Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Results: Bad for Nifty EPS, Mixed bag though

26 Jul 2008Deepak Shenoy1 min read

Quick Facts

What is "Results: Bad for Nifty EPS, Mixed bag though" about?
What category is this article in?: Stocks
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 26 July 2008.
How long does this article take to read?: 1 min read

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.