SBI Life Insurance (NSE:SBILIFE) Ticks All The Boxes When It Comes To Earnings Growth
Sep 26
Indian (NIFTY) Financials Sector Analysis
UpdatedSep 26, 2023
DataAggregated Company Financials
Companies612
- 7D-1.7%
- 3M7.4%
- 1Y22.5%
- YTD9.7%
Over the last 7 days, the Financials industry has dropped 1.7%, driven by HDFC Bank declining 6.0%. Over the past 12 months, the industry was up 22%. As for the next few years, earnings are expected to grow by 12% per annum.
Sector Valuation and Performance
Has the Indian Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 26 Sep 2023 | ₹82.1t | ₹28.5t | ₹5.0t | 21.9x | 16.4x | 2.9x |
| Thu, 24 Aug 2023 | ₹79.4t | ₹28.5t | ₹5.0t | 20x | 15.8x | 2.8x |
| Sat, 22 Jul 2023 | ₹78.3t | ₹27.0t | ₹4.7t | 23.6x | 16.7x | 2.9x |
| Mon, 19 Jun 2023 | ₹70.6t | ₹26.6t | ₹4.6t | 21.8x | 15.3x | 2.7x |
| Wed, 17 May 2023 | ₹68.9t | ₹26.4t | ₹4.4t | 20.1x | 15.6x | 2.6x |
| Fri, 14 Apr 2023 | ₹65.4t | ₹25.5t | ₹4.3t | 19.6x | 15.2x | 2.6x |
| Sun, 12 Mar 2023 | ₹63.5t | ₹25.4t | ₹4.3t | 19.4x | 14.7x | 2.5x |
| Tue, 07 Feb 2023 | ₹64.9t | ₹24.9t | ₹4.0t | 20.7x | 16.2x | 2.6x |
| Thu, 05 Jan 2023 | ₹69.0t | ₹24.2t | ₹3.8t | 22.1x | 18.2x | 2.9x |
| Sat, 03 Dec 2022 | ₹68.0t | ₹24.2t | ₹3.8t | 20x | 17.9x | 2.8x |
| Mon, 31 Oct 2022 | ₹63.7t | ₹23.6t | ₹3.6t | 20.5x | 17.9x | 2.7x |
| Wed, 28 Sep 2022 | ₹61.3t | ₹23.3t | ₹3.4t | 19.9x | 18.1x | 2.6x |
| Fri, 26 Aug 2022 | ₹62.9t | ₹23.3t | ₹3.4t | 20.4x | 18.7x | 2.7x |
| Sun, 24 Jul 2022 | ₹59.1t | ₹23.0t | ₹3.1t | 18.9x | 18.9x | 2.6x |
| Tue, 21 Jun 2022 | ₹53.2t | ₹23.2t | ₹3.1t | 17.9x | 17.3x | 2.3x |
| Thu, 19 May 2022 | ₹57.6t | ₹23.2t | ₹3.0t | 18.4x | 19.2x | 2.5x |
| Sat, 16 Apr 2022 | ₹58.2t | ₹15.8t | ₹2.7t | 19.7x | 21.9x | 3.7x |
| Mon, 14 Mar 2022 | ₹53.7t | ₹15.8t | ₹2.7t | 17.4x | 20.2x | 3.4x |
| Wed, 09 Feb 2022 | ₹58.6t | ₹15.7t | ₹2.6t | 18.5x | 22.4x | 3.7x |
| Fri, 07 Jan 2022 | ₹59.7t | ₹15.6t | ₹2.4t | 26.1x | 24.8x | 3.8x |
| Sun, 05 Dec 2021 | ₹57.9t | ₹15.6t | ₹2.4t | 17x | 24x | 3.7x |
| Tue, 02 Nov 2021 | ₹61.2t | ₹15.2t | ₹1.8t | 17.9x | 33.3x | 4x |
| Thu, 30 Sep 2021 | ₹59.0t | ₹14.7t | ₹2.3t | 18.4x | 25.9x | 4x |
| Sat, 28 Aug 2021 | ₹56.1t | ₹14.7t | ₹2.3t | 16.8x | 24.5x | 3.8x |
| Sun, 04 Jul 2021 | ₹53.8t | ₹14.7t | ₹2.3t | 15.1x | 23.6x | 3.7x |
| Wed, 07 Apr 2021 | ₹49.4t | ₹14.2t | ₹2.2t | 14.4x | 22.7x | 3.5x |
| Sat, 09 Jan 2021 | ₹46.3t | ₹12.4t | ₹1.7t | 13.9x | 27x | 3.7x |
| Fri, 02 Oct 2020 | ₹33.2t | ₹11.5t | ₹1.6t | 14x | 21.3x | 2.9x |
Price to Earnings Ratio
21.3x
Current Industry PE
- Investors are pessimistic on the Indian Financials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 16.4x which is lower than its 3-year average PE of 20.8x.
- The industry is trading close to its 3-year average PS ratio of 3.2x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 48% per year over the last three years.
- Revenues for these companies have grown 35% 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 Market | -1.59% | |
| Financials | -1.66% | |
| Consumer Finance | 1.08% | |
| Diversified Financial | 0.50% | |
| Capital Markets | 0.37% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Banks | -2.81% | |
| Insurance | -3.48% | |
Industry PE
- Investors are most optimistic about the Consumer Finance industry even though it's trading below its 3-year average PE ratio of 32.5x.
- Analysts are expecting annual earnings growth of 19.6%, which is lower than the prior year's growth of 39.5% per year.
- Investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 19.9x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 20% over the next 5 years.
- However this is lower than its past earnings growth rate of 39% per year.
- In contrast, the Diversified Financial industry is expected to see its earnings grow by 6.5% 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 | |
|---|---|---|---|---|---|
| BAJFINANCE Bajaj Finance | ₹7.82k | 3.6% +₹164.1b | 8.0% | PE38.3x | |
| RECLTD REC | ₹270.45 | 8.0% +₹52.7b | 179.2% | PE6.1x | |
| PNB Punjab National Bank | ₹80.20 | 4.3% +₹36.3b | 118.5% | PB0.8x | |
| SUNDARMFIN Sundaram Finance | ₹3.15k | 9.3% +₹29.7b | 43.1% | PE24.2x | |
| BAJAJFINSV Bajaj Finserv | ₹1.58k | 1.1% +₹27.8b | -6.1% | PE35.7x |
