Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
India Market Strategy
4QFY11 earnings largely in line
„ UBS India coverage stocks revenue grew 26.2%, Net Income 16.8% YoY
Earnings growth of UBS India stock universe (ex commodities, ex SBI) came in
above our estimates as sales growth was above our expectations while the
operating margins were inline. We have excluded SBI from our analysis as the
stock was impacted by one-time adjustment on account of higher provisioning.
Strong earnings growth was shown by engineering, cement and pharmaceuticals
when compared to 3QFY11. The main sectors where the earnings disappointment
came from are construction and real estate.
„ Beat percentage increases in 4QFY11 while inline percentage declines
45.4% of companies under our coverage beat expectations in 4QFY11 compared to
32.6% in 3QFY11 while the percentage of inline results decreased to 14.8% from
31.6% in 3QFY11. Based on weighted market cap, the net beat percentage (% beat
minus % miss) was -2.4% vs. -4.9% in 3QFY11 suggesting that on a relative basis
large cap companies have fared better this quarter when compared to last quarter.
„ Indian stocks price in a fair amount of bad news
We believe that Indian stocks factor in high inflation, high crude prices, Indian
government’s poor fiscal position, negative news flow around corruption/scams
and negative earnings momentum. Indian stocks have limited downside from here,
barring an external shock or an unknown risk playing out, in our view. We believe
that focusing on bottom up stock ideas is the key to generating superior returns.
Our highest conviction buy ideas are: Infosys, Federal Bank, Idea Cellular, Maruti
and Hero Honda.
Sensex/Nifty FY12E/FY13E earnings estimates
Q FY13E consensus earnings estimates for Nifty and Sensex were revised
down by 0.4% and 0.7% during the earnings season.
Q The key stocks whose FY13E consensus earnings were revised downwards
were DLF (-11.6%), Reliance Communications (-10.9%), Infosys (-6.7%),
SAIL (-6.6%) and HDFC (-5.9%).
Q The key stocks whose FY13E consensus earnings were revised upwards
were JP Associates (+27.4%), Maruti (+9.9%), Sesa Goa (+9.1%) and ACC
(+7.1%).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
India Market Strategy
4QFY11 earnings largely in line
„ UBS India coverage stocks revenue grew 26.2%, Net Income 16.8% YoY
Earnings growth of UBS India stock universe (ex commodities, ex SBI) came in
above our estimates as sales growth was above our expectations while the
operating margins were inline. We have excluded SBI from our analysis as the
stock was impacted by one-time adjustment on account of higher provisioning.
Strong earnings growth was shown by engineering, cement and pharmaceuticals
when compared to 3QFY11. The main sectors where the earnings disappointment
came from are construction and real estate.
„ Beat percentage increases in 4QFY11 while inline percentage declines
45.4% of companies under our coverage beat expectations in 4QFY11 compared to
32.6% in 3QFY11 while the percentage of inline results decreased to 14.8% from
31.6% in 3QFY11. Based on weighted market cap, the net beat percentage (% beat
minus % miss) was -2.4% vs. -4.9% in 3QFY11 suggesting that on a relative basis
large cap companies have fared better this quarter when compared to last quarter.
„ Indian stocks price in a fair amount of bad news
We believe that Indian stocks factor in high inflation, high crude prices, Indian
government’s poor fiscal position, negative news flow around corruption/scams
and negative earnings momentum. Indian stocks have limited downside from here,
barring an external shock or an unknown risk playing out, in our view. We believe
that focusing on bottom up stock ideas is the key to generating superior returns.
Our highest conviction buy ideas are: Infosys, Federal Bank, Idea Cellular, Maruti
and Hero Honda.
Sensex/Nifty FY12E/FY13E earnings estimates
Q FY13E consensus earnings estimates for Nifty and Sensex were revised
down by 0.4% and 0.7% during the earnings season.
Q The key stocks whose FY13E consensus earnings were revised downwards
were DLF (-11.6%), Reliance Communications (-10.9%), Infosys (-6.7%),
SAIL (-6.6%) and HDFC (-5.9%).
Q The key stocks whose FY13E consensus earnings were revised upwards
were JP Associates (+27.4%), Maruti (+9.9%), Sesa Goa (+9.1%) and ACC
(+7.1%).
No comments:
Post a Comment