Investors Shouldn't Be Too Comfortable With Ashok Leyland's (NSE:ASHOKLEY) Earnings
May 31
Indian (NIFTY) Industrials Sector Analysis
UpdatedJun 03, 2024
DataAggregated Company Financials
Companies889
- 7D-0.9%
- 3M18.7%
- 1Y84.7%
- YTD32.4%
Over the last 7 days, the Industrials industry has remained flat, although notably Hindustan Aeronautics declined by 3.7%. The past year has been better, since the industry has gained 85% in that time. Earnings are forecast to grow by 21% annually.
Sector Valuation and Performance
Has the Indian Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 03 Jun 2024 | ₹58.1t | ₹19.9t | ₹2.1t | 33.3x | 28.2x | 2.9x |
| Wed, 01 May 2024 | ₹51.4t | ₹13.9t | ₹1.0t | 35.5x | 49.8x | 3.7x |
| Fri, 29 Mar 2024 | ₹47.1t | ₹13.8t | ₹1.0t | 31.3x | 45.5x | 3.4x |
| Sun, 25 Feb 2024 | ₹46.3t | ₹13.8t | ₹1.0t | 33.7x | 44.9x | 3.4x |
| Tue, 23 Jan 2024 | ₹44.3t | ₹13.5t | ₹966.5b | 33.4x | 45.8x | 3.3x |
| Thu, 21 Dec 2023 | ₹40.1t | ₹13.4t | ₹960.5b | 29.6x | 41.7x | 3x |
| Sat, 18 Nov 2023 | ₹36.7t | ₹13.4t | ₹955.2b | 29.1x | 38.4x | 2.7x |
| Mon, 16 Oct 2023 | ₹36.2t | ₹13.2t | ₹915.6b | 30.2x | 39.6x | 2.7x |
| Wed, 13 Sep 2023 | ₹35.6t | ₹13.1t | ₹917.8b | 29x | 38.8x | 2.7x |
| Fri, 11 Aug 2023 | ₹33.5t | ₹13.0t | ₹908.6b | 28.9x | 36.9x | 2.6x |
| Sun, 09 Jul 2023 | ₹31.2t | ₹12.8t | ₹881.9b | 27.4x | 35.4x | 2.4x |
| Tue, 06 Jun 2023 | ₹29.6t | ₹12.8t | ₹878.2b | 25.4x | 33.7x | 2.3x |
| Thu, 04 May 2023 | ₹27.0t | ₹12.4t | ₹806.5b | 23.1x | 33.5x | 2.2x |
| Sat, 01 Apr 2023 | ₹25.2t | ₹12.4t | ₹798.5b | 20.9x | 31.6x | 2x |
| Mon, 27 Feb 2023 | ₹24.2t | ₹12.2t | ₹781.0b | 21x | 30.9x | 2x |
| Wed, 25 Jan 2023 | ₹27.1t | ₹11.8t | ₹747.2b | 23.8x | 36.3x | 2.3x |
| Fri, 23 Dec 2022 | ₹27.3t | ₹11.7t | ₹734.9b | 23.1x | 37.1x | 2.3x |
| Sun, 20 Nov 2022 | ₹27.9t | ₹11.7t | ₹727.8b | 23.5x | 38.3x | 2.4x |
| Tue, 18 Oct 2022 | ₹26.0t | ₹11.0t | ₹653.4b | 23.7x | 39.8x | 2.4x |
| Thu, 15 Sep 2022 | ₹27.7t | ₹11.0t | ₹651.1b | 23.8x | 42.5x | 2.5x |
| Sat, 13 Aug 2022 | ₹24.8t | ₹10.9t | ₹637.2b | 22x | 38.9x | 2.3x |
| Mon, 11 Jul 2022 | ₹22.2t | ₹10.0t | ₹590.3b | 22x | 37.5x | 2.2x |
| Wed, 08 Jun 2022 | ₹21.9t | ₹10.0t | ₹590.1b | 22.2x | 37.2x | 2.2x |
| Fri, 06 May 2022 | ₹21.9t | ₹9.7t | ₹516.8b | 22.8x | 42.3x | 2.3x |
| Sun, 03 Apr 2022 | ₹22.1t | ₹9.5t | ₹521.9b | 21.9x | 42.3x | 2.3x |
| Tue, 01 Mar 2022 | ₹20.9t | ₹9.5t | ₹520.4b | 20.7x | 40.1x | 2.2x |
| Thu, 27 Jan 2022 | ₹21.9t | ₹9.1t | ₹496.2b | 24.2x | 44.2x | 2.4x |
| Sat, 25 Dec 2021 | ₹21.4t | ₹9.1t | ₹494.5b | 21.6x | 43.2x | 2.4x |
| Mon, 22 Nov 2021 | ₹21.7t | ₹9.0t | ₹485.2b | 20.1x | 44.7x | 2.4x |
| Wed, 20 Oct 2021 | ₹21.5t | ₹8.7t | ₹440.6b | 25.4x | 48.7x | 2.5x |
| Fri, 17 Sep 2021 | ₹20.5t | ₹8.8t | ₹444.6b | 23.4x | 46.1x | 2.3x |
| Sun, 15 Aug 2021 | ₹18.9t | ₹8.9t | ₹444.5b | 21.4x | 42.4x | 2.1x |
| Thu, 10 Jun 2021 | ₹17.2t | ₹8.1t | ₹353.0b | 22.3x | 48.7x | 2.1x |
Price to Earnings Ratio
48.7x
Current Industry PE
- Investors are pessimistic on the Indian Industrials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 28.2x which is lower than its 3-year average PE of 40.1x.
- The 3-year average PS ratio of 2.5x is lower than the industry's current PS ratio of 2.9x.
Past Earnings Growth
- The earnings for companies in the Industrials industry have grown 80% per year over the last three years.
- Revenues for these companies have grown 35% 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 Industrials sector?
| IN Market | -1.89% | |
| Industrials | -0.94% | |
| Infrastructure | 1.19% | |
| Construction | 0.37% | |
| Trade Distributors | 0.044% | |
| Airlines | 0% | |
| Machinery | -0.44% | |
| Electrical | -0.97% | |
| Building | -1.24% | |
| Aerospace & Defense | -1.89% | |
| Transportation | -2.72% | |
| Professional Services | -3.04% | |
| Industrials | -3.07% | |
| Logistics | -3.61% | |
| Commercial Services | -5.11% | |
| Marine and Shipping | -6.25% | |
Industry PE
- Investors are most optimistic about the Trade Distributors industry even though it's trading below its 3-year average PE ratio of 95.4x.
- Analysts are expecting annual earnings growth of 45.8%, which is higher than its past year's earnings growth of 30.0% per year.
- Investors are most pessimistic about the Professional Services industry, which is trading below its 3-year average of 38.6x.
Forecasted Growth
- Analysts are most optimistic on the Trade Distributors industry, expecting annual earnings growth of 46% over the next 5 years.
- This is better than its past earnings growth rate of 30% per year.
- In contrast, the Aerospace & Defense 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 500510 Larsen & Toubro | ₹3.67k | 1.1% +₹57.0b | 64.1% | PE38.9x | |
| 534618 Waaree Renewable Technologies | ₹2.39k | 27.3% +₹53.4b | 1,220.3% | PE168.3x | |
| ADANIPORTS Adani Ports and Special Economic Zone | ₹1.44k | 1.5% +₹46.0b | 95.1% | PE36.2x | |
| ASHOKLEY Ashok Leyland | ₹224.00 | 6.3% +₹39.1b | 53.3% | PE26.5x | |
| JWL Jupiter Wagons | ₹602.20 | 14.7% +₹31.7b | 364.7% | PE74.9x |
