India Inc. September numbers are more or less in line with the market expectations. But there is one very important sign and that is the topline growth is mere 11 percent. Which is not very healthy for the long-term growth story of India. If you remove the niminal inflation which would be in the region of six per cent, it gives an indication that volume growth is somewhere in the region of five percent in september quarter. This makes topline growth lowest in the last 10-12 quarters. But one quarter numberis not good enough to judge the trend and we hope that this is more of an aberration than a trend as India Inc's other indicators continue to show robust growth.
The growth in the bottomline of India Inc. is healthy at 23 per cent, something we had predicted in our cover story of September results. This growthhas been well-spread amongst small, medium and large companies. If India Inc. continues to grow at the same pace in its bottomline, then I see no reason why it should not command P/E of 20x, which it is commanding at the moment.
The growth in the bottomline of India Inc. is healthy at 23 per cent, something we had predicted in our cover story of September results. This growthhas been well-spread amongst small, medium and large companies. If India Inc. continues to grow at the same pace in its bottomline, then I see no reason why it should not command P/E of 20x, which it is commanding at the moment.
No comments:
Post a Comment