Indian (NIFTY) Consumer Staples Sector Analysis

Sector Valuation and Performance

Has the Indian Consumer Staples 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 17.6x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Consumer Staples industry have grown 12% per year over the last three years, and revenues for these companies have grown 8.9% 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 Staples sector?

Industry PE: Investors are most optimistic about the Household Products industry which is trading above its 3-year average PE ratio of 30.6x. This is likely because analysts are expecting annual earnings growth of 15%, which is higher than its past year's earnings decline of 8.2% per year. Meanwhile, investors are most pessimistic about the Food and Staples Retail industry, which is trading below its 3-year average of 22.0x.

Forecasted Growth: Analysts are most optimistic on the Food and Staples Retail industry, expecting annual earnings growth of 36% over the next 5 years. However this is lower than its past earnings growth rate of 82% per year. Meanwhile, the Tobacco industry is expected to see its earnings grow by 11% per year over the next few years.

Top Stock Gainers and Losers

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