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With the second quarter results season over, Ambit Capital has come out with its upgrades and downgrades report among NSE200 companies.

According to Ambit, the biggest upgrades include: Indian Oil Corporation, Trent, Zomato, Bajaj Auto and Gujarat Gas.

The Indian Oil upgrade is driven by better-than-expected performance owing to liquified petroleum grand (LPG) grant and highest refining coverage as against other oil marketing companies which would also benefit in 2H.

Trent upgrades factor in revenue growth acceleration driven by higher-than-expected store addition and square footage per store in 2QFY23.

Better-than-expected EBITDAM (positive surprise at GM level) augmented by higher other income drove Bajaj Auto EPS upgrade.

Zomato upgrade factors in efficiency driven by sustained traction in core food delivery business and progress towards profitability.

Gujarat Gas upgrade was driven by decline of "negative margin" industrial volumes, Ambit said.

On the biggest downgrades, Ambit said lower profitability led to Bharat Petroleum Corporation and Hindustan Petroleum Corporation and negative marketing margin on diesel which is expected to moderate going ahead.

Tata Motors downgrade factors lower guidance for JLR wholesales, resulting in adverse operating leverage which will drive cuts at EBITDA level. With significant financial leverage (net auto debt of Rs 600 bn at TTMT), EPS cut is significant.

According to Ambit, the Voltas downgrade is led by drop in unitary cooling product (AC segment) margins owing to subdued demand restricting full commodity pass-through to the end-market.

Disappointment on topline growth and margin miss owing to sustained inflation and higher advertisement spends drove Bata downgrade, Ambit said.