“Our model portfolio stance remains unchanged, with a distinct bias towards large-caps and domestic plays, given the current volatile backdrop. We are OW (overweight) on BFSI, consumer discretionary, industrials, healthcare, IT and telecom while we are underweight on Oil & Gas, cement, automobiles, real estate and metals,” MOFSL said.
The uptick in Profit After Tax (PAT) was higher than MOFSL’s estimates of 2% and IndusInd Bank, ONGC, State Bank of India (SBI), Kotak Mahindra Bank, and Grasim Industries contributed adversely to the earnings.
MOFSL’s broad-based analysis reveals 13 sectors exceeding expectations in the 4QFY25 corporate earnings, showcasing widespread outperformance across aggregates.
Metals and OMCs propelled earnings growth and were followed by PSU banks, automobiles, healthcare, technology, and capital goods, fuelling this healthy performance. Conversely, Oil & Gas (excluding OMCs) and private banks dragged overall profitability.
The aggregate earnings of the MOFSL universe companies grew 10% YoY versus the estimates of 2% YoY in 4QFY25.For metals profit surged 45% YoY on a low 4QFY24 base while for OMC’s PAT jumped 14% YoY versus estimates of a 59% decline. Earnings of PSU banks (+9% YoY), automobiles (+8% YoY), technology (+7% YoY), healthcare (+17% YoY), capital goods (+14% YoY) and consumer durables (+37% YoY) stood at 9%, 8%, 7%, 17% and 37%, respectively. As for the telecom sector, profit of Rs 500 crore was reported versus loss of Rs 2,500 YoY. In contrast, aggregate earnings growth was hit by Oil & Gas (ex OMCs), which posted a profit decline of 12% YoY. Further, earnings were dragged down by private banks (-6% YoY), cement (-3% YoY) and consumers (-1%).
Q4FY25 earnings based on Mcap
The MOFSL review reveals that largecaps and midcaps delivered a beat while smallcaps reported a miss.
MOFSL coverage universe comprising 86 largecap companies posted an earnings growth of 10% YoY while midcaps (89 companies) delivered 19% earnings growth versus estimates of 10%. The earnings were led by financials (PSU banks and NBFCs), metals, healthcare and retail.
In contrast, smallcaps (122 companies) experienced a broad-based miss adversely impacted by the financials sector. The smallcap earnings dipped 16% YoY versus estimates of 11% fall. In this, 39% of the coverage universe missed MOFSL’s estimates.
On the other hand, within the largecap and midcap universe, 21% and 25% of the companies missed their estimates.
(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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