Wed, Mar 8, 2023

Industry Multiples in India Report 2022 - 19th Edition

We are pleased to launch the 19th edition of our Industry Multiples in India. Read more.

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Umakanta Panigrahi

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Aviral Jain

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Sanjay Ray

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Industry Multiples in India Report 2022 – 19th Edition

We are pleased to launch the 19th edition of our Industry Multiples in India report. The report provides an overview of trading multiples for various key industries in India as of December 31, 2022, using constituents belonging to the S&P BSE LargeCap, S&P BSE MidCap and S&P BSE SmallCap indices.

The World Bank revised its GDP growth forecast for India from 6.5% to 6.9%, stating the country’s higher resilience to global shocks. Indian economic activity has strengthened in the first nine months of CY22 despite challenging global growth conditions caused by slowing growth in major trade partners (such as the U.S., UK and China), the Russia-Ukraine war and persistent global supply disruptions.

Key Highlights

Market capitalization of companies in the banking industry has increased by 29.8% from Q3 CY22 to Q4. Healthy economic activity, pickup in credit growth and improvement in asset quality are the key drivers of the run-up in banking stocks.
Market capitalization of companies in the metals and mining industry has increased by 18.0% from Q3 CY22 to Q4 CY22. China is a big buyer of metals in the global market, and the market assumes that easing COVID-19 restrictions will lead to the revival of industrial activity, thus increasing the demand for metals.
Market capitalization of companies in the construction and engineering industry has increased by 11.8% from Q3 CY22 to Q4 CY22. This sector is expected to grow substantially in the coming quarters due to an increase in capital expenditure outlay in the budget for FY23.
Market capitalization of companies in the consumer finance industry has increased by 5.2% from Q3 CY22 to Q4 CY22. Credit growth has inched up above 16.0%, approximately. This growth is seen after a prolonged period of time. Some of the key drivers of this growth are i) capital expenditure revival in the economy; ii) growth in the manufacturing sector; and iii) general demand revival leading to higher inventory funding, etc. While credit growth is inching up, interest rates are also on the upcycle trajectory due to repo rate increase.

We hope you find this report helpful. Connect with us to receive additional information on related topics or discuss any findings of this analysis.

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Industry Multiples in India Report 2022 – 18th Edition

The 18th edition of our Industry Multiples in India report provides an overview of trading multiples for various key industries in India as of September 30, 2022, using constituents belonging to the S&P BSE LargeCap, S&P BSE MidCap and S&P BSE SmallCap indices.