Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Charts & Analysis

Nifty Earnings Per Share Growth at 6.76%

Nifty’s EPS growth has just not happened, again stagnating at 238, a growth of 6.76% over last year. The current P/E ratio is 22.76.

This is after most of the Q1 2011 results are in, and we saw exemplary growth in the economy. Are the top 50 companies so far distanced from our economy?

On a normalized level (taking the P/E of last year, versus actual growth seen today) here’s the distressingly widening gap. The blue line is the P/E last year (the “Expectation”) and the maroon line the actual growth this year (the “Reality”). Markets have in the last two years been terribly optimistic. NIFTY EPS Growth at 6.76%, August 2010

In the past, EPS growth peaked about one quarter before the markets fell,and we see a relative EPS growth peak in May 2010; is this the time that markets start to underperform (compared to say fixed deposits)?

  • Anonymous says:

    >Hmm……..very pretty and good looking chart you got here.

    Now all the nse needs to do is kick out the mobile companies and put in more banks and consumer company for the EPS growth ……….what stops them right isn't the mobile story over………. maybe even micro finance which seems to becoming the next bubble. the opportunities are endless.

  • Shivavish says:

    >Could Nifty Manage To Sustain Above the level of 5400?