10 Large Cap Companies Like Coal India, HDFC Bank Get Upgrades & Downgrades From Motilal Oswal On Q4

In the latest interim review of the fourth quarter earnings for the financial year 2024 (Q4FY24), Motilal Oswal Financial Services Limited (MOFSL) has released a comprehensive report showcasing a mixed bag of results for various companies within its universe. While some entities witnessed upgrades in their earnings estimates for the financial year 2025 (FY25), others faced downgrades, painting a diverse picture of the market outlook.

According to Motilal Oswal's analysis, excluding the Banking, Financial Services, and Insurance (BFSI) sector, profits for the MOFSL Universe would have declined by 3% year-on-year (YoY). This figure is marginally better than initial estimates of a 4% YoY decline. So far, out of the 27 companies under coverage, 19 have reported upgrades or downgrades of more than 3% each, indicating a somewhat unfavourable upgrade-to-downgrade ratio for FY25.

Notably, Motilal Oswal has revised its FY25 earnings estimate for Coal India upward by an impressive 15%. Similarly, Axis Bank witnessed a substantial upgrade of 3.8% for its FY25 earnings estimate by the brokerage firm. Maruti Suzuki's fortunes also improved with a 2% upgrade in its FY25 earnings estimate, a significant turnaround from the -4.6% estimate for FY24. Bajaj Auto and HDFC Bank also received modest upgrades of 1.3% and 1.2% respectively for FY25.

However, it wasn't all sunshine and roses for every company. SBI Life Insurance took the lead in the downgrade pack with a significant earnings downgrade of 12.3%. HDFC Life Insurance followed closely with a downgrade of 10.6% in its FY25 earnings estimate. Bajaj Finance faced a notable setback with a nearly 8% downgrade in its FY25 earnings estimate, while HCL Tech experienced a 6.7% downgrade for the same period. L&T Infotech (LTIM) also faced a similar 6.7% downgrade in its FY25 earnings estimate according to Motilal Oswal's report.

As the clock ticked past 2:00 pm on the National Stock Exchange (NSE), trading activity showcased a mixed bag of performances among leading stocks, with some witnessing cuts while others managed to hold on to gains. Here's a snapshot of the latest trading patterns:

Shares of Coal India, one of the leading coal mining companies in India, were seen trading with cuts of nearly 4% at Rs 447.60 per share as of 2:10 pm. Despite this decline, the stock has recorded gains of almost 100% in the last one year. Axis Bank witnessed minor cuts of 0.50% as its shares traded at Rs 1,122.75 per share. Over the past year, the stock has recorded gains of nearly 30%, indicating a steady growth trajectory despite intermittent market challenges.

"Coal India stock price is slightly bullish on the Daily charts with strong support at 449. A daily close above resistance of 482 could lead to a target of 515 in the near term," said AR Ramachandran from Tips2trades.

Shares of Maruti Suzuki were relatively stable, trading with minor gains of 0.30% at Rs 12,576.35 per share as of 2:10 pm on the National Stock Exchange (NSE). The company has sustained gains of nearly 40% over the past year. Bajaj Auto witnessed gains of nearly 2% as its shares traded at Rs 8,882.40 per share. The company has witnessed a surge of almost 95% in its stock value over the last year, buoyed by strong demand and robust financial performance.

Shares of HDFC Bank experienced cuts of nearly 2% at Rs 1,459.60 per share at 2:10 pm. Despite this decline, the bank has demonstrated resilience, recording a relatively modest decline of nearly 10% over the past year. SBI Life Insurance witnessed minor cuts of nearly 1% as its shares traded at Rs 1,416.85 per share. The company has recorded gains of more than 20% over the last year.

Shares of HDFC Life Insurance saw cuts of nearly 2% at Rs 541.70 per share as of 2:10 pm. Interestingly, the stock has recorded no significant change in its value over the past year. Bajaj Finance, a leading non-banking financial company, witnessed cuts of nearly 2% as its shares traded at Rs 6,672 per share. Despite this decline, the company has recorded gains of nearly 5% over the last year, albeit at a slower pace compared to its peers.

Shares of HCL Technologies witnessed gains of more than 1% at Rs 1,330.40 per share at 2:10 pm. The company has sustained gains of nearly 25% over the past year. LTIMindtree, an IT services company, experienced cuts of more than 1% as its shares traded at Rs 4,652 per share. Despite this decline, the stock has recorded gains of nearly 2% over the last year.

This mixed bag of upgrades and downgrades underscores the complex dynamics at play in the market, influenced by various factors including sectoral performance, economic conditions, and company-specific factors. Analysts suggest that while certain sectors might witness a resurgence in the coming fiscal year, others could face headwinds, necessitating a cautious approach for investors.

The interim review by Motilal Oswal provides insights for investors and stakeholders, helping them navigate through the intricate landscape of financial markets. As the financial year progresses, market participants will keenly observe how these revised earnings estimates translate into actual performance.