Indian (NIFTY) Consumer Discretionary Sector Analysis

Sector Valuation and Performance

Has the Indian Consumer Discretionary Sector valuation changed over the past few years?

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 18.8x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Consumer Discretionary industry have declined 15% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Indian Consumer Discretionary sector?

Industry PE: Investors are most optimistic about the General Merchanise and Department Stores industry which is trading above its 3-year average PE ratio of 116x. This is likely because analysts are expecting annual earnings growth of 63% and investors are willing to pay a premium for that growth. Meanwhile, investors are most pessimistic about the Luxury industry, which is trading below its 3-year average of 13.4x.

Forecasted Growth: Analysts are most optimistic on the Specialty Stores industry, expecting annual earnings growth of 102% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Consumer Durables industry is expected to see its earnings grow by 25% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?