Stocks With Strong Eps Upgrades In Past 90 Days; Emkay Views On It, Financial Stocks

In its latest strategy note, Emkay Global Financial Services said nan home banal market saw a crisp rally pursuing nan impermanent easing of geopolitical tensions, pinch financial stocks taking nan lead. The brokerage, however, cautioned that India remains susceptible to tariff-related risks, contempt expectations that immoderate eventual solution will beryllium little terrible than nan April 2 announcements.

Looking ahead, Emkay identified 2 captious drivers for nan equity market: nan gait of bilateral waste and acquisition agreements by nan United States—particularly those involving China—and nan net momentum of Indian companies. It estimates that nan downside consequence to nan Nifty’s FY26 EPS is comparatively moderate, astatine astir 2–3 per cent.

The home brokerage shared its views connected slope and IT stocks, and besides screeners connected what it called momentum and worth stocks. 

Financial stocks
In nan lawsuit of banks and NBFCs, Emkay Global said lenders are enjoying beardown regulatory tailwinds – improved liquidity and easing of lending norms. These benefits are apt to peter retired soon, though, particularly arsenic ample banks look beardown separator unit owed to complaint cuts being deeper than primitively forecast. 

"The longer-term challenges for banks persist – wide maturation remains beneath nan RoE, frankincense starring to anemic BVPS; pockets of excess RoA/RoE proceed to beryllium competed away, and fintechs slow chipping nan franchise strengths of incumbents. These are not afloat captured successful nan valuations, contempt nan terrible P/B derating for backstage banks. We stay UW and for illustration playing nan complaint rhythm via autos and nan larger user discretionary universe," it said.

IT stocks
Despite anemic Q4 results from tech companies, Emkay Global has retained its 'Overweight' position connected nan sector, saying humanities trends showed that nan IT Index has ever rallied erstwhile nan assemblage PE reaches specified lows and that nan stocks rally well, up of net upgrades. 

"The existent slowdown is simply a cyclical one, and we spot an upgrade rhythm toward nan extremity of CY25, erstwhile clarity emerges astir tariffs. The underlying imperatives for clients to ratchet up tech spending are compelling, truthful a down-cycle whitethorn not past for agelong successful our view. This is simply a bully clip to participate a high-quality assemblage (strong rate flows, return ratios, and governance) astatine reasonable valuations," it said.

Momentum stocks
Emkay Global filtered stocks pinch an complete 5 per cent FY26 EPS upgrade successful nan past 3 months. Top Ideas included Varun Beverages Ltd, ICICI Prudential Life Insurance, and Anant Raj from Emkay coverage, and besides Mazagon Dock Shipbuilders, Arvind SmartSpaces, and ABB. 

It besides looked astatine changes successful nan Bloomberg statement standing successful nan past 3 months, pinch Techno Electric and Godrej Consumer Products among stocks successful nan Emkay universe, and Mazagon Dock and ABB successful nan 5-plus expert sum emerging arsenic cardinal ideas.

Value stocks
"We besides ran a worth screen, pinch FY26E ROCE astatine much than 30 per cent premium to nan 3-year average, and value correcting by much than 35 per cent from a 52-week precocious (minimum FY26E ROCE: 12 per cent). Key Ideas from Emkay Coverage: Genus Power, Anant Raj, and Go Fashion; and Engineers India, Symphony, and Trent from nan statement universe," nan home brokerage said.