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 EPS Growth Slows To 26 Month Low

The Nifty Earnings Per Share (EPS) Growth – as revealed by the National Stock Exchange – is slowing.

image

We are again diverging from the P/E which has now crossed 19.

If you think that looking at one year is bad, then let’s see longer terms. EPS Growth of the Nifty, annualized for:

1 year: 7.37%

2 years: 9.5%

3 years: 10.0%

4 years: 4.6%

5 years: 6.2%

7 years: 10.0%

These are not figures that warrant a 19 P/E, to be honest. Don’t get me wrong, 10% or 8% are good growth rates. But when you pay a P/E of 15-21, you would expect more, one thinks.