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Indian (NIFTY) Machinery Industry Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies175
- 7D-2.1%
- 3M11.1%
- 1Y66.4%
- YTD54.7%
Over the last 7 days, the Machinery industry has dropped 2.1%, driven by a pullback from Ashok Leyland of 9.9%. Meanwhile, Elgi Equipments actually outperformed within the industry, gaining 22% in the last week. This takes the industry's 12 month performance to a gain of 66%.
Industry Valuation and Performance
Has the Indian Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 28 Nov 2021 | ₹3.4t | ₹1.4t | ₹85.8b | 22.6x |
| Tue, 26 Oct 2021 | ₹3.2t | ₹1.3t | ₹76.7b | 24.3x |
| Thu, 23 Sep 2021 | ₹3.3t | ₹1.3t | ₹79.5b | 24.2x |
| Sat, 21 Aug 2021 | ₹3.1t | ₹1.3t | ₹77.9b | 21.9x |
| Sat, 05 Jun 2021 | ₹2.8t | ₹1.2t | ₹59.9b | 21x |
| Tue, 09 Mar 2021 | ₹2.5t | ₹1.1t | ₹40.9b | 23.8x |
| Mon, 30 Nov 2020 | ₹2.0t | ₹1.0t | ₹32.8b | 23.5x |
| Thu, 03 Sep 2020 | ₹1.7t | ₹1.1t | ₹35.3b | 20.1x |
| Sun, 07 Jun 2020 | ₹1.4t | ₹1.2t | ₹56.5b | 13.5x |
| Sat, 29 Feb 2020 | ₹1.8t | ₹1.3t | ₹75.3b | 14.3x |
| Tue, 03 Dec 2019 | ₹1.8t | ₹1.4t | ₹87.1b | 13.4x |
| Fri, 06 Sep 2019 | ₹1.7t | ₹1.4t | ₹89.8b | 12.2x |
| Mon, 10 Jun 2019 | ₹2.1t | ₹1.4t | ₹94.5b | 15.9x |
| Sun, 03 Mar 2019 | ₹2.0t | ₹1.3t | ₹82.5b | 18.2x |
| Wed, 05 Dec 2018 | ₹2.1t | ₹1.3t | ₹79.8b | 19.6x |
PE Ratio
19.6x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 22.6x which is higher than its 3-year average PE of 18.1x. 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 Machinery industry have grown 2.4% per year over the last three years, and revenues for these companies have grown 2.8% 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 Machinery industry?
| Agricultural Machinery | 1.85% | |
| Industrial Machinery | -0.84% | |
| Construction Machinery and Vehicles | -6.30% | |
Industry PE: Investors are most optimistic about the Construction Machinery and Vehicles industry which is trading above its 3-year average PE ratio of 16.3x. However analysts expect its future annual earnings growth (27%) to be largely in line with prior year's earnings growth, so the market might believe analysts are underestimating its future growth since investors are willing to pay a bigger premium today. Meanwhile, investors are most pessimistic about the Industrial Machinery industry, which is trading close to its 3-year average of 18.5x.
Forecasted Growth: Analysts are most optimistic on the Construction Machinery and Vehicles industry, expecting annual earnings growth of 27% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Agricultural Machinery industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|
| 522074 Elgi Equipments | 21.5%+₹14.5b | 93.1% | PE57.8x | |
| 543270 MTAR Technologies | 15.4%+₹8.9b | n/a | PE123x | |
| ESCORTS Escorts | 3.7%+₹8.8b | 33.2% | PE27.3x | |
| 505283 Kirloskar Pneumatic | 11.0%+₹2.8b | 206.0% | PE33.8x | |
| 539992 Lloyds Steels Industries | 27.3%+₹2.4b | 1,644.3% | PE1890.1x |