- Wealth PMS (50L+)
The Nifty Earnings Per Share Growth (standalone) is at 7.4% as of March 30, 2012. The number is 283, up from 263 last year.
Five years ago, the Nifty EPS was 207. The Rs. 75 per share growth in five years is a mere 6.5% per year. Coincidentally, even the Nifty has gone up just 6.5% per year since then. (From 3800 to 5300)
As I’ve said earlier, the EPS growth isn’t very much and the current P/E ratio still shows 19. Even though the consolidated P/E is lower at around 16, one needs to see a better rise in EPS to justify these valuations. (Yes, I need to plot change in consolidated EPS as well).