As the financial year ends, investors are eager to see the FY24 report cards of companies. But there are already predictions from analysts of who the top-rankers will be, ahead of the final quarter’s result season.
In this edition of Chart of the Week, we take a look at the sectors and companies that analysts believe will come out on top. These have the highest growth estimates for revenue and earnings per share (EPS) for FY24.
The reference here is this screener of stocks with the highest Trendlyne’s Forecaster growth estimates in annual revenue and EPS in FY24. We have selected stocks with the highest Forecaster estimates from the most dominant sectors.
Banking and finance sector companies estimated to post strong revenue growth in FY24
The banking and finance sector has multiple companies with the highest Forecaster estimates for revenue and EPS in FY24. Lending company CreditAccess Grameen caters to low-income households lacking access to formal sources of financing. Trendlyne’s Forecaster estimates annual revenue growth for FY24 at 43.4% for CreditAccess, with EPS growth of 71.8%. Analysts at ICICI Securities believe that the company’s deeper penetration in rural areas, focus on increasing geographic coverage & diversifying product segments will help growth. In Q3FY24, the company had added 17 new branches, taking its total count to 1,894.
Two other big winners in this space are capital markets companies such as Angel One and ICICI Securities, which are beneficiaries of the bullishness around the Indian stock market. Angel One is Angel Broking, post its rebranding and an aggressive focus on derivatives. Forecaster estimates Angel One’s annual revenue to increase by 45.2%. At the same time, Forecaster estimates ICICI Securities’ revenue to grow by 42.4% and EPS to rise by 48.1% in FY24.
Construction stocks’ order book near all-time highs on the back of robust execution
With their order book near all-time highs, construction companies such as Ahluwalia Contracts, Kalpataru Projects and PSP Projects are benefiting from strong order inflows. This is because of a 33% YoY rise in government spending on infrastructure at Rs 10 lakh crore in FY24 and a strong economy. Forecaster estimates Ahluwalia Contracts’ revenue growth of 33.5% in FY24, with EPS growth of 31.5%. Meanwhile, it estimates Kalpataru Projects’ annual EPS to increase by 50.9%.
Trendlyne’s Forecaster estimates PSP Projects to post annual revenue growth of 31.2% in FY24, with EPS growth of 16.1%. The company says it’s confident of achieving a Rs 26 billion revenue target for FY24 with 11-12% EBITDA margins. However, since the start of FY24, it has witnessed increasing debt levels. In Q3FY24, debt stood at Rs 478 crore. With a few projects nearing completion, the company plans to reduce it meaningfully.
Consumer demand drives growth in the electronics and automobile sector
Moving to the consumer durables sector, Dixon Technologies is a major beneficiary of the Make in India scheme, with additional support from the government’s production-linked incentive schemes. Trendlyne’s Forecaster estimates revenue growth for Dixon Technologies at 51.4% YoY in FY24, with EPS growth at 54.7%. Meanwhile, Polycab India is benefitting from growing industrial demand for wires and cables as various real estate projects nears completion.
Consumer electronics company Voltas stands to gain from consumer demand, especially in the cooling space, due to extreme weather conditions. At the same time, premiumisation of products has led to better margins. Forecaster estimates Voltas’ FY24 revenue growth at 23.5%, with EPS growth of 62.3%.
Automobile company Tata Motors witnessed strong demand across all segments in FY24. Forecaster estimates its revenue growth in FY24 at 26.5%, with EPS growth of 1,671%. The significant rise in EPS is mainly due to a jump in sales volumes in its luxury vehicles segment. Also, the margin expansion for Jaguar Land Rover to above 8% in FY24E along with a 50% debt reduction (on a consolidated basis) will help achieve bottom-line growth. In FY23, the company posted a consolidated net profit of Rs 2,414.3 crore, compared to a loss in the previous years. Trendlyne’s Forecaster estimates the revenue growth of auto components companies such as Samvardhana Motherson and UNO Minda at 25.8% and 23.4% respectively in FY24.
Healthcare facilities company Max Healthcare witnessed its bed occupancy stabilise at 75% levels in 2024. Motilal Oswal expects average revenue per occupied bed to increase by 8% YoY in FY24. Forecaster estimates the company’s revenue growth at 50.4%, with EPS growth of 20.7%. Meanwhile, Apollo Hospitals currently has bed occupancy above 65%, Forecaster estimates revenue growth of 15.4%, with EPS growth of 20.5% in FY24. On the other hand, leisure facilities company, Wonderla Holidays’ is focusing on enhancing customer experience and adding new parks every 3-4 years to drive growth.
Strong order book and international orders in general industrials drive growth
Finally, general industrial companies stand to benefit from a strong order book on the back of domestic as well as international orders. Triveni Turbine witnessed export sales growth of 35% YoY to Rs 190 crore in Q3FY24. The company is seeing a surge in order bookings from the Middle East, North Africa, Europe, Turkey, and the Americas. This has led Forecaster to estimate annual revenue growth of 34.6%, with EPS growth of 40% in FY24. Trendlyne’s Forecaster estimates Bharat Forge’s revenue to grow at 21.3%, with EPS growth at 87.7% in FY24.
Meanwhile, ABB India is witnessing demand from civil construction players engaged in building public infrastructure assets as they are focusing on high-quality products, which is helping margins. Forecaster estimates the company’s annual revenue growth for FY24 at 21.8%, with EPS growth of 17.7%.
