Q1 Preview – Cyclicals To Drive Earnings Once Again: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

As FY22 commenced, the second Covid-19 wave swept across the country over April–May 2021, resulting in localised lockdowns and restrictions.

Nonetheless, the active Covid cases have already declined 88% from the peak in May 2021 and restrictions are gradually being eased since June-21.

The pace of vaccinations has also picked up- ~4 million vaccines have been administered daily in June-21, versus ~2 million in May-21; this is expected to improve further on increased availability.

Corporate commentary has turned positive once again from June-21.

Quarter-end updates from several corporates indicate a healthy revival in June-21 after a subdued April and May, while several high-frequency macro indicators have also recovered.

After FY21 ended with a solid 15% earnings per share growth for Nifty, we expect FY22 to commence with a bang and expect a further buildup over the remainder of FY22.

Click on the attachment to read the full report:

Motilal Oswal 1QFY22 Preview.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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