JPMorgan-India Equity Strategy 1Q FY25 Earnings Dissector Upgrade St...-109913200(1)

GlobalMarketsStrategy18August2024JPMORGANwww.jpmorganmarkets.comEquityMacroResearchRajivBatraAC(65)6882-8151rajiv.j.batra@jpmorgan.comJ.P.MorganSecuritiesSingaporePrivateLimitedRushitMehta(9122)6157-3711rushit.mehta@jpmchase.comJ.P.MorganIndiaPrivateLimited,J.P.MorganTower,Santacruz(E),Mumbai-400098,SEBIRegistration:INH000001873,(91-22)6157-3000.MixoDas(852)2800-0511mixo.das@jpmorgan.comJ.P.MorganSecurities(AsiaPacific)Limited/J.P.MorganBroking(HongKong)LimitedKhoiVu,CFA(65)6882-8170khoi.t.vu@jpmorgan.comJ.P.MorganSecuritiesSingaporePrivateLimited1Qresultswerelackluster,withamoderateuptickinrevenuegrowthandmarginexpansion.Lowerinputcostbenefitislargelygettingoverasweanticipatedinthepreviousquarter(link).Factorssuchaslimitedgovernmentexpenditure,arelativelyhigherbaseinthepreviousyear,demandfluctuationsandrisingcompetitionwerealsoakeydrag.Domesticcyclicalsegmentsfaredwellcomparedtoglobalcyclicals.Formajorityofthesectors,thefocusisnowshiftingtowardsbusinessprospects,toplineguidance,balancesheetstrengthandotheroperationalefficiencies.Nearterm,themarketwillremainrange-boundduetorisingdomesticheadwindsandglobalmarketvolatility,inourview.Werecommendabarbellstrategy,playingdefensivestorythroughconsumerstaplesandhealthcarefromtacticalstandpoint.Thenontheothersideofthebarbell,wecontinuetopreferlonger-termcapexstoryviaI...