These Firms Are Likely To See The Biggest Margin Expansion This Quarter

As many as 35 companies are likely to better their operational performance on a yearly and sequential basis for the quarter ended March, Bloomberg consensus estimates show. All these companies are covered by at least ten analysts tracked by Bloomberg.

Here’s the list of the top 10 firms on this list, in the order of quarter-on-quarter margin expansion.

Brokerages have highlighted the following factors that could contribute to higher margins.

Adani Ports & SEZ

• Expect 14 percent volume growth led by container volume: Edelweiss
• Expect volume growth of 11 percent on higher container traffic: Emkay

Natco Pharma

• Expect high gross margins for gCopaxone: Edelweiss
• Growth led by gCopaxone launch, strong flu season and oncology: Antique

Coal India

• Benefit of price hikes undertaken during the quarter and volume growth: Motilal Oswal
• Offtake better than expected at 159 million tonnes, production up 5 percent at 160 million tonnes year-on-year: Edelweiss

Atul Auto

• Margin expansion led by higher scale and base effect: Edelweiss

Ceat

• Stable rubber price and better pricing to drive margins: Edelweiss

Dr Lal Pathlabs

• Sequential improvement due to seasonally weak third quarter: Edelweiss

Jubilant Lifesciences

• Margin improvement largely due to better profitability in life science ingredient segment: Motilal Oswal

Hindustan Zinc

• EBITDA to increase on higher zinc and silver volumes: Motilal Oswal