Strategy- OMCs set to attain highest profitability
Strategy: OMCs set to attain highest profitability According to Jefferies coverage, commodity majors in the oil and metals sectors are expected to report a reasonably strong 19% y-o-y earnings growth for the June 2023 quarter. However, this growth rate is expected to slow by 7 percentage points q-o-q due to a higher base. The key earnings driver is projected to be a 25%+ earnings growth for lenders, auto companies, and select cyclicals. Domestic revenue growth is slowing down to 13% y-o-y, but a trough margin base is anticipated to drive approximately 18% Ebitda growth, excluding financials. The preference for domestic cyclicals, real estate, and industrial sectors remains. There is expected to be strong headline growth due to a boost from the oil marketing companies (OMCs), with the JEF coverage universe’s earnings projected to rise by 37% y-o-y compared to a 13% y-o-y rise in the previous quarter. OMCs are expected to achieve one of their highest ever profitability levels due to strong margins. However, the metals sector is still experiencing a significant decline y-o-y (halving), and the cement sector is expected to show flattish profitability. However, there have been some improvements in q-o-q trends for cement. IT revenues are anticipated to decline q-o-q, posing some risk to earnings, with a projected growth of 14% due to deferred pay-hikes. The pharmaceutical sector is expected to post muted growth of less than 5%. Sectors with strong earnings Banking sector profits are expected to rise by approximately 25% y-o-y due to strong performances by major private and public sector banks such as ICICI, Indusind, and SBI. Margin expansion and mid-teen system loan growth are thekey drivers. Selected NBFCs like Chola, BAF, and MMFS, as well as housing finance companies like Aptus and Aavas, are projected to achieve profit growth of 25% or more. Two-wheeler companies (Hero, Bajaj, TVS, Eicher) are expected to experience a strong 40% growth in profit, while Maruti Suzuki may see a profit increase of over 100%, and Tata Motors could shift from loss to profit. OMCs like BPCL, HPCL, and IOCL are likely to experience a spike in profitability due to marketing strength, despite weakness in refining.
相关推荐
CoinEx institution- BitVM, the potential of smart contracts on the Bitcoin mainnet
Volatile trade- Uncertain markets put traders in trouble
Crude oil falls as US holds off refilling strategic reserve
Adani group shares in downward spiral, 4 stocks at lower circuit; Adani Enterprises jumps 2% after Q3 results
Cyclone Biparjoy is coming! Heavy rains lash Gujarat – See pics
Wall Street Week Ahead- Signs of market bottom elude investors after steep selloff
- 最近发表
- Yatra Online IPO to open on September 15
- Vodafone Idea, Adani Wilmar, ICICI Bank, Canara Bank, SBI, Delhivery, Coal India stocks in focus 20 June 2022
- Worst over for Dalal Street now as FIIs return, bet on auto sector, private banks - Emkay INTERVIEW
- 400 km, 16 hours and one bag with body- How cab driver who ferried Suchana Seth aided her arrest
- Younion appoints Arindam Roychowdhury as vice president – strategic growth
- Corporate bond issuances slow down amid high interest rates, volatility
- With more local value additions, electronics manufacturing sector to be worth USD 115 billion in 2024
- Crude prices may bounce back on stronger demand
- Zomato share price tanks 14% in 2 days after Blinkit acquisition deal; should you buy, sell or hold-
- Across the aisle by P Chidambaram- Shutting out debate in talking shop
- 随机阅读
- Cyclone Biparjoy is coming! Heavy rains lash Gujarat – See pics
- 10 transformations of last decade put India’s economy on a rocket; target $8 trillion economy- Morgan Stanley
- Crude prices may see further selling pressure if cracks in banking system widen; do not recommend fresh short positions
- Wall Street Week Ahead- Recession fears loom over US value stocks
- Closing Bell- Nifty closes above 19300, Sensex under 65k; Reliance Industries, JFS end lower following AGM
- 52-week high, 52-week low- RIL, Adani Power among 139 BSE stocks at new highs; Zomato, Future Retail hit lows
- 3 Adani group shares exit NSE’s short-term additional surveillance framework
- Adani Enterprises FPO opens even as Hindenburg allegations shoot down share price; should you subscribe-
- Wall Street jumps over 1% to start fourth quarter
- Crude oil rebounds as China demand recovery optimism supports prices
- Adani Enterprises, four other Group shares hit lower circuit; all Adani shares tank up to 30% even after FPO
- Wall Street rises on gains in banks, strong retail sales data
- Wall Street ends sharply higher for 2nd day, Amazon, Apple jump after hours; data shows US may be in recession
- in the mid-1990s. By 2022 the investment was valued at $47 billion.
2. Warren Buffett talked about his business partner Charlie Munger in his letter. He said they both think alike but what it takes Warren Buffett a page to explain, Charlie Munger sums up in a sentence. Charlie Munger’s version, moreover, is always more clearly reasoned.
The lesson for investors: “I will add to Charlie’s list a rule of my own: Find a very smart high-grade partner – preferably slightly older than you – and then listen very carefully to what he says,” Warren Buffett said.
3. Warren Buffett emphasised that his long-time business partner Charlie Munger and he are business pickers, not stock pickers. He further said that efficient markets exist only in textbooks.
“We own publicly-traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. That point is crucial: Charlie and I are not stock-pickers; we are business pickers,” Warren Buffett said.
- West Bengal gets its ‘First’ Vande Bharat Express! PM virtually flags off India’s semi high-speed train from Howrah – See PHOTOS
- Adani shares block deal helps FPIs investment into equities turn positive in March
- Adani has $2 bn bonds due for repayment in 2024
- Vibrant Gujarat Summit 2024- Adani unveils plans of green energy park that will be visible from space! Declares Rs 2 trillion green investment
- Comex gold finds a floor near $1,900 an ounce; Focus on CPI next week
- 2023 – Will markets sustain momentum or loose steam-
- 搜索
- 友情链接