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Indian (NIFTY) Financials Sector Analysis

UpdatedJan 08, 2026
DataAggregated Company Financials
Companies633
  • 7D1.1%
  • 3M4.4%
  • 1Y16.3%
  • YTD0.9%

The Financials industry is up 1.1% in the last week, with ICICI Bank up 6.3%. In the last 12 months, the industry was up 16%. 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
Thu, 08 Jan 2026₹120.0t₹35.2t₹6.6t24.4x18.2x3.4x
Sat, 06 Dec 2025₹117.3t₹35.1t₹6.6t22.8x17.8x3.3x
Mon, 03 Nov 2025₹114.7t₹34.7t₹6.5t24.7x17.6x3.3x
Wed, 01 Oct 2025₹108.0t₹35.0t₹6.4t23.7x16.8x3.1x
Fri, 29 Aug 2025₹104.7t₹35.1t₹6.4t22.4x16.3x3x
Sun, 27 Jul 2025₹108.5t₹34.6t₹6.5t25.3x16.8x3.1x
Tue, 24 Jun 2025₹107.3t₹34.2t₹6.4t24.3x16.9x3.1x
Thu, 22 May 2025₹105.0t₹34.5t₹6.4t20.8x16.5x3x
Sat, 19 Apr 2025₹101.8t₹33.9t₹6.3t20.2x16.2x3x
Mon, 17 Mar 2025₹91.1t₹34.0t₹6.3t18.9x14.5x2.7x
Wed, 12 Feb 2025₹93.4t₹34.0t₹6.3t20.9x14.8x2.7x
Fri, 10 Jan 2025₹96.4t₹34.4t₹6.1t23.3x15.8x2.8x
Sun, 08 Dec 2024₹104.1t₹34.4t₹6.1t23.7x17.1x3x
Tue, 05 Nov 2024₹99.9t₹34.0t₹6.0t23.7x16.5x2.9x
Thu, 03 Oct 2024₹104.6t₹33.2t₹5.9t23.4x17.8x3.1x
Sat, 31 Aug 2024₹101.9t₹33.1t₹5.9t23.4x17.4x3.1x
Mon, 29 Jul 2024₹101.5t₹37.2t₹8.4t23.8x12.1x2.7x
Wed, 26 Jun 2024₹99.3t₹32.0t₹5.6t22.4x17.8x3.1x
Fri, 24 May 2024₹95.3t₹31.2t₹5.5t20.6x17.2x3.1x
Sun, 21 Apr 2024₹91.3t₹29.8t₹5.2t21.7x17.7x3.1x
Tue, 19 Mar 2024₹87.7t₹29.7t₹5.2t20.1x17x3x
Thu, 15 Feb 2024₹89.9t₹29.7t₹5.2t23.2x17.4x3x
Sat, 13 Jan 2024₹92.1t₹29.3t₹5.3t22.4x17.4x3.1x
Mon, 11 Dec 2023₹88.7t₹29.3t₹5.3t20.8x16.8x3x
Wed, 08 Nov 2023₹81.4t₹29.4t₹5.3t20.9x15.3x2.8x
Fri, 06 Oct 2023₹82.6t₹28.5t₹5.0t22.4x16.4x2.9x
Sun, 03 Sep 2023₹79.7t₹28.5t₹5.0t20.2x15.9x2.8x
Tue, 01 Aug 2023₹78.4t₹27.9t₹4.8t21.6x16.4x2.8x
Thu, 29 Jun 2023₹71.6t₹26.6t₹4.6t21.5x15.5x2.7x
Sat, 27 May 2023₹69.3t₹27.0t₹4.6t20x15.2x2.6x
Mon, 24 Apr 2023₹65.5t₹25.7t₹4.4t18.9x15x2.6x
Wed, 22 Mar 2023₹62.1t₹25.4t₹4.3t18.3x14.4x2.4x
Fri, 17 Feb 2023₹65.5t₹25.4t₹4.3t19.8x15.2x2.6x
Sun, 15 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 Market0.84%
Financials1.08%
Diversified Financial1.94%
Capital Markets1.56%
Banks1.06%
Consumer Finance0.58%
Insurance0.30%
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 23.5x.
    • 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₹1.44k7.2%
+₹693.8b		13.7%PB3.1x
SBIN State Bank of India₹998.001.3%
+₹122.3b		31.2%PB1.6x
UNIONBANK Union Bank of India₹161.465.1%
+₹60.2b		49.4%PB1x
TATACAP Tata Capital₹354.504.1%
+₹59.2b		n/aPE35.5x
PIRAMALFIN Piramal Finance₹1.87k13.4%
+₹50.1b		n/aPE167.7x

Latest News

532215
₹1,286.85
Axis Bank
7D
1.0%
1Y
21.2%
BAJAJFINSV
₹2,008.90
Bajaj Finserv
7D
-1.4%
1Y
18.8%
M&MFIN
₹355.05
Mahindra & Mahindra Financial Services
7D
-12.1%
1Y
26.9%

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).
POLICYBZR
₹1,693.90
PB Fintech
7D
-6.2%
1Y
-11.8%

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.
CANBK
₹150.46
Canara Bank
7D
-2.5%
1Y
57.2%

CANBK: Interim CEO Appointment And Q2 Results Will Guide Balanced Outlook

Analysts have nudged their price target for Canara Bank higher, with fair value moving from ₹147.92 to ₹148.55. This reflects refreshed assumptions around discount rate, revenue growth, profit margin, and future P/E based on updated expectations.
LICI
₹837.80
Life Insurance Corporation of India
7D
-1.8%
1Y
-0.6%
TATACAP
₹354.50
Tata Capital
7D
4.1%
1Y
n/a
511218
₹992.80
Shriram Finance
7D
-2.6%
1Y
76.5%

511218: Leadership Shift And New Equity Placement Will Guide Balanced Outlook Through 2025

Analysts have raised their price target on Shriram Finance from ₹840.73 to ₹1,042.93, citing expectations of stronger revenue growth, higher profit margins, and a modestly richer future valuation multiple. What's in the News Board approves definitive agreement for a large private placement of 471,121,055 equity shares at INR 840.93 per share, with MUFG Bank Ltd.
ICICIAMC
₹2,718.40
ICICI Prudential Asset Management
7D
3.3%
1Y
n/a
SBILIFE
₹2,082.90
SBI Life Insurance
7D
2.1%
1Y
41.8%

SBILIFE: Future Earnings Multiple Compression Will Likely Pressure Share Performance

Analysts have raised their price target on SBI Life Insurance from ₹1,511.60 to ₹1,620.56, citing expectations of stronger revenue growth, improving profit margins, and a more reasonable future earnings multiple despite a slightly higher discount rate. What's in the News Board meeting scheduled for October 24, 2025, at 11:30 IST to review and approve audited financial results for the quarter and half year ended September 30, 2025 (company filing).
500247
₹2,132.95
Kotak Mahindra Bank
7D
-3.8%
1Y
19.2%

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
₹946.70
HDFC Bank
7D
-4.5%
1Y
13.5%
ICICIBANK
₹1,435.00
ICICI Bank
7D
7.2%
1Y
13.7%
PIRAMALFIN
₹1,866.00
Piramal Finance
7D
13.4%
1Y
n/a
SBIN
₹998.00
State Bank of India
7D
1.3%
1Y
31.2%

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
₹161.46
Union Bank of India
7D
5.1%
1Y
49.4%

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.