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  • Mayuresh Joshi - Fund Manager (PMS), Angel Broking

    Mayuresh Joshi

    Fund Manager (PMS), Angel Broking

    DATE: October 05, 2015, 12:00 PM

    SUBJECT: What to expect from September quarter results of India Inc?




    Hello and welcome to the web chat with Mayuresh Joshi, Fund Manager (PMS), Angel Broking on What to expect from September quarter results of India Inc?

  • M


    I have bought 1,000 shares of Gayatri Projects at Rs 467.5 and can hold it for 6 to 9 months. What is future scenario of the company?


    Good Afternoon Mudassar....Unfortunately we do not cover Gayatri projets. However alternate mid caps that we do like are MT Educare, Surya Roshni.

  • S


    What is your expectation about Jet Airways results and the prospects of the company going ahead?


    Good Afternoon Salim...As a disclaimer we not cover Jet airways. But broadly fall in ATF prices positively affects EBIDTA margins of aviation companies. Again improvement in load factors with improvement in the global economy has a positive rub off effect on the sector, cost optimization is also key, regulatory and statutory charges affect cash flows for the companies. So largely aviation stocks like Jet Airways might remain as trading plays but core fundamentals still remain weak in our opinion.

  • I


    In view of the recent VW issues, do you think that Motherson Sumi's quarterly results would be impacted?


    Mothersons sumis overall earnings shall take a hit if the issued surrounding VW continue. Structurally both its overseas businesses including SMP and SMR are having strong order books, margin dilution in these businesses have not seen major deterioration, utilization levels remain strong. However such incremental issues might take toll on the bottom line, the domestic business is having issues like lower copper prices, higher discounts, the depreciation of the rupee also affects line by line items in the financial statements, So one really needs to understand from the management post results the business outlook for the consolidated entities. So wait and watch. What we like from the auto sector is Eicher motors and Ashok leyland on volume recovery and strong operating leverage dynamics to play out.

  • S


    How will telecom sector like Bhatri Airtel, Idea and RCom perform? Is it good for investment for period a of 1 year in above-mentioned stocks? Any target price?


    Good Afternoon Shekhar....Telecom stocks have witnessed reasonable numbers as far as the Mobile ARPU's, data contribution are concerned. the recent norms on spectrum sharing/trading as well as the potential launch of Reliance jio and the pricing thereof are things to watch out for. Consolidation in the industry is a pertinent factor to note albeit the stretched Balance sheets both for spectrum payouts as well as intensified capex spends shall ultimately affect the cash flows and the return ratios of the companies. So return ratios would remain muted. So neutral largely on this sector. One needs to see how q2 numbers pan out along with relianace Jio rollouts before one really takes a call on this sector.

  • N


    How much percentage jump in topline, bottomline & NIMs should we expect (QoQ) & (YoY) from private sector large cap banks, particularly ICICI Bank?


    Good Afteroon Nirmit....With the base rate cuts effectuated by a whole host of Banks there would be NIM compression for most banks in q3 depending on the quantum of cuts taken by them. For ICICI bank in particular structural improvement in its liability profile (leading to improvement in margins), With expected improvement in economic cycle in 2HFY16, fee income growth is likely to accelerate (driven by wholesale business) stable asset quality, earnings CAGR of 16% over FY15-18 would ensure that Core RoA should improve from 1.6% to 1.7% and core RoE from 15.2% to 16%. We remain optimistic on ICICI bank from a long term perspective.

  • V


    What is your expectation from September sales of Hero MotoCorp?


    Good Afternoon Venkat,...The Management expects 1) 2W industry to grow 3-4% in FY16 (v/s earlier guidance of 6-7%), 2) it will launch two new scooters over the next few months, 3) it targets to reach 1.2m exports by 2020, 4) inventory is around 6 weeks 5) further benefit of lower commodity cost and its own cost cutting initiatives to drive further margin improvement in 2QFY16. As per numbers in this qtr and weak monssons expected volume degrotwh in this quarter but cost optimization efforts should aid the bottom line.

  • N


    I hold SBI, IDFC, Camlin Fine Sciences, Jyoti Structures, ICICI Bank, JK Tyre, Suzlon and Delta Corp. How much return can I expect after 10 years?


    Good Afternoon Nirakar....Since your time horizon is large viz 10 years qualitative stocks should form part of your core portfolio. Considering your holdings SBI, ICICI Bank, IDFC, JK Tyre can be held on as their earnings track record speaks fro itself. On the others there are few intermittent issues like debt on books, stretched working capital constraints etc. Other stocks which we like are Axis Bank, Yes Bank, ICICI Bank from the banking pack, Infosys, TCS from the IT pack, Sun pharma, Aurobindo pharma from the pharma pack, Power grid from the power space and stocks we like in the mid-cap universe are stocks like Bajaj Electricals, MT Educare, Inox Wind and MBL infrastructures.

  • D

    DR. M.M.ADAK

    I purchased some HCL Technologies shares at Rs 875. Should I stay invested?


    Good Afternoon Dr. Adak....For 1QFY2016, the company has given a pre-quarter guidance indicating that revenues to be reported in US dollar to have an adverse impact of 80bps on account of sharp depreciation of multiple currencies against US dollar. The company expects tepid revenue growth in the first quarter on account of - adverse currency impact, a client specific issue and skewness in revenue growth due to transition timelines for complex engagements in infrastructure services. In one of the multi-million custom application development project being executed for one of the customers, certain differences have risen with the customer. The company reserved upto US$ 20mn as a matter of prudence. These factors will have a significant impact on the overall performance of the company in 1QFY2016. Though currency is a quarterly impact, the client specific issues can have an impact for the FY2016 numbers. Since the exact impact is not ascertained as of now we are not changing our numbers and will wait for more clarity on the issue. However, we believe in the worst case scenario, the impact would be around 5-6% on EPS in FY2016. So please hold on to the stock with a 12-15 month time horizon.

  • S


    What is your near-term view on shares of JP Group i.e. JP Associates, JP Infra and JP Power?


    Good Afternoon Subhash.....the JP group are going through huge leverage issues clearly affecting the bootom lines as interest/finance costs eat into most of their earnings. So, there are better opportunities to look at viz, Axis Bank, Yes Bank, ICICI Bank from the banking pack, Infosys, TCS from the IT pack, Sun pharma, Aurobindo pharma from the pharma pack, Power grid from the power space and stocks we like in the mid-cap universe are stocks like Bajaj Electricals, MT Educare, Inox Wind and MBL infrastructures.

  • K


    I have purchased 105 share of SBI Rs 276 pls advise what should I do? I can hold for two years. What about JP Infra? My purchase price is Rs 24.52, and I can also hold this stock for two years.


    Good Afternoon Kamaldeep,....SBI is one of the strongest companys in the PSU banking space. It has one of the lowest net stress additions, asset quality on a absolute basis considering the balance sheet size remains very robuust, TIER-I ratio as well as overall capital adequacy are very strong, CASA base is very strong as well. So please hold on to SBI over the next two years. As far as JP Infra is concerned there is lot of stress on its balance sheet and earnings recovery shall take time. So other stocks we like in the mid-cap universe are stocks like Bajaj Electricals, MT Educare, Inox Wind and MBL infrastructures.

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