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The corporate earnings scorecard for 4QFY24 has been in line so far. The earnings spread has been decent, with 70% of our Coverage Universe either meeting or exceeding profit expectations.However, growth has primarily been led by the BFSI and Automobile sectors. The earnings growth was fuelled by the domestic cyclicals, such as BFSI and Auto.BFSI clocked a 22% YoY growth, while Auto reported a growth of 38% YoY. In contrast, the aggregate performance has been dragged down by the O&G sector, which posted a 20% earnings decline (IOCL’s profit plunged 52% YoY).Excluding Metals and O&G, the MOFSL Universe and Nifty have recorded a 15% YoY earnings growth.As of 4th May’24, 28 Nifty stocks reported a sales/EBITDA/PBT/PAT growth of 10%/15%/11%/13% YoY (vs. est. of +13%/9%/10%/8%).For the 94 companies within MOFSL Universe, sales/EBITDA/PBT/PAT grew 6%/11%/5%/5% YoY (vs. est. of +8%/7%/5%/3%).Excluding Metals and O&G, the MOFSL Universe companies recorded a sales/EBITDA/PBT/PAT growth of 10%/17%/11%/15% YoY (vs. est. of +10%/12%/14%/12%) in 4QFY24 so far.Among the Nifty constituents, Reliance Industries, HDFC Bank, Coal India, Axis Bank, Kotak Mahindra Bank, Ultratech Cement, Bajaj Auto, Tech Mahindra, Nestle, and SBI Life Insurance exceeded our profit estimates.Conversely, HCL Technologies, LTIMindtree, Titan Company, and HDFC Life Insurance missed profit estimates for 4QFY24.Sector-wise earnings growth for private banks has remained healthy, with Axis Bank, Kotak Mahindra Bank, and RBL Bank reporting better-than-expected earnings.However, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Federal Bank, ICICI Bank, IDFC First Bank, and IIB registered a mixed margin performance.The overall pace of NIM compression has moderated, even though funding costs continue to inch up. Most vehicle financiers have reported that the demand momentum in the vehicle segment, especially in CV, has been subdued because of the ongoing elections.The 4QFY24 results for Automobiles have been in line so far. The growth has largely been driven by: a) healthy volume growth across most of the segments, ex-CVs, b) better product mix, c) lower commodity costs, and d) operating leverage.We believe that margin pressures will persist in the upcoming quarters due to the expected recurrence of certain costs.The 4QFY24 results for Tier-1 IT companies have remained weak so far due to lower-than expected growth, weak demand, and the re-scope of contracts, as well as project cancellations.Discretionary spending shows no signs of picking up, and the near-term outlook remains bleak. The guidance for FY25 came in lower than expected, even with muted expectations.While consumption has been improving, staple demand trends have remained largely similar to those seen in 3QFY24, with a marginal increase in volumes on a YoY basis.The impact of the price cuts will settle down in 1HFY25 for most of the commodity-sensitive categories, and 2HFY25 may see price hikes.The Oil & Gas sector has reported mixed 4QFY24 results so far. RIL beat our estimates primarily due to a strong O2C performance, while IOCL fell short of our earnings estimates owing to a weaker-than-estimated refining margin.Here are a few stocks that are available for a long-term buy:SBI: Buy| Target Rs 925| LTP Rs 818| Upside 13%SBI has made a swift recovery in earnings, from a loss of ~INR65b in FY18 to profits of INR611b in FY24. Business growth remained robust, with healthy recovery in the corporate segment.The management expects credit growth to remain in the range of 13-15%. SBI is well positioned to deliver steady earnings, with FY26E RoA/RoE of 1.1%/18.5%.Godrej Consumer: Buy| Target Rs 1,550| LTP Rs 1,320| Upside 17%GCPL clocked strong volume growth (10% YoY) in FY24 and aims to deliver high single-digit volume growth in FY25.In India, GCPL’s medium-term aspiration includes achieving high single-digit volume growth and mid-to-high 20’s EBITDA margin.It plans to increase its market share in rural areas by doubling outlet coverage and tripling village coverage through Project Vistaara 2.0.110110991(The author is Head – Retail Research, Motilal Oswal Financial Services)Disclaimer: Registration granted by SEBI and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times

Shares of PepsiCo bottler Varun Beverages (VBL) jumped 5.5% on BSE today to the day’s high of Rs 1,558.45 after reporting an increase of 25% year-on-year (YoY) in March quarter PAT to Rs 548 crore. The brokerages have increased the target price for the stock post earnings announcement.The company’s revenue from operations in Q1 rose to Rs 4,398 crore, a rise of 11.2% YoY over Rs 3952.60 crore reported by the company in the corresponding quarter of the last financial year.Here’s how analysts view the future of the stock:Bank of AmericaBofA stated that the Q1 earnings beat expectations and the CY24 ahead looks strong for the company. Varun Beverages now gears up for the peak season and South Africa capacity is also expected to be ready before its peak season in the fourth quarter.The global brokerage firm has retained its buy rating on the stock and increased the price target to Rs 1,650.Motilal OswalAs VBL expects strong sales growth led by heat waves, elections, and lower base in the corresponding quarter, Motial Oswal expects the company to maintain its earnings momentum aided by increased penetration in newly acquired territories in India and Africa, higher acceptance of newly launched products, continued expansion in capacity and distribution reach, growing refrigeration in rural and semi-rural areas and a scale-up in international operations.It reiterated a ‘buy’ on the stock with a target price of Rs 1,750.Kotak Institutional EquitiesHeat waves, favorable base and expanded capacities position VBL to deliver about 30% domestic volume growth in 2Q. We estimate a 22% volume CAGR (17% organic) over CY2023-26E, driven by about 35% volume CAGR in the high-growth portfolio (Sting + Gatorade + Rockstar + Tropicana + Dairy) to about 30% of India volumes from 18%, 12% volume CAGR in the core portfolio in India and about 40% volume CAGR (17% organic) in the international portfolio, supported by the South Africa acquisition and organic expansion in the DRC, said a report by Kotak Institutional Equities.KIE has retained its ‘add’ rating with a target price of Rs 1,477.Nuvama“VBL posted Q1CY24 revenue/EBITDA/PAT growth of 11%/24%/25% YoY beating our estimates. Volume expanded 7.2% YoY driven by International (21.9% YoY); India volumes increased 4.4% YoY. Net realisation per case rose 3.5% to INR179.7. We expect Q2 to be very strong due to a harsh summer and a low base,” stated a Nuvama report.The brokerage firm has increased CY24E/25E EPS by 9%/9% factoring in improving rural demand in CY24, market expansion following the South Africa acquisition, higher realisation and improving operating leverage.Nuvama has maintained a ‘buy’ call on the stock while increasing the target price to Rs 1,690.Also reaD: Q4 results today: Bharti Airtel, Patanjali Foods among 97 companies to announce earnings on Tuesday(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

South Korean automaker, Kia today announced the launch of a redesigned and upgraded version of its EV6 electric vehicle, which was initially introduced in 2021.The redesigned crossover SUV has a new look and comes with a fourth-generation 84 kWh battery and a sophisticated infotainment system that is built on Hyundai Motor Group's software defined vehicle (SDV) technology.Kia said it accentuated the dynamism of the new EV6 under the company's design philosophy named "Modern Contrast."The company's Star Map lighting design is used on the front and rear lights, in addition to newly designed wing-shaped bumpers, according to Yonhap news agency.Internally, the updated EV6 has a bigger panoramic curved screen and ambient lighting with moving graphics.The new EV6 comes with a fourth-generation battery, and its capacity has been increased from 77.4 kWh to 84 kWh. When fully charged, the long-range two-wheel drive version of the EV6 can travel up to 494 kilometers, an improvement from the 475-kilometer range of the previous model.Kia has started taking preorders of EV6 in South Korea and will launch the model in the home market next month.However, there is no information as of now about its launch date in India.