The Indian markets have seen a good run in the last three months with the S&P BSE Sensex rising around 7 per cent and the Nifty50 moving up 7.5 per cent.
The next leg of the market rally from here on, analysts suggest, will be driven by a growth in corporate earnings over the next few quarters.
That said, they do not expect material / sharp downgrades to India Inc s earnings estimates despite headwinds for the economy.
The stock of Colgate-Palmolive (India) surged after the company delivered a better than expected operating performance for the March quarter of the 2022-23 financial year (Q4FY23) recently.
The stock, however, has given up most of these gains over the last one week as the Street awaits recovery in the core toothpaste segment and sustained recovery in market share.
The country s largest listed oral care company posted a gross margin expansion of 100 basis points (bps) on a sequential basis to 66.9 per cent, led by pricing and efficient sourcing.
Asian Paints Q4 results review: Axis Securities found Asian Paints results to be strong, led by double-digit volume growth. Ebitda margins saw significant beat, primarily led by better-than-expected gross margin expansion, it said.
Overall, the company expects gross margin to hover around FY23 levels of about 41% in the coming quarters. Ebitda margin is likely to taper from the highs seen in Q4 and moderate to full-year FY23’s margin of about 17.5%.