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Results: Bad for Nifty EPS, Mixed bag though


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.


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