Indian (NIFTY) Financials Sector Analysis
UpdatedMay 08, 2024
DataAggregated Company Financials
Companies592
- 7D-3.2%
- 3M0.6%
- 1Y32.6%
- YTD6.5%
Over the last 7 days, the Financials industry has dropped 3.2%, driven by declines in Life Insurance Corporation of India and HDFC Bank of 4.9% and 2.5%, respectively. On the other hand REC is actually up 5.3%. This takes the industry's 12 month performance to a gain of 33%. As for the next few years, earnings are expected to grow by 12% per annum.
Sector Valuation and Performance
Has the Indian Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | ₹92.1t | ₹31.0t | ₹5.5t | 22.1x | 16.8x | 3x |
| Sat, 06 Apr 2024 | ₹93.8t | ₹29.7t | ₹5.2t | 22x | 18.2x | 3.2x |
| Mon, 04 Mar 2024 | ₹91.6t | ₹29.7t | ₹5.2t | 22.5x | 17.8x | 3.1x |
| Wed, 31 Jan 2024 | ₹92.2t | ₹30.4t | ₹5.4t | 22.4x | 16.9x | 3x |
| Fri, 29 Dec 2023 | ₹90.8t | ₹29.3t | ₹5.3t | 21.1x | 17.2x | 3.1x |
| Sun, 26 Nov 2023 | ₹83.0t | ₹29.5t | ₹5.4t | 20.5x | 15.5x | 2.8x |
| Tue, 24 Oct 2023 | ₹80.2t | ₹28.9t | ₹5.2t | 21.2x | 15.5x | 2.8x |
| Thu, 21 Sep 2023 | ₹82.4t | ₹28.5t | ₹5.0t | 21.9x | 16.4x | 2.9x |
| Sat, 19 Aug 2023 | ₹76.9t | ₹28.5t | ₹5.0t | 19.6x | 15.3x | 2.7x |
| Mon, 17 Jul 2023 | ₹76.9t | ₹26.6t | ₹4.6t | 23.7x | 16.6x | 2.9x |
| Wed, 14 Jun 2023 | ₹70.4t | ₹26.6t | ₹4.6t | 21.7x | 15.2x | 2.6x |
| Fri, 12 May 2023 | ₹68.4t | ₹26.3t | ₹4.4t | 20.8x | 15.6x | 2.6x |
| Sun, 09 Apr 2023 | ₹64.3t | ₹25.5t | ₹4.3t | 19.1x | 14.9x | 2.5x |
| Tue, 07 Mar 2023 | ₹65.0t | ₹25.4t | ₹4.3t | 19.6x | 15x | 2.6x |
| Thu, 02 Feb 2023 | ₹63.8t | ₹24.8t | ₹4.0t | 20.8x | 16.1x | 2.6x |
| Sat, 31 Dec 2022 | ₹68.4t | ₹24.2t | ₹3.8t | 21.4x | 18x | 2.8x |
| Mon, 28 Nov 2022 | ₹67.3t | ₹24.2t | ₹3.8t | 20x | 17.7x | 2.8x |
| Wed, 26 Oct 2022 | ₹63.6t | ₹23.6t | ₹3.5t | 20.6x | 18.1x | 2.7x |
| Fri, 23 Sep 2022 | ₹64.7t | ₹23.3t | ₹3.4t | 20.9x | 19.2x | 2.8x |
| Sun, 21 Aug 2022 | ₹63.0t | ₹23.3t | ₹3.4t | 20.1x | 18.7x | 2.7x |
| Tue, 19 Jul 2022 | ₹56.6t | ₹23.1t | ₹3.1t | 18.8x | 18.4x | 2.4x |
| Thu, 16 Jun 2022 | ₹54.7t | ₹23.2t | ₹3.1t | 18.1x | 17.8x | 2.4x |
| Sat, 14 May 2022 | ₹50.4t | ₹16.0t | ₹2.9t | 17.8x | 17.6x | 3.1x |
| Mon, 11 Apr 2022 | ₹59.0t | ₹15.8t | ₹2.7t | 19.6x | 22.2x | 3.7x |
| Wed, 09 Mar 2022 | ₹50.8t | ₹15.8t | ₹2.7t | 16.9x | 19.1x | 3.2x |
| Fri, 04 Feb 2022 | ₹60.2t | ₹15.5t | ₹2.5t | 18.9x | 23.7x | 3.9x |
| Sun, 02 Jan 2022 | ₹56.8t | ₹15.6t | ₹2.4t | 19.6x | 23.6x | 3.6x |
| Tue, 30 Nov 2021 | ₹56.9t | ₹15.6t | ₹2.4t | 16.7x | 23.5x | 3.7x |
| Thu, 28 Oct 2021 | ₹62.6t | ₹15.0t | ₹2.3t | 18.5x | 26.7x | 4.2x |
| Sat, 25 Sep 2021 | ₹59.5t | ₹14.7t | ₹2.3t | 18x | 26.1x | 4x |
| Mon, 23 Aug 2021 | ₹54.6t | ₹14.7t | ₹2.3t | 16.6x | 23.9x | 3.7x |
| Sat, 10 Jul 2021 | ₹53.8t | ₹14.7t | ₹2.3t | 15.1x | 23.6x | 3.7x |
Price to Earnings Ratio
24.4x
Current Industry PE
- Investors are pessimistic on the Indian Financials 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 16.8x which is lower than its 3-year average PE of 19.1x.
- The industry is trading close to its 3-year average PS ratio of 3.1x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 36% per year over the last three years.
- Revenues for these companies have grown 30% 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 Financials sector?
| IN Market | -1.98% | |
| Financials | -3.18% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Consumer Finance | -0.90% | |
| Capital Markets | -2.64% | |
| Diversified Financial | -3.13% | |
| Banks | -3.48% | |
| Insurance | -4.18% | |
Industry PE
- Investors are most optimistic about the Insurance industry even though it's trading below its 3-year average PE ratio of 43.5x.
- Analysts are expecting annual earnings growth of 13.5%, which is higher than its past year's earnings growth of 11.0% per year.
- Investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 17.7x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 17% over the next 5 years.
- However this is lower than its past earnings growth rate of 42% per year.
- In contrast, the Banks industry is expected to see its earnings grow by 10% 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 | |
|---|---|---|---|---|---|
| 500247 Kotak Mahindra Bank | ₹1.65k | 4.6% +₹144.7b | -15.8% | PB2.5x | |
| RECLTD REC | ₹534.00 | 5.3% +₹70.7b | 306.2% | PE10x | |
| 511243 Cholamandalam Investment and Finance | ₹1.26k | 5.9% +₹59.3b | 27.8% | PE31.1x | |
| 500490 Bajaj Holdings & Investment | ₹8.36k | 3.0% +₹27.4b | 21.2% | PE12.8x | |
| ICICIPRULI ICICI Prudential Life Insurance | ₹587.00 | 2.5% +₹20.3b | 30.2% | PE99.4x |