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Quick Nifty PE post

Deepak Shenoy1 min read
Quick Facts
What is "Quick Nifty PE post" about?
What category is this article in?
General
Who wrote this article?
Deepak Shenoy, Capitalmind's research team.
When was this article published?
Published 31 August 2009.
How long does this article take to read?
1 min read

A quick take on the Nifty P/E and EPS growth till now:

(Click for a larger image)

At the 4700 levels we are at a P/E of 20.94, which translates to an EPS of about 223. This is an EPS growth, over the same time last year, of a NEGATIVE 5.89%. (We were at 236.57 last year; that was another lackluster 7% growth from 2007. Take a look at the flattening EPS chart of the Nifty:

(Click for a larger image)

We’ve been flattening on EPS for a while now. In fact, TWO years ago, in 2007, the Nifty EPS was 221.06 - speaking tomes; even the Nifty then was at the 4500 levels. Two years and we haven’t gone anywhere; on the Index OR on the Index EPS. The 9% and 6% GDP growth hasn’t quite impacted our Earnings Per Share, it seems.