Motilal Oswal - MOSL: INDIA STRATEGY-1QFY20 interim earnings review-Meets modest expectations; earnings downgrades continue with downgrade/upgrade ratio at 3x

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Motilal Oswal

Gautam Duggad

EUR 350.00 For Business Accounts Only

MOSL: INDIA STRATEGY-1QFY20 interim earnings review-Meets modest expectations; earnings downgrades continue with downgrade/upgrade ratio at >3x

India Strategy: 1QFY20 interim earnings review; Meets modest expectations; earnings downgrades continue with downgrade/upgrade ratio at >3x

The June-quarter earnings season is at the halfway point, with results in from 96 MOFSL Universe and 28 Nifty companies as of 31st Jul'19. Among these MOFSL Universe companies, 60% have delivered PAT that is either in line or above our estimate. However, the trend in earnings revision remains skewed in favor of downgrades and has accelerated at the margin, reflecting the weak underlying operating environment and demand commentaries. Broader headline numbers of both the MOFSL Universe and the Nifty have been largely in line with our estimates. The consumption demand outlook has turned weaker, even as Private Banks have reported mixed trends on asset quality/a rise in stressed books and cement companies have surprised on realization.
We note that companies that have reported their earnings so far comprise (a) 52% of estimated PAT for the MOFSL Universe, (b) 56% of estimated PAT for the Nifty and (c) 48% of India's market capitalization.

02/08/2019 1 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Gautam Duggad

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MOSL: INDIA STRATEGY-1QFY20 interim earnings review-Meets modest expectations; earnings downgrades continue with downgrade/upgrade ratio at >3x

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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