Sensex remains expensive against world market

Trading at historical P/E average earning downgrade to continue as pressure on low growth remains

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B G ShirsatAshok Divase Mumbai
Last Updated : Jan 21 2013 | 2:31 AM IST

For 2012-13, domestic and foreign brokerages expect the net profit of Sensex companies to grow around 14 per cent, to Rs 222,512 crore. So, at the current market capitalisation of Sensex companies, the one-year forward P/E is just around 13.

The European and US markets are comparatively cheap, trading at a P/E of 12-13 times earnings for calendar year 2011 and eight to 13 times for CY11. However, the earnings growth for US and European markets are likely to be double-digit, marginally below ours. According to a Bloomberg estimate, the earnings of Dow Jones companies are likely to be up 11.1 per cent in CY12, compared to 14 per cent for the 30-scrip Sensex. The index-based companies in England, Germany and France are expected to show earnings growth of 11-12 per cent in CY12.

ESTIMATES FOR SENSEX COMPANIES
NameSales (Rs  crore)Net profit (Rs  crore)
FY 11-12FY 12-13FY 11-12FY 12-13
Bajaj Auto19751.4722600.633152.83531.44
Bharti Airtel71775.2282483.764896.748133.2
BHEL48481.6649315.766462.336280.83
Cipla7009.308022.721109.381339.09
Coal India61743.6267715.1114658.4016816.03
DLF9545.1310571.781438.231784.83
GAIL39447.8743662.903889.684107.76
HDFC6060.907355.774020.374879.77
HDFC Bank17448.9221268.725157.956439.60
Hero MotoCorp23187.2326138.302386.112757.95
Hindalco77579.5780539.183100.163164.93
HUL22752.4725795.132698.593172.92
ICICI Bank18078.7921486.256365.507545.86
Infosys34316.9440234.478416.179843.22
ITC24869.4328735.175966.416808.99
JSPL17257.8519546.343989.734427.85
L & T54040.3861259.444240.504696.38
M & M29891.7034657.532666.442987.25
Maruti Suzuki34821.8042593.501508.282346.90
NTPC61621.7070797.248902.239724.55
ONGC146602.30162867.9426887.2928469.74
Reliance Ind330858.54327658.0920712.1121756.01
SBI55552.2462490.7311437.9214303.16
Sterlite Ind39653.9844617.935420.716153.16
Sun Pharma7686.959015.702346.342706.71
Tata Motors160261.79181179.3310600.7911969.43
Tata Power23556.3527941.30

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First Published: Mar 09 2012 | 12:17 AM IST

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