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Quick Nifty PE post

A quick take on the Nifty P/E and EPS growth till now:

Quick Nifty PE post

(Click for a larger image)

At the 4700 levels we are at a P/E of 20.94, which translates to an EPS of about 223. This is an EPS growth, over the same time last year, of a NEGATIVE 5.89%. (We were at 236.57 last year; that was another lackluster 7% growth from 2007. Take a look at the flattening EPS chart of the Nifty:

Quick Nifty PE post

(Click for a larger image)

We’ve been flattening on EPS for a while now. In fact, TWO years ago, in 2007, the Nifty EPS was 221.06 – speaking tomes; even the Nifty then was at the 4500 levels. Two years and we haven’t gone anywhere; on the Index OR on the Index EPS. The 9% and 6% GDP growth hasn’t quite impacted our Earnings Per Share, it seems.

  • Sridhar says:

    >Two words: stock dilution. Comparing the top line may throw more light on this. Keep up the good work.

  • Deepak Shenoy says:

    >True, stock dilution exists, but EPS is really the only relevant measure. If one considers purely revenue (or profit) I could always get HAJAAR capital and put it in a bank account, get extra money just from interest, and claim higher revenue/profit – but my EPS will go down the drain!

  • foggy says:

    >Humm so are we saying that the growth/de growth in stock market in future yrs will only come from contraction/expansion of PE and not real fundamental EPS growth..makes me worried about the whole road to 50K story!

  • maurya says:

    >It means, India is not a 30% growth story that media is keep humming. Do you think, we might not see significant growth going forward.