On year-on-year basis (from Q2 FY 2018 to Q2 FY 2019), Nifty 50 earnings – Q2 FY 2019* showed a growth of 8.19%. In comparison, average stock prices went down by 2.49% during the same period**.

*Based on 44 companies which have declared results

**Based on stock prices as on 12th November for each year.

Current PE Valuation of the Nifty = 25.46 (12th November, 2018)


Key Points about Nifty 50 Earnings – Q2 FY 2019 – Result Analysis:

  1. The analysis is based on the results of 44 out of 50 Nifty companies which have declared results so far.
  2. Earnings are improving and in the last few months, stock markets have shown some correction.
  3. On year-on-year basis there is an average growth of 8.19% in terms of profitability. And Nifty has gone down by ~3% during the same period**.
  4. We expect the markets to rise by 10-15% over the next 12 month period.
  5. Valuation-wise, markets are still expensive; trading at PE multiple of 25.46 on trailing basis.
  6. The broad analysis shows mixed bag of earnings from companies within a single sector like automobiles and banking  – some players have done well while others have lagged behind.
  7. Fun Fact: If you remove the telecom sector (biggest loser) from the above, the remaining 42 companies earnings have improved over 10.19% y-o-y.

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