Chennai: Interesting trends like easing of inflationary pressure, bottoming out of the rural demand weakness and services export not affected due to slow down in advanced economies were seen after the Q3 results, said JM Financial Institutional Securities Ltd in a report.
In the report, JM Financial said the easing of inflationary pressure, reflected in higher EBITDA margins. While the rural demand has not picked but the weakness has bottomed out.
On the services sector front, the report said exports hasn’t been affected due to slowdown in the developed economies which bodes well for IT services companies.
According to JM Financial, higher capex allocation in Union Budget FY24 bodes well for companies in the industrial and capital goods space.
Automobile and cement sectors should benefit from easing inflationary pressure, the report said.
IANS
