India Strategy - FY21 PAT/GDP Rises To Four-Year High: ICICI Securities
A chart’s curve is displayed on a screen inside a stock exchange. (Photographer: Jasper Juinen/Bloomberg)

India Strategy - FY21 PAT/GDP Rises To Four-Year High: ICICI Securities

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.

ICICI Securities Report

‘Look through earnings’ of NSE 200 index portfolio more than doubled (107% YoY) in Q4 FY21 so far largely driven by cyclicals.

Our earlier note articulated that this trend will continue over FY21-23 as bulk of the look through earnings contribution for Nifty 50 portfolio would be from cyclicals.

Profit after tax to gross domestic product for listed space rises to four-year high of 2.6% largely driven by reduction in loss pool and depressed earnings.

Despite the severe health impact of second Covid-19 wave, Nifty 50 FY22 earnings per share outlook has remained resilient at ~730 so far indicating expectations of limited impact to headline benchmark index earnings.

This is in contrast to FY22 GDP downgrades seen so far by various agencies.

Click on the attachment to read the full report:

ICICI Securities Strategy Weekly Memo.pdf

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