FY 16 earnings and valuations: Obviously, valuation multiples would move up before earnings do while defensive premia would reduce. Thus, we fixed target multiples using historical benchmarks as relevant. The enclosed report provides for each stock, the key operating assumptions, and the rationale for revised FY 16 earnings & multiples. Sensex EPS for FY15 & FY16 thus stands at Rs 1,592 and 1,814 respectively, ie growth of 15% and 14% respectively (Sensex and GDP have different compositions). We also revise our model portfolio where among Nifty Cos, we are Sharp OW in Engineering & Infra, Realty. And Sharp UW: Consumption, Resources, Power, Telecom
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