1. Target stock price upgrades in Q2 much higher than earlier quarters: Emkay Global

Target stock price upgrades in Q2 much higher than earlier quarters: Emkay Global

Amid the equity benchmark indices trading at record levels, and companies reporting better than expected earnings in the September quarter so far, Krishna Kumar Karwa of Emkay Global says that the quarter has also seen greater target stock price upgrades.

By: | Published: November 7, 2017 1:06 PM
The earnings season so far has been better than anticipated, say analysts. (Image: Reuters)

Amid the equity benchmark indices trading at record levels, and companies reporting better than expected earnings in the September quarter so far, Krishna Kumar Karwa of Emkay Global says that the quarter has also seen greater target stock price upgrades. In an interview to CNBC TV18, Krishna Kumar Karwa, Managing Director at Emkay Global Securities said, “ Out of the companies under coverage at our end, almost hundred companies have announced their results. There have been target price upgrades on at least 50 companies, which is much more than what was happening on quarter or few ago. Even on the EPS upgrades, in 40-45 companies have seen them in FY-18 and FY-19. My sense is that the numbers have been better than expected.”

Many of the investment experts have concurred that the earnings season so far has been better than anticipated earlier. In an interview to ET Now, Taher Badshah CIO (Equities), Invesco Mutual Fund said yesterday, “One should dissect the earnings to see how many companies are actually over-delivering, or beating street estimates versus earlier. An analysis of the 35 companies of Nifty which have delivered results so far, 75% of them have actually beaten street estimates, or at least met them. This number was closer to 55% in the last four or five quarters. This is a better way to track earnings delivery versus expectation, and I believe on that front, things seem to be getting better.”

On similar lines,Manish Sonthalia, Head of Equities at Motilal Oswal had said last week, “The earnings is not that bad, as was expected prior to the earnings season. Particularly the GST related sectors etc, I don’t think the numbers which have come out so far are that disastrous.”

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