India Strategy Report Back
INDIA STRATEGY | 3QFY18 PREVIEW: End of a long drought

  • Earnings drought coming to an end; Rebound led by global cyclicals- We expect MOSL Universe PAT to grow 19.6% YoY. MOSL Universe sales growth is expected to come in at 16.2%, the highest in 21 quarters, led by Autos, Cement, Metals, Oil & Gas and Mid-caps.
  • Nifty highlights: Sales, EBITDA and PAT to growth 16.5%, 11% and 18%, respectively.
  • Sector growth trends: 1] Leaders - Metals (81%), Autos (76%), PSU Banks (32%), NBFC (31%), O&G (22%), Cement (21%), Capital Goods (21%). 3] Drags: IT (-4%), Healthcare(-11%), Telecom (Profit to Loss).
  • Nifty EPS changes:FY18:INR487 v/s INR481 earlier, FY19: INR598 v/s INR609 earlier and FY20:INR708 v/s INR704 earlier. We are now building in earnings growth of 16%/23%/18% for the Nifty for FY18/19/20