BackTata Motors, BPCL, ACC stocks among top EPS upgrades of Q3; Zomato, Lupin biggest downgrades
Brokerage Ambit has highlight it's biggest EPS (earnings per share) upgrades/downgrades of Q3 season amongst NSE200
PremiumWith the third quarter ended December 2022 (Q3 FY23) reporting season over, domestic brokerage and research firm Ambit has highlight it's biggest EPS (earnings per share) upgrades/downgrades of reporting season amongst NSE200.
Where are Ambit’s biggest EPS upgrades/downgrades of reporting season? Amongst NSE 200 stocks, BPCL, Tata Motors, Oberoi Realty, ACC & Dalmia Bharat are the biggest upgrades (FY23E), while Zomato, Indus Towers, ABFRL, Lupin & Voltas are its biggest downgrades.
Biggest FY23 upgrades
“BPCL (99%), Tata Motors (98%), Oberoi Realty (56%), ACC (21%),& Dalmia Bharat (16%). BPCL upgrade is driven by favorable macros in 3QFY23 leading to marketing profits despite stagnant retail fuel prices. Better-than-expected ASP at JLR & EBITDAM for the domestic CV business as the industry shifts from demand push to pull mode drove Tata Motors upgrade," the note stated.
Oberoi Realty upgrade factors better revenue recognition amidst multiple projects hitting completion milestones. ACC’s upgrade was driven by lower-than-expected freight cost/t along with higher fixed cost absorption, resulting in higher unitary EBITDA. Dalmia Bharat’s upgrade was due to fuel cost savings, however, going ahead these savings may end up fleeting as law of averages catches up, it added.
Biggest FY23 downgrades
“Zomato (-150%),Indus Towers (-80%), ABFRL (-68%), Lupin (-66%), Voltas (-58%). Zomato’s downgrades were due to weaker food delivery growth driven by weaker order & MTU growth. Indus towers downgrade is led by VIL’s funding constraints weighing on Indus’ ability to grow dividends & telcos focus likely on loading & fabrication instead of new tower additions," it said.
Downgrade in Aditya Birla Fashion and Retail (ABFRL) was led by increase in marketing spends & losses of new businesses. Lupin downgrade is led by delay in gSpiriva approval & miss on cost-reduction target by the management. Voltas EPS downgrade is driven by exceptional losses in 3QFY23 due to provisioning in MEP business, Ambit highlighted.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
