Samco Securities
February 25, 2025 at 10:02 AM
📉 Market Downturn & 📊 Sectoral Indices: 🔎 Discovering Valuation Comfort 💰
In the ongoing market downturn 📉 since the end of September 2024, stocks across all the sectors have witnessed a significant decline. 54% of the top 500 market capitalization stocks have fallen over 20% from their levels on September 30, 2024
The price correction has led to a decline 🔻 in valuation multiples: Price to Book Value (PB) and Price to Equity (PE)
The PB of the Metal index has fallen the most, by 🔻 51.27%, as the index has experienced the steepest decline of 📊 30.90%. Its PE ratio is not presented due to 📉 negative earnings
Nifty Metal’s PE multiple has fallen the most by 🔻 42.05%. This valuation comfort makes 🏭 top metal stocks and other sectoral stocks an attractive 💰 investment opportunity for the long term 📈
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