Equity investing requires knowledge and acumen to read and analyse the financials of a company. The ability to analysis financial numbers, ie the balance sheets, profit and loss and cash flow statements, with fair accuracy, is a combination of art and science. An earnings season is exactly the time when these skills are put to test.
The Q2FY20 results season bears significance as the positive impact of corporate tax cut starts reflecting in this quarter. Another important aspect to note is that there is a definite improvement in market sentiment after almost 18 months of pessimism.
This season threw some positive results, some negative, and some flat results, as is usually the case with results across seasons. Several small-cap companies and micro-cap companies were seen reporting high profitability jumps.
In the large-cap space, the HDFC twins once again managed to impress. Particularly HDFC has outperformed earnings estimates.
Among pharma companies, Dr. Reddy's and Cipla managed to surprise investors positively.
Several pharma companies declared positive results for Q2FY20. Investors can finally hunt for opportunities in the pharma space with earnings getting revived for pharma companies across market capitalisations.
Nifty: Q2FY20
In the Nifty basket, 28 companies have declared results as we go on print. Out of these, 10 declared growth in net sales and net profits on both QoQ as well as YoY basis.
Nifty has inched up 12.8 per cent over the last 1 year period, while the average return of these set of 10 Nifty stocks with growth in net sales and net profits has been of 25 per cent.
Mid caps
Diese Geschichte stammt aus der November 11 - 25, 2019-Ausgabe von Dalal Street Investment Journal.
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Diese Geschichte stammt aus der November 11 - 25, 2019-Ausgabe von Dalal Street Investment Journal.
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