The EPS estimates of NIFTY for FY25, FY26 and FY27 are now in ₹ 1,150, ₹ 1,286 and ₹ 1,460. | Photo credit: kesavan an 1612@chennai
The earnings of the ingenious index in the first half of fiscal year 26 are expected to be further reduced in the midst of the current commercial tensions due to the tariff policy of the United States, according to a PL capital report.
The report has further reduced the objectives after reducing NIFTY’s expected profits per action (EPS) for Fy26 and Fy27 by 6.2 percent and 5.6 percent, respectively, since October 2024.
He decided: “Tariff wars and uncertain environment can lead to more cuts in 1h26.
“The report now values ingenuity with a 7.5 percent discount to its price ratio to average (PE) of 15 years of 18.9 times. Based on an expected EPS of ₹ 1,460 by March 2027, it has established a 12 -month objective for the NIFTY with 25,521, slightly lower than its previous objective of 25,689.
The EPS estimates of NIFTY for FY25, FY26 and FY27 are now in ₹ 1,150, ₹ 1,286 and ₹ 1,460. These represent changes or 0.5 percent, -1.5 percent and -0.9 percent compared to previous forecasts.
The growth of the expected profits for the NIFTY on fiscal year 2015 to FY27 is now 12.7 percent annually, below 13.3 percent before. Estimates are also lower than market consensus by 1.7 percent for fiscal year 2015, 3.5 percent for fiscal year 2016 and 4.5 percent for FY27.
The report also described three possible scenarios. In the base case, with an EP or 17.5 times, the NIFTY could reach 25,521 in the next 12 months.
In the Bull case, if the valuations return to the long -term average of 18.9 times, the NIFTY could increase to 27,590. In the Bear case, if the index quotes with a 10 percent discount, it could fall to 24,831.
The report also declared that in the short term, the internal market -centered sectors may probably have a better performance. These include national pharmaceutical hospitals, retailers, basic consumption products, banks, defense and power. (ANI)
Posted on April 14, 2025
