Q2FY2007 earnings preview: Sharekhan Special dated October 06, 2006

[Sunil]

 

Sharekhan Special [October 06, 2006] Please see the attachment for details Share khan www.sharekhan.com

Summary of Contents   SHAREKHAN SPECIAL  Q2FY2007 earnings preview Key points The domestic demand-driven story is likely to continue, as is evident from the growth in the Sensex' earnings led by automobile, cement, capital goods and fast moving consumer goods (FMCG) companies.

• We also expect the information technology (IT) companies to report a strong earnings growth on the back of a robust volume growth and the depreciation of the rupee vis-à-vis the dollar.
• We expect the earnings of the Sensex companies to grow by a strong 22.6% year on year (yoy) led by a strong growth in the above-mentioned sectors.
• The implied growth for H2FY2007 works out 21% yoy. Further upmove in the Sensex could come only from further upgrades in the Sensex' earnings.

Regards, The Sharekhan Research Team myac...@sharekhan.com

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