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Indian (NIFTY) Financials Sector Analysis

UpdatedNov 28, 2022
DataAggregated Company Financials
Companies589
  • 7D1.5%
  • 3M7.7%
  • 1Y8.0%
  • YTD4.2%

The Financials industry is up 1.5% in the last week, with HDFC Life Insurance up 10%. This means that the industry has gained 8.0% over the past year. As for the next few years, earnings are expected to grow by 16% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 28 Nov 2022₹67.3t₹24.2t₹3.8t20x17.7x2.8x
Wed, 26 Oct 2022₹63.6t₹23.6t₹3.5t20.6x18.1x2.7x
Fri, 23 Sep 2022₹64.7t₹23.3t₹3.4t20.9x19.2x2.8x
Sun, 21 Aug 2022₹63.0t₹23.3t₹3.4t20.1x18.7x2.7x
Tue, 19 Jul 2022₹56.6t₹23.1t₹3.1t18.8x18.4x2.4x
Thu, 16 Jun 2022₹54.7t₹23.2t₹3.1t18.1x17.8x2.4x
Sat, 14 May 2022₹50.4t₹16.0t₹2.9t17.8x17.6x3.1x
Mon, 11 Apr 2022₹59.0t₹15.8t₹2.7t19.6x22.2x3.7x
Wed, 09 Mar 2022₹50.8t₹15.8t₹2.7t16.9x19.1x3.2x
Fri, 04 Feb 2022₹60.2t₹15.5t₹2.5t18.9x23.7x3.9x
Sun, 02 Jan 2022₹56.8t₹15.6t₹2.4t19.6x23.6x3.6x
Tue, 30 Nov 2021₹56.9t₹15.6t₹2.4t16.7x23.5x3.7x
Thu, 28 Oct 2021₹62.6t₹15.0t₹2.3t18.5x26.7x4.2x
Sat, 25 Sep 2021₹59.5t₹14.7t₹2.3t18x26.1x4x
Mon, 23 Aug 2021₹54.6t₹14.7t₹2.3t16.6x23.9x3.7x
Sat, 10 Jul 2021₹53.8t₹14.7t₹2.3t15.1x23.6x3.7x
Fri, 02 Apr 2021₹49.4t₹14.2t₹2.2t14.4x22.7x3.5x
Mon, 04 Jan 2021₹46.3t₹12.4t₹1.7t13.9x27x3.7x
Thu, 08 Oct 2020₹33.2t₹11.5t₹1.6t14x21.3x2.9x
Wed, 01 Jul 2020₹31.9t₹10.8t₹1.5t14.1x21.6x2.9x
Sat, 04 Apr 2020₹27.1t₹10.5t₹1.5t14.9x18.4x2.6x
Tue, 07 Jan 2020₹43.1t₹11.4t₹1.6t14.7x27.4x3.8x
Price to Earnings Ratio

30.5x


Total Market Cap: ₹42.7tTotal Earnings: ₹1.4tTotal Revenue: ₹10.8tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Financials Sector Price to Earnings3Y Average 22.9x202020212022
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 17.7x which is lower than its 3-year average PE of 22.9x.
  • The 3-year average PS ratio of 3.3x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 39% per year over the last three years.
  • Revenues for these companies have grown 31% 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 Market0.87%
Financials1.48%
Mortgage Finance3.03%
Capital Markets1.88%
Banks1.76%
Diversified Financial1.36%
Insurance1.13%
Consumer Finance0.42%
Mortgage REITs0%
Industry PE
  • Investors are most optimistic about the Insurance industry even though it's trading below its 3-year average PE ratio of 62.2x.
    • Analysts are expecting annual earnings growth of 6.0%, which is lower than the prior year's growth of 29.6% per year.
  • Investors are most pessimistic about the Mortgage Finance industry, which is trading below its 3-year average of 17.7x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 21% over the next 5 years.
  • This is better than its past earnings growth rate of 9.9% per year.
  • In contrast, the Insurance industry is expected to see its earnings grow by 6.0% 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
540777 HDFC Life Insurance₹586.5510.3%
+₹117.8b
-12.6%PE88x
532215 Axis Bank₹887.653.3%
+₹87.5b
34.1%PB2.1x
532461 Punjab National Bank₹53.5516.8%
+₹84.8b
39.1%PB0.6x
ICICIBANK ICICI Bank₹930.301.1%
+₹70.2b
28.8%PB3.3x
532505 UCO Bank₹20.7831.9%
+₹60.1b
58.3%PB1x
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540777

₹586.55

HDFC Life Insurance

7D

10.3%

1Y

-12.6%

532505

₹20.78

UCO Bank

7D

31.9%

1Y

58.3%

BAJFINANCE

₹6,747.50

Bajaj Finance

7D

-0.6%

1Y

-0.9%

532187

₹1,188.10

IndusInd Bank

7D

5.3%

1Y

31.8%

LICI

₹627.75

Life Insurance Corporation of India

7D

-1.7%

1Y

n/a

532461

₹53.55

Punjab National Bank

7D

16.8%

1Y

39.1%

500247

₹1,928.45

Kotak Mahindra Bank

7D

-1.6%

1Y

-1.8%

SBIN

₹607.40

State Bank of India

7D

0.8%

1Y

29.1%

543257

₹31.75

Indian Railway Finance

7D

15.2%

1Y

36.0%

540719

₹1,234.95

SBI Life Insurance

7D

-0.7%

1Y

9.4%

500490

₹6,372.35

Bajaj Holdings & Investment

7D

-3.1%

1Y

26.3%

532215

₹887.65

Axis Bank

7D

3.3%

1Y

34.1%

ISEC

₹523.35

ICICI Securities

7D

-3.2%

1Y

-31.1%

ICICIBANK

₹930.30

ICICI Bank

7D

1.1%

1Y

28.8%