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The Sensational Sensex EPS Story


So I read through some past projections of the Sensex EPS as of March 09.

Don’t diss these people, those were very different days. Now where are we today?

As of July 4, Sensex is at 13454, and P/E as given in the BSE web site is 16.61. This translates to an EPS of Rs. 810.

To get to Rs. 1,000 we need 25% growth over the next 9 months. Annualised, that is 33% growth! [Correction: The Sensex EPS is as of March 08, so we need only 25% growth. But I stand with the rest of the figures – maybe a 10 or 20 buck higher EPS on the sensex in 09. Thanks Ninad for the feedback.] With Inflation, interest rates, global slowdown, this is going to be really tough. If we get to 900 by March 09, that would be good – and 12 P/E there is about 10,800 on the Sensex.

This is just something to have in mind when people tell you that at 12,000 Sensex P/E is 12, and darn cheap and all that.


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