According to brokerage forecasts, at least eight Nifty50 businesses are projected to report multifold increases in June quarter earnings, while two other index components may report more than a 90% increase in the bottom line. Many of these firms’ numbers are likely to be supported on a shaky foundation. Eicher Motors NSE -3.59%, Maruti Suzuki NSE -0.28%, and Hero MotoCorp NSE 0.94% are among the automakers on the list. Other companies that may see gains more than double are NBFC Bajaj Finance NSE 0.25%, refiner ONGC NSE 0.00%, telecom operator Bharti Airtel NSE -1.40%, jewelry Titan Company NSE 2.78%, and coal miner Coal India NSE 2.25%.

Among automakers, Kotak Institutional Equities expects Eicher Motors’ standalone profit to rise 116.20 percent year on year to Rs 577.80 crore from Rs 267.20 crore. Raw material challenges are somewhat countered by price increases implemented throughout the quarter, according to the company. According to the same brokerage, Hero MotoCorp’s earnings increased 265.10% year on year to Rs 1,609.20 crore from Rs 440.80 crore. Motilal Oswal expects Maruti Suzuki’s PAT to increase by 159% year on year to Rs 1,100 crore. According to this brokerage, Eicher Motors’ PAT increase is 123.8 percent, while Hero MotoCorp’s is 110.40 percent.

The Nifty 50 index is comprised of the fifty most popular large-cap stocks that traded at high valuations throughout the 1960s and 1970s. Among them were household brands like Xerox (XRX), IBM, Polaroid, and Coca-Cola (KO). The Nifty Fifty were regarded as “one-decision” options due to their established growth history and consistent dividend increases: investors were advised to purchase and never sell. Many Nifty stocks have price-to-earnings (P/E) ratios of 100 times earnings or above. They fueled the early 1970s bull market before collapsing in the 1973-74 bear market. During that time, there was political controversy, as well as rising oil costs and interest rates.

The Nifty 50 got new significance in the financial world in 1996. It refers to the NIFTY Index on India’s National Stock Exchange. Because the Nifty 50 was not an official benchmark, there was no comprehensive list of firms that included it. Strong financial sheets, continuous growth, and worldwide reach were common traits across the firms. 

ICICI direct expects Bajaj Finance’s PAT to increase 146.3 percent yearly to Rs 2,469.20 crore. It would, however, be flat progressively, it stated. Motilal estimates a profit of Rs 2,111 crore, an increase of 110 percent year on year. Motilal Oswal expects Bharti Airtel’s earnings to be Rs 1,500 crore, up 469.9% year over year. According to ICICI Securities NSE -0.52%, Bharti Airtel’s earnings after tax will be Rs 1,926.80 crore, up 644.80 percent year on year but down 4% sequentially. YES Securities estimates Bharti’s earnings at Rs 3,483.10 crore. Edelweiss NSE 2.17% expects the bottom line to be Rs 2,422 crore. 

In the case of ONGC, Edelweiss anticipates a 190.90% year-on-year increase in earnings to Rs 12,611.90 crore from Rs 4,334.81 crore. It anticipates that ONGC’s Ebitda would increase by 96% due to greater oil and gas realizations offset by lower output. “While benchmark crude (Brent) realization increased by 62% year on year in Q1, APM gas prices increased by 3.4 times year on year,” the firm added. YES, Securities expects earnings to increase 254.5% year on year to Rs 15,366.80 crore. Titan Company, which provided a positive business update last week, may also record a multifold increase in earnings. Titan NSE 2.62% reported a revenue increase of 207% year on year (excluding bullion sales) from a low basis, owing to high demand.

The watch division increased by 158% year on year, driven by growth across brands and products. Titan Eye Plus and trade and distribution networks drove sales growth in the eyewear business by 176% year on year. Motilal expects its earnings to increase by 5288 percent to Rs 1,000 crore. According to the same brokerage, Coal India’s earnings will increase by 186% year on year to Rs 9,100 crore. Meanwhile, Reliance Industries NSE -0.42% and HDFC NSE -1.04% are likely to have a net profit increase of more than 90%.  

On Monday, Indian equities continued their surge to the fourth day, beginning August on a high note. The Nifty index jumped 1% to 17,340, led by a surge in car companies, while the BSE Sensex rose 545 points to 58,115, reaching 3-month highs.

  • Tata Motors shares are up 7% after the company announced a 51% increase in sales in July.
  • PNB shares rose 6% after the RBI approved an investment of Rs 500 crore in the PNB Housing Finance Rights issuance.
  • Paytm gains 6%: Paytm gained 6% as global brokerage company Goldman Sachs maintained a Buy recommendation on the stock with a Rs 1,050 target price.
  • Adani Wilmar closed 5% higher: Adani Wilmar closed 5% higher ahead of the company’s first-quarter results report, which is due to be released today.
  • Suzlon increased by 5%: Suzlon shares, like other power firms, extended increases in expectation of an increase in power demand.
  • Reliance Power ended the day 4% higher: The share price of Reliance Power increased sharply, along with other power stocks, as the overall markets improved.
  • Ashok Leyland increased by 3%: The share price of Ashok Leyland increased after the business recorded a profit of Rs 68 crore in the fiscal year ended June 22, compared to a loss of Rs 282 crore in the previous year.
  • Yes, Bank gains 3%: The share price of Yes Bank increased by 6% on rumors that private equity companies Carlyle and Advent International will invest $1.1 billion.
  • CDSL shares rose 3% after the business announced a 22% increase in quarterly earnings for the April-June 22 period.
  • ONGC rose 3%: ONGC shares continued to advance following the company’s massive expenditures on green energy.
  • Bharti Airtel gained 3%: The share price of Bharti Airtel increased ahead of the record date for the payment of the final dividend. The final dividend announced by the corporation was Rs 3 per share.
  • Adani Power up 2%: Adani Power shares finished 2% higher as power companies rallied in expectation of increased demand.
  • Wipro increased its share price by 2% after establishing a partnership with Nokia to offer global business services.
  • ITC finished 2% higher: ITC’s share price rose ahead of its Apr-Jun 22 earnings report, which is due today. Analysts predict a 32% increase in net profit year over year.
  • Bajaj Finance up 1%: The share price of Bajaj Finance increased as the business posted exceptional results for the quarter ending June 22. In the previous week, the stock has risen by more than 16%.
  • Coal India increased 1%: The share price of Coal India jumped dramatically on optimism in the energy sector due to an increase in power demand.

Eicher Motors Inc.

Eicher Motors is an Indian commercial vehicle manufacturer. The beginnings of the firm may be traced back to 1948 when Goodearth Company was founded to distribute and repair imported tractors. The Eicher Tractor Corporation of India Private Ltd was founded in 1959 in collaboration with the Eicher tractor business, a German tractor manufacturer. Eicher has been entirely owned by Indian stockholders in India since 1965. Massey Ferguson controlled a third of the German Eicher tractor beginning in 1970. In 1973, Massey Ferguson purchased the German firm. Eicher Motors Ltd, the Indian licensee of Massey Ferguson tractors, sold their tractors and engines business to TAFE Tractors (Tractors and Farm Equipment Ltd) in 2005.

In October 1982, Eicher Motors Limited was incorporated, and a partnership agreement with Mitsubishi for the manufacturing of light commercial vehicles (LCVs) was signed in Tokyo. LCVs were marketed as “Eicher Mitsubishi.” Eicher Goodearth purchased a 26% investment in Enfield India Ltd in February 1990, and by 1993, Eicher had acquired a controlling position (60% equity participation) in Royal Enfield India. EML and Volvo Group formed a 50:50 joint venture, VE Commercial Vehicles (VECV), in July 2008. VECV develops, produces, and markets commercial vehicles, and engineering components, and offers engineering design. A multi-axle Eicher truck Volvo Group now owns 45.6% of VECV, but there are 122 other institutional investors on record. Volvo Buses India operations were purchased by VECV in 2020 for an undisclosed sum.

Maruti Suzuki India Limited

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is a New Delhi-based Indian vehicle manufacturer. It was formed in 1981 and was controlled by the Government of India until 2003 when it was sold to Suzuki Motor Corporation of Japan. Maruti Suzuki has a 44.2 percent market share in the Indian passenger car industry as of February 2022. Maruti Udyog Limited was established by the Government of India on January 24, 1981, with Suzuki Motor Corporation as a junior partner, only to become Suzuki’s formal joint venture partner and license holder in August 2021. In the same year, Maruti launched its first production plant in Gurugram, Haryana.

Maruti Suzuki has two manufacturing facilities in Haryana (Gurugram and Manesar) and one manufacturing complex in Gujarat that is completely owned by the parent firm Suzuki and supplies Maruti Suzuki with its total production. All manufacturing facilities’ total yearly output capacity is 2,250,000 automobiles (1.5 million from Maruti Suzuki’s two factories and 750,000 from Suzuki Motor Gujarat).

Coal India Limited (CIL)

Coal India Limited (CIL) is a government-owned coal mining and refining corporation located in Kolkata, India. It is the world’s largest coal producer and a Maharatna public sector initiative (PSU). With over 272,000 people, it is also India’s eighth-largest employer. The corporation accounts for around 82% of the total coal output in India. It produced 554.14 million tonnes of raw coal in 2016-17, up from 494.24 million tonnes in the previous fiscal year, and generated revenues of 95,435 crores (US$12 billion) from coal sales in the same year. 

The Government of India bestowed Maharatna status for CIL in April 2011, making it one of seven such organizations. CIL is a PSU owned by the Central Government of India, which supervises its activities through the Ministry of Coal as of 14 October 2015. CIL’s market value was 2.11 lakh crore (US$26 billion) as of 14 October 2015, making it India’s eighth most valuable corporation. CIL is ranked eighth among the top 20 companies responsible for one-third of worldwide carbon emissions.

Bharti Airtel Limited 

Bharti Airtel Limited, often known as Airtel, is a New Delhi-based Indian multinational telecommunications services corporation. It operates in 18 South Asian and African nations, as well as the Channel Islands. Airtel now offers 4G and 4G+ services. It is modernizing its infrastructure in preparation for an anticipated 5G launch. Depending on the country of operation, currently available services include fixed-line broadband and phone services. Airtel had also deployed VoLTE technology in all Indian telecom circles. It is India’s second-biggest mobile network provider and the world’s second-largest mobile network operator. Airtel was awarded India’s second most valuable brand in Millward Brown and WPP plc’s first Brandz rating.

Airtel is credited with inventing the business strategy of outsourcing all of its business activities except marketing, sales, and finance, as well as developing the minute’s factory’ model of low cost and high volume. Several operators have since embraced the method. Ericsson, Huawei, and Nokia Networks provide and maintain Airtel’s equipment, while Amdocs provides IT support. Transmission towers in India are maintained by Bharti subsidiaries and joint venture firms such as Bharti Infratel and Indus Towers. For the first time, Ericsson agreed to be paid by the minute for installation and maintenance of their equipment, rather than ahead, allowing Airtel to offer inexpensive call rates of 1 (1.3 US)/minute.

ONGC 

The Oil and Natural Gas Corporation (ONGC) is a New Delhi-based Indian oil and gas exploration and producer. The Government of India established ONGC on August 14, 1956. It is a government-owned enterprise whose activities are supervised by the Ministry of Petroleum and Natural Gas. It is the country’s largest government-owned oil and gas exploration and production business, producing around 70% of India’s crude oil (equal to approximately 57% of total demand) and approximately 84% of its natural gas. The Maharatna designation was awarded on ONGC by the Government of India in November 2010. 

According to a poll conducted by the Government of India for the fiscal year 2019-20, it is the largest profit-making Public Sector Undertaking (PSU) in India. Platts ranks it 25th among the Top 250 Global Energy Companies. ONGC is active in the exploration and extraction of hydrocarbons in 26 sedimentary basins across India, and it owns and runs approximately 11,000 kilometers of pipelines. ONGC Videsh, its overseas affiliate, presently has projects in 15 countries. ONGC has discovered 7 of the 8 producing Indian basins, adding about 7.15 billion tonnes of hydrocarbons in-place in Indian basins. Against a global reduction in matured field output, ONGC has maintained production from brownfields such as Mumbai High via aggressive investments in different IOR (Improved Oil Recovery) and EOR (Enhanced Oil Recovery) programs. ONGC has multiple mature fields with current recovery factors ranging from 25 to 33%. Between 2005 and 2013, its Reserve Replacement Ratio was more than one. 

Bajaj Finance

Bajaj Finance Limited (BFL), a subsidiary of Bajaj Finserv, is a non-banking financial firm based in Pune, India. On March 25, 1987, Bajaj Auto Loans Limited was established as a non-banking financial organization primarily focused on offering two and three-wheeler finance. Bajaj Auto Lending Ltd launched its initial public offering of equity shares after 11 years in the auto finance business and was listed on the Bombay Stock Exchange and the National Stock Exchange of India.  At the beginning of the twentieth century, the corporation entered the consumer durables financing market and began issuing modest loans at zero interest rates. In the years thereafter, Bajaj Auto Finance has expanded into business and property financing.

The company’s assets under management surpassed Rs.1,000 crore in 2006 and are now at Rs.52,332 crore. The company’s registered name was changed from Bajaj Auto Finance Limited to Bajaj Finance Limited in 2010. As of March 2022, the corporation specializes in consumer credit, SME lending, commercial lending, rural lending, deposits, and wealth management. In addition, it has 294 consumer branches and 497 rural sites, as well as approximately 33,000 distribution outlets. In Q2 FY17, the firm recorded a pre-tax profit of Rs.626 crores and a post-tax profit of Rs.408 crores, with a ROA of 0.8% and an ROE of 5.1%. Bajaj Finserv Limited, the parent firm, owns 57.28% of the total shares and controls the subsidiary. Maharashtra Scooters Limited, the Government of Singapore, Smallcap World Fund INC, and AXIS Long Term Equity Fund are among the other important investors. According to a 2022 exchange filing, the company’s assets under control reached Rs 2 lakh crore, representing a 31% rise. 

Hero MotoCorp

Hero MotoCorp Limited, previously Hero Honda, is a New Delhi-based Indian multinational motorcycle and scooter manufacturer. The firm is one of the world’s largest two-wheeler manufacturers, as well as in India, where it has a 37.1% market share in the two-wheeler sector. The company’s market value was 59,600 crore (US$7.5 billion) as of May 27, 2021. As a joint venture between Hero Cycles of India and Honda of Japan, Hero Honda began operations in 1984. In June 2012, Hero MotoCorp accepted a plan to merge its parent company’s investment arm, Hero Investment Pvt. Ltd., with the manufacturer. This decision was made 18 months after the company broke from Hero Honda. 

The Munjal brothers’ main firm, Hero Cycles Ltd, is known by the brand name “Hero.” In 1984, the Hero Group and Honda Motor Company formed a joint venture called Hero Honda Motors Limited in Dharuhera, India. Both the Munjal family and the Honda group controlled 26% of the firm. During the 1980s, the business manufactured motorbikes that were popular in India due to their low cost and fuel economy. Since its beginnings, the firm has grown at a double-digit rate thanks to a famous advertising campaign centered on the phrase ‘Fill it – Shut it – Forget it,’ which emphasized the motorcycle’s fuel economy…

In 2001, the business overtook Honda as the largest two-wheeler manufacturer in India and the world. It continues to lead the worldwide industry. For over 26 years (1984-2010), Hero Motocorp (formerly Hero Honda) used Honda technology in its motorcycles.