Nifty Corporate Earnings Analysis –
Q4 | 2016
by Rajat Sharma | May 12, 2016
Yesterday we analyzed earnings trend for constituent companies of the S&P CNX Nifty. On year-on-year basis (Q4 2015 to Q4 2016) corporate earnings showed a growth of 14.7%. In comparison, average stock prices went down by 1.9% during the same period*.
* Based on stock prices as on 31st March for each year.
** Based on 26 of the 50 companies comprising the S&P CNX Nifty that have declared results as of the date of this article.
Current PE Valuation of the Nifty = 21.30
Excel Calculation – 26 Nifty Company Result
Key Points about Corporate Earnings for Q4:
- The analysis is based on the results of 26 out of 50 Nifty companies which have declared earnings so far.
- Note – from April 1, 2016, Nifty has excluded Cairn, Vedanta, and PNB and included Aurobindo Pharma, Bharti Infratel, and Eicher Motors
- Earnings are improving while stock prices are showing a declining trend.
- On year-on-year basis there is an average growth of 14.7% in profitability. The benchmark Nifty went down 9 % in the same period.
- On a trailing basis markets remain expensive and are trading at valuations of 21.30 (PE).
- Most sectors have shown considerable improvement in profitability.
- Fundamentally (besides valuations) things are looking good at macro level.
- Pharma, Metals, Construction, Oil and Gas , Power companies are yet to announce their earnings for Q4 of FY 2016.
WE WILL BE UPDATING THIS ARTICLE ONCE REST OF THE COMPANIES DECLARE THEIR RESULTS OVER THE NEXT 1 MONTH.
BOOKMARK THIS SPACE.
Share this post
Don’t forget to leave a comment
Don’t forget to leave a comment
Other Posts
Other Posts
Vodafone Idea Default: Impact on Debt Mutual Funds
What really went wrong with Vodafone Idea? Brief background: Fifteen telecom companies owe over Rs 1.47 lakh crore to the Government of India in lieu of past license fees, spectrum charges, interest and penalties (“Adjusted Gross Revenue” or “AGR“). Vodafone Idea...
Top Dividend Paying Mutual Funds
Dividend Paying Mutual Funds – Typically, these mutual funds (i) invest in stocks, and; (ii) follow a strategy of investing in stocks that generate a higher dividend yield. When are Dividends paid to Investors? Mutual fund schemes declare dividends for its unit...
What’s causing the narrow stock market bull run?
When I don’t know how to get attention of people, I try this: Do you know that there are more people alive today than have ever died. Yes, you can fact check this. The number of people alive on this planet today outnumber (by far) the number of people who ever died on...
Free Investment Newsletter
Join us and connect with over 65,000 subscribers who benefit from our insights on the latest
in the world of stocks and personal finance.
Free Investment Newsletter
Join us and connect with over 65,000 subscribers who benefit from our insights on the latest
in the world of stocks and personal finance.
0 Comments