AHMEDABAD: Analysts are now cutting revenue growth estimates for Nifty 50 companies as their earnings in Q2FY25 (July-September) came in below expectations. Analysts unanimously cut earnings per share (EPS) growth for Nifty to 2.5 per cent from 10 per cent.
Analysts expect Nifty 50 companies to end FY2025 at Rs. With an EPS of Rs 1,000. Was 977. A month ago, EPS estimates for FY2025 were around Rs. was 1,100
Ahead of September quarter results, earnings per share for FY26 are estimated at Rs. Which has now been reduced to Rs 1,244. 1,143 have been made.
Estimates from different brokerages may vary slightly. So far 27 Nifty companies have declared their results, out of which the revenue and profit of 14 companies were below estimates.
The results for the second quarter of FY 2025 were below expectations and the statements of the company management on consumption were soft. In view of this, the earnings estimates for the stocks included in the Nifty 50 index have been reduced.
Keeping this in mind, analysts currently expect profits of Nifty 50 index companies to grow by 5 per cent in FY2025 and 17 per cent in FY2026. The impact of weak results of companies is also being seen in the market. This will gradually change the valuation as well.
This month the Nifty 50 index has declined by more than 5 percent. The index stocks have more or less declined in the last two quarters, with utilities, industrials, pharma and telecom companies raising their EPS, while auto, FMCG and IT sector companies have cut their earnings estimates.
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