Indian (NIFTY) Basic Materials Industry Analysis

Industry Valuation and Performance

Has the Indian Basic Materials 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 16.9x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Basic Materials industry have grown 47% per year over the last three years, and revenues for these companies have grown 11% 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 Basic Materials industry?

Industry PE: Investors are most optimistic about the Construction Materials industry, which is trading close to its 3-year average PE ratio of 16.9x. However analysts are expecting annual earnings growth of 17%, which is lower than the prior year's growth of 80% per year. So the market might believe that analysts are underestimating future growth.

Forecasted Growth: Analysts are most optimistic on the Construction Materials industry, expecting annual earnings growth of 17% over the next 5 years. However this is lower than its past earnings growth rate of 80% per year.

Top Stock Gainers and Losers

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