Return Trends At Mahindra & Mahindra (NSE:M&M) Aren't Appealing
Nov 29
Indian (NIFTY) Consumer Discretionary Sector Analysis
UpdatedDec 01, 2023
DataAggregated Company Financials
Companies787
- 7D1.9%
- 3M9.5%
- 1Y27.8%
- YTD32.8%
Over the last 7 days, the Consumer Discretionary industry has risen 1.9%, driven by gains in Mahindra & Mahindra and Tata Motors of 6.6% and 3.9%, respectively. In the same time, Raymond was down 10%. This takes the industry's 12 month performance to a gain of 28%. Looking forward, earnings are forecast to grow by 23% annually.
Sector Valuation and Performance
Has the Indian Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 01 Dec 2023 | ₹36.0t | ₹20.6t | ₹935.8b | 30.2x | 38.5x | 1.8x |
| Sun, 29 Oct 2023 | ₹33.0t | ₹20.4t | ₹863.5b | 28.9x | 38.2x | 1.6x |
| Tue, 26 Sep 2023 | ₹33.0t | ₹20.3t | ₹857.4b | 28.2x | 38.4x | 1.6x |
| Thu, 24 Aug 2023 | ₹31.7t | ₹20.3t | ₹855.5b | 28.5x | 37.1x | 1.6x |
| Sat, 22 Jul 2023 | ₹30.8t | ₹19.3t | ₹718.4b | 27.8x | 42.8x | 1.6x |
| Mon, 19 Jun 2023 | ₹29.7t | ₹19.2t | ₹714.1b | 27.1x | 41.6x | 1.5x |
| Wed, 17 May 2023 | ₹27.7t | ₹18.5t | ₹663.5b | 23.9x | 41.8x | 1.5x |
| Fri, 14 Apr 2023 | ₹25.7t | ₹18.2t | ₹637.8b | 22.9x | 40.4x | 1.4x |
| Sun, 12 Mar 2023 | ₹25.4t | ₹18.2t | ₹636.6b | 21.9x | 40x | 1.4x |
| Tue, 07 Feb 2023 | ₹26.1t | ₹17.7t | ₹654.7b | 22.6x | 39.9x | 1.5x |
| Thu, 05 Jan 2023 | ₹26.3t | ₹17.3t | ₹593.4b | 22.8x | 44.3x | 1.5x |
| Sat, 03 Dec 2022 | ₹27.5t | ₹17.3t | ₹594.8b | 23.4x | 46.2x | 1.6x |
| Mon, 31 Oct 2022 | ₹27.3t | ₹16.3t | ₹532.0b | 23.1x | 51.4x | 1.7x |
| Wed, 28 Sep 2022 | ₹26.5t | ₹16.1t | ₹528.7b | 22.2x | 50.1x | 1.6x |
| Fri, 26 Aug 2022 | ₹26.6t | ₹15.9t | ₹511.9b | 21.9x | 52.1x | 1.7x |
| Sun, 24 Jul 2022 | ₹25.8t | ₹15.0t | ₹421.5b | 23.8x | 61.2x | 1.7x |
| Tue, 21 Jun 2022 | ₹22.3t | ₹15.0t | ₹418.4b | 20.9x | 53.2x | 1.5x |
| Thu, 19 May 2022 | ₹23.8t | ₹14.9t | ₹422.0b | 21.7x | 56.4x | 1.6x |
| Sat, 16 Apr 2022 | ₹25.3t | ₹14.8t | ₹350.0b | 22.4x | 72.2x | 1.7x |
| Mon, 14 Mar 2022 | ₹23.4t | ₹14.8t | ₹349.8b | 20.6x | 66.9x | 1.6x |
| Wed, 09 Feb 2022 | ₹25.4t | ₹14.5t | ₹349.8b | 21.2x | 72.6x | 1.7x |
| Fri, 07 Jan 2022 | ₹26.3t | ₹14.4t | ₹386.5b | 31.5x | 68.2x | 1.8x |
| Sun, 05 Dec 2021 | ₹25.4t | ₹14.8t | ₹382.0b | 17.7x | 66.4x | 1.7x |
| Tue, 02 Nov 2021 | ₹23.9t | ₹14.3t | ₹360.6b | 20.5x | 66.3x | 1.7x |
| Thu, 30 Sep 2021 | ₹22.4t | ₹14.1t | ₹308.7b | 20.3x | 72.7x | 1.6x |
| Sat, 28 Aug 2021 | ₹20.4t | ₹14.3t | ₹337.8b | 19.2x | 60.4x | 1.4x |
| Sun, 04 Jul 2021 | ₹19.7t | ₹14.3t | ₹347.5b | 18.1x | 56.6x | 1.4x |
| Wed, 07 Apr 2021 | ₹17.4t | ₹12.8t | ₹166.6b | 20.7x | 104.7x | 1.4x |
| Sat, 09 Jan 2021 | ₹16.0t | ₹12.1t | -₹13,987,757,358.00 | 21.8x | -1147.2x | 1.3x |
Price to Earnings Ratio
-211.6x
Current Industry PE
- Investors are optimistic on the Indian Consumer Discretionary industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 38.5x which is higher than its 3-year average PE of -47.1x.
- The 3-year average PS ratio of 1.6x is lower than the industry's current PS ratio of 1.8x.
Past Earnings Growth
- Total earnings for the Consumer Discretionary industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 20% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Indian Consumer Discretionary sector?
| IN Market | 1.96% | |
| Consumer Discretionary | 1.91% | |
| Leisure | 5.71% | |
| Retail Distributors | 4.19% | |
| Auto | 3.36% | |
| Specialty Stores | 2.89% | |
| Hospitality | 1.89% | |
| Auto Components | 0.87% | |
| General Merchandise and Department Stores | 0.85% | |
| Luxury | 0.80% | |
| Consumer Durables | 0.24% | |
| Online Retail and Ecommerce | 0% | |
| Consumer Services | -0.082% | |
Industry PE
- Investors are most optimistic about the Leisure industry which is trading above its 3-year average PE ratio.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the General Merchandise and Department Stores industry, expecting annual earnings growth of 60% over the next 5 years.
- This is better than its past earnings decline of 9.1% per year.
- In contrast, the Auto industry is expected to see its earnings grow by 15% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| M&M Mahindra & Mahindra | ₹1.65k | 6.6% +₹113.5b | 27.4% | PE16.4x | |
| 500570 Tata Motors | ₹706.25 | 3.9% +₹101.1b | 61.1% | PE17.6x | |
| 500114 Titan | ₹3.49k | 2.5% +₹75.4b | 32.3% | PE93.9x | |
| 500182 Hero MotoCorp | ₹3.82k | 7.0% +₹50.0b | 33.1% | PE23.5x | |
| ZOMATO Zomato | ₹118.55 | 5.0% +₹47.7b | 77.9% | PS10.9x |
