Buy stocks on any decline to make a good return in FY21-22

Analysts revised the earnings estimate multiple times - from an EPS contraction in FY21 to the latest estimates of a around 15 per cent growth. Moreover, FY22 EPS is expected to grow further by 30%

Exactly a year back, when we had just a few hundred cases, we were in midst of a panic – not knowing what the future held in store, we witnessed capitulation with hardly anybody having the courage to buy stocks which were on ‘fire sale’. A year later, in midst of the second wave, Covid-19 numbers continue to soar beyond 60,000 per day, but the same stocks are getting lapped up at multiple times the panic valuation and yet the buyers expect a decent return from current levels. 

Empirical data suggests that economy is bouncing back, corporate earnings have been