Top Largecap & Midcap Idea: The second wave of the Korana virus has weakened Earnings estimates for FY 2022. The companies’ earnings for the March quarter are according to estimates, but if the corona virus cases are not controlled soon, then there will be a negative impact on the profits of the companies in FY 2022. Due to Corona, there is again a lockdown-like situation in many states, due to which the work business has started to be affected. There is a fear of derailing the recovering economy once again. Currently, mid-cap and smallcap stocks have outperformed all of them in the month of April. Brokerage house Motilal Oswal has expressed confidence in some of the largecap and midcap stocks in view of the market outlook.
According to Earning Season Estimates
According to the report, the earning season for the March quarter is estimated to have passed. Talking about the results released so far, 19 out of 21 Nifty companies have grown by 13% / 15% / 38% / 37% on yearly basis in Sales / EBITDA / PBT / PAT. The PAT of 6 Nifty companies has been better than the estimate. Whereas the estimates of 8 are weak. 3 companies have performed better than expected on the front of EBITDA. 12 have been in the estimation, while 6 companies have underperformed the estimate.
Metal, healthcare and telecom top performers in April
Metal, healthcare and telecom have been top performers in the month of April. Sectors saw 22 per cent growth in metal, 10 per cent growth in healthcare and 4 per cent in telecom. While real estate is down-7 percent, PSU bank is down 5 percent, capital goods is down 4 percent and consumer is down 4 percent.
These shares are the top gainers
JSW Steel (+ 53%), Tata Steel (+ 27%), Wipro (+ 19%), Dr Reddy’s (+ 14%), and Bajaj Finserv (+ 14%) were the top gainers in April. While HCL Tech (-9%), ITC (-7%), Eicher Motors (-7%), Ultratech Cement (-7%) and Maruti Suzuki (-6%) were the top losers.
M-Cap to GDP ratio 106%
The M-Cap to GDP ratio is at a one-year high. Now it has come down to 106 per cent. This is more than the long term average. Recently, there were ups and downs in it. By the end of FY 2019, that is, it was 79 per cent in March 2019, which had come down to 56 per cent by March 2020. However, it has again seen rebound.
Top lorgecap idea
ICICI Bank, SBI, Infosys, HCL Tech, Ultratech Cement, M&M, HUVR, Titan Company, Device Lab, Hindalco and SBI Cards
Top midcap ideas
SAIL, IEX, L&T Technology, Chola Investment, Gland Pharma, Emami, Gujarat Gas, Orient Electric, Varun Beverages and Federal Bank
(Note: We have given the information here based on the report of the brokerage house. There are risks in the market, so consult experts at your level before investing.)