Revenue is seen rising 21 percent year-on-year to Rs 559.7 crore while EBIDTA (earnings before interest, tax, depreciation and amortisation) may grow 17 percent to Rs 118.6 crore but margin may contract 100 basis points to 21 percent in Q2.
Volume growth may be around 17 percent. Analysts expect menswear/sportswear to sustain revenue growth momentum of 26 percent and expects womenswear segment to report a healthy 21 percent growth led by 17 percent volume growth.
He expects disruptions caused by demonetisation to hit the property sector the most and housing finance will also be impacted. He removed HDFC from model portfolio as a result.
He says Donald Trump's win in US elections is a relief for Indian pharma companies and he added Sun Pharma back to top buys while the expected US infra spending boost should improve the outlook for commodities and he added Hindalco to the model portfolio.
He also added HUL to the portfolio, taking advantage of the recent correction and on the expectations of a good harvest driving demand improvement.
Equity benchmarks continued to rally in morning trade with the Sensex surging 350 points, driven by banks, infra, metals and pharma stocks. Short covering and global cues drove the market higher.
The 30-share BSE Sensex was up 349.62 points or 1.28 percent at 27602.15 and the 50-share NSE Nifty gained 116.50 points or 1.38 percent at 8548.50 while the broader markets outperformed.
The BSE Midcap and Smallcap indices rallied 2 percent each on strong breadth. About 8 shares advanced for every share declining on the exchange.
Nifty Realty index surged 4.5 percent after losing more than 10 percent on black money crackdown. PSU Bank index gained further, up 5 percent while Metal surged 5.5 percent.