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Indian (NIFTY) Materials Sector Analysis
UpdatedMay 31, 2024
DataAggregated Company Financials
Companies696
- 7D-3.5%
- 3M9.0%
- 1Y35.5%
- YTD7.4%
Over the last 7 days, the Materials industry has dropped 3.5%, driven by Hindustan Zinc declining 7.3%. Meanwhile, Jindal Stainless actually outperformed within the industry, gaining 13% in the last week. In the past year, the industry has gained 35%. Earnings are forecast to grow by 22% 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 |
|---|---|---|---|---|---|---|
| Fri, 31 May 2024 | ₹46.5t | ₹23.9t | ₹1.3t | 26.7x | 35.1x | 1.9x |
| Sun, 28 Apr 2024 | ₹45.7t | ₹23.9t | ₹1.4t | 27.5x | 33.1x | 1.9x |
| Tue, 26 Mar 2024 | ₹41.3t | ₹24.0t | ₹1.4t | 24.3x | 29.8x | 1.7x |
| Thu, 22 Feb 2024 | ₹42.3t | ₹24.0t | ₹1.4t | 27x | 30.3x | 1.8x |
| Sat, 20 Jan 2024 | ₹42.4t | ₹24.4t | ₹1.4t | 27.6x | 30.8x | 1.7x |
| Mon, 18 Dec 2023 | ₹41.9t | ₹24.4t | ₹1.4t | 24.8x | 30.7x | 1.7x |
| Wed, 15 Nov 2023 | ₹38.2t | ₹24.3t | ₹1.4t | 24.3x | 27.9x | 1.6x |
| Fri, 13 Oct 2023 | ₹38.5t | ₹24.4t | ₹1.4t | 23.8x | 27.5x | 1.6x |
| Sun, 10 Sep 2023 | ₹38.9t | ₹24.4t | ₹1.4t | 24.2x | 27.9x | 1.6x |
| Tue, 08 Aug 2023 | ₹36.8t | ₹24.5t | ₹1.5t | 21.2x | 25.3x | 1.5x |
| Thu, 06 Jul 2023 | ₹35.8t | ₹24.5t | ₹1.6t | 19.8x | 23.1x | 1.5x |
| Sat, 03 Jun 2023 | ₹34.3t | ₹24.5t | ₹1.6t | 18.8x | 21.9x | 1.4x |
| Mon, 01 May 2023 | ₹33.4t | ₹24.1t | ₹1.8t | 17x | 18.4x | 1.4x |
| Wed, 29 Mar 2023 | ₹31.3t | ₹24.2t | ₹1.8t | 15.5x | 17.3x | 1.3x |
| Fri, 24 Feb 2023 | ₹32.2t | ₹24.2t | ₹1.8t | 16.3x | 17.8x | 1.3x |
| Sun, 22 Jan 2023 | ₹33.9t | ₹23.6t | ₹2.1t | 17.3x | 16.3x | 1.4x |
| Tue, 20 Dec 2022 | ₹34.3t | ₹23.6t | ₹2.1t | 17.4x | 16.6x | 1.5x |
| Thu, 17 Nov 2022 | ₹33.5t | ₹23.5t | ₹2.1t | 16.6x | 16.2x | 1.4x |
| Sat, 15 Oct 2022 | ₹32.6t | ₹22.6t | ₹2.4t | 16.7x | 13.5x | 1.4x |
| Mon, 12 Sep 2022 | ₹34.0t | ₹22.6t | ₹2.4t | 16.8x | 14.1x | 1.5x |
| Wed, 10 Aug 2022 | ₹32.4t | ₹22.1t | ₹2.4t | 15.8x | 13.5x | 1.5x |
| Fri, 08 Jul 2022 | ₹28.9t | ₹21.1t | ₹2.5t | 14.8x | 11.8x | 1.4x |
| Sun, 05 Jun 2022 | ₹30.3t | ₹21.1t | ₹2.5t | 15.5x | 12.4x | 1.4x |
| Tue, 03 May 2022 | ₹34.2t | ₹19.6t | ₹2.3t | 16.9x | 14.7x | 1.7x |
| Thu, 31 Mar 2022 | ₹33.7t | ₹19.4t | ₹2.3t | 15.8x | 14.5x | 1.7x |
| Sat, 26 Feb 2022 | ₹30.2t | ₹19.7t | ₹2.4t | 13.9x | 12.6x | 1.5x |
| Mon, 24 Jan 2022 | ₹34.1t | ₹18.5t | ₹2.3t | 17.2x | 15x | 1.8x |
| Wed, 22 Dec 2021 | ₹32.3t | ₹18.3t | ₹2.3t | 14.5x | 14.3x | 1.8x |
| Fri, 19 Nov 2021 | ₹33.1t | ₹18.2t | ₹2.3t | 15.5x | 14.7x | 1.8x |
| Sun, 17 Oct 2021 | ₹35.2t | ₹16.8t | ₹1.9t | 17.1x | 18.5x | 2.1x |
| Tue, 14 Sep 2021 | ₹34.2t | ₹16.8t | ₹1.9t | 16.1x | 18.2x | 2x |
| Thu, 12 Aug 2021 | ₹32.6t | ₹16.7t | ₹1.9t | 16x | 17.2x | 2x |
| Mon, 07 Jun 2021 | ₹29.3t | ₹14.7t | ₹1.3t | 16x | 22.6x | 2x |
Price to Earnings Ratio
22.6x
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 35.1x which is higher than its 3-year average PE of 19.9x.
- The 3-year average PS ratio of 1.6x is lower than the industry's current PS ratio of 1.9x.
Past Earnings Growth
- The earnings for companies in the Materials industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 18% 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 and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Indian Materials sector?
| IN Market | -2.43% | |
| Materials | -3.54% | |
| Chemicals | -1.93% | |
| Basic Materials | -3.18% | |
| Paper and Forestry Products | -3.42% | |
| Packaging | -4.70% | |
| Metals and Mining | -5.21% | |
Industry PE
- Investors are most optimistic about the Chemicals industry which is trading above its 3-year average PE ratio of 31.2x.
- Analysts are expecting annual earnings growth of 19.3%, which is higher than its past year's earnings decline of 2.7% per year.
- Investors are most pessimistic about the Paper and Forestry Products industry, which is trading below its 3-year average of 19.3x.
Forecasted Growth
- Analysts are most optimistic on the Metals and Mining industry, expecting annual earnings growth of 34% over the next 5 years.
- This is better than its past earnings growth rate of 22% per year.
- In contrast, the Basic Materials industry is expected to see its earnings grow by 5.7% 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 | |
|---|---|---|---|---|---|
| JSL Jindal Stainless | ₹793.50 | 12.5% +₹72.6b | 173.1% | PE24.1x | |
| 500440 Hindalco Industries | ₹689.25 | 2.4% +₹35.9b | 63.8% | PE15.1x | |
| COROMANDEL Coromandel International | ₹1.31k | 4.3% +₹15.9b | 37.2% | PE23.4x | |
| SUMICHEM Sumitomo Chemical India | ₹463.65 | 5.3% +₹11.7b | 15.2% | PE62.6x | |
| EIDPARRY E.I.D.- Parry (India) | ₹668.05 | 6.7% +₹7.4b | 37.4% | PE13.2x |
