Indian (NIFTY) Electrical Industry Analysis
- 7D-2.4%
- 3M18.8%
- 1Y94.1%
- YTD68.0%
Over the last 7 days, the Electrical industry has dropped 2.4%, driven by pullbacks in Polycab India and ABB India of 6.2% and 4.9%, respectively. Meanwhile, KEI Industries actually outperformed within the industry, gaining 6.1% in the last week. This takes the industry's 12 month performance to a gain of 94%.
Industry Valuation and Performance
Has the Indian Electrical Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 25 Nov 2021 | ₹3.2t | ₹1.1t | ₹37.8b | 20.3x |
| Sat, 23 Oct 2021 | ₹3.0t | ₹1.1t | ₹22.5b | 28.4x |
| Mon, 20 Sep 2021 | ₹2.9t | ₹1.0t | ₹21.5b | 27.8x |
| Wed, 18 Aug 2021 | ₹2.6t | ₹1.0t | ₹21.8b | 23.2x |
| Wed, 02 Jun 2021 | ₹2.4t | ₹944.8b | ₹9.6b | 20.5x |
| Sat, 06 Mar 2021 | ₹2.2t | ₹868.2b | -₹6,112,053,990.00 | 20.4x |
| Tue, 08 Dec 2020 | ₹1.6t | ₹882.0b | -₹9,153,665,028.00 | 19x |
| Mon, 31 Aug 2020 | ₹1.4t | ₹915.2b | ₹3.0b | 16.5x |
| Thu, 04 Jun 2020 | ₹1.1t | ₹1.0t | ₹22.7b | 12.5x |
| Sun, 08 Mar 2020 | ₹1.4t | ₹1.2t | ₹42.8b | 12.7x |
| Sat, 30 Nov 2019 | ₹1.7t | ₹1.2t | ₹60.8b | 14.6x |
| Tue, 03 Sep 2019 | ₹1.5t | ₹1.2t | ₹93.2b | 12.9x |
| Fri, 07 Jun 2019 | ₹1.9t | ₹1.3t | ₹109.1b | 15.6x |
| Thu, 28 Feb 2019 | ₹1.7t | ₹1.2t | ₹89.3b | 13.3x |
| Sun, 02 Dec 2018 | ₹1.9t | ₹1.2t | ₹91.4b | 15.7x |
15.7x
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 17.0x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Electrical industry have declined 25% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Indian Electrical industry?
| Electrical Components | -1.91% | |
| Heavy Electrical Equipment | -3.43% | |
Industry PE: Investors are most optimistic about the Heavy Electrical Equipment industry which is trading above its 3-year average PE ratio of 23.6x. However analysts are expecting annual earnings growth of 26%, which is lower than the prior year's growth of 60% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Electrical Components industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 16.1x.
Forecasted Growth: Analysts are most optimistic on the Heavy Electrical Equipment industry, expecting annual earnings growth of 26% over the next 5 years. However this is lower than its past earnings growth rate of 60% per year. Meanwhile, the Electrical Components industry is expected to see its earnings grow by 24% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 517569 KEI Industries | 6.1%+₹5.6b | 172.6% | PE30.2x | |
| 517271 HBL Power Systems | 15.7%+₹2.2b | 150.9% | PE29.9x | |
| 505700 Elecon Engineering | 8.2%+₹1.6b | 450.5% | PE17.5x | |
| 513519 Pitti Engineering | 5.7%+₹368.6m | 390.1% | PE14.1x | |
| 533553 TD Power Systems | 1.7%+₹206.8m | 221.2% | PE19.8x |