Tata Steel, Adani Ports among top 10 stocks downgraded by Motilal Oswal after Q1 results

The June quarter has led Motilal Oswal to turn more cautious on the earnings outlook for several companies. In its latest India Strategy report, the brokerage has cut its FY27 earnings estimates for a number of stocks, with the sharpest reductions seen in InterGlobe Aviation, Dr Reddy's Laboratories and Tata Steel.
The brokerage's Nifty universe has 11 stocks where FY27 EPS estimates were cut by more than 3%. Here are the 10 stocks that saw the biggest downgrades in FY27 EPS estimates.

InterGlobe Aviation saw the steepest cut in its FY27 EPS estimate, with Motilal Oswal lowering it by 32.8% to Rs 139.6 from Rs 207.7 earlier. Interestingly, the brokerage raised its FY28 estimate by 3.9% to Rs 223.0, while FY27 earnings are still expected to grow 59.8%.

Motilal Oswal cut its FY27 EPS estimate for Dr Reddy's Laboratories by 19% to Rs 37.2 from Rs 45.9. The brokerage also expects FY27 earnings to decline 37%, before a sharp 61.3% recovery in FY28.

Tata Steel's FY27 EPS estimate was lowered by 13.4% to Rs 10.6 from Rs 12.2. The brokerage, however, expects earnings to grow 17.5% in FY27 and 34.7% in FY28, despite the downward revision to its estimates.

Motilal Oswal lowered Maruti Suzuki's FY27 EPS estimate by 7.5% to Rs 484.4 from Rs 523.9. The FY28 estimate was virtually unchanged at Rs 656.3, while earnings growth is expected to accelerate to 35.5% in FY28.

Eternal's FY27 EPS estimate was cut by 7.1% to Rs 2.3 from Rs 2.4. Despite the downgrade, Motilal Oswal expects a sharp earnings recovery, with FY27 EPS growth estimated at 466% and FY28 growth at 100%.

Motilal Oswal cut its FY27 EPS estimate for Max Healthcare by 4% to Rs 19.0 from Rs 19.8. However, the brokerage raised its FY28 estimate by 1.5% to Rs 23.6, with earnings growth expected at 17.1% in FY27 and 23.9% in FY28.

Bharti Airtel's FY27 EPS estimate was lowered by 3.9% to Rs 57.8 from Rs 60.1. The FY28 estimate was also cut by 2.7% to Rs 80.9. Despite the downgrade, Motilal Oswal expects earnings to grow 30.9% in FY27 and 40% in FY28.

Jio Financial Services also saw a 3.9% cut in its FY27 EPS estimate, taking it to Rs 3.2 from Rs 3.3. The brokerage was more cautious on FY28 as well, cutting its estimate by 5.9% to Rs 4.8.

Adani Ports rounded off the top 10, with Motilal Oswal cutting its FY27 EPS estimate by 3.2% to Rs 63.5 from Rs 65.6. The brokerage also lowered its FY28 estimate by 1.5% to Rs 86.2, even as it expects earnings to grow 7.3% in FY27 and 35.8% in FY28.