PE Divergence in Nifty 50 Stocks: Trent, Eternal at the Top in the 100x PE Club; Tata Motors, ONGC Down

India’s equity benchmark Nifty 50 now includes 3 companies trading at PE ratios above 100x.

This has created a wide valuation gap within the index. On one end, Coal India trades at just 6.74x earnings, while on the other, companies like Eternal (459x), Jio Financial (126x), represent the new high-valuation growth cohort.

Here’s a quick look at the three highest and three lowest PE stocks in the Nifty50.

Top 3 Nifty 50 Stocks by PE Ratio

Note: The list of top 3 Nifty 50 stocks is ranked based on the PE ratio and is as of July 16, 2025.

Bottom 3 Nifty 50 Stocks by PE Ratio

Note: The list of bottom 3 Nifty 50 stocks is ranked based on the PE ratio and is as of July 16, 2025.

What is PE Ratio and Why It Matters?

The Price-to-Earnings (PE) ratio is one of the most commonly used metrics to value a stock. It measures the relationship between a company’s current share price and its earnings per share (EPS).

A high PE ratio can indicate that investors are willing to pay a premium today. Conversely, a low PE ratio might suggest the stock is undervalued.

However, PE ratios don’t tell the whole story. Different sectors have different typical PE ranges, and growth expectations, market cycles, or one-time earnings impacts can all influence the number. That’s why it’s important to view the PE ratio in context not just in isolation.

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Conclusion

The presence of both high and low PE stocks in the Nifty 50 highlights the diversity of businesses and investor expectations within the index. While PE ratio remains a useful tool for initial stock screening, it’s just one part of the broader investment puzzle.

Investors are best served by looking beyond the number factoring in business models, sector trends, and earnings consistency to make informed decisions aligned with their goals and risk appetite.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing