Stories
Nifty Valuations Drop to 15x FY28 Earnings, Unlocking Stock-Picking Opportunities
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CNBC TV18•09-10-2026, 16:16
Nifty Valuations Drop to 15x FY28 Earnings, Unlocking Stock-Picking Opportunities
- •Nifty valuations have corrected to around 15 times estimated FY28 earnings, down from 24-25 times in September 2024.
- •Gurmeet Chadha advises investors to focus on the PEG ratio and look beyond traditional sectors with single-digit EPS growth like IT and FMCG.
- •High-growth pockets include defense, solar, contract manufacturing, textiles, and CDMOs seeing massive capital expenditure.
- •Promoter-driven companies investing heavily in the future, such as Dixon Technologies, present strong multi-year revenue growth potential.
Key Questions Answered
Nifty valuations have corrected to around 15 to 15.5 times estimated earnings for the 2027-28 fiscal year (FY28), assuming an earnings per share of 1,410.
Distinct growth pockets and investment opportunities are opening up in sectors like defense, solar, contract manufacturing, textiles, and chemicals due to specific market shifts and capital expenditure cycles.
Part of the earlier underperformance was self-inflicted because large corporates missed the artificial intelligence industrial revolution and kept their research and development budgets below 1% of revenue.
