Shriram AMC fund manager Prateek Nigudkar forecasts 17-20% profit growth for Q2FY27 despite market volatility. While he identifies strategic entry points for investors, Shriram Asset Management's own stock remains under pressure, trading near its 52-week low.
Prateek Nigudkar, a senior fund manager at Shriram AMC, has projected a 17% to 20% growth in corporate profits for the second quarter of the 2027 fiscal year. Despite recent market sell-offs and ongoing global tensions, the fund manager suggests that Indian equity markets may be approaching a floor, offering strategic opportunities for medium-term investors.
Earnings Outlook and Sector Preferences
Nigudkar’s outlook remains constructive, with expectations that the earnings momentum seen in earlier quarters will persist. He highlights that excluding oil marketing companies, corporate earnings are poised for double-digit growth. His strategy favors sectors such as private banks, life insurance, and automobiles, which he believes offer better valuation alignment with their earnings potential. He also views logistics and power as areas with stable long-term prospects.
While geopolitical instability, particularly in West Asia, continues to cause market swings, Nigudkar advises investors to treat these as external noise. He suggests focusing on company-specific fundamentals rather than reacting to short-term news cycles. Regarding the technology sector, he maintains that the integration of artificial intelligence will eventually drive demand, despite current skepticism from the market.
The Company Context
While the fund manager’s market outlook is optimistic, Shriram Asset Management Company's own stock has faced a challenging year. As of early October 2026, the company's share price is trading near its 52-week low of approximately ₹241.50. The stock has seen a decline of about 37% to 39% over the past year, falling significantly from its 52-week high of ₹519.
From a financial standpoint, the company has dealt with performance hurdles. Recent data indicates negative return on equity (ROE) and return on capital employed (ROCE). These figures suggest that the company’s internal financial performance has not kept pace with the broader market growth, a trend that investors often monitor closely when evaluating the business alongside the fund manager’s macro-level market views.
Risks and Investor Monitorables
The market’s recovery remains sensitive to several risks. If oil prices stay elevated for a sustained period, it could lead to earnings downgrades for several companies, potentially testing the market bottom. Investors monitoring these developments should focus on whether corporate earnings actually meet the 17-20% growth projections for Q2. Additionally, for Shriram AMC specifically, market participants will likely watch for improvements in the company’s core financial ratios and sustained stability in its stock price before drawing conclusions about a turnaround in its own business performance.