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:
- The analysis is based on the results of 44 out of 50 Nifty companies which have declared results so far.
- Earnings are improving and in the last few months, stock markets have shown some correction.
- 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**.
- We expect the markets to rise by 10-15% over the next 12 month period.
- Valuation-wise, markets are still expensive; trading at PE multiple of 25.46 on trailing basis.
- 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.
- 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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