Indian (NIFTY) Aerospace & Defense Industry Analysis
- 7D-5.8%
- 3M1.4%
- 1Y60.8%
- YTD46.8%
Over the last 7 days, the Aerospace & Defense industry has dropped 5.8%, driven by pullbacks in Hindustan Aeronautics and Bharat Electronics of 7.1% and 5.4%, respectively. Meanwhile, Paras Defence and Space Technologies actually outperformed within the industry, gaining 7.3% in the last week. This takes the industry's 12 month performance to a gain of 61%.
Industry Valuation and Performance
Has the Indian Aerospace & Defense Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | ₹1.1t | ₹475.4b | ₹70.5b | 20.3x |
| Tue, 26 Oct 2021 | ₹1.1t | ₹454.9b | ₹65.1b | 22.2x |
| Thu, 23 Sep 2021 | ₹1.1t | ₹453.4b | ₹65.0b | 17.8x |
| Sat, 21 Aug 2021 | ₹937.9b | ₹453.4b | ₹65.0b | 14.9x |
| Sat, 05 Jun 2021 | ₹831.0b | ₹443.6b | ₹63.1b | 14x |
| Tue, 09 Mar 2021 | ₹833.9b | ₹430.8b | ₹54.4b | 15.9x |
| Mon, 30 Nov 2020 | ₹668.0b | ₹425.1b | ₹50.4b | 15.6x |
| Thu, 03 Sep 2020 | ₹668.7b | ₹367.9b | ₹46.8b | 16.7x |
| Sun, 07 Jun 2020 | ₹417.5b | ₹393.5b | ₹54.4b | 9.6x |
| Sat, 29 Feb 2020 | ₹480.8b | ₹367.0b | ₹47.4b | 10.4x |
| Tue, 03 Dec 2019 | ₹598.9b | ₹377.6b | ₹51.8b | 10.9x |
| Fri, 06 Sep 2019 | ₹537.7b | ₹373.0b | ₹49.7b | 11.8x |
| Mon, 10 Jun 2019 | ₹582.2b | ₹370.2b | ₹47.9b | 13.7x |
| Sun, 03 Mar 2019 | ₹488.4b | ₹329.9b | ₹40.7b | 12.9x |
| Wed, 05 Dec 2018 | ₹534.6b | ₹347.7b | ₹42.4b | 13.1x |
13.1x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 20.3x which is higher than its 3-year average PE of 13.3x. It appears they are confident that earnings will grow faster in the future than they have historically.
Past Earnings Growth: The earnings for companies in the Aerospace & Defense industry have grown 18% per year over the last three years, and 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 Aerospace & Defense industry?
| Aerospace and Defense | -5.85% | |
Industry PE: Investors are most optimistic about the Aerospace and Defense industry which is trading above its 3-year average PE ratio of 13.3x. However analysts are expecting annual earnings growth of 8.9%, which is lower than the prior year's growth of 51% per year. So the market might believe that analysts are underestimating future growth.
Forecasted Growth: Analysts are most optimistic on the Aerospace and Defense industry, expecting annual earnings growth of 8.9% over the next 5 years. However this is lower than its past earnings growth rate of 51% per year.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| PARAS Paras Defence and Space Technologies | 7.3%+₹2.1b | n/a | PE121.1x | |
| 522229 Taneja Aerospace and Aviation | 16.4%+₹279.2m | 159.4% | PE24.6x | |
| 504176 High Energy Batteries (India) | 0.2%+₹7.0m | 237.7% | PE16.2x |