Q3FY15 Results Review By IndiaNivesh

Overall Q3FY15 results were disappointing on all parameter with major blow coming from oil/gas sector. Now that 9 months of current fiscal are over, it is clear that full year consensus earnings estimates for Sensex/Nifty are bound to be down- graded. Currently we do not have our own estimates for these. As of now street is still bullish on FY16 & FY17. In our opinion the expected growth in earnings for FY16 & FY17 is too high & there is a high risk of missing the expectation. Union Budget on Feb 28, 2015 may provide further direction on whether the estimates will be cut or not. We believe corporate earnings will catch up only if some impetus is provided to macro level growth leading to revival in revenue growth. Unless the finance Minister comes out with some kind of transformational ideas in budget to revive capex cycle & growth, corporate earnings are likely to remain depressed. Global uncertainty from Euro region & confused macro-economic policy of USFED may also spook markets in near term. While we remain invested in markets, we are cautious of stretched valuations. We stick to stock specific approach.

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