Indian (NIFTY) Auto Components Industry Analysis

Industry Valuation and Performance

Has the Indian Auto Components Industry 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 20.7x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Auto Components industry have remained mostly flat over the last three years, while revenues for these companies have grown 5.7% per year.This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the Indian Auto Components industry?

Industry PE: Investors are most optimistic about the Auto Parts and Equipment industry, which is trading close to its 3-year average PE ratio of 21.0x. However analysts are expecting annual earnings growth of 31%, which is lower than the prior year's growth of 143% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Tires and Rubber industry, which is trading below its 3-year average of 19.1x.

Forecasted Growth: Analysts are most optimistic on the Auto Parts and Equipment industry, expecting annual earnings growth of 31% over the next 5 years. However this is lower than its past earnings growth rate of 143% per year. Meanwhile, the Tires and Rubber 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?