Some results are out, and all Nifty stocks would have announced their Q1 results by Aug 1. Here’s a primer:
Bad Stuff:
- ICICI Bank down 24% on EPS. (Yeah they raised capital but so what)
- SBI down 26% on EPS. (Also raised capital, again, so what)
- Dr. Reddys down 50%, and Ranbaxy down 43% – bad, bad, bad.
- Cement unhappy: ACC and Ambuja down 22 and 34%, Grasim up 0.3%. Not good.
- Tata power down 18%.
- Maruti down 6.7%. Indicative of auto results?
Good stuff:
- Bharti up 52%
- BHEL up 33%
- Infy, Wipro, and Satyam: 20, 34 and 44% respectively.
- ZEE Media: up 100%
- ABB up 21%.
As of now, the EPS is still 229 (of the Nifty). Bad results expected from Hero Honda, BPCL, PNB, Tata Steel, Tata Motors, M&M. Good from DLF, Unitech, RCOM, Sterlite.
Without surprises, the Nifty EPS should probably grow about 10% over last year. The current P/E is 18. At some point this stuff needs to converge. It can take years so don’t jump to buy or sell. But not looking good at all. Will revisit after August 1.
