Vedanta (NSE:VEDL) Is Very Good At Capital Allocation
Nov 27
Indian (NIFTY) Materials Sector Analysis
UpdatedNov 30, 2023
DataAggregated Company Financials
Companies691
- 7D1.2%
- 3M3.6%
- 1Y13.3%
- YTD12.6%
The Materials industry is up 1.2% in the last week, with JSW Steel up 3.2%. During this same period, the Lloyds Metals and Energy underperformed, falling 7.5%. This means that the industry has gained 13% over the past year. Looking forward, earnings are forecast to grow by 20% annually.
Sector Valuation and Performance
Has the Indian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 30 Nov 2023 | ₹39.1t | ₹24.3t | ₹1.4t | 24.2x | 28.6x | 1.6x |
| Sat, 28 Oct 2023 | ₹36.4t | ₹24.4t | ₹1.5t | 23.5x | 25x | 1.5x |
| Mon, 25 Sep 2023 | ₹37.9t | ₹24.4t | ₹1.4t | 23.2x | 27.1x | 1.6x |
| Wed, 23 Aug 2023 | ₹36.7t | ₹24.4t | ₹1.4t | 22.1x | 26.2x | 1.5x |
| Fri, 21 Jul 2023 | ₹36.3t | ₹24.5t | ₹1.6t | 19.7x | 23.4x | 1.5x |
| Sun, 18 Jun 2023 | ₹35.7t | ₹24.4t | ₹1.6t | 19.1x | 22.9x | 1.5x |
| Tue, 16 May 2023 | ₹33.9t | ₹24.2t | ₹1.7t | 17.6x | 20.1x | 1.4x |
| Thu, 13 Apr 2023 | ₹32.9t | ₹24.2t | ₹1.8t | 16.8x | 18.2x | 1.4x |
| Sat, 11 Mar 2023 | ₹32.3t | ₹24.2t | ₹1.8t | 16.2x | 17.8x | 1.3x |
| Mon, 06 Feb 2023 | ₹32.7t | ₹23.9t | ₹2.0t | 16.6x | 16.5x | 1.4x |
| Wed, 04 Jan 2023 | ₹34.4t | ₹23.6t | ₹2.1t | 17.3x | 16.6x | 1.5x |
| Fri, 02 Dec 2022 | ₹34.5t | ₹23.6t | ₹2.1t | 16.6x | 16.7x | 1.5x |
| Sun, 30 Oct 2022 | ₹32.5t | ₹22.9t | ₹2.3t | 16.2x | 14.2x | 1.4x |
| Tue, 27 Sep 2022 | ₹32.5t | ₹22.6t | ₹2.4t | 16.4x | 13.5x | 1.4x |
| Thu, 25 Aug 2022 | ₹32.7t | ₹22.6t | ₹2.4t | 15.9x | 13.6x | 1.4x |
| Sat, 23 Jul 2022 | ₹30.2t | ₹21.1t | ₹2.4t | 15.3x | 12.4x | 1.4x |
| Mon, 20 Jun 2022 | ₹27.5t | ₹21.1t | ₹2.5t | 14.1x | 11.2x | 1.3x |
| Wed, 18 May 2022 | ₹31.3t | ₹20.1t | ₹2.4t | 15.6x | 13x | 1.6x |
| Fri, 15 Apr 2022 | ₹35.1t | ₹19.4t | ₹2.3t | 17.3x | 15.1x | 1.8x |
| Sun, 13 Mar 2022 | ₹32.1t | ₹19.7t | ₹2.4t | 15.3x | 13.4x | 1.6x |
| Tue, 08 Feb 2022 | ₹34.0t | ₹19.1t | ₹2.4t | 16.9x | 14.3x | 1.8x |
| Thu, 06 Jan 2022 | ₹34.5t | ₹18.3t | ₹2.3t | 16.2x | 15.3x | 1.9x |
| Sat, 04 Dec 2021 | ₹32.6t | ₹18.3t | ₹2.3t | 14.5x | 14.4x | 1.8x |
| Mon, 01 Nov 2021 | ₹33.1t | ₹17.2t | ₹2.0t | 15.7x | 16.6x | 1.9x |
| Wed, 29 Sep 2021 | ₹33.3t | ₹16.8t | ₹1.9t | 15.8x | 17.6x | 2x |
| Fri, 27 Aug 2021 | ₹32.0t | ₹16.8t | ₹1.9t | 15.2x | 16.9x | 1.9x |
| Sat, 03 Jul 2021 | ₹30.2t | ₹16.7t | ₹1.9t | 14x | 16x | 1.8x |
| Tue, 06 Apr 2021 | ₹24.9t | ₹14.7t | ₹1.3t | 12.9x | 19.2x | 1.7x |
| Fri, 08 Jan 2021 | ₹21.2t | ₹13.6t | ₹759.2b | 14.6x | 27.9x | 1.6x |
Price to Earnings Ratio
36.6x
Current Industry PE
- Investors are optimistic on the Indian Materials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 28.6x which is higher than its 3-year average PE of 18.8x.
- The industry is trading close to its 3-year average PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Materials industry have grown 37% per year over the last three years.
- Revenues for these companies have grown 23% 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 Materials sector?
| IN Market | 1.58% | |
| Materials | 1.16% | |
| Basic Materials | 1.43% | |
| Metals and Mining | 1.37% | |
| Chemicals | 0.99% | |
| Paper and Forestry Products | -0.32% | |
| Packaging | -0.88% | |
Industry PE
- Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 29.2x.
- Analysts are expecting annual earnings growth of 14.2%, which is higher than its past year's earnings decline of 5.6% per year.
- Investors are most pessimistic about the Paper and Forestry Products industry, which is trading below its 3-year average of 26.1x.
Forecasted Growth
- Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 29% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Basic Materials 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 | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 500228 JSW Steel | ₹793.05 | 3.2% +₹60.2b | 6.7% | PE20.9x | |
| 500425 Ambuja Cements | ₹435.55 | 5.1% +₹42.2b | -23.8% | PE31.1x | |
| 500440 Hindalco Industries | ₹516.80 | 3.3% +₹36.9b | 14.6% | PE13.6x | |
| 526371 NMDC | ₹180.35 | 5.2% +₹26.1b | 53.3% | PE9x | |
| 500470 Tata Steel | ₹127.70 | 1.3% +₹19.7b | 18.6% | PS0.7x |
