We Think Ashok Leyland's (NSE:ASHOKLEY) Robust Earnings Are Conservative
Nov 17
Indian (NIFTY) Machinery Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies178
- 7D0.7%
- 3M5.1%
- 1Y35.6%
- YTD26.3%
The Machinery is pretty flat in the last 7 days, but Escorts Kubota has stood out, gaining 13%. The past year has been better, since the industry has gained 36% in that time. As for the next few years, earnings are expected to grow by 19% per annum.
Industry Valuation and Performance
Has the Indian Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | ₹4.7t | ₹1.8t | ₹110.8b | 26.2x | 42.6x | 2.7x |
| Wed, 26 Oct 2022 | ₹4.6t | ₹1.7t | ₹104.3b | 27.3x | 44.2x | 2.7x |
| Fri, 23 Sep 2022 | ₹4.6t | ₹1.7t | ₹101.8b | 27.7x | 45.1x | 2.8x |
| Sun, 21 Aug 2022 | ₹4.2t | ₹1.7t | ₹100.0b | 24.4x | 42.1x | 2.5x |
| Tue, 19 Jul 2022 | ₹3.8t | ₹1.5t | ₹89.5b | 24.2x | 42.3x | 2.5x |
| Thu, 16 Jun 2022 | ₹3.7t | ₹1.5t | ₹89.3b | 24.5x | 41.1x | 2.4x |
| Sat, 14 May 2022 | ₹3.4t | ₹1.4t | ₹85.8b | 22.4x | 39.4x | 2.3x |
| Mon, 11 Apr 2022 | ₹3.7t | ₹1.4t | ₹84.0b | 24.7x | 44.5x | 2.6x |
| Wed, 09 Mar 2022 | ₹3.3t | ₹1.4t | ₹84.0b | 22x | 39.5x | 2.3x |
| Fri, 04 Feb 2022 | ₹3.8t | ₹1.4t | ₹87.2b | 26.2x | 43.5x | 2.7x |
| Sun, 02 Jan 2022 | ₹3.6t | ₹1.4t | ₹87.0b | 24.4x | 41.3x | 2.6x |
| Tue, 30 Nov 2021 | ₹3.4t | ₹1.4t | ₹85.7b | 21.1x | 39.1x | 2.4x |
| Thu, 28 Oct 2021 | ₹3.3t | ₹1.3t | ₹76.8b | 22.9x | 42.6x | 2.5x |
| Sat, 25 Sep 2021 | ₹3.3t | ₹1.3t | ₹79.5b | 23.8x | 41.7x | 2.5x |
| Mon, 23 Aug 2021 | ₹3.0t | ₹1.3t | ₹77.9b | 21.5x | 38.9x | 2.3x |
| Sat, 10 Jul 2021 | ₹3.0t | ₹1.3t | ₹76.7b | 20.2x | 38.8x | 2.3x |
| Fri, 02 Apr 2021 | ₹2.6t | ₹1.2t | ₹59.9b | 18.4x | 43.5x | 2.2x |
| Mon, 04 Jan 2021 | ₹2.1t | ₹1.1t | ₹40.9b | 22.9x | 51.5x | 2x |
| Thu, 08 Oct 2020 | ₹1.7t | ₹1.0t | ₹32.8b | 20.7x | 53.1x | 1.7x |
| Wed, 01 Jul 2020 | ₹1.5t | ₹1.1t | ₹35.3b | 17.4x | 43x | 1.4x |
| Sat, 04 Apr 2020 | ₹1.3t | ₹1.2t | ₹56.5b | 12.2x | 22.5x | 1x |
| Tue, 07 Jan 2020 | ₹1.8t | ₹1.3t | ₹75.3b | 14.6x | 24.4x | 1.4x |
Price to Earnings Ratio
20.8x
Current Industry PE
- Investors are relatively neutral on the Indian Machinery 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 41.2x.
- The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 2.7x.
Past Earnings Growth
- The earnings for companies in the Machinery industry have grown 8.3% per year over the last three years.
- Revenues for these companies have grown 7.5% 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 industry?
| IN Market | 0.87% | |
| Industrials | 0.53% | |
| Machinery | 0.75% | |
| Agricultural Machinery | 10.36% | |
| Construction Machinery and Vehicles | 1.12% | |
| Industrial Machinery | -0.24% | |
Industry PE
- Investors are most optimistic about the Construction Machinery and Vehicles industry even though it's trading below its 3-year average PE ratio of 58.4x.
- Analysts are expecting annual earnings growth of 19.9%, which is lower than the prior year's growth of 25.9% per year.
- Investors are most pessimistic about the Agricultural Machinery industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 9.8x.
Forecasted Growth
- Analysts are most optimistic on the Agricultural Machinery industry, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings decline of 26% per year.
- In contrast, the Industrial Machinery industry is expected to see its earnings grow by 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ESCORTS Escorts Kubota | ₹2.29k | 12.7% +₹27.8b | 22.4% | PE39.6x | |
| ASHOKLEY Ashok Leyland | ₹148.75 | 2.7% +₹11.6b | 18.4% | PE232.4x | |
| 500480 Cummins India | ₹1.38k | 2.2% +₹8.1b | 57.6% | PE41x | |
| 522113 Timken India | ₹3.58k | 2.8% +₹7.4b | 89.2% | PE66.2x | |
| 524109 Kabra Extrusiontechnik | ₹508.15 | 23.0% +₹3.0b | 77.6% | PE47.1x |