New data released in early September reveals a mixed picture for Nifty companies' FY27 earnings per share (EPS) estimates for the month of August. While several major players experienced significant downgrades, others saw notable upward revisions, reflecting diverse market sentiments across sectors.
Steepest EPS Cuts in August
Among Nifty constituents, ITC Ltd, Tata Steel Ltd, Kotak Mahindra Bank Ltd, Maruti Suzuki India Ltd, and Adani Enterprises Ltd (AEL) recorded the most substantial cuts to their FY27 EPS estimates. ITC saw the largest reduction at 10 per cent, followed by Tata Steel with a 7.6 per cent cut.
- ITC Ltd: 10% cut; 12-month consensus target of Rs 325 suggests 23% potential upside.
- Tata Steel Ltd: 7.6% cut; 12-month consensus target of Rs 219 suggests 20% potential upside.
- Kotak Mahindra Bank Ltd: 6.8% cut; target of Rs 464 implies 9.7% upside.
- Maruti Suzuki India Ltd: 6.1% cut; target of Rs 15,913 suggests 23.5% upside.
- Adani Enterprises Ltd (AEL): 6% cut; target of Rs 3,773 implies 30.6% potential upside.
In total, 17 Nifty companies saw their FY27 EPS estimates cut during August. Sectorally, three out of four metals & mining stocks and three out of five banking stocks within the Nifty experienced earnings reductions.
Leading EPS Upgrades
Conversely, 23 Nifty companies, accounting for 46 per cent of the index, experienced upgrades to their FY27 EPS estimates. Grasim Industries Ltd led these revisions with a significant 17.3 per cent upgrade.
- Grasim Industries Ltd: 17.3% upgrade; target of Rs 3,837.50 suggests 16.8% upside.
- Bajaj Finserv Ltd: 8.9% upgrade; target of Rs 2,367 implies 19.6% upside.
- Hindalco Industries Ltd: 4.4% upgrade; target suggests 17% upside.
- State Bank of India (SBI): 4.4% upgrade; target implies 22% potential upside.
- Titan Company Ltd: 3% upgrade; target implies 8.5% potential upside.
Sectoral Performance Mixed
Higher upgrades were observed across several key sectors. Both oil & gas stocks and both cement stocks in the Nifty saw upgrades. Additionally, the lone telecom stock, two of the three infrastructure & ports stocks, and three of the five auto stocks in the index also experienced positive revisions to their EPS estimates.