- Wealth PMS (50L+)
The Nifty Earnings Per Share (EPS) Growth – as revealed by the National Stock Exchange – is slowing.
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.