Should You Think About Buying Bajaj Auto Limited (NSE:BAJAJ-AUTO) Now?
Nov 18
Indian (NIFTY) Consumer Discretionary Sector Analysis
UpdatedDec 01, 2022
DataAggregated Company Financials
Companies736
- 7D2.8%
- 3M0.3%
- 1Y3.8%
- YTD1.5%
Over the last 7 days, the Consumer Discretionary industry has risen 2.8%, driven by gains from Mahindra & Mahindra of 5.7%. In the same time, Easy Trip Planners was down 6.4%. This means that the industry has gained 3.8% over the past year. As for the next few years, earnings are expected to grow by 34% per annum.
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 |
|---|---|---|---|---|---|---|
| Thu, 01 Dec 2022 | ₹27.5t | ₹17.3t | ₹590.3b | 23.4x | 46.5x | 1.6x |
| Sat, 29 Oct 2022 | ₹27.3t | ₹16.3t | ₹534.2b | 23.3x | 51.2x | 1.7x |
| Mon, 26 Sep 2022 | ₹27.4t | ₹16.1t | ₹528.7b | 23x | 51.8x | 1.7x |
| Wed, 24 Aug 2022 | ₹26.6t | ₹15.9t | ₹511.9b | 21.4x | 52x | 1.7x |
| Fri, 22 Jul 2022 | ₹25.7t | ₹15.0t | ₹420.4b | 24.1x | 61x | 1.7x |
| Sun, 19 Jun 2022 | ₹22.5t | ₹15.0t | ₹418.4b | 21.3x | 53.7x | 1.5x |
| Tue, 17 May 2022 | ₹23.1t | ₹14.9t | ₹419.1b | 21x | 55.2x | 1.6x |
| Thu, 14 Apr 2022 | ₹25.3t | ₹14.8t | ₹350.0b | 22.4x | 72.2x | 1.7x |
| Sat, 12 Mar 2022 | ₹23.4t | ₹14.8t | ₹349.8b | 20.6x | 66.9x | 1.6x |
| Mon, 07 Feb 2022 | ₹25.9t | ₹14.5t | ₹348.9b | 21.7x | 74.1x | 1.8x |
| Wed, 05 Jan 2022 | ₹29.3t | ₹14.4t | ₹386.5b | 21.3x | 75.9x | 2x |
| Fri, 03 Dec 2021 | ₹25.6t | ₹14.8t | ₹382.0b | 17.8x | 66.9x | 1.7x |
| Sun, 31 Oct 2021 | ₹23.6t | ₹14.3t | ₹360.3b | 20.3x | 65.5x | 1.6x |
| Tue, 28 Sep 2021 | ₹22.6t | ₹14.1t | ₹308.7b | 20.3x | 73.2x | 1.6x |
| Thu, 26 Aug 2021 | ₹20.4t | ₹14.3t | ₹337.8b | 19.5x | 60.3x | 1.4x |
| Fri, 02 Jul 2021 | ₹19.7t | ₹14.3t | ₹347.5b | 18.1x | 56.6x | 1.4x |
| Mon, 05 Apr 2021 | ₹17.4t | ₹12.8t | ₹166.6b | 20.7x | 104.7x | 1.4x |
| Thu, 07 Jan 2021 | ₹16.0t | ₹12.1t | -₹13,987,757,358.00 | 21.8x | -1147.2x | 1.3x |
| Wed, 30 Sep 2020 | ₹13.4t | ₹11.8t | -₹70,403,118,407.00 | 21.3x | -190x | 1.1x |
| Sat, 04 Jul 2020 | ₹11.5t | ₹11.8t | -₹32,906,373,333.00 | 22.1x | -349.9x | 1x |
| Tue, 07 Apr 2020 | ₹9.0t | ₹13.2t | ₹263.7b | 13.9x | 34.2x | 0.7x |
| Fri, 10 Jan 2020 | ₹14.3t | ₹14.0t | ₹423.6b | 16.2x | 33.7x | 1x |
Price to Earnings Ratio
86x
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 46.5x which is higher than its 3-year average PE of -104x.
- The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have grown 53% per year over the last three years.
- Revenues for these companies have grown 6.9% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Indian Consumer Discretionary sector?
| IN Market | 2.49% | |
| Consumer Discretionary | 2.77% | |
| Specialty Stores | 3.73% | |
| Auto Components | 3.69% | |
| Consumer Services | 3.25% | |
| Online Retail and Ecommerce | 3.01% | |
| Auto | 2.90% | |
| Luxury | 2.58% | |
| Hospitality | 2.03% | |
| Retail Distributors | 1.69% | |
| General Merchanise and Department Stores | 0.99% | |
| Consumer Durables | -0.0058% | |
| Leisure | -2.23% | |
Industry PE
- Investors are most optimistic about the General Merchanise and Department Stores 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 Online Retail and Ecommerce industry, expecting annual earnings growth of 83% over the next 5 years.
- This is better than its past earnings decline of 22% per year.
- In contrast, the Luxury industry is expected to see its earnings grow by 19% 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 | ₹1.31k | 5.7% +₹77.7b | 56.4% | PE15.8x | |
| 500570 Tata Motors | ₹439.35 | 3.6% +₹58.2b | -7.6% | PS0.6x | |
| 500114 Titan | ₹2.65k | 1.8% +₹41.6b | 12.3% | PE75.2x | |
| BAJAJ-AUTO Bajaj Auto | ₹3.75k | 4.0% +₹40.4b | 15.4% | PE18.2x | |
| 500182 Hero MotoCorp | ₹2.85k | 7.3% +₹38.7b | 16.6% | PE22x |