Every year the EPS starts with a strong number but then downgrades come. What is the outlook for FY21? Do you think that the EPS growth will come in this time after the tax cuts and base effect and some of the other factors that are leading to growth?We do think so. We have based earnings for the last few years on a headline basis. The earnings cuts for FY21 will be small, not big, because of the tax cuts as you mentioned as that helps the headline earnings and also the reversal of the financials’ NPL cycle. So FY21 headline EPS should be met. In case of PBT or EBITDA, earnings momentum have been negative for the last three months. We have some more left in the course of the next two quarters. Overall interest rates have been falling. Now that we are at the bottom, do you think a rerating led by lower rates will stop and the focus shift to earnings growth?Our formal economic forecast has another 25 bps pencilled in or a potential for 25 bps at most and not any more but a bigger … [Read more...] about Why UBS’s base case for Nifty in June 2020 is still 12,300
Disinvestment
Go for power utilities, steer clear of manufacturers: Nischal Maheshwari, Centrum Broking
People are looking at green shoots of recovery and agricultural produce as main triggers for the markets. Says Nischal Maheshwari, CEO- Institutional Equities, Centrum Broking. Excepts from an interview with ETNOW. It is a flat market but what do you reckon are going to be the key triggers that would move the markets in 2020?There are two or three things. The most important thing would be that people would be looking out for the first signs of recovery and that is really important. Most of the people are looking out for green shoots. The second important thing is about the agri produce. The Kharif crop has been good and sources on the ground say that the sowing has been good for the winter crop (Ravi crop). This is one of the most important triggers. Third obviously is going to be the Budget. But I for one, do not have much expectation from the Budget. So, first two things is what people are really going to focus on. People have been waiting for the entire disinvestment programme … [Read more...] about Go for power utilities, steer clear of manufacturers: Nischal Maheshwari, Centrum Broking
