7/28/2019 Stock Stats

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HOW HAVE the Indian markets done in the just-concluded financial year, and are shares pricedattractively at the moment? As Table 1 shows, the

Indian indices have not exactly outperformed their peers in 2012-13. In fact, they’ve been beaten by most developing-worldmarkets — though returns in the Shanghai market continue to besluggish. More interestingly, as Table 2 shows, gains in the Indianmarket are concentrated among larger companies; small- andmedium-capitalisation companies have seen their shares take a

beating. The slowdown in manufacturing in the larger economy isreflected in the sectoral movement of share prices, as well. Capital

goods, power, and metals are the three sectors which have seentheir share prices dive the most. On the other hand,consumer-facing and services industries — defensive sectors likefast-moving consumer goods and health care as well asinformation technology — have seen their prices go upthe most.

What of price-earnings ratios? According to Table 3, the Indianmarkets are in the 14-15 range, which many analysts would claimis underpriced for a developing economy. The US, German and

French markets are in the same range – which has worryingimplications if global investors suddenly tack on a risk premium to

portfolio investments in India. Of course, as Table 4 shows, smallercompanies are also much cheaper companies in terms of theirprice-earnings ratio. And, as Table 4 also shows, defensive sectorslike FMCG should continue to be considered extremely expensivecompared to the rest of the market, while most other sectors haveseen P/E ratios decline over 2012-13.

Unsurpisingly, the big individual gainers this year have beenshares in IT and consumer goods companies, as Table 5 shows;the big losers are the core sector majors. Finally, Table 6 shows

those larger companies that have under- and out-performedtheir sectors.

STATSGURU: The story for stocks in 2012-13

Compiled by BS Research BureauStatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines

Source: Bloomberg

Top 10 sectors

*P/E is the aggregate of last day of FY’s m-cap of the sector/index divided by the aggregate net profit (trailing 12 months), after excluding loss-making companies

5: SHARES THAT DID BEST AND WORST, OVERALL...Nifty’s biggestgainers and losers, 2012-13 (% change)

Source: Bloomberg Source: BSE

6: ...AND, THOSE THAT STOOD OUT IN THEIR SECTORSDifferential over sector in percentage points

Filtered for top 200 companies on Mcap

Sensex Nifty BSE 100 BSE 200 BSE 500 BSE BSE IndiaMid-cap Small-cap Inc

DOW JONES FTSE 100 CAC 40 DAX NIKKEI 225 SHANGHAI Sensex NiftySE COMPO

Selec

ted indices by company size

4: ...BUT DEFENSIVE SECTORS ARE DEFINITELY PRICED HIGHER THAN OTHERSPrice-earning ratios, selected sub-groups of the Indian markets, 2011-12 and 2012-13 (%) FY12 FY13

2: BIGGER COMPANIES, DEFENSIVE SHARES DO BETTERSelected Indian indices, percentage gains in 2012-13

S&P BSE, by market cap S&P BSE, sec

toral

1: INDIA’S MARKETS DON’T BEAT THE WORLDWorld equityindices, percentage gains in 2012-13

Banks IT- Crude oil & Pharma FMCG Min ing & Auto- Power Ref iner iessoftware gas Finance minerals mobile

3: NOR ARE INDIAN MARKETS CHEAPER...Price-earnings ratios, selected world markets, 2011-12 and 2012-13 (%)FY12 FY13

DOW JONES DAX FTSE 100 CAC 40 NIKKEI 225 SHANGHAI NSE CNX S&P BSEINDUS. AVG INDEX SE COMP NIFTY SENSEX  

Companies outper

forming Companies underper

formingTop 5 gainers Top 5 losers

HCL Asian Sun ITC TCS Reliance Jindal Tata BHEL HindalcoTechno Paints Pharma Infra Steel & Steel Ind

Power

S&P MID- SMALL- FMCG Healthcare Tech Cap goods Power MetalBSE 100 CAP CAP

6.8410.34

12.2111.15

8.98

22.34

-1.17

7.318.23

20.86

13.21

-10.08

31.74

-21.26-22.81

-3.22

-12.44

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    (    P    h   a   r   m   a   c   e   u    t    i   c   a    l   s    )

    U   n    i    t   e

    d    B   r   e   w   e   r    i   e   s

    (    A    l   c   o    h   o    l    i   c    b   e   v   e   r   a   g   e   s    )

    I    F    C    I

    (    F    i   n   a   n   c   e    )

    H    i   n    d   u

   s    t   a   n    C   o   p   p   e   r

    (    N   o   n  -    f

   e   r   r   o   u   s   m   e    t   a    l   s    )

    G

    i    l    l   e    t    t   e    I   n    d    i   a

    (    F    M    C    G    )

    C   e   n    t   r   a    l    B   a   n    k

    (    B   a   n    k   s    )

    U

   n    i    t   e    d    S   p    i   r    i    t   s

    (    A    l   c   o    h   o    l    i   c    b   e   v   e   r   a   g   e   s    )

    A   m   a   r   a    R   a    j   a    B   a    t    t   e   r    i   e   s

    (    A   u    t   o

   a   n   c    i    l    l   a   r    i   e   s    )

    G    i    t   a   n    j   a    l    i    G   e   m   s

    (    J   e   w   e    l    l   e   r   y    )

    P   r   e   s    t    i   g   e

    E   s    t   a    t   e   s    P   r   o    j

    (    R   e   a    l    t   y    )