Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Indian (NIFTY) Financials Sector Analysis

UpdatedJan 07, 2026
DataAggregated Company Financials
Companies633
  • 7D2.2%
  • 3M5.1%
  • 1Y15.7%
  • YTD1.2%

ICICI Bank is up 5.1%, leading the way for the Financials industry, which has gained 2.2%. In the last 12 months, the industry was up 16%. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

Has the Indian Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 07 Jan 2026₹120.3t₹35.2t₹6.6t24.1x18.2x3.4x
Fri, 05 Dec 2025₹116.3t₹35.1t₹6.6t23.2x17.7x3.3x
Sun, 02 Nov 2025₹114.7t₹34.7t₹6.5t24.6x17.6x3.3x
Tue, 30 Sep 2025₹107.5t₹35.0t₹6.4t24.1x16.7x3.1x
Thu, 28 Aug 2025₹106.0t₹35.1t₹6.4t22.5x16.5x3x
Sat, 26 Jul 2025₹108.5t₹34.6t₹6.4t25.3x16.9x3.1x
Mon, 23 Jun 2025₹107.2t₹34.2t₹6.4t24.8x16.8x3.1x
Wed, 21 May 2025₹104.2t₹34.5t₹6.4t20.8x16.3x3x
Fri, 18 Apr 2025₹101.8t₹34.0t₹6.3t20.2x16.2x3x
Sun, 16 Mar 2025₹91.1t₹34.0t₹6.3t18.9x14.5x2.7x
Tue, 11 Feb 2025₹95.3t₹34.1t₹6.3t21.5x15.1x2.8x
Thu, 09 Jan 2025₹97.6t₹34.4t₹6.1t23.4x16x2.8x
Sat, 07 Dec 2024₹104.1t₹34.4t₹6.1t23.7x17.1x3x
Mon, 04 Nov 2024₹101.2t₹34.0t₹6.0t24x16.7x3x
Wed, 02 Oct 2024₹104.6t₹33.2t₹5.9t23.4x17.8x3.1x
Fri, 30 Aug 2024₹101.6t₹33.1t₹5.9t23.6x17.3x3.1x
Sun, 28 Jul 2024₹101.5t₹37.0t₹8.4t23.8x12.1x2.7x
Tue, 25 Jun 2024₹98.5t₹32.0t₹5.6t22.7x17.7x3.1x
Thu, 23 May 2024₹94.1t₹31.2t₹5.5t21.2x17x3x
Sat, 20 Apr 2024₹90.8t₹29.7t₹5.2t21.7x17.6x3.1x
Mon, 18 Mar 2024₹87.9t₹29.7t₹5.2t20.7x17x3x
Wed, 14 Feb 2024₹88.4t₹29.6t₹5.1t23.5x17.3x3x
Fri, 12 Jan 2024₹91.1t₹29.3t₹5.3t22.4x17.2x3.1x
Sun, 10 Dec 2023₹88.7t₹29.3t₹5.3t20.8x16.8x3x
Tue, 07 Nov 2023₹81.2t₹29.4t₹5.3t21.1x15.3x2.8x
Thu, 05 Oct 2023₹82.6t₹28.5t₹5.0t22.1x16.4x2.9x
Sat, 02 Sep 2023₹79.7t₹28.5t₹5.0t20.2x15.9x2.8x
Mon, 31 Jul 2023₹78.0t₹27.9t₹4.8t21.5x16.3x2.8x
Wed, 28 Jun 2023₹71.6t₹26.6t₹4.6t21.6x15.5x2.7x
Fri, 26 May 2023₹68.7t₹26.9t₹4.6t19.8x15.1x2.6x
Sun, 23 Apr 2023₹65.5t₹25.5t₹4.3t19x15.1x2.6x
Tue, 21 Mar 2023₹61.3t₹25.4t₹4.3t18.3x14.2x2.4x
Thu, 16 Feb 2023₹65.6t₹25.4t₹4.3t20.2x15.2x2.6x
Sat, 14 Jan 2023₹67.7t₹24.1t₹3.8t21.7x17.8x2.8x
Price to Earnings Ratio

17.8x


Total Market Cap: ₹67.7tTotal Earnings: ₹3.8tTotal Revenue: ₹24.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Financials Sector Price to Earnings3Y Average 16.5x202420252026
Current Industry PE
  • Investors are optimistic on the Indian Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 18.2x which is higher than its 3-year average PE of 16.5x.
  • The 3-year average PS ratio of 3.0x is lower than the industry's current PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 20% per year over the last three years.
  • Revenues for these companies have grown 13% 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 Financials sector?

IN Market1.67%
Financials2.15%
Diversified Financial3.19%
Banks2.16%
Consumer Finance1.83%
Capital Markets1.76%
Insurance1.57%
Mortgage Finance0%0
Industry PE
  • Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 23.4x.
    • Analysts are expecting annual earnings growth of 18.6%, which is higher than its past year's earnings decline of 4.2% per year.
  • Investors are most pessimistic about the Banks industry, which is trading close to its 3-year average of 14.2x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings growth rate of 13% per year.
  • In contrast, the Banks industry is expected to see its earnings grow by 12% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
ICICIBANK ICICI Bank₹1.43k6.3%
+₹606.6b		13.0%PB3x
SBIN State Bank of India₹1.01k2.5%
+₹230.3b		30.6%PB1.6x
UNIONBANK Union Bank of India₹166.338.2%
+₹96.0b		49.7%PB1x
532215 Axis Bank₹1.30k2.1%
+₹84.3b		20.5%PB2x
TATACAP Tata Capital₹360.605.5%
+₹79.1b		n/aPE36.1x

Latest News

BAJFINANCE
₹968.80
Bajaj Finance
7D
-1.8%
1Y
31.7%
M&MFIN
₹360.00
Mahindra & Mahindra Financial Services
7D
-10.7%
1Y
29.1%

M&MFIN: Joint Venture Plans And Board Changes Will Mask Overvaluation

Analysts have raised their price target for Mahindra & Mahindra Financial Services to ₹335.78 from ₹325.31, reflecting updated assumptions around discount rates, revenue growth, profit margins and future P/E multiples in their models. What's in the News A board meeting is scheduled on January 28, 2026 to consider and approve unaudited standalone and consolidated financial results for the third quarter and nine months ended December 31, 2025, subject to limited review by the joint statutory auditors (company filing).
FEDERALBNK
₹258.55
Federal Bank
7D
-3.2%
1Y
32.3%

FEDERALBNK: Future Returns Will Depend On Capital Actions And M&A Execution

Analysts have slightly increased their price target for Federal Bank, revising fair value from ₹248.38 to ₹251.71 as they incorporate somewhat higher assumptions for revenue growth, profit margins and future P/E multiples in their updated models. Analyst Commentary Bullish and cautious voices around Federal Bank often focus on similar themes, such as earnings visibility, valuation support and execution on growth plans.
POLICYBZR
₹1,719.50
PB Fintech
7D
-5.8%
1Y
-14.1%

POLICYBZR: Rich P/E Assumptions Will Likely Restrain Future Upside Potential

Analysts now put PB Fintech's price target at ₹1,408, up from ₹1,370. This reflects updated views on slightly higher profit margins, a different revenue growth profile, and a lower assumed future P/E multiple.
LICI
₹851.95
Life Insurance Corporation of India
7D
-0.3%
1Y
-2.0%
TATACAP
₹360.60
Tata Capital
7D
5.5%
1Y
n/a
511243
₹1,785.75
Cholamandalam Investment and Finance
7D
4.9%
1Y
40.0%

511243: Board Results Review And Stable Assumptions Will Shape Forward Outlook

Analysts have nudged their fair value estimate for Cholamandalam Investment and Finance to ₹1,754 from ₹1,747, reflecting small model updates to the discount rate, revenue growth, profit margin and future P/E assumptions. What's in the News Board meeting scheduled for January 30, 2026, to review and approve the unaudited standalone financial results for the quarter ended December 31, 2025 (Key Developments).
RECLTD
₹385.25
REC
7D
8.0%
1Y
-23.5%
532215
₹1,295.85
Axis Bank
7D
2.1%
1Y
20.5%

532215: Leadership Changes And Asset Resolution Will Drive Positive Medium Term Outlook

Analysts have nudged their price target for Axis Bank slightly higher to approximately ₹1,378 from about ₹1,377, citing marginal improvements in long term fair value estimates, discount rate assumptions, and future earnings multiples that together support a modestly stronger valuation outlook. What's in the News Axis Bank has called a special or extraordinary shareholders meeting via postal ballot in India on January 18, 2026 to seek investor approvals on key resolutions (company filing).
HDFCAMC
₹2,624.60
HDFC Asset Management
7D
-1.8%
1Y
29.2%

Here's Why HDFC Asset Management (NSE:HDFCAMC) Has Caught The Eye Of Investors

Dec 27
Here's Why HDFC Asset Management (NSE:HDFCAMC) Has Caught The Eye Of Investors
PFC
₹376.95
Power Finance
7D
6.1%
1Y
-13.3%

PFC: Future Dividends Will Drive Returns As Core Profile Stays Resilient

Narrative Update on Power Finance Analysts have modestly refined their outlook on Power Finance, keeping the fair value estimate steady around $492 per share while making only fractional adjustments to the discount rate and earnings assumptions. These changes reflect a largely unchanged long term risk and growth profile.
500247
₹2,143.35
Kotak Mahindra Bank
7D
-2.6%
1Y
21.2%

500247: Profit Margin Strength And Share Split Will Support Future Upside

Analysts have inched up their price target for Kotak Mahindra Bank by about ₹6 to approximately ₹2,408. This reflects slightly improved expectations for profit margins and earnings multiples, despite only marginal tweaks to growth and discount rate assumptions.
HDFCBANK
₹949.05
HDFC Bank
7D
-4.3%
1Y
12.0%
ICICIBANK
₹1,427.70
ICICI Bank
7D
6.3%
1Y
13.0%
SBIN
₹1,007.15
State Bank of India
7D
2.5%
1Y
30.6%

SBIN: Subsidiary Stake Sale And Audit Changes Will Shape Future Earnings Profile

Analysts have nudged their price target on State Bank of India slightly higher to ₹1,077.36 from ₹1,076.59, citing marginal improvements in long term profit margin assumptions and a modestly lower discount rate that together support a slightly richer future earnings multiple. What's in the News State Bank of India received regulatory approval to appoint 10 Chartered Accountant firms as Statutory Central Auditors for FY 2025-26, including 8 continuing and 2 newly appointed firms, reinforcing audit oversight for the bank.
UNIONBANK
₹166.33
Union Bank of India
7D
8.2%
1Y
49.7%

UNIONBANK: Board Meeting And New CEO Will Shape Measured Outlook

Analysts have modestly raised their price target on Union Bank of India from ₹158.86 to ₹160.80, reflecting slightly lower discount rate assumptions, largely unchanged growth and margin forecasts, and a marginally higher expected future P E multiple. What's in the News Upcoming board meeting scheduled for October 30, 2025 at 10:30 IST to review unaudited standalone and consolidated financial results for the quarter ended September 30, 2025, and consider other matters (Key Developments) Government appoints Shri Asheesh Pandey, former Executive Director at Bank of Maharashtra and ex Chief General Manager at Union Bank of India, as Chief Executive Officer for a three year term effective September 30, 2025 (Key Developments) New CEO brings over 27 years of diversified banking experience in credit, treasury, foreign operations, digital transformation, and large scale integration projects, including the amalgamation of e Andhra Bank and e Corporation Bank with Union Bank of India (Key Developments) Leadership transition underscores continued strategic focus on digital banking, automation, and cyber security, supported by Pandey’s advanced management and digital marketing credentials from leading institutes including IIM Bangalore and IIM Rohtak (Key Developments) Valuation Changes Fair Value Estimate has risen slightly from ₹158.86 to ₹160.80, implying a modest upward revision in the bank’s intrinsic value.