Nifty Transitions From An Era Of ‘Earnings Mirage’ To ‘Earnings Growth’: ICICI Securities
The CNX Nifty logo is displayed on a glass facade at the National Stock Exchange in Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

Nifty Transitions From An Era Of ‘Earnings Mirage’ To ‘Earnings Growth’: 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

Nifty 50 trailing earnings per share for December 2019 (pre-Covid-19) stood at approximately 475 compared to the earnings five years prior of ~435 during Dec-2014.

However, in Dec-2014, the street expected the Nifty 50 index to compound earnings at a compound annual growth rate of ~21% over the next two years to ~611.

As time rolled forward, the trailing and the forward earnings stagnated as earnings kept disappointing due to volatile earnings of cyclicals and a few defensives such as telecom and pharma, thereby, resulting in downgrades.

Click on the attachment to read the full report:

ICICI Securities Strategy Weekly Memo .pdf


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