DLF, Ranbaxy, Tata Steel see largest earnings downgrade

Sensex FY14 consensus earnings estimates have declined 0.40% over the last month

Realty firm DLF, pharma company Ranbaxy and steel maker Tata Steel have seen the largest downward revisions in earnings estimates for 2013-14.

As per a strategy report by foreign brokerage house Nomura, the consensus earnings estimates for Sensex stocks has declined marginally over the past month.

“Sensex FY14 consensus earnings estimates have declined by 0.40% over the past month, which, combined with a 1.97% decline in the index (from 19,640 on 6 February 2013 to 19,253 on 6 March 2013), takes the earnings multiple to 13.3x from 13.6x, a 11.2% discount to its five-year average,” said the report.

Sun Pharma, Power Grid and GAIL, meanwhile, have seen the maximum upward revision in earnings estimate at 8%, 2.6% and 1.1% respectively.