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Indian (NIFTY) Financials Sector Analysis

UpdatedAug 27, 2026
DataAggregated Company Financials
Companies640
  • 7D1.5%
  • 3M4.6%
  • 1Y4.9%
  • YTD-2.1%

In the last week, the Financials industry is up 1.0%, with Kotak Mahindra Bank leading the way, up 6.2%. This takes the industry's 12 month performance to a gain of 4.4%. Looking forward, earnings are forecast to grow by 14% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 27 Aug 2026₹118.8t₹39.0t₹7.4t20.9x16x3x
Sat, 25 Jul 2026₹115.5t₹38.2t₹7.3t23.6x15.8x3x
Mon, 22 Jun 2026₹115.8t₹38.1t₹7.1t24x16.3x3x
Wed, 20 May 2026₹110.2t₹37.8t₹7.1t22.2x15.6x2.9x
Fri, 17 Apr 2026₹114.0t₹37.0t₹6.8t21.7x16.8x3.1x
Sun, 15 Mar 2026₹107.6t₹37.0t₹6.8t19.9x15.8x2.9x
Tue, 10 Feb 2026₹120.1t₹36.8t₹7.0t22.7x17.1x3.3x
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
Price to Earnings Ratio

15.9x


Total Market Cap: ₹79.7tTotal Earnings: ₹5.0tTotal Revenue: ₹28.5tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Financials Sector Price to Earnings3Y Average 16.7x202420252026
Current Industry PE
  • Investors are relatively neutral on the Indian Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 16.7x.
  • The industry is trading close to its 3-year average PS ratio of 3.0x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 14% per year over the last three years.
  • Revenues for these companies have grown 11% 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 Market0.83%
Financials1.53%
Capital Markets1.98%
Consumer Finance1.82%
Banks1.67%
Diversified Financial0.87%
Insurance0.79%
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 27.4x.
    • Analysts are expecting annual earnings growth of 16.2%, which is higher than its past year's earnings growth of 13.2% per year.
  • Investors are most pessimistic about the Banks industry, which is trading close to its 3-year average of 13.8x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 19% over the next 5 years.
  • However this is lower than its past earnings growth rate of 30% per year.
  • In contrast, the Banks 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?

CompanyLast Price7D1YValuation
500247 Kotak Mahindra Bank₹416.206.2%
+₹240.2b		5.9%PB2.3x
ICICIBANK ICICI Bank₹1.43k2.0%
+₹200.9b		0.9%PB2.7x
IDBI IDBI Bank₹94.7517.4%
+₹150.9b		3.1%PB1.4x
MUTHOOTFIN Muthoot Finance₹3.21k12.2%
+₹139.7b		20.0%PE11.3x
HDFCBANK HDFC Bank₹727.201.0%
+₹111.0b		-25.3%PB1.8x

Latest News

IDBI
₹94.75
IDBI Bank
7D
17.4%
1Y
3.1%
HDFCBANK
₹727.20
HDFC Bank
7D
1.0%
1Y
-25.3%
Narrative Update • Aug 25

HDFCBANK: Governance Reforms And Dividend Policy Will Support Future Share Price Rebound

Analysts have trimmed their HDFC Bank price target slightly to around ₹1,019 from about ₹1,040, citing updated assumptions that include a lower discount rate, a slightly softer revenue outlook, a marginally stronger profit margin and a modestly lower future P/E multiple. What’s in the News for HDFC Bank A class action lawsuit filed in the United States District Court for the Southern District of New York, Soneji v.
ICICIBANK
₹1,430.00
ICICI Bank
7D
2.0%
1Y
0.9%
MCX
₹3,350.00
Multi Commodity Exchange of India
7D
12.7%
1Y
117.8%
RECLTD
₹322.20
REC
7D
-4.4%
1Y
-11.4%
Narrative Update • Aug 20

RECLTD: Merger And Dividend Plans Will Shape Balanced Forward Return Outlook

Analysts have lowered their price target for REC from ₹380 to ₹360, citing updated assumptions that combine a reduced revenue growth outlook with a slightly lower discount rate, a higher profit margin estimate and a modestly lower future P/E multiple. What’s in the News for REC Power Finance Corporation Limited has announced a proposal to acquire the remaining 47.37% stake in REC for approximately ₹483.9b through a share swap at a ratio of 0.88 PFC equity share for every 1 REC equity share, under a merger by absorption scheme.
PAYTM
₹1,716.00
One97 Communications
7D
8.4%
1Y
36.9%
Narrative Update • Aug 19

PAYTM: Rich P E Assumptions Will Limit Returns Despite Product Push

Analysts have trimmed their 12 month price target for One97 Communications from ₹1,147.32 to ₹1,050, citing updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E. What’s in the News for One97 Communications One97 Communications launched Paytm Split Bills on the Paytm app on Friendship Day, aimed at helping friend groups, college students, Gen Z and young professionals track and settle shared expenses across trips, meals, entertainment and other group activities.
MUTHOOTFIN
₹3,206.90
Muthoot Finance
7D
12.2%
1Y
20.0%
Narrative Update • Aug 19

MUTHOOTFIN: CEO Transition And Margin Outlook Will Support Future Upside

Analysts have reduced their price target for Muthoot Finance from about ₹3,740 to around ₹3,390. This reflects updated views on slightly lower revenue growth expectations, a modestly adjusted discount rate, and a marginally higher profit margin and future P/E assumption.
FEDERALBNK
₹345.30
Federal Bank
7D
-3.8%
1Y
79.4%
Narrative Update • Aug 16

FEDERALBNK: Lower Discount Rate Will Test Execution Against Emerging Regulatory Friction

Analysts have lifted the Federal Bank price target to ₹284 from ₹267.77, citing updated assumptions on revenue growth, profit margins and future P/E that feed into a slightly lower discount rate in their valuation models. Analyst Commentary Recent research on Federal Bank sits alongside a wider pattern of cautious tweaks to financial sector price targets.
GICRE
₹349.75
General Insurance Corporation of India
7D
-2.7%
1Y
-6.3%
PFC
₹364.10
Power Finance
7D
-2.8%
1Y
-6.3%
Narrative Update • Aug 09

PFC: Proposed Merger And Higher Margins Will Drive Future Returns

Analysts have trimmed their price target for Power Finance to about ₹498 from roughly ₹514. This reflects updated assumptions that include a higher discount rate, softer revenue growth expectations, a richer future P/E multiple and stronger projected profit margins.
BANKBARODA
₹242.50
Bank of Baroda
7D
-1.0%
1Y
3.1%
Narrative Update • Aug 08

BANKBARODA: Planned Foreign Currency Bond Raise Will Support Bullish Long-Term Outlook

Analysts have trimmed their price target for Bank of Baroda from about ₹304 to about ₹293, reflecting updated assumptions for discount rates, revenue growth, profit margins and future P/E levels. What's in the News for Bank of Baroda Bank of Baroda has scheduled a board meeting on 24 July 2026 at 10:30 Indian Standard Time to review the unaudited standalone and consolidated financial results for the quarter and three months ended 30 June 2026.
532215
₹1,254.00
Axis Bank
7D
1.8%
1Y
19.4%
JIOFIN
₹241.00
Jio Financial Services
7D
-0.9%
1Y
-23.7%
POONAWALLA
₹472.65
Poonawalla Fincorp
7D
-4.2%
1Y
4.4%
Narrative Update • Jul 20

POONAWALLA: Planned 10b Debt Raise And Earnings Date Will Guide Future Upside

Analysts have nudged their price target on Poonawalla Fincorp higher from about ₹489 to roughly ₹525, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E expectations. What’s in the News for Poonawalla Fincorp Poonawalla Fincorp has scheduled a board meeting on Jul 17, 2026 to consider and approve the unaudited financial results for the quarter ending Jun 30, 2026.
500247
₹416.20
Kotak Mahindra Bank
7D
6.2%
1Y
5.9%
ICICIAMC
₹3,222.80
ICICI Prudential Asset Management
7D
-1.2%
1Y
n/a
Narrative Update • Jun 26

ICICIAMC: Index Additions And Updated Assumptions Will Guide Balanced Outlook

Analysts have raised their price target for ICICI Prudential Asset Management from ₹3,392 to ₹3,660, citing updated assumptions on fair value, discount rate, revenue growth, profit margin and future P/E, which together support a higher valuation framework. What's in the News ICICI Prudential Asset Management has a board meeting scheduled on May 21, 2026, to consider the intimation of the Annual General Meeting and the record date.