These 15 stocks could see EPS growth of over

40% in 12 months
After registering flat earnings growth for the last 3 years,
most analysts are hoping for a double-digit growth in the
next two financial years.
Kshitij Anand @kshanand

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India Inc has started declaring earnings for Q1 FY19 and Tata Consultancy Services which kick-
started the earnings seasons earlier this week has not disappointed investors. After delivering flat
earnings growth over the last 3 years, most analysts are hoping for double-digit growth over the
next 2 fiscals.

The Nifty, which gained nearly 4 percent in 2018, is slowly marching toward its lifetime high of
11,171. It recovered sharply from the lows helped by gains in the largecap stocks. Most experts
feel the index could breach this level in the next 1-2 months if the momentum continues.

From the list of 50 index constituents, 15 companies could see over 40 percent growth in
earnings per share (EPS) in the next 12 months, according to a Reuters estimate.

EPS is the portion of a company's distributable profit allocated to each outstanding share of
common stock. To find out whether the earnings of a company have improved or deteriorated,
experts suggest one should look at EPS calculated over a number of years.

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EPS = (Net income - dividends on preferred stock)/average outstanding shares.

Companies that are likely to see a rise in their respective EPS, according to Reuters data, include:
Axis Bank, Coal India, Tata Motors, Tata Steel, Dr Reddy’s Laboratories, ICICI Bank, Eicher
Motors, Bajaj Finance, Titan Company and Bharti Airtel.
History suggests that earnings and stock prices move in tandem. If the company is growing,
chances are the stock price will also reflect a similar momentum. Most stocks - Tata Motors, Tata
Steel, Axis Bank, and ICICI Bank - in the list have already corrected substantially in 2018.

“EPS growth is one of the most important factors considered in bull markets while investing.
There are some professional fund managers who only opt for growth or momentum investing,”
Jimeet Modi, Founder & CEO, SAMCO Securities, said.

“Growth upwards of 50 percent in Nifty stocks generally happens due to low base effect or due
to some extraordinary circumstances in the previous year. But investors should not be lured by
such fancy percentages. However, some companies which are performing consistently can be
considered for investments,” he stated.

Modi added that companies like Bajaj Finance and Yes Bank are consistent performers, but
others can be avoided currently and bought into on corrections. “Axis Bank, Dr Reddy's and Tata
Motors can be bought into as their normalised earnings multiple are reasonable at current levels.”

What should investors do?

Market pundits are turning optimistic about the price momentum. Once it picks up, price tends to
remain in motion more or less in the same direction.

“Any company with more than 15 percent EPS is considered to be a great investment bet.
Buying the mentioned stocks in the list at current market levels will be a great bet for investors,”
Ritesh Ashar, Chief Strategy Officer at KIFS Trade Capital, said.
“Investors generally look for companies which deliver steady increase in EPS. A steady growth
in EPS indicates how eligible the company is in making money for its shareholders. It also
showcases performance of a company's management,” he added.
First Published on Jul 12, 2018 08:21 am

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Last Updated : Jul 12, 2018 10:23 PM IST | Source: PTI

CCI dismisses complaints against Google;

chairperson gives dissent note
The majority ruling came on complaints filed against Google
LLC, Google Ireland Ltd and Google India Pvt Ltd back in
2014. The complaints were filed by one Vishal Gupta and
Albion InfoTel (informants). Both entities are into remote
technology support business.
PTI @moneycontrolcom
Anti-trust regulator CCI today rejected allegations of unfair business practices made against
Google with respect to its advertising platform, saying the internet major's actions did not
infringe provisions of the competition law.

In a majority order passed by four members, the CCI concluded that there was no violation of
competition norms by Google. However, Competition Commission of India (CCI) Chairperson D
K Sikri passed a dissent note.

The majority ruling came on complaints filed against Google LLC, Google Ireland Ltd and
Google India Pvt Ltd back in 2014. The complaints were filed by one Vishal Gupta and Albion
InfoTel (informants). Both entities are into remote technology support business.

It was alleged that Google indulged in anti-competitive practices with respect to its advertising
platform AdWords.

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For the case, the Competition Commission of India (CCI) considered 'Market for Online Search
Advertising Services in India' as the relevant one.

According to the regulator, Google's AdWords policies protect the platform and the end-users,
particularly, the vulnerable end-users.

"... there is evidence on record showing that the informants' conduct was likely to endanger end-
users of remote tech services. They repeatedly committed multiple violations of the AdWords
policies, demonstrating a consistent and persistent pattern of misconduct and user harm (eg.
through tactics designed to mislead or exploit users)," the order said.

There were multiple violations of AdWords Phone Number Policy by including telephone
numbers in ad titles, text, or visible URLs that mislead users into thinking they would place a
call by clicking on the ad, when in fact they would be redirected to a website, the CCI said.

Among others, the regulator said there were violations of the relevance clarity, accuracy and user
safety policies by using inaccurate ad text.

About the CCI order, a Google spokesperson said, "we are pleased that, after a thorough analysis,
the Commission has confirmed Google's conduct to be fair, pro-consumer, and compliant with
competition law".

"We are committed to ensuring that our users have a safe experience when clicking on ads on our
platform," the spokesperson said in a statement.

In the statement, Google said the matter pertains to enforcement action taken by its Ads Team in
2013 against the two entities.

The internet major said that legitimate remote tech specialists help consumers fix problems with
their computers or devices from a remote location.

However, there are several remote tech companies that engage in nefarious practices such as
credit card fraud, installation of malware, enrolling users in recurring billing subscriptions
without their prior knowledge and using false diagnosis information and scare tactics to
encourage users to engage in their services, the statement noted.

"Google has taken action against many such remote tech companies for breaches of the AdWords
policies (and removed their harmful ads from its platform).

"These policies and Google's enforcement are aimed at protecting users, other legitimate
advertisers, and the AdWords platform," it added.

Meanwhile, Sikri, in his dissent note, said he was of the opinion that "rather than passing a final
order under Section 27 of the (Competition) Act, the present cases ought to have been referred
back to the Director-General... for further investigation" on the basis of certain aspects.
Section 27 pertains to orders passed by the regulator after an inquiry into agreements or abuse of
dominant position. Director General is the probe arm of the regulator.

Earlier too, Google had come under the CCI scanner for alleged unfair business practices.
First Published on Jul 12, 2018 10:20 pm