Narrative Update • Jul 26
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Indian (NIFTY) Auto Industry Analysis
UpdatedAug 05, 2026
DataAggregated Company Financials
Companies19
- 7D5.0%
- 3M9.1%
- 1Y13.3%
- YTD-0.5%
In the last week, the Auto industry is up 5.0%, with Mahindra & Mahindra up 7.3%. In the same time, Zelio E-Mobility was down 7.1%. In the last 12 months, the industry was up 13%. As for the next few years, earnings are expected to grow by 16% per annum.
Industry Valuation and Performance
Has the Indian Auto Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 05 Aug 2026 | ₹20.7t | ₹10.3t | ₹607.1b | 31.1x | 34.1x | 2x |
| Fri, 03 Jul 2026 | ₹19.1t | ₹9.9t | ₹583.5b | 29.2x | 32.6x | 1.9x |
| Sun, 31 May 2026 | ₹18.6t | ₹9.9t | ₹583.6b | 27.2x | 31.9x | 1.9x |
| Tue, 28 Apr 2026 | ₹18.3t | ₹10.2t | ₹598.9b | 29.6x | 30.6x | 1.8x |
| Thu, 26 Mar 2026 | ₹17.8t | ₹10.2t | ₹598.9b | 26.8x | 29.7x | 1.7x |
| Sat, 21 Feb 2026 | ₹20.0t | ₹10.2t | ₹598.9b | 30.9x | 33.4x | 2x |
| Mon, 19 Jan 2026 | ₹20.2t | ₹10.1t | ₹643.2b | 32.6x | 31.5x | 2x |
| Wed, 17 Dec 2025 | ₹20.1t | ₹10.1t | ₹643.1b | 32.2x | 31.3x | 2x |
| Fri, 14 Nov 2025 | ₹20.1t | ₹10.2t | ₹738.2b | 34.3x | 27.2x | 2x |
| Sun, 12 Oct 2025 | ₹21.1t | ₹10.0t | ₹717.8b | 35.2x | 29.4x | 2.1x |
| Tue, 09 Sep 2025 | ₹21.5t | ₹10.0t | ₹717.7b | 34.7x | 29.9x | 2.2x |
| Thu, 07 Aug 2025 | ₹18.2t | ₹10.0t | ₹725.6b | 30.8x | 25.1x | 1.8x |
| Sat, 05 Jul 2025 | ₹18.2t | ₹9.9t | ₹716.6b | 29.7x | 25.4x | 1.8x |
| Mon, 02 Jun 2025 | ₹17.8t | ₹9.9t | ₹716.5b | 31.9x | 24.8x | 1.8x |
| Wed, 30 Apr 2025 | ₹16.9t | ₹9.8t | ₹809.5b | 28.1x | 20.9x | 1.7x |
| Fri, 28 Mar 2025 | ₹16.6t | ₹9.8t | ₹807.6b | 27.5x | 20.6x | 1.7x |
| Sun, 23 Feb 2025 | ₹16.7t | ₹9.8t | ₹807.6b | 28.6x | 20.7x | 1.7x |
| Tue, 21 Jan 2025 | ₹17.4t | ₹9.6t | ₹813.0b | 29.7x | 21.3x | 1.8x |
| Thu, 19 Dec 2024 | ₹17.4t | ₹9.6t | ₹813.0b | 28.7x | 21.4x | 1.8x |
| Sat, 16 Nov 2024 | ₹17.3t | ₹9.6t | ₹813.0b | 26.4x | 21.3x | 1.8x |
| Mon, 14 Oct 2024 | ₹18.8t | ₹8.8t | ₹759.1b | 31.3x | 24.8x | 2.1x |
| Wed, 11 Sep 2024 | ₹18.4t | ₹8.8t | ₹759.1b | 29.4x | 24.3x | 2.1x |
| Fri, 09 Aug 2024 | ₹17.2t | ₹8.8t | ₹754.6b | 29.4x | 22.8x | 1.9x |
| Sun, 07 Jul 2024 | ₹17.0t | ₹8.6t | ₹733.5b | 32.4x | 23.1x | 2x |
| Tue, 04 Jun 2024 | ₹16.4t | ₹8.6t | ₹733.5b | 32x | 22.3x | 1.9x |
| Thu, 02 May 2024 | ₹15.8t | ₹8.4t | ₹608.6b | 32.5x | 26x | 1.9x |
| Sat, 30 Mar 2024 | ₹15.4t | ₹8.3t | ₹592.3b | 33.5x | 26x | 1.9x |
| Mon, 26 Feb 2024 | ₹14.6t | ₹8.3t | ₹592.3b | 31x | 24.7x | 1.8x |
| Wed, 24 Jan 2024 | ₹12.7t | ₹7.9t | ₹530.0b | 28.5x | 23.9x | 1.6x |
| Fri, 22 Dec 2023 | ₹12.0t | ₹7.9t | ₹530.0b | 28.5x | 22.7x | 1.5x |
| Sun, 19 Nov 2023 | ₹11.6t | ₹7.8t | ₹513.5b | 31.2x | 22.7x | 1.5x |
| Tue, 17 Oct 2023 | ₹11.2t | ₹7.5t | ₹460.6b | 29.5x | 24.4x | 1.5x |
| Thu, 14 Sep 2023 | ₹10.9t | ₹7.5t | ₹462.6b | 30.4x | 23.5x | 1.4x |
| Sat, 12 Aug 2023 | ₹10.3t | ₹7.5t | ₹462.8b | 31.3x | 22.4x | 1.4x |
Price to Earnings Ratio
22.4x
Current Industry PE
- Investors are optimistic on the Indian Auto industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 34.1x which is higher than its 3-year average PE of 25.7x.
- The industry is trading close to its 3-year average PS ratio of 1.8x.
Past Earnings Growth
- The earnings for companies in the Auto industry have grown 9.5% per year over the last three years.
- Revenues for these companies have grown 11% 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 industry?
| IN Market | 2.19% | |
| Consumer Discretionary | 3.28% | |
| Auto | 5.02% | |
| Automobile Manufacturers | 5.09% | |
| Motorcycle Manufacturers | 4.93% | |
Industry PE
- Investors are most optimistic about the Motorcycle Manufacturers industry, which is trading close to its 3-year average PE ratio of 37.4x.
- Analysts are expecting annual earnings growth of 15.7%, which is lower than the prior year's growth of 19.3% per year.
- Investors are most pessimistic about the Automobile Manufacturers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 21.9x.
Forecasted Growth
- Analysts are most optimistic on the Automobile Manufacturers industry, expecting annual earnings growth of 17% over the next 5 years.
- This is better than its past earnings decline of 5.8% per year.
- In contrast, the Motorcycle Manufacturers industry is expected to see its earnings grow by 16% 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 | ₹3.46k | 7.3% +₹261.1b | 7.1% | PE20.9x | |
| HYUNDAI Hyundai Motor India | ₹2.22k | 11.3% +₹183.3b | 2.4% | PE36.4x | |
| 532343 TVS Motor | ₹4.42k | 8.5% +₹164.4b | 49.6% | PE61.2x | |
| BAJAJ-AUTO Bajaj Auto | ₹11.80k | 4.1% +₹127.0b | 44.3% | PE27.6x | |
| 500182 Hero MotoCorp | ₹5.66k | 10.0% +₹102.8b | 26.5% | PE19.7x |
