| SECTOR FORTUNES | |||||
| Sector Weightage (%) |
Company | FY09 EPS Estimates | FY09E PE (x) | ||
| 1 mth ago | Latest | Revision (%) | |||
| Automobile (3.25) | Margin pressure due to rising cost of metal and energy. High interest rates and crude oil prices are impacting sales and profitability. | ||||
| 1.18 | TATA MOTORS | 49.09 | 45.48 | (7.35) | 10.88 |
| 1.05 | M&M | 50.69 | 45.26 | (10.71) | 13.96 |
| 1.02 | MARUTI | 70.20 | 63.50 | (9.54) | 11.17 |
| Cement (2.77) | Rising cost of lignite & coal, cap on selling price, hike in fuel prices and slowing GDP growth will hit the sector. However, low valuations (trading at $40-50 as against $100 EV/Tonne) is attractive | ||||
| 1.41 | GRASIM INDs | 323.00 | 297.64 | (7.85) | 7.63 |
| 0.69 | AMBUJA CEMENT | 9.00 | 8.27 | (8.10) | 10.30 |
| 0.67 | ACC | 64.00 | 63.65 | (0.55) | 9.63 |
| Engineering (9.22) | Long-term prospects are good led by high demand and strong order book, while near-term concerns are high input cost and rich valuations | ||||
| 6.85 | L&T | 102.95 | 106.35 | 3.31 | 26.42 |
| 2.37 | BHEL | 78.70 | 68.70 | (12.71) | 18.02 |
| Banking & Fin Ser (20.19) | High inflation & interest rates, and low credit offtake are negative. RBI's revised CAR norms and global worries (credit defaults) add to the woes. | ||||
| 7.93 | ICICI BANK | 43.17 | 40.68 | (5.76) | 16.98 |
| 5.45 | HDFC | 90.97 | 92 | 1.13 | 25.76 |
| 3.56 | SBI | 118.7 | 121.22 | 2.12 | 10.81 |
| 3.25 | HDFC BANK | 58.17 | 56.9 | (2.18) | 21.66 |
| FMCG (7.73) | Concerns remain over rising input cost. Growth would be driven by better pricing environment, higher disposable income and demand | ||||
| 5.37 | I T C LTD | 9.80 | 9.61 | (1.90) | 21.96 |
| 2.36 | HIND UNILEVER | 10.70 | 10.70 |
- |
21.56 |
| Infrastructure (2.85) | Most stocks have been downgraded between 5-10% due to hike in input prices like cement & metal. Concerns include rise in interest rates and slowdown in infra spending. | ||||
| 1.54 | REL INFRA | 45.80 | 46.85 | 2.30 | 23.16 |
| 1.31 | JAIPRAK ASSO | 6.95 | 6.95 |
- |
28.71 |
| Metal (5.38) | Companies heavily dependent on external sources for coal and iron ore are facing steep rise in costs. The cap on domestic steel prices continue to hurt margins and profits | ||||
| 3.93 | TATA STEEL | 132.59 | 134.00 | 1.06 | 7.38 |
| 1.45 | HINDALCO | 15.90 | 13.30 | (16.35) | 9.29 |
| Oil & Gas (19.36) | Despite hike in petrol, diesel & LPG prices and the cut in duties, under recoveries will only be compensated marginally. Thus, uncertainties still hover on oil & gas companies, as crude oil prices continue to rise | ||||
| 15.79 | RELIANCE | 110.20 | 95.00 | (13.79) | 19.71 |
| 3.57 | ONG CORP | 107.82 | 119.30 | 10.65 | 8.46 |
| Pharma (2.27) | Outsourcing opportunities and global demand for generics will ensure steady growth. Geographically diversified players and ones with strong product pipeline will gain | ||||
| 1.28 | RANBAXY LABO | 21.76 | 22.50 | 3.40 | 22.33 |
| 0.99 | CIPLA | 9.00 | 10.70 | 18.90 | 20.29 |
| Power (1.84) | Rising coal prices and equipment cost are concerns. Possibility of new projects getting delayed are not ruled out either | ||||
| 1.84 | NTPC | 9.46 | 9.77 | 3.24 | 16.29 |
| Real Estate (1.34) | High valuations have kept investors away. Firm interest rates and rising cost of steel, cement and wages, have led to sector downgrade | ||||
| 1.34 | DLF | 57.50 | 55.00 | (4.35) | 9.12 |
| Technology (15.06) | Rupee depreciation is positive. How the US slowdown pans out needs to be weighed in. Overall positive. | ||||
| 8.56 | INFOSYS TECH | 95.50 | 102.10 | 6.91 | 20.96 |
| 2.92 | SATYAM COMP | 27.28 | 32.60 | 19.50 | 16.74 |
| 2.21 | TCS | 61.60 | 62.90 | 2.11 | 16.24 |
| 1.37 | WIPRO | 26.85 | 27.20 | 1.30 | 18.89 |
| Telecom (8.74) | Growth in wireless subscribers continues to boost revenues. Going ahead, ARPUs could see a declining as telcos expand to smaller towns, besides entry of players | ||||
| 5.06 | BHARTI AIRTEL | 44.80 | 44.45 | (0.81) | 17.98 |
| 3.68 | RELIANCE COM | 29.61 | 29.14 | (1.58) | 18.07 |
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