Friday, February 5, 2010

Sensex - Nifty EPS after Q3FY10

Sensex EPS stands at Value-16224.95/PE-20.11=INR 806.81 as per BSE on 4 February 2010. Nifty EPS stands at Value-4845.35/PE-20.84=INR 232.5 as per NSE. ACC and Ambuja results were still not counted so this may change a little bit.
S&P CNX 500 EPS stands at Value-4139.7/PE-18.6=INR 222.56. BSE500 EPS stands at Value-6484.64/PE-20.06=INR 323.26 while that of BSE SMALLCAP EPS stands at Value 8344.74/PE-16.02=INR 520.895.

The following table may summarize better:

DateSensexNiftyS&P CNX 500BSE 500BSE SMALLCAP
Jan 7, 2008734.39222.629203.26295.67603.15
Mar 9, 2009702.27210.74174.99254.52482.61
Feb 4, 2009721.71210.91174.92278.62599.46
Two Year CAGR4.8%2.19%4.64%4.56%-7.07%

This shows that even though the profits of Indian companies may have risen by 20-25%, due to dilution of equity, the EPS has risen by 10-12% for Sensex and Nifty. The rise in EPS for broader indices like S&P CNX 500 and BSE500 is more due to the fact that they fell more too compared to Jan 7, 2008 levels. For all the indices, the EPS growth is less than 10% when compared to January 7, 2008 in two years, i.e. less than 5% compounded annually and negative for BSE SMALL CAP index. People are still optimistic and saying INR 1250 EPS for Sensex and INR 375 EPS for Nifty in FY12. Pretty stupid forecasting.
Bookmark and Share

No comments:

Related Posts with Thumbnails