Indian (NIFTY) Industrials Sector Analysis

Sector Valuation and Performance

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

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 17.2x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Industrials industry have grown 2.3% per year over the last three years, and revenues for these companies have grown 3.0% 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 Industrials sector?

Industry PE: Investors are most optimistic about the Building industry which is trading above its 3-year average PE ratio of 19.0x. However analysts are expecting annual earnings growth of 20%, which is lower than the prior year's growth of 76% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Industrials industry, which is trading below its 3-year average of 16.3x.

Forecasted Growth: Analysts are most optimistic on the Transportation industry, expecting annual earnings growth of 45% over the next 5 years. This is better than it's past earnings growth rate of 11% per year. Meanwhile, the Aerospace & Defense industry is expected to see its earnings grow by 9.0% per year over the next few years.

Top Stock Gainers and Losers

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