Quant – Navigating Crests & Troughs – July’26 Sectoral PE trend
Published on 03 Aug 2026
Overall, Jul’26 valuations remained broadly similar to Jun’26. Capital Goods, Cements, Chemicals, Automobiles, Auto Parts & Equipment, Textiles, Consumer Durables, Metals & Mining, Oil & Gas and Pharma continued to trade above their LTAs. Notably, Automobiles and Pharma moved above their SD (+1) levels, while Auto Parts & Equipment approached its SD (+1) threshold. Hospitals also moved from trading broadly in line with its LTA to a slight premium.
Defence and Power Generation & Distribution remained the most expensive sectors, trading well above their LTAs and SD (+1) levels despite some moderation in Defence valuations. In contrast, IT, FMCG, Hotels, Agro Chemicals, Building Materials, Real Estate and Retail remained below their LTAs, with Retail continuing to be the most undervalued sector. Overall, most sectors remained within their historical valuation bands, indicating a broadly balanced market environment.
