Gautam Duggad, head of institutional equity research at Motilal Oswal Financial Services, said on Friday that metals stocks will generate 60% of Nifty’s earnings per share (EPS) growth in the second quarter of fiscal 22.
Metals stocks will generate 60% of Nifty’s earnings per share (EPS) growth in the second quarter of fiscal 22, said Gautam Duggad, head of institutional equity research at Motilal Oswal Financial Services on Friday.
“The only disappointing thing about this quarter is that it is a very skewed quarter where metals are generating almost 70% of the incremental profit growth for our hedge and 60% for Nifty. Metal aside if you add up private banking and IT these 3 sectors account for almost 85% of incremental profit growth, there is very clear margin pressure that is evident for Cement, automotive, consumption and even technology for that matter. ,” he said CNBC-TV18.
On the real estate space, Duggad said: “At the moment, we do not have real estate coverage. However, we will only know with the benefit of hindsight, this could be the start of a multi-year cycle in real estate and it will of course benefit many other ancillary sectors like cement, durable goods, decorators, paint. . So, there are a lot of areas where you can still play with the real estate space.
Motilal Oswal has been overweighted in IT and continues to hold that view, he added.
On Reliance Industries, Duggad said, “We are expecting a strong quarter for Reliance, but now Reliance’s history has clearly changed over the past 3 years from oil and gas to telecommunications and sales to sales. retail and Jio itself is now around Rs 875 per share, sum of parts valuation (SOTP) for Reliance. “
“However, any good news from the oil and gas side is certainly helping their very strong cash flow. So to that extent it’s a very positive development and we are also seeing some positivity in the telecom space over the course of the year. the last 40 to 45 days with some help coming from the government and now there is news from the government trying to reduce litigation in this sector. So headwinds seem to be moderating in this sector and that obviously bodes very well for that even Reliance is an important player in this sector, ”said Duggad.
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(Edited by : Ajay Vaishnav)