Do NTPC's (NSE:NTPC) Earnings Warrant Your Attention?
Nov 17
Indian (NIFTY) Utilities Sector Analysis
UpdatedDec 01, 2022
DataAggregated Company Financials
Companies47
- 7D1.7%
- 3M-8.1%
- 1Y47.9%
- YTD47.1%
Over the last 7 days, the Utilities industry has risen 1.7%, driven by gains from Adani Green Energy of 3.9%. This means that the industry has gained 48% over the past year. Looking forward, earnings are forecast to grow by 24% annually.
Sector Valuation and Performance
Has the Indian Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 01 Dec 2022 | ₹19.4t | ₹6.3t | ₹743.3b | 16x | 26x | 3.1x |
| Sat, 29 Oct 2022 | ₹16.1t | ₹5.8t | ₹732.3b | 14.6x | 22x | 2.8x |
| Mon, 26 Sep 2022 | ₹16.8t | ₹5.8t | ₹731.6b | 16.8x | 22.9x | 2.9x |
| Wed, 24 Aug 2022 | ₹16.5t | ₹5.8t | ₹731.6b | 15.6x | 22.6x | 2.9x |
| Fri, 22 Jul 2022 | ₹14.4t | ₹5.1t | ₹676.5b | 16.7x | 21.3x | 2.8x |
| Sun, 19 Jun 2022 | ₹12.0t | ₹5.1t | ₹690.7b | 14x | 17.3x | 2.3x |
| Tue, 17 May 2022 | ₹13.1t | ₹4.9t | ₹673.6b | 18.3x | 19.5x | 2.7x |
| Thu, 14 Apr 2022 | ₹14.0t | ₹4.8t | ₹617.8b | 18.2x | 22.7x | 2.9x |
| Sat, 12 Mar 2022 | ₹11.6t | ₹4.8t | ₹617.8b | 18.3x | 18.8x | 2.4x |
| Mon, 07 Feb 2022 | ₹11.8t | ₹4.6t | ₹604.0b | 28.4x | 19.5x | 2.6x |
| Wed, 05 Jan 2022 | ₹11.2t | ₹4.5t | ₹590.2b | 28.5x | 19x | 2.5x |
| Fri, 03 Dec 2021 | ₹11.2t | ₹4.5t | ₹590.2b | 21.3x | 19x | 2.5x |
| Sun, 31 Oct 2021 | ₹10.7t | ₹4.4t | ₹538.3b | 18.6x | 19.8x | 2.4x |
| Tue, 28 Sep 2021 | ₹10.1t | ₹4.4t | ₹591.5b | 18.1x | 17x | 2.3x |
| Thu, 26 Aug 2021 | ₹9.2t | ₹4.4t | ₹591.4b | 16x | 15.6x | 2.1x |
| Fri, 02 Jul 2021 | ₹8.7t | ₹4.4t | ₹591.4b | 18.4x | 14.7x | 2x |
| Mon, 05 Apr 2021 | ₹7.5t | ₹4.1t | ₹504.8b | 15x | 14.9x | 1.8x |
| Thu, 07 Jan 2021 | ₹7.2t | ₹4.1t | ₹424.7b | 10x | 17.1x | 1.8x |
| Wed, 30 Sep 2020 | ₹5.5t | ₹4.1t | ₹388.4b | 8.7x | 14.3x | 1.3x |
| Sat, 04 Jul 2020 | ₹5.2t | ₹4.1t | ₹382.8b | 8.8x | 13.5x | 1.2x |
| Tue, 07 Apr 2020 | ₹4.1t | ₹4.3t | ₹410.0b | 7x | 9.9x | 0.9x |
| Fri, 10 Jan 2020 | ₹5.5t | ₹4.2t | ₹398.6b | 9x | 13.8x | 1.3x |
Price to Earnings Ratio
14.1x
Current Industry PE
- Investors are optimistic on the Indian Utilities industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 26.0x which is higher than its 3-year average PE of 17.0x.
- The 3-year average PS ratio of 2.0x is lower than the industry's current PS ratio of 3.1x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have grown 25% per year over the last three years.
- Revenues for these companies have grown 14% 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 Utilities sector?
| IN Market | 2.49% | |
| Utilities | 1.72% | |
| Water Utilities | 12.57% | |
| Renewable Energy | 3.01% | |
| Electric Utilities | 2.81% | |
| Other Utilities | 0% | |
| Gas Utilities | -1.22% | |
Industry PE
- Investors are most optimistic about the Gas Utilities industry which is trading above its 3-year average PE ratio of 18.8x.
- Analysts are expecting annual earnings growth of 8.9%, which is higher than its past year's earnings decline of 11.0% per year.
- Investors are most pessimistic about the Water Utilities industry, which is trading close to its 3-year average of 12.7x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 34% over the next 5 years.
- However this is lower than its past earnings growth rate of 57% per year.
- In contrast, the Gas Utilities industry is expected to see its earnings grow by 8.9% 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 | |
|---|---|---|---|---|---|
| ADANIGREEN Adani Green Energy | ₹2.12k | 3.9% +₹126.7b | 59.3% | PE792.6x | |
| 539254 Adani Transmission | ₹2.93k | 2.5% +₹80.3b | 62.2% | PE492.5x | |
| 532898 Power Grid Corporation of India | ₹224.00 | 4.1% +₹61.7b | 8.2% | PE10.5x | |
| NTPC NTPC | ₹172.20 | 2.5% +₹40.2b | 34.8% | PE9.9x | |
| ADANIPOWER Adani Power | ₹332.75 | 2.1% +₹26.2b | 228.6% | PE14x |