Indian (NIFTY) Professional Services Industry Analysis

Industry Valuation and Performance

Has the Indian Professional Services Industry 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 21.5x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Professional Services industry have remained mostly flat over the last three years, while revenues for these companies have grown 12% per year.This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the Indian Professional Services industry?

Industry PE: Investors are most optimistic about the Research and Consulting Services industry which is trading above its 3-year average PE ratio of 22.1x. However analysts are expecting annual earnings growth of 18%, which is lower than the prior year's growth of 48% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the HR Services industry, which is trading below its 3-year average of 30.3x.

Forecasted Growth: Analysts are most optimistic on the HR Services industry, expecting annual earnings growth of 42% over the next 5 years. This is better than its past earnings decline of 13% per year. Meanwhile, the Research and Consulting Services industry is expected to see its earnings grow by 18% per year over the next few years.

Top Stock Gainers and Losers

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