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    15 stocks that are likely to deliver over 100% growth in Q2 profit

    Synopsis

    For India's largest car manufacturer Maruti Suzuki, Motilal expects a 297% YoY growth in its Q2 profit at Rs 1,900 crore. Besides the easing of supply-chain constraints, the auto major’s EBIT margin is expected to improve on a QoQ basis due to price hikes, forex benefits, and operating leverage.

    15 stocks that are likely to deliver over 100% growth in Q2 profitAgencies
    Dragged by the adverse impact from metals and oil and gas sectors, Nifty earnings are expected to remain flat in the September quarter, the results of which started coming in from Monday with TCS leading the way.

    Sectors like auto, aviation, travel, chemicals, capital goods and financial services are expected to report strong EBIDTA growth while oil and gas will be major drags, according to brokerages.

    "Overall, earnings on the domestic front are still holding up (partially aided by low base). However, demand dynamics are only worsening with global demand slowing (PMI in contraction), rates rising and prices cooling off. This is likely to weigh on earnings estimates," domestic brokerage Edelweiss Securities said.

    Driven by cuts in metals and oil and gas earnings, Motilal Oswal has reduced its FY23 Nifty EPS estimate by 3% to Rs 817.

    Among Nifty companies, three of them - Maruti Suzuki, Asian Paints and Bharti Airtel - are expected to report over 100% growth in profit after tax (PAT).

    For India's largest car manufacturer Maruti Suzuki, Motilal expects a 297% YoY growth in its Q2 profit at Rs 1,900 crore. Besides the easing of supply-chain constraints, the auto major’s EBIT margin is expected to improve on a QoQ basis due to price hikes, forex benefits, and operating leverage.

    Asian Paints is expected to report 106.6% YoY growth in its net profit to Rs 1,300 crore. Telecom operator Bharti Airtel's Q2 PAT is likely to grow over 150% YoY to Rs 1,500 crore.

    The brokerage expects Airtel to report 3% revenue growth sequentially, led by an increase in ARPU and subscriber addition.

    NOCIL, IndiGo Paints, IRB Infra, Oil India, Godrej Properties, Oberoi Realty, Aditya Birla Fashion, Bata India, Tata Chemicals, Equitas Holdings, RBL Bank and LIC Housing Finance are a few other companies whose bottomlines are expected to at least double in the quarter.

    Motilal expects Aditya Birla Fashion's profit to grow 8 times YoY to Rs 47.2 crore while Godrej Properties' PAT is seen zooming 4 times to Rs 143.5 crore.

    RBL Bank's net is seen jumping 560.8% YoY to Rs 203.5 crore. "Expect business growth to see an uptick. Margin likely to remain stable at 4.4%," Motilal Oswal said.

    LIC Housing Finance's core PAT is seen increasing 165% YoY to Rs 925.5 crore. "We expect NII to grow at ~2.5%, and a strong 41% yoy growth over a low base," Edelweiss said.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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