BPCL, Tata Motors lead upgrades race after Q3, Zomato, ABFRL downgraded

Oberoi Realty and ACC too see substantial increase in their earnings forecasts for the ongoing financial year

State-owned oil marketing company Bharat Petroleum Corporation (BPCL) and four-wheeler major Tata Motors have topped the FY23 earnings upgrade charts after the completion of December 2022 quarter earnings season (Q3FY23). Oberoi Realty and cement manufacturer ACC too have seen substantial increase in their earnings forecasts for the ongoing financial year.

“BPCL upgrade is driven by favourable macros in Q3FY23 leading to marketing profits despite stagnant retail fuel prices. Better-than-expected average selling price at Jaguar Land Rover and Ebitda for the domestic CV business as the industry shifts from demand push to pull mode drove Tata Motors upgrade,” said a note by Ambit Institutional Equities.

Meanwhile, Zomato, Indus Towers and Aditya Birla Fashion and Retail (ABFRL) saw the maximum downgrades.

“Zomato’s downgrades were due to weaker food delivery growth driven by weaker order and monthly transacting users (MTU) growth. Indus towers downgrade is led by Vodafone India’s funding constraints weighing on Indus’ ability to grow dividends & telcos focus likely on loading & fabrication instead of new tower additions. Downgrade in ABFRL was led by increase in marketing spends & losses of new businesses,” the Ambit note said.