 "Full list: Stocks with the maximum upgrades and downgrades in the last year")
The bulk of earnings upgrades over the past one year have been driven by by stocks related to domestic cyclical demand (financials, consumer discretionary, auto, tobacco, industrials) and internet stocks. On the flip side, bulk of downgrades have been driven by stocks related to defensive sectors (IT, healthcare, staples) and commodities (metals, cement), shows data analysed by ICICI Securities.
"Given the nature of the economic recovery in India which is led by growth in ‘gross fixed capital formation’ or capex cycle, we expect the earnings upgrade cycle to continue for domestic cyclicals," said Vinod Karki, analyst at ICICI Securities.
Here is a list of the top stocks that have witnessed maximum consensus upgrades over the last one year: Majority belong to domestic cyclical sectors such as financials, consumer discretionary, auto, industrials and internet stocks.
In the large cap space, Bank of Baroda, Varun Beverages, Tube Investments, Zomato, ABB, Canara Bank, Trent, Coal India, Bajaj Finserv and M&M saw the maximum upgrades.
In the mid-cap space, General Insurance, PB Fintech, Union Bank, Indian Hotels, Bank of India witnessed the most upgrades.
Among small caps, Apar Indus, Rainbow Children's Hospital were among stocks that witnessed upgrades.
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Top stocks that have witnessed the maximum consensus downgrades are related to defensive sectors (IT, healthcare, consumer, telecom) and commodities (metals, cement)
Tech Mahindra, Apollo Hospitals, Shree Coment, ICICI Prudential Life, Bharati Airtel, Adani Wilmar, Divi's Lab, Grasim, Tata Steel were among stocks with the most dowgrades in the large-cap space.
In the mid-cap space, Gland Pharma, Aditya Birla Fashion, Aarti Industires, FSN E-Commerce were among stocks with the highest downgrades.
In the small-cap space, Mahindra Logistics, V-Mart Retail, India Cements were among stocks that witnessed the most downgrades.
Metals, Reliance, telecom, healthcare and IT are responsible for bulk of the aggregate PAT downgrades while BFSI sector has driven bulk of the upgrade in FY24E earnings estimates over the past one year
Higher number of downgrades emanated from small cap space