.4%, with Reliance moving to Rs 60 from Rs 56, and Bajaj Finserv to Rs 79.1 from Rs 73.7. Shriram Finance follows with a 6.6% increase to Rs 60.1 from Rs 56.4.
Nestle India has seen its FY27 EPS estimate rise by 5.9% to Rs 22 from Rs 20.7. ICICI Bank's earnings estimate has been raised by 4.7% to Rs 83.7 from Rs 80. Bajaj Auto and UltraTech Cement both received a 4.5% upgrade, with Bajaj Auto's estimate now at Rs 452.5 from Rs 433, and UltraTech Cement at Rs 332 from Rs 317.
Bajaj Finance has experienced a 4.4% upward revision in its FY27 EPS estimate to Rs 42.5 from Rs 40.7, while Asian Paints rounds off the list with a 3.5% upgrade to Rs 56.4 from Rs 54.4.
The upgrades reflect positive market sentiment and potential growth prospects for these companies, as analyzed by Motilal Oswal. Investors will be keenly observing the performance of these stocks in the coming quarters.
Background
The upgrades come amidst a strong earnings season for Nifty companies, with a reported 11% year-on-year profit increase for the 39 index constituents that have announced results. This trend suggests a positive outlook for the Indian stock market, driven by strong corporate performance.
As the earnings season progresses, market participants will be watching for further upgrades and the overall impact on the Nifty index. The continued strength in earnings could signal a positive outlook for the Indian stock market.
