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Indian (NIFTY) Materials Sector Analysis

UpdatedDec 22, 2025
DataAggregated Company Financials
Companies785
  • 7D-0.3%
  • 3M-2.8%
  • 1Y4.2%
  • YTD5.2%

The Materials is pretty flat in the last 7 days, but Hindustan Zinc has stood out, gaining 6.7%. As for the the longer term, the industry is up 4.2% over the past 12 months. 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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 22 Dec 2025₹50.2t₹26.3t₹1.7t22.3x29x1.9x
Wed, 19 Nov 2025₹50.8t₹26.3t₹1.7t23.5x29.3x1.9x
Fri, 17 Oct 2025₹51.5t₹25.5t₹1.6t24.4x31.9x2x
Sun, 14 Sep 2025₹51.2t₹25.4t₹1.6t24.9x31.9x2x
Tue, 12 Aug 2025₹49.8t₹25.2t₹1.6t24.5x31x2x
Thu, 10 Jul 2025₹50.8t₹24.9t₹1.5t26.9x33.2x2x
Sat, 07 Jun 2025₹49.4t₹24.8t₹1.5t25.8x32.4x2x
Mon, 05 May 2025₹46.0t₹24.5t₹1.5t23x31.7x1.9x
Wed, 02 Apr 2025₹45.9t₹24.3t₹1.4t23x32x1.9x
Fri, 28 Feb 2025₹42.7t₹24.3t₹1.4t23.1x29.8x1.8x
Sun, 26 Jan 2025₹45.7t₹24.0t₹1.4t27x33.7x1.9x
Tue, 24 Dec 2024₹47.7t₹24.0t₹1.4t30.4x34.6x2x
Thu, 21 Nov 2024₹46.9t₹24.0t₹1.4t29.4x33.9x2x
Sat, 19 Oct 2024₹51.0t₹24.0t₹1.3t31.3x39.3x2.1x
Mon, 16 Sep 2024₹51.7t₹24.0t₹1.3t30.9x39.6x2.2x
Wed, 14 Aug 2024₹48.9t₹23.9t₹1.3t29.6x37.5x2x
Fri, 12 Jul 2024₹51.2t₹23.8t₹1.3t30x39x2.2x
Sun, 09 Jun 2024₹47.9t₹23.8t₹1.3t27.2x36.5x2x
Tue, 07 May 2024₹45.9t₹23.9t₹1.4t26.9x33.4x1.9x
Thu, 04 Apr 2024₹43.6t₹24.0t₹1.4t26.2x31.5x1.8x
Sat, 02 Mar 2024₹42.4t₹24.0t₹1.4t27x30.6x1.8x
Mon, 29 Jan 2024₹42.1t₹24.4t₹1.4t26.9x29.3x1.7x
Wed, 27 Dec 2023₹42.2t₹24.4t₹1.4t24.9x30.9x1.7x
Fri, 24 Nov 2023₹38.7t₹24.3t₹1.4t24.3x28.4x1.6x
Sun, 22 Oct 2023₹38.2t₹24.4t₹1.4t24.5x26.6x1.6x
Tue, 19 Sep 2023₹38.6t₹24.4t₹1.4t23.4x27.6x1.6x
Thu, 17 Aug 2023₹36.4t₹24.4t₹1.4t21.6x26x1.5x
Sat, 15 Jul 2023₹36.0t₹24.5t₹1.6t19.3x23.2x1.5x
Mon, 12 Jun 2023₹34.6t₹24.4t₹1.6t19x22.3x1.4x
Wed, 10 May 2023₹33.9t₹24.1t₹1.7t17.5x19.7x1.4x
Fri, 07 Apr 2023₹32.4t₹24.2t₹1.8t16.6x17.9x1.3x
Sun, 05 Mar 2023₹32.3t₹24.2t₹1.8t16.2x17.8x1.3x
Tue, 31 Jan 2023₹32.3t₹23.8t₹2.0t16.7x16.2x1.4x
Thu, 29 Dec 2022₹34.0t₹23.6t₹2.1t17.2x16.4x1.4x
Price to Earnings Ratio

16.4x


Total Market Cap: ₹34.0tTotal Earnings: ₹2.1tTotal Revenue: ₹23.6tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Materials Sector Price to Earnings3Y Average 29.7x202320242025
Current Industry PE
  • Investors are relatively neutral on the Indian Materials 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 29.7x.
  • The industry is trading close to its 3-year average PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Materials industry have declined 5.8% per year over the last three years.
  • Meanwhile revenues for these companies have grown 3.6% 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, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Indian Materials sector?

IN Market-0.11%
Materials-0.34%
Metals and Mining0.17%
Chemicals-0.17%
Packaging-0.84%
Basic Materials-1.57%
Paper and Forestry Products-1.70%
Industry PE
  • Investors are most optimistic about the Basic Materials industry, which is trading close to its 3-year average PE ratio of 42.1x.
    • Analysts are expecting annual earnings growth of 11.8%, which is higher than its past year's earnings growth of 7.0% per year.
  • Investors are most pessimistic about the Packaging industry, which is trading below its 3-year average of 24.8x.
Forecasted Growth
  • Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 46% over the next 5 years.
  • This is better than its past earnings decline of 18% per year.
  • In contrast, the Basic Materials industry is expected to see its earnings grow by 12% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
500188 Hindustan Zinc₹606.356.7%
+₹161.8b		30.7%PE24.3x
VEDL Vedanta₹585.656.6%
+₹141.6b		23.8%PE19x
SOLARINDS Solar Industries India₹12.62k3.5%
+₹38.4b		30.3%PE86.5x
500440 Hindalco Industries₹864.452.0%
+₹37.2b		36.3%PE10.8x
512455 Lloyds Metals and Energy₹1.36k5.3%
+₹36.2b		16.6%PE39.7x

Latest News

500228
₹1,094.65
JSW Steel
7D
-1.8%
1Y
16.9%
ASIANPAINT
₹2,807.60
Asian Paints
7D
1.0%
1Y
23.2%

Is Asian Paints (NSE:ASIANPAINT) Using Too Much Debt?

Dec 22
Is Asian Paints (NSE:ASIANPAINT) Using Too Much Debt?
500425
₹540.00
Ambuja Cements
7D
-2.4%
1Y
-2.0%

500425: CFO Transition And Richer Multiple Will Shape Balanced Outlook

Narrative Update on Ambuja Cements Analysts have raised their price target on Ambuja Cements from approximately ₹474 to about ₹504 per share, reflecting a stronger valuation multiple despite slightly lower revenue growth and margin expectations, as well as a modestly higher discount rate. What's in the News Chief Financial Officer transition, with Mr. Rakesh Tiwary stepping down on November 21, 2025, to take a new role within the Adani Group.
512455
₹1,355.65
Lloyds Metals and Energy
7D
5.3%
1Y
16.6%

512455: Upcoming Partnership Decision With Tata Steel Will Unlock Significant Upside

The analyst price target for Lloyds Metals and Energy has been raised from ₹1,654 to ₹1,692, as analysts factor in faster expected revenue growth and a slightly lower discount rate, partly offset by more conservative profit margin assumptions and a higher future P/E multiple. What's in the News The board will consider acquiring up to 50 percent equity in Nexus Holdco FZCO through wholly owned subsidiary Lloyds Global Resources FZCO, signaling potential international expansion plans (company disclosure).
JINDALSTEL
₹1,002.10
Jindal Steel
7D
-3.1%
1Y
6.5%

JINDALSTEL: Angul Capacity Expansion Will Drive Future Upside Potential

Analysts have slightly lifted their price target for Jindal Steel to ₹1,134.77, citing modest tweaks to the discount rate and valuation assumptions while keeping growth and margin forecasts broadly unchanged. What's in the News Jindal Steel has successfully commissioned a 250 MT Basic Oxygen Furnace at its Angul integrated steel plant, adding 3 MTPA of crude steelmaking capacity and lifting Angul capacity from 6 MTPA to 9 MTPA, with a target of 12 MTPA within the current financial year (Business Expansions).
VEDL
₹585.65
Vedanta
7D
6.6%
1Y
23.8%

VEDL: New Finance Hub And Stable Outlook Will Shape Balanced Future Prospects

Analysts have raised their price target for Vedanta slightly to reflect a modest increase in fair value to ₹564.31. This is supported by marginally stronger long term revenue growth expectations that more than offset a small downward tweak to profit margin assumptions and a higher discount rate.
PIDILITIND
₹1,459.20
Pidilite Industries
7D
-1.4%
1Y
-1.1%

There's Reason For Concern Over Pidilite Industries Limited's (NSE:PIDILITIND) Price

Dec 17
There's Reason For Concern Over Pidilite Industries Limited's (NSE:PIDILITIND) Price
533758
₹1,860.80
APL Apollo Tubes
7D
7.0%
1Y
20.7%

533758: Upcoming Board Meeting And Dividend Will Support Bullish Outlook

Analysts have modestly maintained their price target on APL Apollo Tubes at ₹1,955.47, with the unchanged fair value reflecting their view that slightly higher discount and earnings multiples are still justified by the company’s resilient growth and stable profitability outlook. What's in the News Board meeting scheduled for October 29, 2025, to consider and approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025 (company filing).
500188
₹606.35
Hindustan Zinc
7D
6.7%
1Y
30.7%

500188: Rising Output Guidance Will Likely Fail To Justify Current Downside Risk

Analysts have marginally raised their fair value estimate for Hindustan Zinc from ₹489.46 to ₹498.07 per share, reflecting slightly higher assumed revenue growth, profit margins and future earnings multiples, even after incorporating a modest uptick in the discount rate. What's in the News Board meeting scheduled for October 17, 2025 to review unaudited consolidated and standalone financial results for Q2 and H1 FY 2025, along with other matters (company filing) Production results for Q2 FY 2026 show marginally higher mined metal at 258,000 MT versus 256,000 MT a year earlier, but lower total refined metal at 246,000 MT versus 262,000 MT and reduced silver output at 144 MT versus 184 MT (company announcement) For the first half of FY 2026, mined metal production rose slightly to 523,000 MT versus 519,000 MT, while total refined metal declined to 496,000 MT from 524,000 MT and silver output fell to 293 MT from 350 MT (company announcement) Revised FY 2026 guidance sets mined metal production at 1,125 (±10) kt, refined metal at 1,075 (±10) kt and saleable silver at 680 (±10) MT.
SOLARINDS
₹12,620.00
Solar Industries India
7D
3.5%
1Y
30.3%

SOLARINDS: Export Wins And Defence Orders Will Drive Multi Year Upside

Analysts have marginally raised their price target on Solar Industries India by maintaining a fair value estimate of ₹17,146.29, while fine tuning assumptions on discount rate, revenue growth, profit margin, and future P/E to reflect a slightly improved long term risk reward profile. What's in the News Secured export orders worth INR 14,000 million for defence products from international clients, to be executed over four years (Key Developments) Received a major domestic order of INR 4,830 million for supply of bulk explosives to SECL, a subsidiary of Coal India Limited, with a two-year delivery schedule (Key Developments) Scheduled a board meeting on November 10, 2025, to review unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, and to approve a postal ballot notice (Key Developments) Plans to seek shareholder approval via postal ballot for appointing Smt.
SHREECEM
₹25,710.00
Shree Cement
7D
-3.4%
1Y
-5.5%

SHREECEM: Interim Dividend And Governance Moves Will Shape Balanced Outlook

Analysts have modestly raised their price target for Shree Cement to ₹24,469 from ₹23,230, citing expectations of slightly higher long term profitability and a lower future price to earnings multiple, despite trimming revenue growth assumptions and applying a higher discount rate. What's in the News Board meeting scheduled on October 28, 2025, to approve unaudited standalone and consolidated financial results for the quarter and half year ending September 30, 2025, and to consider an interim dividend of INR 80 per equity share for FY 2025 to 2026 (company filing) Record date for the proposed interim dividend set as Monday, November 3, 2025, determining shareholder eligibility for the INR 80 per share payout (company filing) Special or extraordinary shareholders meeting on December 12, 2025, via postal ballot in India, to consider the appointment of Mr. Chandra Kumar Dhanuka as a non executive independent director (company filing) Valuation Changes Fair Value: Raised slightly to ₹24,469 from ₹23,230, reflecting a modestly more optimistic view on long term earnings.
ULTRACEMCO
₹11,532.00
UltraTech Cement
7D
-1.7%
1Y
0.5%

Should You Be Adding UltraTech Cement (NSE:ULTRACEMCO) To Your Watchlist Today?

Dec 13
Should You Be Adding UltraTech Cement (NSE:ULTRACEMCO) To Your Watchlist Today?
503806
₹3,092.75
SRF
7D
3.0%
1Y
35.5%

503806: Lower Discount Rate May Support Stronger Long Term Profitability

Analysts have raised their fair value estimate for SRF by approximately $191 to $3,841 per share, citing a modestly lower discount rate and slightly higher long term profit margin expectations that more than offset a small reduction in projected revenue growth. What's in the News Chief Financial Officer Rahul Jain will step down from his role at the close of business on 12 December 2025.
500470
₹169.15
Tata Steel
7D
-2.1%
1Y
19.4%

500470: Future Results Will Reflect Pellet Expansion Amid Ongoing Sukinda Regulatory Dispute

Analysts have slightly reduced their price target for Tata Steel to INR 185.77 from INR 186.10, citing a marginal uptick in the assumed discount rate and only modest improvements in long term growth and valuation multiples, which are largely offset by slightly lower profit margin expectations. What's in the News Board to review acquisition of a 50.01 percent equity stake in Thriveni Pellets Private Limited at its December 10, 2025 meeting, potentially strengthening raw material security and pellet capacity (Board Meeting) High Court of Orissa extends interim protection for Tata Steel against coercive action related to a large demand on alleged chrome ore dispatch shortfall at the Sukinda Chromite Block, with the next hearing scheduled for December 12, 2025 (Regulatory Authority – Enforcement Actions) Company contests a demand of about INR 2,410.89 crore tied to chrome ore dispatch obligations at Sukinda, seeking quashing of the demand letter through a writ petition naming state and central authorities (Regulatory Authority – Enforcement Actions) Upcoming November 12, 2025 board meeting to consider audited standalone and unaudited consolidated financial results and a proposed acquisition of a 50 percent stake in Tata BlueScope Steel Private Limited (Board Meeting) Provisional Indian crude steel production rises 8 percent quarter on quarter to 5.67 million tons in Q2 FY2026, supported by normalised operations post blast furnace relining, with first half output up 3 percent year on year to 10.90 million tons (Announcement of Operating Results) Tata Steel and Tata Steel Nederland sign a non binding joint letter of intent with the Dutch government to progress a major decarbonisation and health focused transition at IJmuiden, including plans for DRI and EAF capacity and extensive dust and emissions reduction measures (Strategic Alliances) Valuation Changes Fair Value: Revised down slightly to ₹185.77 from ₹186.10 per share, reflecting marginally lower earnings expectations.
500710
₹3,150.30
Akzo Nobel India
7D
-13.4%
1Y
-10.3%

500710: JSW Acquisition Will Drive Future Performance While Outlook Remains Balanced

Analysts have marginally maintained their fair value estimate for Akzo Nobel India at ₹3,675, reflecting unchanged long term fundamentals. Slight tweaks to the discount rate, revenue growth, profit margin and future P/E assumptions did not justify a meaningful revision in the target price.
500440
₹864.45
Hindalco Industries
7D
2.0%
1Y
36.3%

500440: Fair Value Will Be Sustained Amid Slightly Firmer Long Term Outlook

Analysts have raised their price target for Hindalco Industries slightly, reflecting a modest uptick in fair value to approximately ₹837 from about ₹832 as they factor in marginally stronger long term revenue growth and valuation multiples, despite a largely stable profit margin outlook. What's in the News A board meeting is scheduled for November 7, 2025, to review and approve unaudited standalone and consolidated financial results for the quarter and half year ending September 30, 2025 (company filing).