India Strategy : 2QFY24 Preview: Mastering the game by Motilal Oswal Financial Services Ltd
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* We expect MOFSL earnings to jump ~40% YoY, while Nifty earnings are likely to grow 21% YoY in 2QFY24.
* Overall earnings growth is projected to be driven once again by domestic Cyclicals, such as BFSI and Auto, while O&G’s earnings are likely to surge 2.2x YoY. Auto sector’s earnings are anticipated to surge 87% YoY during the quarter on a low base. BFSI earnings are predicted to remain buoyant with 26% YoY growth for 2QFY24.
* Sales and EBITDA of MOFSL Universe are likely to grow 6% and 27%, while for Nifty to improve 7% and 19% YoY, respectively.
* Metals sector is likely to report a 6% YoY earnings growth. Cement is anticipated to report a strong 72% YoY earnings growth on a low base, while Healthcare and Technology would clock a moderate earnings growth of ~7% YoY each for the quarter. Specialty Chemicals is expected to report an earnings decline of 19%YoY.
* Sales/EBITDA/PAT of MOFSL Universe would increase 4.5%/28%/46% YoY while those of Nifty would grow 7%/20%/26% YoY in 1HFY24.
* We have marginally cut our FY24/FY25E Nifty EPS by 0.3%/0.9% to INR986/INR1,132. We now forecast the Nifty EPS to grow 22%/15% in FY24/FY25.
